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The Property Pack


  • Written by Anna Melnikova

Market Growth, Strict Regulations & Intensifying Competition

A fact finding study conducted by independent heavy industry analysts have come to find that the level of demand for excavators is expected to improve as the heavy construction equipment industry recovers from the pandemic for almost 3 years. The positive growth tangent has been directly attributed rapid developments taking place in emerging economies which is pushing demand for excavators which is already experiencing steady growth. This growth according to FACT.MR is expected to continue all the way up to 2025 at the least revealed the study. The drivers behind the surge in demand for excavators demand is simply because of the fact that the excavator is a singular versatile machine that is used in a wide range of applications especially within the construction, mining, agriculture, and forestry sectors with the construction sector holding the largest market share of more than 70 %. The new demand push is also because of the variety of performance features being introduced by manufacturers from all angles that are meeting the requirements of end-users of the construction industry.

The market is also undergoing dynamic changes due to emerging stakeholders and new entrants that are starting to hold sizeable shares within the excavator markets worldwide. The report released by Fact.MR indicates that Caterpillar Inc., Doosan Bobcat Inc., and KUBOTA Corporation are the only primary manufacturers within the excavator market that hold 30% revenue share. Secondary manufacturers or in other words Tier 2 and Tier 3 participants such as Deere & Co., and Sany Group have been growing at tremendous space that intensifies the competitive environment even further.

The focuses on innovative performance features that enhance productivity given by manufacturers towards these machines have assisted in boosting sales. The level of investment into technology and R&D by top manufacturers are at an all-time high according to the report as manufacturers compete for sales opportunities in emerging economies. These emerging economies are on ‘construction high gear’ that require Crawlers, Wheeled and Mini/ Compact excavators across the entire country’s geographical area. The governments of these emerging economies are also pushing for fast paced infrastructural changes and this has caused demand to peak. From North America, Latin America and Europe all the way East Asia, Oceania, Africa and the Middle East – Demand has been rising.

Heavy Machine Competitive Landscape

When demand started rising across the globe as the pandemic wound down, industry giants such as Caterpillar, Volvo CE, Hitachi, Komatsu and Kubota among others moved quickly to bring new features to their respective machines to make them more saleable. CAT introduced ‘Cat Connect Technology’ which was to be added to the manufacturer’s 3 new Next Gen (20-ton size class) excavators whilst Volvo CE exhibited the dual-powered 70-ton excavator prototype EX1 which reduces carbon emissions and energy costs significantly. In response Hitachi Construction Machinery launched the new the EX-7 mining excavator series. Komatsu and Kubota meanwhile pushed the Kubota mini excavator hire market with new innovative designs coupled with the latest in-house technologies. Deere & Co, CNH, Doosan Bobcat, Yanmar. JCB and even Nagano moved into the fray with their own elements of improvements to keep up with competitors and remain relevant to the construction industry.

Challenges for Excavator Manufacturers

Although demand is still rising steadily, the stringent environmental conditions and rising expectations from customers for high quality excavators continue to pose as a challenge for manufacturers. The guidelines and emission standards for heavy machines have increased exponentially and conforming to these regulations is the only way that these manufacturers are going to maintain their positions within the scope of the heavy machine market.