Skid Steer Loaders and Compact Track Loaders Market | 2030

Report Description

Skid Steer Loaders and Compact Track Loaders Market Outlook:

The Global Skid Steer Loaders and Compact Track Loaders Market was estimated at USD 7,407.9 Million in 2021 and is anticipated to reach USD 10,609.3 Million by 2030, expanding at a CAGR of 4.4% during the forecast period.

A skid steer loader, known as wheel loader or skid loader, is a compact, construction equipment often used for digging. Skid steer loaders are used for landscaping, construction, agriculture, and material handling. These are four-wheeled vehicles in which, the front and rear wheels on each side are mechanically linked to rotate at the same speed, with the left drive wheel driven independently of the right drive wheel.

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The skid steer is small, versatile, and maneuverable. Skid steer loaders are typically equipped with buckets and are used to lift and move heavy loads. Skid steer loaders are used for excavation, construction, landscaping, trenching, digging, and snow removal. Skid steers contain numerous mechanical parts; however, its core components are bucket, cab, lift, tire, drive motor, and axle.

Compact track loaders are suitable for use on sites with soft terrain or projects that need less ground disturbance. The rubber tracks give the additional floatation needed to move over loose gravel, sand, mud, snow, or other uneven surfaces. This makes these loaders ideal for residential or commercial landscaping operations or activities where the turf is extra sensitive.

Macro-economic Factors

Instability of Demand

Construction demand is inherently volatile. Extensive fluctuations in construction equipment are common. Demand for construction is majorly dependent on business and infrastructural activities. Construction product is immobile and is often constructed only after the consumer realizes its demand. This nature of construction equipment makes the industry unable to stock up on the products.

The frequent fluctuations in demand for construction equipment can be very large, thus affecting the economy considerably. The demand for construction or infrastructural activities within a geographical area is likely to decline and saturate when they are not fulfilled. In developing countries, the demand for infrastructural facilities is of the greatest proportion as compared with other construction activities demands.

Since in the initial stages of economic development, infrastructure is of great importance in creating the framework for the economy, spending on building new infrastructure in these stages is relatively heavy. As a result, the proportion of construction expenditure on public works and public utilities such as railways, roads, electricity, harbors, etc., in less developed countries is often higher than that in more developed countries.

Gross Domestic Product (GDP)

GDP across the globe declined, due to the outbreak of COVID-19. Manufacturing units of construction equipment are facing several challenges, due to the restrictions and limitations in the supply chain caused by the lockdown. Demand for construction activities is projected to increase, due to the rising disposable income.

Variations in sales of skid steer loaders across countries are correlated to a country’s standard of living. The construction equipment (CE) industry depends heavily on GDP growth and economic activity and faced the same headwinds as other industries during the pandemic.

Inflation

Inflation is an average increase in the price of goods and services over time within an economy. Moreover, it devalues the currency used in that economy. Inflation is a major challenge for the construction industry, as it leads to an increase in the prices of building materials, consultation fees, hiring rates of machinery, and other inputs to construction projects. As a result, it may delay/hamper project completion, increase construction costs, and reduce profit margin. Inflation increases the cost of other construction inputs such as equipment, fuel, and technology.

Manufacturers of skid steer loaders increase the cost due to a rise in the cost of raw materials and delay in production due to inflation. This, in turn, reduces the profitability of the entire project. According to the Associated General Contractors of America (AGC), the producer price index for construction machinery and equipment rise to 10.1% in 2021, as compared to 1.1% in 2020.

Skid Steer Loaders and Compact Track Loaders Market Dynamics

Market Driver- Growth in construction industry

Skid steer loaders are compact and operate in tight spaces, which helps in construction activities where other construction equipment's are difficult to operate. These loaders are equipped with different attachments such as hydraulic hammers, trenchers, forks, buckets, augers, stump grinders, and landscape rakes, depending upon the specific task to be performed. Skid steer loaders and compact track loaders perform multiple tasks by changing attachments.

The migration of people from rural areas to urban areas is stimulating high investments in the development of infrastructure and smart cities and the adoption of cutting-edge technologies in the construction process, which is contributing to the expansion of the skid steer loaders and compact track loaders market. The skid steer loader and compact track loaders market is anticipated to be driven by the significant demand for construction, which is generated by the rapid rise in the population.

Market Driver- Technological advancement

Skid steer loaders include a heated cloth air seat, auto ride control, cushioned cylinders, auto-reversing fan, and rear camera, among other prominent features. The advent of technologically advanced machines is expected to propel the demand for skid steer loaders and compact track loaders. Several technological upgradations have led to the development of highly-advanced loaders equipped with grapples, hydraulic brakes, pallet fork attachments, sweepers or angle brooms, thereby bolstering the market growth.

The market is anticipated to be fueled by the rising availability of GPS-operated, self-driven, and autonomous loaders with wireless connectivity. Demand for autonomous loaders is steadily growing, due to labor shortage in the construction industry. This is increasing the importance of technology in the construction industry.

According to GEHL, RT 105 offers a lot of flexibility. These types of loaders are small enough to fit through gates and backyards for landscape applications. Furthermore, their low weight indicates low ground pressure, resulting in less disturbance to yards.

Market Restraint- Stringent emission norms

Demand for skid steer loaders and compact track loaders is affected by the strict emission regulations for construction equipment. Government agencies such as EPA (Environmental Protection Agency) imposed heavy fines on manufacturers who do not meet standard norms. However, these norms vary from region to region. For instance, new machinery in North America must adhere to strict emission regulations, which is limiting the expansion of the skid steer loader market to some extent.

Regulatory pathways in the US and European Union (EU) have diverged for both non-road CI and SI engines, with standards for CI engines implemented prior to those for SI engines in the respective regions. Emission standards are established based on engine power in regulatory programs in both the US and the EU, with differences in the stringency and timing of emission standards in terms of engine power class.

Market Opportunity- Shifting focus from diesel to electric-powered loaders

The electric skid steer is becoming increasingly popular, as businesses look for an efficient and reliable way to undertake their arboricultural work. A fully electric skid steer loader is better suited to various urban environments than traditional gasoline-powered machinery, due to its low noise level and ability to navigate tight spaces.

An electric skid steer is a powerful and versatile piece of arboricultural machinery designed to help groundskeepers, landscapers, and other specialists in preserving the beauty of trees. It has been designed with an innovative combination of electric power and cutting-edge engineering for high performance in tough conditions.

The hydraulics and wheeled or tracked frames of electric skid steers allow for precise movements and maneuvers. Drills, buckets, rakes, saws, and mulchers are among the many attachments that are used to complete a variety of tasks, such as trimming branches, cutting roots, and removing stumps. Safety features on a zero-emission skid steer loader include lifting arms that prevent contact with overhead tree limbs or power lines and automatic speed adjustments when cornering.

Additionally, when performing tasks such as lawn mowing or sod removal, electric skid steers reduce shake damage to the turf, due to their design. Electric skid steers only need slight maintenance throughout their lifetime as compared to petrol-based loaders. They typically last longer than petrol-powered machines, as they do not contain high motor control system parts such as internal combustion engines, and contain maintenance-free batteries.

Electric skid steer loaders operate outdoors; however, they are silent and emit no emissions, hence they are used for indoor demolition and work near hospitals, schools, and other noise- and pollution-sensitive environments.

Scope of the Skid Steer Loaders and Compact Track Loaders Market Report  

The report on the global skid steer loaders and compact Track Loaders Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Skid Steer Loaders and Compact Track Loaders Market Segmental Outlook

On the basis of type, the global skid steer loaders and compact track loaders market is segmented into skid steer loaders, and compact track loaders. The compact track loaders segment held a USD 4.6% Mn CAGR of the market in 2022-2030. A compact track loader has high maneuverability.

In contrast to skid-steered loaders, track loaders travel laterally. Machines with track loads provide improved grip on slick or unsteady conditions. They are a versatile component of any fleet and perform many tasks. This is expected to increase the demand for skid steer loaders and compact loaders.

On the basis of propulsion, the global skid steer loaders and compact track loaders market is segmented into electric, and conventional. The electric segment held 25.6% CAGR during 2022-2030. Electric skid steer loaders and electric compact track loaders create low noise and are characterized by low emissions, which helps to eliminate the negative impact on the environment.

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On the basis of capacity, the global skid steer loaders and compact track loaders market is segmented into up to 1550 lb., 1550 lb. – 2000 lb., 2000 lb. – 3000 lb., 3000 lb. – 4000 lb., and more than 4000 lb. Skid steer loader and compact tracked loaders have various applications based on their different capacities. Loaders that are less than 1550 lb. and up to 2000 lb. in capacity are widely used in landscaping for cleaning and decorative purposes, along with ground maintenance. This factor is expected to boost the demand for loaders with capacity less than 1550 lb. and up to 2000 lb.

Skid steer loaders and compact track loaders with 3000 lb. – 4000 lb. and more than 4000 lb. capacity are widely used in mining, construction, and forestry for various purposes. Increasing urbanization and industrialization is expected to boost the use of skid steer loaders with 3000 lb. – 4000 lb. and more than 4000 lb. capacity significantly in the forecast period.

Based on purpose area, the global skid steer loaders and compact track loaders market is segmented into commercial and residential. Skid steer loaders and compact track loaders are mainly used for carrying heavy material, digging, and other purposes in various sectors.

These loaders are widely used in the construction industry for arranging, lifting, and carrying heavy materials. These loaders are used in mining industries for digging and other purposes. Skid steer loaders and compact track loaders are used in agriculture, due to its compact design and toughness.

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Based on end-use, the global skid steer loaders and compact track loaders market is segmented into construction, agriculture, mining, and others. Skid steer loaders and compact tracked loaders are used in construction sites for carrying heavy-weighted materials. Increasing urbanization and population are predicted to increase in the construction industry. This is expected to fuel the construction segment in the forecast period.

Skid steer loaders and compact track loaders are widely used in agriculture. Debris are efficiently swept up by a skid steer equipped with a rotating broom. It is used for loading or moving dirt. Multiple applications of a skid steer loader in agriculture is expected to boost the segment significantly.

Regional Outlook

Based on region, the market is separated into five regions, namely, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Asia Pacific is projected to hold a significant share of the market during the forecast period.

The market in Asia Pacific is projected to expand at a CAGR of 4.8% during the forecast period, owing to the increasing demand for construction activities on account of increasing purchasing power and urbanization in the region. People are migrating from one place to another for improved infrastructure in terms of hospitals, housing, roads, and others.

The market in Europe is expected to expand at a CAGR of 4.3% during the forecast period. The construction equipment industry in Europe is resilient and registered above-average growth in sales, which is projected to fuel the skid steer loaders and compact track loaders market during the forecast period.

North America accounted for 24.6% share of the market in 2021, due to high growth in the housing sector, especially in the US, which in turn, boosted the construction equipment industry. This leads to high growth in the skid steer loaders and compact track loaders market. Housing affordability increased, mainly due to the decline in the federal funds rate in March 2020.

Present home inventory levels goes down, due to the increase in demand for houses. Builders scrambled to build new homes, thus pushing up prices. Post-pandemic, the housing completion rate is expected to increase, due to shortage of skilled labor.

The market in Latin America is projected to expand at a CAGR of 3.3% during the forecast period. This is attributed to the major contribution in terms of mining activities from Brazil, Mexico, and Argentina along with the rising development and upgradation of the mining industry in these countries.

Skid steer loaders and compact track loaders are used in the mining industry. Growing demand for materials such as diamonds, uranium, zinc, gold, and others is expected to boost the mining sector and drive the skid steer loaders and compact track loaders market during the forecast period.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Skid Steer Loaders and Compact Track Loaders Market

• Historical, Current and Projected Market Size in terms of Value

• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered

• Industry Drivers, Restraints, and Opportunities Covered in the Study

• Recent Industry Trends and Developments

• Competitive Landscape & Strategies of Key Players

• Neutral Perspective on Global Skid Steer Loaders and Compact Track Loaders Market Performance