Market Overview

The forestry equipment market is expected to register a CAGR of 4.75% over the forecast period of 2020–2025. According to New Zealand’s Ministry for Primary Industries, Forestry is New Zealand’s third-biggest export industry, after dairy and meat, accounting for around USD 5 billion a year, and 3.2% of the country’s gross domestic product. ATS Logging Limited is using six Volvo Construction Equipment (Volvo CE) excavators at three plantation forests across New Zealand, which are helping the industry to meet its target of USD 12 billion in forest and wood product exports by 2022, set by the Wood Council of New Zealand.

  • Forest machinery sales growth is driven by a recovery in global wood prices, rising Roundwood production and the replacement of older, less productive forestry machinery by logging firms. Moreover, the growing focus on forest preservation and management has created a huge demand for forestry equipment.
  • Other factors contributing to forestry equipment increasing demand include rising mechanization rates in the logging sectors of developing nations and the increasing use of cut-to-length logging techniques, which are more machine intensive, in industrialized countries.
  • Various end-user industries like power, oil and gas and mining are adopting forestry equipment on a large scale to increase their efficiency. Moreover, different new technologies, such as the introduction of TimberMatic navigation and integration of mobile technology in forestry equipment, have a direct impact on the dynamics of the forestry equipment market.
  • However, the high cost of forestry equipment and lack of information about forestry equipment and its efficiencies among various forest agencies and foresters is hindering the market growth.



Scope of the Report

Forestry equipment are specially designed machinery that assists in performing various tasks such as extracting, logging and felling, among others. Forestry equipment also helps in increasing the efficiency of the work and reducing the labor cost.

Key Market Trends

Increasing Automation Will Boost Demand for Forestry Equipment

  • To improve productivity, dependance on mechanized methods for forest harvesting has increased steadily over the years. High-performance equipment such as harvesters can cut a tree from the base, debark it and cut into required lengths within a minute span.
  • Increasing demand for wood and wood products, abreast of the paradigm shift to mechanized processes for felling forest trees, have significantly upheld the demand for forestry machinery. This, in return, pushes for more automation.
  • Moreover, Labor remains the largest overhead in the forest industry at least one-third or more of the total cost in logging operations and a reduced interest in the forest field, the move towards automation is more than fruitful.
  • Automation has eased the need for harder-to-fill jobs while simultaneously lowering the costs of operation by reducing labor overhead.
  • Furthermore, automation will aid new dimensions in the coming years in forest industry by making the task easy, productive, efficient and achieving the desired result in a short span of time.



Asia-Pacific to be Fastest Growing Market

  • Asia-Pacific will remain the largest region and fastest-growing region during the forecasted period.
  • Moreover, due to growth in building and construction activities and increasing demand for woods in home furnishing applications, the region is expected to have high volumes of demand.
  • Furthermore, the Asia-Pacific has become a major producer, consumer, and exporter of wood products. Industrial Roundwood production has grown but demand is rising faster, increasing dependence on imports.
  • According to FAO United Nations, 2019 report, total Roundwood consumption has been relatively stable in the region for the last two decades at about 1.2 billion m3 per year, with efficiency gains and recycling reducing the volume of virgin industrial wood required.
  • Thus the demand for forestry equipment in this region is expected to be higher side in the coming years.



Competitive Landscape

The forestry equipment market is moderately consolidated market with few top players dominating the major share of the market. Some of the dominant players in the market are Deere & Company, Komatsu Ltd., Barko Hydraulics LLC., Caterpillar Inc., Doosa Infracore North America LLC., Kesla Oyj, Ponsse Oyj, Mahindra Group, AGCO Corporation, Concern Tractor Plants, Volvo CE, Bell Equipment Limited, Hitachi Construction Machinery Co. Ltd., Volvo CE, among others.

  • October 2019 - John Deere has rolled out increased options on its G-Series forestry swing machines, to help lower daily operating costs, boost productivity, and increase uptime. New updates, include improvements to the machine design and the addition of more standard features, provide loggers with a streamlined, reliable machine.
  • April 2019 - Caterpillar Inc. announced it has entered into a definitive agreement with Weiler Forestry, Inc. to sell Caterpillar’s purpose-built forestry business. The closing is expected to occur in the third quarter of 2019. This agreement follows the preliminary agreement between the two companies.



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