Compact Excavators Market Analysis By Product Type (Tail Swing, Zero Tail Swing); By Motor Type (Electric, Diesel); By Operating Weight (Less Than 4,000 lbs, 4000 to 10,000 lbs, More Than 10,000 lbs); By End-use Vertical (Construction, Mining, Forestry & Agriculture); By Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Market Analysis, Trends, Opportunity and Forecast, 2022-2032
Compact Excavators Market Highlights
The Global Compact Excavators Market is expected to grow from USD 9.2 Billion in 2022 to USD 22.7 Billion by 2032, at a CAGR of 8.5% during the forecast period 2022-2032.
Compact Excavators Market: Overview and Definition
Compact excavators, also known as mini excavators, are small and versatile hydraulic excavators that typically weigh between 0.7 to 8.5 tons. They are commonly used in construction, landscaping, agriculture, and other industries for various tasks such as digging, demolition, material handling, and trenching. Compact excavators are designed to work in tight spaces and have a relatively small footprint, making them ideal for urban and residential applications. They are also known for their high performance, durability, and ease of operation, making them a popular choice among contractors and rental companies. The global compact excavator market has seen steady growth in recent years due to increasing demand from emerging economies and expanding construction activities. With growing population, physical spaces are becoming more limited and carrying out the digging operations is becoming more difficult. Compact excavators are emerging as a key automotive vehicle that helps excavate soil and other earthen material in cramped up spaces. Raising trend of miniaturization is attracting the global automotive sector, companies are highly taking part in the manufacturing of compact excavators. Furthermore, the conventional excavator has been struggling to reach the narrowed spots between tight spaces and buildings. In addition, compact excavators are being predominantly used in such digging purposes.
Producer of compact excavators are finding a great growth in demand from individuals as well as local construction companies. New compact excavators are entering the market which are being designed to meet the earth-moving requirements of the future. Moreover, the comfort of using compact excavators is further boosting the working professionals in the construction industry towards them. Furthermore, the function of changing attachments on the on the compact excavators is making the step of high-level excavations. The big construction companies are replacing the heavy-duty excavators with compact excavators to gain higher margins from low fuel consumption and lesser carbon emission. Moreover, a great quality of maneuverability, less noise emission, and operational ease are few other factors that boost the demand for compact excavators in the global construction industry.
The compact excavators helps in providing assistance in performing landscaping, demolishing, excavating, placing and picking. Materials handling, construction activities and others. The compact excavators also aid in completing labor-intensive tasks or work earlier performed by using heavy construction equipment. Increase in demand for compact excavators due to increase in construction of buildings is expected to boost the growth of the global compact excavators market. For example, the UK construction industry is projected to grow at a rate of 2.5% from 2015 to 2024. Moreover, the importance of compact excavators and an increase in urbanization are projected to drive the compact excavators market's growth. The big players such as Caterpillar Inc., and AB Volvo Group provides application for specific compact excavators. For example, Komatsu Ltd., offers PC18MR-3 compact excavators of weighting capacity 1.84 tons. It is helpful for forestry, landscaping, construction and other applications.
Compact Excavators Market Segmentation
- By Pruduct Type
- Tail Swing
- Zero Tail Swing
- By Motor Type
- By Operating Weight
- Less Than 4,000 lbs
- 4000 to 10,000 lbs
- More Than 10,000 lbs
- By End-use Vertical
- Forestry & Agriculture
Compact Excavators Market: Growth Drivers
Increasing demand for compact and versatile construction equipment, especially in urban and residential areas where space is limited. Growing adoption of compact excavators in the agriculture and landscaping industries, where they are used for tasks such as land preparation, tree planting, and soil stabilization. Expansion of the construction industry, particularly in emerging economies such as China, India, and Southeast Asia, where rapid urbanization and infrastructure development are driving demand for construction equipment. Technological advancements in compact excavator design and features, such as improved fuel efficiency, ergonomics, and telematics, which improve productivity and reduce operating costs. Rising demand for rental equipment, as contractors and construction companies seek to reduce capital expenditures and increase flexibility in their equipment usage. Growing emphasis on sustainability and eco-friendliness, leading to increased demand for electric and hybrid compact excavators that emit less noise and emissions.
Compact Excavators Market: Challenges
Intense competition from other construction equipment manufacturers, which may result in pricing pressure and reduced profit margins.
Limited availability of skilled operators, which can impact productivity and increase the risk of accidents and downtime.
Fluctuating raw material prices, which can affect manufacturing costs and supply chain stability.
Stringent environmental and safety regulations, which can increase compliance costs and limit market opportunities in some regions.
Infrastructure and logistics challenges, such as inadequate transportation networks and lack of access to financing, which can hinder market growth in emerging economies.
The ongoing COVID-19 pandemic, which has disrupted supply chains and caused project delays, leading to reduced demand for compact excavators in some regions.
North America market holds the major share in the year 2021 and it expected to retain its dominant during the forecast period. Increase in population and improved construction activities are the major factors that boost the compact excavator market's growth. Increase in the construction activities in this region is the prime factor which contributes towards the growth of the compact excavator market. Furthermore, compact excavator design products have become increasingly popular in this region owing to the associated benefits. This in turn further boosts the growth of the compact excavator market.
Compact Excavators Market Insights
The compact excavator market is segmented into more than 4 tons and less than 4 tons by capacity analysis. The 4 tons segment holds the major market share and it is expected to retain its dominance during the forecast period. The 4 tons capacity compact excavator uses have increased aggressively in North America and European countries due to increased construction activities in developed regions. Moreover, its demand is expected to increase in future in developing countries like China, India, Africa and others.
Based on end user, the compact excavator market is divided into landscaping & construction, agriculture, and others. The construction segment holds the major share and is expected to retain its dominance during the forecast period. The increase in use of remote-controlled compact excavators and sensor based excavators for construction activities is further expected to dominate the global market.
Compact Excavators Market Regional Synopsis
The global compact excavators market can be segmented into several regions, including North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
North America and Europe are mature markets with established construction industries and high levels of equipment adoption, making them major contributors to the global compact excavators market. However, these regions are also highly competitive, which may limit market growth.
The Asia Pacific region, on the other hand, is expected to witness significant growth in the compact excavators market due to expanding construction activities and increasing demand for infrastructure development in countries such as China, India, and Southeast Asia.
Latin America and Middle East & Africa are also expected to exhibit steady growth in the compact excavators market, driven by increasing construction and mining activities in these regions. However, political instability and economic uncertainty in some countries may limit market growth.
Key Companies Profiled
The global compact excavator market is characterized by the presence of various small and big players. The major market player includes Deere & Company, AB Volvo Group, Cukurova Ziraat, Hyundai Construction Equipment Co Ltd, Hitachi Ltd, J C Bamford Excavators Ltd, Caterpillar Inc., Kobe Steel Ltd, Komatsu Ltd, and Takeuchi Mfg. Co Ltd. As the market is competitive in nature, the players indulge in raising their competitive share through strategic initiatives like mergers, new product, and acquisitions. For example, in April 2019, Volvo Construction Equipment of AB Volvo introduced a new ECR25 excavator. The excavator is fully electric compact excavator with 2.7 tons of weighing capacity. It is a zero-emission electric compact excavator which can perform 8 hours of operation after one full charge. It is great for infrastructural and commercial works like gardening, landscaping, and agriculture.