Alastair Hayfield

As global economies continue to reel from the effect of the Covid-19 pandemic, the vaccine roll-out gives us reason for optimism. The talk now is of economies bouncing back after a poor 2019 and a catastrophic 2020. In its latest report on off-highway vehicles, Interact Analysis predicts a scenario where pent-up demand will be a driver for significant growth in the sector, as economic wheels get back on track. Whilst growth sunk to a mere 2.6% in 2020, Interact Analysis’s research predicts 6.5% growth in 2021, and an overall CAGR of 3.6% up to 2029. Furthermore, electrification of certain classes of off-highway vehicles is expected to continue at a rapid pace.

2020 Growth Rate of Selected Countries and Market Applications
  North America Europe China Rest of World Worldwide
Construction
Excavators (-13%) (-22%) 37% (-16%) 2%
Loaders (-9%) (-16%) 6% (-24%) -11%
Bulldozers 0% 0% 7% 0% 2%
Dump Truck (-52%) (-57%) 20% (-33%) (-36%)
Material Handling
AWP (-31%) (-38%) 74% (-24%) (-3%)
Telehandlers (-31%) (-27%) 40% (-31%) (-26%)
Lift Trucks (-9%) (-7%) 31% (-16%) 3%
Agriculture
Combines
Tractors
0%
17%
24%
3%
12%
(-6%)
1%
10%
8%
6%
Source: Interact Analysis       © Interact Analysis 2021
Off-highway vehicles and the Covid-19 effect: China the only major region to emerge unscathed

Not even the virus has stopped the unprecedented modernisation and extension of China’s infrastructure network. The figures in the table below tell the story:

Whilst the figures in red describe tumbling growth in 2020 for many different machinery types across most of the globe as countries battled with the virus and production slowed or shut down, in China things stabilised quite quickly, as rigorous measures to combat the virus were enforced. Production got back to normal by May 2020, and demand for off-highway equipment resumed. Aerial work platforms saw a massive 74% hike in sales, telehandlers +40%, and excavators +37%.

2021: The year of the great bounce back, all being well on the virus front

While China has mitigated the overall impact of the pandemic on the global off-highway vehicle market, 2020 was undeniably a shocker for the industry, but it’s an industry poised to make a comeback, with material handling equipment leading the field by 2025, when sales are forecast to surpass those of agricultural machinery. (Agricultural machinery has not previously been included in the scope of the off-highway vehicles report).

2019/20 saw a slowdown in sales of material handling equipment, but the surge in online shopping and eCommerce caused by the virus is likely to be a significant long-term driver for investment in machinery such as lift trucks, particularly as new warehouse automation projects come on stream. Interact Analysis has detected the likelihood of future healthy demand from SMEs and forecasts a return to double-digit growth rates by 2022, with sales of around 2.4 million units by 2023. All this, of course, rides on the battle with the virus.

Overall unit shipments for the construction segment decreased by 2.5% in 2020, due to the impact of Covid-19, giving a growth rate of -2%. But sales of construction vehicles in China sustained solid growth of 26.6%, otherwise the global figures would have been far worse. The size of the Chinese market in 2020 was close to 400,000 units and it was the largest regional market, accounting for 43% of the global sales in terms of unit shipments. The global construction vehicle market will reach its cyclical peak in 2021, having achieved a growth rate of 8%. Thereafter, up to 2029, the growth rate is forecast to be of the order of between 2 and 4 percentage points year on year. Excavators are the largest product group in the construction segment, accounting for over 50% of units shipped in major regional markets such as North America, Europe, and China.

Electrification: Drivers and barriers

Alastair Hayfield
The research shows that over 36% of shipments of off-highway vehicles will be electrified machinery by 2029. However, the overwhelming majority of these will be smaller machines. Our research shows that there are good reasons for using BEV technology in larger construction vehicles, such as lower TCO and environmental concerns; but there are also significant barriers, such as upfront costs, lack of charging infrastructure, and charging downtime. Electrification of compact construction vehicles offers many obvious benefits, minimizing emissions and noise levels, allowing the equipment to be used in enclosed environments such as in mines, buildings and in other noise-sensitive areas. For many of the environments where material handling typically works, such as airports and logistics centres, there is already a high demand for “greener” equipment. These places will continue to adopt electrification aggressively.

The author Alastair.Hayfield is a Senior Research Director – UK

(This email address is being protected from spambots. You need JavaScript enabled to view it.)
Construction Equipment sales cross 1 lakh mark in FY 2022-23 To grow 15-20% this Fiscal
The Indian Construction Equipment industry recorded an excellent 26% growth YoY with sales crossing the one lakh unit mark in FY2022-23. CE sales in Q4 of FY23 (Jan-Mar 2023) increased by 23% over Q4-FY22 and by 22% over Q3-FY23. On a month-on

Read more ...

Case India: Building Competence
Case Construction India is banking on its recently launched 770 NXe Loader Backhoe, the 770EX Tractor Backhoe Loader, and CX 220LC Tracked Excavator, to mark a stronger presence in the highly competitive Indian Construction Equipment market. P.P. Basistha

Read more ...

Tata Hitachi displays powerful Hydraulic Excavators at STONA 2023
Tata Hitachi, in collaboration with Hitachi Construction Machinery, Japan, has been a pioneer in introducing the latest technologies in the Indian market. The Company participated in STONA 2023, the 15th International Granites & Stone Fair, where it displayed

Read more ...

SDLG E680Fi and E6135Fi hydraulic excavators offer productivity, profitability & versatility
The SDLG E680Fi and E6135Fi hydraulic excavators are designed to provide higher productivity, profitability, and versatility in various applications. These excavators are equipped with powerful ECU-controlled engines that feature multiple filters

Read more ...

Liugong India forays into Mining Segment
Liugong India, a leading manufacturer of construction and heavy machinery, has announced its foray into the mining segment. It has launched a series of products such as Excavators (965Exd and 975Exd), Dump Truck (DW 105A), Hydrostatic Wheel Loader

Read more ...

Manitou MBL backhoe loader offers a more fuel-efficient and robust engine
The Manitou MBL backhoe loader is equipped with a more fuel-efficient and robust Kirloskar BSIV engine, making it a profitable choice for users. With two variants of the engine available, the 74.5 Naturally Aspirated in MBL 745S and the 74.5 High Torque in MBL

Read more ...

JCB Premium Line JCBNXT 225LC M Excavator for Infrastructure, Mining & Quarrying
The JCB NXT 225LC M excavator is a robust and durable machine specifically designed for the demanding operating conditions in India, particularly in infrastructure, mining, and quarrying applications. It belongs to the Premium Line series

Read more ...

Electrification of Off-Highway Machines - Research by Interact Analysis
The latest research by Interact Analysis reveals that the off-highway vehicle market has experienced strong growth. In part, this has been driven by a pandemic ‘bounce-back’. However, a huge uptake in electrified forklifts and material handling equipment

Read more ...

Volvo Construction Equipment - showcases EC55 Electric Compact Excavator
Volvo Construction Equipment (VCE) showcased an eclectic mix of machines focussed on road & retail segments. The objective was to explore ways VCE can partner with key stakeholders in developing India’s infrastructure. The EC55 Electric Compact

Read more ...

Caterpillar showcases products, technologies, and services to support India’s infrastructure growth
Caterpillar Inc., the world’s largest manufacturer of construction and mining equipment, showcased its world-class products equipped with advanced technology and digital-enabled service solutions at bauma CONEXPO India. From connected assets to

Read more ...

Sany Bharat demonstrates product strength and versatility
Sany Bharat exhibited around 21 machines for various infrastructure related applications including excavation, hoisting, mining, deep foundation, road and port equipment. Sany Bharat announced a completely new product vertical that will offer road equipment

Read more ...

Tata Hitachi displays innovative, future-ready machines and solutions
Tata Hitachi showcased its latest equipment, attachments, and innovative solutions, including the all-new 5-ton indigenous Wheel Loader model ZW225, the most reliable Backhoe Loader SHINRAI PRO, and the new Hydraulic Excavator EX200 INFRA, among other

Read more ...

SDLG India showcases E6135Fi Hydraulic Excavator and L933H Wheel Loader
A member of Volvo Group, SDLG offers solutions to complement sustainable road construction and infrastructure projects. At bauma Conexpo India 2023, it showcased SDLG machines E6135Fi Hydraulic Excavator and L933H Wheel Loader. The machines

Read more ...

Komatsu and L&T showcase Hybrid Excavator & Sustainable Technology Machines
Komatsu India, the 100% subsidiary of global Construction & Mining giant Komatsu Limited and Larsen & Toubro Limited, India’s largest engineering company, showcased their technological strengths and service capabilities, and reaffirmed their

Read more ...

Caterpillar Showcases Latest Range of Mining Technology Solutions at IMME 2022
As principal sponsor at the International Mining & Machinery Exhibition (IMME 2022) held in Kolkata, Caterpillar, along with its dealers GMMCO and Gainwell, showcased its latest technological advancements, product innovations and

Read more ...

Kobelco brings ultra-high reach demolition excavator to Europe
There is literally no job too big for the Kobelco SK1300DLC. With an operating weight of 130 tons and a colossal reach of up to 40m, the SK1300DLC is currently the world’s largest OEM manufactured building demolition machine. Its introduction

Read more ...

New product concept Rototilt Control makes a strong impression
“Rototilt has created something completely new that changes the everyday life for us as a machine operator,” said excavator operator Eoin O’Connor, machine operator and winner of Rototilt’s competition Excavator Hero 2021. Rototilt Control

Read more ...

Construction Equipment sales grew 8% YoY in Q2 FY 2022-23: ICEMA
The Indian construction equipment sales in the second quarter of the current fiscal (Q2,FY23) grew 8% YoY and 12% over Q1, FY21. All the sub-segments including Earthmoving, Material Handling, Material Processing and Concrete equipment contributed to the growth

Read more ...

Excavator Market of India Touching New Heights
Industry bigwigs from JCB, Tata Hitachi, Kobelco, Sany, L&T, Schwing Stetter and SDLG share their views on the Excavator Market of India, the way forward, and the factors that are giving rise to a positive sentiment. Reports Maria R. The excavator market of India is

Read more ...

With 40 years of manufacturing expertise and a strong market presence, Kubota continues to be a best-selling brand
Kubota’s construction machinery and mini excavators have gained a good reputation in Europe, North America, Japan, and in Asian countries. Kubota mini excavators, in particular, are winning the largest market share in the world as they are renowned

Read more ...