The wheel loaders market size has the potential to grow by USD 16.67 billion during 2020-2024, and the market’s growth momentum will accelerate during the forecast period, according to this Techavio report
The wheel loaders market is fragmented. The numerous manufacturers present in the market offer a broad portfolio of products, which are designed to meet the different needs of the construction and agriculture industries. Hitachi Construction Machinery Co. Ltd., J C Bamford Excavators Ltd., Komatsu Ltd., Terex Corp., and Yanmar Holdings Co. Ltd. are some of the major market participants.
Although the stabilization of global crude oil prices will offer immense growth opportunities, growing rental equipment market will challenge the growth of the market participants. To make the most of the opportunities, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
Wheel Loaders Market: Segmentation by Region
APAC was the largest wheel loader market in 2019, and the region will offer several growth opportunities to market vendors during the forecast period.
Rise in agricultural activities, growing construction activities in emerging economies, and increased government spending on infrastructure development will significantly influence wheel loaders market growth in this region.
Almost 57% of the market’s growth will originate from APAC during the forecast period. China, Japan, and India are the key markets for wheel loaders in APAC. Market growth in this region will be faster than the growth of the market in other regions.
Growing investments in the real estate sector, as well as the declining average household size, are expected to increase the number of households worldwide, thus driving the demand for new housing. Apart from the residential sector, the non-residential sector is also set to witness a heavy influx of investments, particularly in the manufacturing, social, transportation, and telecommunication sectors. These factors are expected to boost the demand for wheel loaders from the construction industry during the forecast period.
Market growth in this segment will be faster than the growth of the market in the agriculture segment. This report provides an accurate prediction of the contribution of all the segments to the growth of the wheel loaders market size.
Wheel Loaders Market: Key Drivers and Trends
The stabilization of global crude oil prices is one of the key factors that will fuel the growth of the wheel loaders market. The stability in oil prices will increase government spending, and this will lead to restarting pending and delayed infrastructure projects. This will, in turn, revive the demand for construction equipment such as wheel loaders, driving the market growth.
The introduction of telematics in construction is one of the key trends that will drive wheel loaders market growth.
Telematics consists of remote communications and informatics, that are extensively used for fleet tracking or managing a group of vehicles and other assets. Off-road telematics can track the performance and location of both plant and equipment in real-time. On-road telematics provides managers with reporting data that is updated with information related to human resources. Such benefits will lead to the adoption of telematics in the construction industry. As a result of these factors, the market will register a CAGR of over 9% during the forecast period.