Compact Wheel Loaders Market Outlook 2031
The global compact wheel loaders market size was valued at around USD 5.20 Billion in 2022 and is projected to reach USD 6.84 Billion by 2031, expanding at a CAGR of around 3.1% during the forecast period, 2023 – 2031. The market growth is attributed to the growing construction activities along with the increasing projects for developing commercial and residential building sites.
Compact wheel loaders are types of wheel loaders, primarily used in construction projects and building sites for loading or handling materials. They are heavily-equipped machines consisting of a bucket and tractor mounted at the front of the tractor, utilized for extraction and loading of stone, soil, dirt, debris, and other construction materials.
These machines are mainly built with a high capacity of gross power ranging from 100 or less than 100 HP to 600 HP or more. They are typically small, light-weight, and more compact in size, and are more easily deployed for various construction activities than full-size or large-scale wheel loaders. These earthmoving machines consume less power and cost-effective loaders, which are more convenient to use and transport construction materials in tight spaces.
Compact wheel loaders are extensively used in construction activities for handling building materials, waste management, landscaping, and digging in congested areas. There are different types of compact wheel loaders that come in different sizes and shapes and are designed for different applications. The main available compact loaders are compact track loaders, backhoe loaders, wheeled loaders, and skid steer loaders.
These systems are usually equipped with a displacement hydraulic pump or a single high-pressure pump and a single hydraulic motor that drives with a mechanical gearbox to conventional planetary axles. These machines are normally capable of traveling at a speed up to 25 miles per hour.
Wheel loaders lately gained significant popularity worldwide due to the increasing demand for high-end construction machines having strong working capabilities and high performance to increase productivity. These four-wheel loaders, owing to their excellent capacities, are widely used in various applications across diverse industries such as construction, landscape & maintenance, mining, agriculture & forestry, industrial & waste, facility property management, utilities, and gardening.
Some of the major aspects of the machines include high lifting capacities, high hauling capacity, durable nature, easy maneuverability, and versatility, which allow the machines to withstand long duration and continuous hours of use. The machines are suitable for heavy load transport and multiple attachment compatibility even under the toughest conditions.
COVID-19 Impact on Compact Wheel Loaders
The outbreak of COVID-19 or coronavirus pandemic has negatively impacted the global compact loader market. The long-imposed emergency lockdowns have disrupted industrial and commercial activities, resulting in the halting of various activities associated with construction, agriculture, mining, automotive, and manufacturing industries.
The temporary shutdowns of all these activities during the pandemic resulted in the sluggish demand for compact loaders globally. Additionally, the distribution of long-term supply contracts of compact loaders was disturbed significantly due to the movement restrictions and delay in production during the pandemic. The COVID-19 pandemic situation disrupted the import and export chains due to the sudden disruption in the supply chain.
The investments for R&D activities from key players had been also reduced significantly. The slowdown of development activities within the compact loaders industry is a major factor hampering the market growth worldwide.
Compact Wheel Loaders Market Dynamics
The compact wheel market report presents a complete overview of market dynamics by focusing on the current market trends, existing drivers, growth opportunities, market chain analysis, and emerging challenges. The research report offers a comprehensive market insight about possible market scenarios that can shape the outcome or overall performance of the market during the forecast period, 2022 to 2030.
Major Trends
Development of an electric-powered compact loader model
A rapid surge of the innovative electric-powered compact wheel loader is one of the key market trends in the automotive industry. These electric-driven loaders have certain advantages over the traditional petrol and diesel wheel loaders.
Electric-powered models use high-efficiency motors and less power, which in turn, significantly reduces energy consumption, reduces carbon emission, and increases operational efficiency., The development of these green technology presents a major factor in the significant market growth of compact wheel loaders.
Key Drivers
Extensive construction activities across the globe
Rapid urbanization and industrialization play a crucial role in the massive growth of the construction industry, which results in the increasing demand for infrastructural development activities. These massive infrastructural projects increase the sale of heavy building equipment which in turn drives the demand for compact wheel loaders.
Governments around the world, especially in developing countries are extensively emphasizing various massive construction projects and infrastructure developments as part of several smart city projects. The Government of China, for instance, recently undertook a large-scale mission to build more than 500 smart cities and focused on using advanced technologies to reduce carbon footprint, considering the rising concerns over environmental sustainability.
Emergence of high-tech advanced technologies in the vehicle
Compact wheel loader manufacturing companies are increasingly focusing on research and development (R&D) projects to improve the performance and capacities of the vehicle. Wide adoption of intelligent assistant systems and advanced high technologies to enhance the operational efficiency of the wheel loaders.
Bobcat, for instance, introduced the S100E novel skid steer loader model with improving features such as auto ride control, LED sidelights, cushioned cylinders, rear camera, heated cloth air seat, and an auto-reversing fan.
In another development, Hitachi launched GPS-enabled intelligent machine control wheel loaders that provide umpteen accuracy at job locations. The production of electric-powered compact loaders helps in efficient energy-saving and emission reduction, which acts as the best alternative for traditional loaders.
The emergence of advanced technologies in the automotive industrial sector is again propelling the global wheel loaders market growth. Increasing R&D and innovations and partnerships with manufacturing industries enabled the production of these high-tech vehicles, which in turn led to a raise in the usage and demand for compact wheel loaders in the global market.
Increasing use of wheel loaders in the agriculture sectors
Rising demand for agricultural products to meet the demand of the increasing population around the world has led to the rapid development of advanced machines for various agricultural activities. Growing consumer consciousness of changing dietary habits is again associated with the increasing demand for agricultural activities. As a result, governments across the globe have undertaken an extensive initiative for agricultural mechanization to meet the increasing demand for food.
The Government in India, for instance, has recently announced allocating USD 551 million under the PMKSY initiative for the development of agricultural activities between 2021 and 2022. With the rising trend for mechanizing agricultural sectors worldwide, compact wheel loaders are increasingly used in various applications associated with the agriculture sector such as digging, loading duties, grading, dozing, and clamping.
Existing Restraints
Rising renting services & high-cost price
The rising renting services of wheel loader rental is another key factor expected to restrain the overall market growth. The small and medium-sized enterprise constructing companies often need to hire the machines as per their requirements and the increasing availability of renting services for wheel loaders ultimately reduces the market sales.
Additionally, local contractors preferred to hire the equipment as it helps them to reduce their capital investments, which acts as a key restraining factor for the market. The high-cost price of compact loaders is a major challenge that can hamper the market growth in the coming years. Small construction firms and companies are facing challenges to bear the initial purchase cost as well as high maintenance costs for such construction equipment.
Emerging Opportunities
Emergence of automated loaders and usage of innovative technology
Rising introduction of automated loaders and the wide integration of innovative technology such as Artificial Intelligence (AI), Blockchain, Internet of Things (IoT), virtual assistance, and Machine Learning (ML) offer lucrative growth opportunities for the market. Automated loaders play a vital role in increasing sales of the vehicle as they are integrated with intelligent machine parts including cellular, non-display, Bluetooth, program IQN, and optional GPS, which offer reliability and improve accuracy in operations. Furthermore, the rising adoption of new innovative technologies enhanced productivity and efficient performance is providing lucrative growth opportunities for the market players.
Scope of Compact Wheel Loaders Market Report
The report on the global compact wheel loaders market includes an assessment of the market insights, trends, market segmentation, and regional analysis of the global economy. Overview and market dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Compact Wheel Loaders Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Types (Compact Track Loaders, Backhoe Loaders, Wheeled Loaders, and Skid Steer Loaders), Applications (Construction, Landscape & Maintenance, Mining, Agriculture & Forestry, Industrial & Waste, Facility Property Management, Utilities, and Others), Gross Power Outputs (50-100 HP, 125 HP, 125-175 HP, 176-600 HP, and More than 600 HP), and Operating Weights (Less than 6000 KG and More than 6000 KG)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Larsen & Toubro Limited; Liebherr Group; Wacker Neuson SE.; Hitachi Construction Machinery Co., Ltd.; Deere & Company.; Terex Corporation; AB Volvo; KUBOTA Corporation; Hyundai Heavy Industries Co. Ltd; CNH Industrial N.V.; Doosan Infracore Co. Limited; Komatsu Ltd.; YANMAR HOLDINGS CO., LTD; J.C. Bamford Excavators Limited; Volvo Construction Equipment; Case; and Caterpillar Inc.
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Compact Wheel Loaders Market Segment Insights
Types Segment Analysis
Based on types, the global compact wheel loader is segmented into compact track loaders, backhoe loaders, wheeled loaders, and skid steer loaders. The wheeled loader segment accounted for a key market share in 2021 and is projected to expand at a robust growth rate in the coming years owing to its high performance and wide applications in various construction activities.
The wheel loaders have several advantages in construction and building use due to their high carrying capacity, travel feasibility in both on-road and off-road, versatility in different applications, and ease of operation. These types of equipment are available in different sizes and have flexibility in operations. Integrated with an advanced hydraulics system, the wheeled loader provides better control and stability over different weight-holding operations.
Applications Segment Analysis
Based on applications, the global market is categorized as construction, landscape & maintenance, mining, agriculture & forestry, industrial and waste, facility property management, utilities, and others. The construction segment held a sizeable market share in 2021 and is expected to constitute a dominant market share during the forecast period. Increasing construction activities in developed countries such as the US and France and emerging economies of developing countries including China, India, and Brazil present a key factor boosting the segment.
Moreover, several government projects and investment initiatives for the development of infrastructures are major factors propelling the demand for heavy construction equipment including compact wheel loaders. Large-scale projects such as Sound Transit 3 (ST3) Construction Project in the US, Smart City Mission in India, and others are anticipated to fuel the segment.
Power Outputs Segment Analysis
On the basis of gross power outputs, the global compact wheel loader market is segmented into 50-100 HP, 125 HP, 125-175 HP, 176-600 HP, and more than 600 HP. The 50-100 HP segment is projected to hold a major market share during the forecast period as they are well-suited for various applications such as construction, agriculture, and forestry industries. These small capacity wheel loaders are equipped with great fuel efficiency and are generally employed by relatively small enterprises.
Operating Weights Segment Analysis
Based on operating weights, the global market is bifurcated into less than 6000 Kg and more than 6000 kg. The less than 6000 kg segment is likely to register a major market revenue in the coming years due to high demand from most manufacturing companies.
Regional Analysis
In terms of region, the global compact wheel market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific accounted for a high market share in 2021 and is anticipated to expand at a high CAGR during the forecast period. The regional market growth is attributed to the increasing construction projects and government initiatives on infrastructural development activities in the region.
India and China are the two fastest-growing markets for small wheel loaders in the region with the increasing infrastructure development projects and rising construction activities. In fact, India is projected to register a highly remunerative market in Asia Pacific, assisting the region to account for nearly 15.1% of the global compact loaders demand in 2022. The emergence of prominent players in the region such as Hyundai Heavy Industries Co. Ltd, Kubota Corporation, and others provides great opportunities for regional market expansion.
Segments
The global compact wheel loaders market has been segmented on the basis of
Types
- Compact Track Loaders
- Backhoe Loaders
- Wheeled Loader
- Skid Steer Loaders
Applications
- Construction
- Landscape & Maintenance
- Mining
- Agriculture & Forestry
- Industrial & Waste
- Facility Property Management
- Utilities
- Others
Gross Power Outputs
- 50-100 HP
- 125 HP
- 125-175 HP
- 176-600 HP
- More than 600 HP
Operating Weights
- Less than 6000 KG
- More than 6000 KG
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Larsen & Toubro Limited
- Liebherr Group
- Wacker Neuson SE
- Hitachi Construction Machinery Co., Ltd.
- Deere & Company
- Terex Corporation
- AB Volvo
- KUBOTA Corporation
- Hyundai Heavy Industries Co. Ltd
- CNH Industrial N.V.
- Doosan Infracore Co. Limited
- Komatsu Ltd.
- YANMAR HOLDINGS CO., LTD
- J.C. Bamford Excavators Limited
- Volvo Construction Equipment
- Case
- Caterpillar Inc.
Competitive Landscape
Key players competing in the global compact wheel loaders market are Larsen & Toubro Limited; Liebherr Group; Wacker Neuson SE.; Hitachi Construction Machinery Co., Ltd.; Deere & Company.; Terex Corporation; AB Volvo; KUBOTA Corporation; Hyundai Heavy Industries Co. Ltd; CNH Industrial N.V.; Doosan Infracore Co. Limited; Komatsu Ltd.; YANMAR HOLDINGS CO., LTD; J.C. Bamford Excavators Limited; Volvo Construction Equipment; Case; and Caterpillar Inc. Some of these major players adopted various business development strategies including mergers, acquisitions, partnerships, collaborations, product launches, pricing analysis, and production capacity expansion to expand their consumer base and enhance their market share. For instance,
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