Global Forestry Equipment Market - 2023-2030

Market Overview

The Global Forestry Equipment Market reached US$ 9.5 billion in 2022 and is expected to reach US$ 13.1 billion by 2030, growing with a CAGR of 4.2% during the forecast period 2023-2030.

The global forestry equipment market is expected to witness steady growth due to the increasing demand for timber, sustainable forest management practices, technological advancements, worker safety concerns and government initiatives. The market is characterized by the presence of numerous players offering a wide range of equipment and solutions, including chain saws, harvesters, forwarders, skidders and chippers, among others.

The Indian government has been actively promoting sustainable forest management and afforestation programs. Initiatives like the National Mission for a Green India (GIM) and the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) aim to increase the country's forest cover and improve forest management practices. These initiatives create a demand for advanced forestry equipment to support afforestation, reforestation and sustainable forest management activities.

For instance, on November 20, 2022, the Telangana State Government's Forest Department and U.S. Agency for International Development (USAID) unveiled a new management tool that will advance horticulture, plantation and agroforestry practice in areas without woods. A key component of India's strategy to meet forestry sector climate mitigation targets is to increase the number of trees outside of forest areas and on farmlands. The project will greatly benefit from the Decision Support System-Agroforestry (DSS-A), which was developed as part of USAID's Forest-PLUS 2.0 programme and piloted in the Medak district. Therefore, the India is witnessing a decent growth in the past few years and accounted for more than 1/3rd of the regional shares.

Market Dynamics

Sustainable Forest Management Practices

Sustainable forest management plays a vital role in carbon sequestration and climate change mitigation efforts. By absorbing carbon dioxide from the atmosphere, forests serve as carbon sinks. The significance of sustainable forestry practises grows as governments and organisations concentrate on lowering greenhouse gas emissions and achieving climate targets. This drives the demand for forestry equipment that facilitates sustainable forest management, including machinery for reforestation, afforestation andcarbon offset projects.

Restoration and conservation projects, aimed at preserving and restoring degraded forests and biodiversity, have gained prominence globally. Sustainable forest management practices are integral to these initiatives. They involve the use of specialized forestry equipment for activities like tree planting, habitat restoration andinvasive species control. The demand for equipment that supports these restoration and conservation efforts contributes to the growth of the global forestry equipment market.

Increasing Mechanization in Forestry Operations

Increasing mechanization in forestry operations has been a significant driver for the growth of the global forestry equipment market. Mechanization refers to the use of machinery and equipment to perform tasks that were previously done manually. The adoption of mechanized forestry equipment has brought about several developments that have fueled market growth.

Mechanized forestry equipment reduces the reliance on manual labor for hazardous tasks, thereby improving safety conditions for workers. Dangerous operations like tree felling, log lifting and transportation can be performed using specialized machinery, reducing the risk of injuries and fatalities. This factor has led to increased adoption of forestry equipment as companies prioritize the well-being of their workforce.

High Initial Investment

The high initial investment in forestry equipment exposes companies to financial risks and uncertainties. Fluctuations in market demand, changing economic conditions or unforeseen events can impact the profitability of forestry operations. If companies have invested a significant portion of their capital in expensive machinery, they may face difficulties in adapting to market changes or recovering their investment in case of adverse circumstances.

In addition to the initial purchase cost, forestry equipment also incurs ongoing expenses for maintenance, repairs and upgrades. These costs can be significant, especially for complex and technologically advanced machinery. Forestry companies need to allocate additional resources for routine maintenance, unexpected breakdowns andperiodic upgrades to ensure the optimal functioning of their equipment. The cumulative expenses associated with maintenance and upgrades further increase the financial burden for forestry companies.

COVID-19 Impact Analysis

The pandemic accelerated the adoption of remote work and automation in various industries, including forestry. Companies sought ways to minimize human interaction and maintain operations with reduced on-site presence. This led to increased interest in remote monitoring systems, autonomous machinery andother technology-driven solutions. The shift towards automation and remote work could drive the demand for advanced forestry equipment in the long term.

While the overall forestry sector experienced a decline, the demand for wood-based products, particularly for residential construction and home improvement, remained robust. With people spending more time at home, there was increased demand for lumber, furniture andother wood products. This sustained demand could drive the need for forestry equipment in harvesting and processing timber.

Segment Analysis

The global forestry equipment market is segmented based on equipment, distribution channel, automation and region.

The Enhancing Efficiency, Ensuring Safety and Enabling Selective Cutting Roles of Felling Equipment in Forestry Operations

Felling equipment is designed to operate in various terrains and environments, including challenging or inaccessible areas. Mechanized harvesters and feller bunchers are equipped with features like tracked or wheeled systems, adjustable cutting heads andimproved maneuverability. This adaptability enables felling operations in diverse forestry landscapes, expanding the potential application of felling equipment and driving market growth. Therefore, the felling equipment segment is expected to grow at a highest CAGR during the forecasted period.

Geographical Analysis

Large Export of Forestry Equipment Supplements the Regional Growth

North American manufacturers of forestry equipment have a strong presence in the global market and are recognized for their high-quality products. These manufacturers export their equipment to various regions around the world, further solidifying North America's dominance. Their reputation for reliable and innovative forestry machinery allows them to capture a significant share of the global market and expand their market presence internationally.

China has been increasing its investments in semiconductor R&D to enhance domestic capabilities. The government has implemented policies and initiatives to support the development of the semiconductor industry, including the "Made in China 2025" plan. This plan focuses on promoting innovation, upgrading technology and increasing self-sufficiency in the semiconductor sector. Therefore, China accounts for more than half of the regional shares and is expected to dominate the regional market with significant margin.

Competitive Landscape

The major global players include: AB Volvo, Caterpillar Inc., Deere & Company, Doosan Infracore Co. Ltd., Eco Log Sweden AB, Grema, Hitachi Construction Machinery Co., Husqvarna AB, Kesla OYJ and Komatsu Forest.

Why Purchase the Report?

• To visualize the global forestry equipment market segmentation based on equipment, distribution channel, automation and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of forestry equipment market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global forestry equipment market report would provide approximately 61 tables, 60 figures and 212 Pages.

Equipment 2023

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