Global Off-Road Equipment Technology 2022

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Off-Road Equipment

Global demand for off-road equipment is forecast to rise 5.5% between 2021 and 2022 to $481 billion, slightly above 2019 levels. Overall growth will be bolstered by investment in new and replacement machinery featuring state-of-the-art technologies, many of which are designed to improve efficiency and productivity. These include:

autonomous and semi-autonomous equipment, such as robots
fuel efficient and low- or zero-emission equipment
units with advanced ergonomics that provide improved operator comfort and safety
drones, global positioning, predictive maintenance, and other solutions made possible by developments in the Industrial Internet of Things (IIoT)

Demand for Smart Off-Road Technology to Climb Six Times Faster than Total Equipment Sales

Smart off-road equipment sales are projected to grow 35% in 2022 and then more than double by 2026, when they will account for nearly 5% of all off-road equipment demand. Construction is currently the largest market for smart equipment, although demand will expand most quickly in the mining sector (which is expected to become the leading market for smart off-road equipment technology by 2026) as operators increasingly use advanced technologies – such as autonomous equipment and digital mine management solutions – to lower costs and boost output.

Rising Labor Costs & Tightening Emissions Standards Drive Purchase of Advanced Equipment

High production costs and labor shortages mean that advanced off-road equipment is typically most cost effective in high-income countries such as Australia, Canada, Germany, and the US. Use of state-of-the-art technology will remain limited in lower- and mid-income nations, where profits are less influenced by labor costs and emissions standards are generally less stringent. The mining industry is a notable exception, since many of the world’s largest mines – which are operated by multinational companies that can afford advanced, high-end machinery – are located in lower-income countries.

China Has an Outsized Impact on Global Demand for Off-Road Equipment

China is by far the largest consumer of off-road equipment, accounting for 31% of demand in 2021. The country is forecast to represent 26% of global absolute gains in 2022. However, opportunities will differ between the major markets:

Mining and agriculture will see solid growth as these markets continue to recover from the pandemic-related declines in 2020.
Construction will advance more slowly from a high base, as the market for this equipment posted significant gains in 2020, when a combination of strong government spending and China’s ability to mitigate negative economic effects from the pandemic’s initial phase spurred investment in new and replacement construction equipment.

As a result of these trends, the global construction machinery market is expected to decelerate in 2022, while the mining machinery and agricultural equipment markets will continue to grow at a rate similar to 2021.

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Table of Contents

1. Executive Summary

2. Impact of COVID-19 Pandemic

COVID-19 General Trends

Impact on the Economy

Impact on the Construction Industry

Impact on the Off-Road Equipment Industry

3. Regional Outlook

Off Road Equipment Market Size & Outlook by Region

Growth Comparison by Country

Demand by Equipment Type

Country Spotlight: United States

Country Spotlight: Australia

Country Spotlight: India

4. Global Technology Trends

Product Development & Technology Focus

Industrial Internet of Things (IIoT)

Smart Technology Trends

Smart Technology Definition & Scope

Global Smart Equipment Outlook

Autonomous Equipment

Predictive Maintenance

Global Positioning

Drones

Advanced Software & Data Collection Technologies

Engine Technologies

Hybrid Engines

All-Electric Engines

Advanced Ergonomics, User Friendliness & Operability

5. Construction Machinery

Scope & Product Description

Demand by Region

Technology Focus 2022

Key Innovation Trends

Smart Technology Outlook

Electric & Hybrid Engines

Autonomous & Semi-Autonomous Machines

Construction Drones

Improved Handling & Ergonomics

6. Agricultural Equipment

Scope & Product Description

Demand by Region

Technology Focus 2022

Key Innovation Trends

Smart Technology Outlook

Autonomous Tractors & Other Machinery

Farming Robots

Agricultural Drones

Precision Agriculture

Specialty Machines

Data Systems

7. Mining Equipment

Scope & Product Description

Demand by Region

Technology Focus 2022

Key Innovation Trends

Smart Technology Outlook

Autonomous & Semi-Autonomous Mining Machinery

Electric & Hybrid Mining Machinery

Digital Mine Management

High Performance Equipment

Mining Drones

8. Forestry Equipment

Scope & Product Description

Demand by Region

Technology Focus 2022

Key Innovation Trends

Smart Technology Outlook

Fuel Efficiency & Lower Emissions

Improved Handling & Operator Comfort

Advanced Software & Remote Monitoring

Winch-Assist Technologies

Forestry Drones

9. Manufacturer Spotlight

Leading Global Suppliers

AGCO

Caterpillar

CNH Industrial

Deere

Hitachi

Komatsu

Liebherr-International

Sandvik

Tigercat

10. Appendix

Report Details

Definitions

Abbreviations

Freedonia Methodology

Study-Specific Methodology

Sources

Associations & Agencies

Related Studies & Reports

Freedonia Group US Studies

Freedonia Group Global Studies

Freedonia Focus Reports

Country Lists by Region

Macroeconomic Assumptions

Global Economic Outlook

Global Population

Global Construction Outlook

Global Manufacturing Outlook

List of Tables

2. Impact of COVID-19 Pandemic

Table 2-1 | Global Gross Domestic Product, 2019 - 2023 (billion 2020 dollars)

Table 2-2 | Global Construction Expenditures, 2019 - 2023 (billion 2019 dollars)

Table 2-3 | Annual Global Off-Road Equipment Demand by Type, 2019 - 2022 (million dollars)

3. Regional Outlook

Table 3-1 | Global Off-Road Equipment Demand by Region, 2020 - 2026 (million dollars)

Table 3-2 | Off-Road Equipment Demand Growth for Selected Countries, 2022 - 2026 (% CAGR)

Table 3-3 | Global Off-Road Equipment Demand by Type, 2020 - 2026 (million dollars)

4. Global Technology Trends

Table 4-1 | Smart Off-Road Machinery Demand by Type, 2020 - 2026 (million dollars)

Table 4-2 | Key Advantages of Autonomous Off-Road Equipment

Table 4-3 | Global Off-Road Equipment Drone Demand by Type, 2020 - 2026 (million dollars)

5. Construction Machinery

Table 5-1 | Global Construction Machinery Demand by Region, 2020 - 2026 (million dollars)

Table 5-2 | Electric Construction Machinery: Selected Products Available or in Development

Table 5-3 | Autonomous & Semi-Autonomous Construction Machinery: Selected Products Available or in Development

Table 5-4 | Construction Machinery with Improved Handling & Ergonomics: Selected Products

6. Agricultural Equipment

Table 6-1 | Global Agricultural Equipment Demand by Region, 2020 - 2026 (million dollars)

Table 6-2 | Autonomous Agricultural Equipment: Selected Products Available or in Development

Table 6-3 | Farming Robots: Selected Products Available or in Development

Table 6-4 | Specialty Agricultural Equipment: Selected New Products

7. Mining Equipment

Table 7-1 | Global Mining Equipment Demand by Region, 2020 - 2026 (million dollars)

Table 7-2 | Autonomous Mining Equipment: Selected Products Available or in Development

Table 7-3 | Electric & Hybrid Mining Equipment: Selected Products Available or in Development

Table 7-4 | Digital Mine Management Technologies: Selected New Products

Table 7-5 | Mining Equipment: Selected New Products

8. Forestry Equipment

Table 8-1 | Global Forestry Equipment Demand by Region, 2020 - 2026 (million dollars)

Table 8-2 | Fuel Efficient & Low Emissions Forestry Equipment: Selected New Products

Table 8-3 | Forestry Equipment with Improved Handling or Operator Comfort: Selected Products

10. Appendix

Table 10-1 | Off-Road Equipment Scope: Product Examples by Equipment Type

Table 10-2 | Relevant NAICS & SIC Codes

Table 10-3 | Relevant HS Codes

Table 10-4 | Relevant NACE Codes

Table 10-5 | Abbreviations & Acronyms Used in Study

Table 10-6 | Countries in North America

Table 10-7 | Countries in Central & South America

Table 10-8 | Countries in Western Europe

Table 10-9 | Countries in Eastern Europe

Table 10-10 | Countries in the Asia/Pacific Region

Table 10-11 | Countries in the Africa/Mideast Region

Table 10-12 | Global Gross Domestic Product by Region & Country, 2011 - 2026 (billion 2019 dollars)

Table 10-13 | Global Population by Region & Country, 2011 - 2026 (million persons)

Table 10-14 | Global Construction Expenditures by Region & Country, 2011 - 2026 (billion 2019 dollars)

Table 10-15 | Global Manufacturing Value Added by Region & Country, 2011 - 2026 (billion 2019 dollars)

List of Figures

1. Executive Summary

Figure 1-1 | Global Off-Road Equipment Market

2. Impact of COVID-19 Pandemic

Figure 2-1 | Real GDP by Region, 2019 - 2022 (% annual change)

Figure 2-2 | Annual Global Off-Road Equipment Demand, 2018 - 2024 (billion dollars)

3. Regional Outlook

Figure 3-1 | Global Off-Road Equipment Demand by Region, 2022 - 2026 (% CAGR)

Figure 3-2 | Off-Road Equipment Demand Growth by Country, 2022 - 2026 (% CAGR)

Figure 3-3 | Global Off-Road Equipment Demand by Type, 2004 - 2026 (billion dollars)

Figure 3-4 | US: Off-Road Equipment Market Position & Outlook

Figure 3-5 | Australia: Off-Road Equipment Market Position & Outlook

Figure 3-6 | India: Off-Road Equipment Market Position & Outlook

4. Global Technology Trends

Figure 4-1 | Off-Road Equipment Innovation Focus by Product Type

Figure 4-2 | Smart Machinery Share of 2022 Off-Road Equipment Sales & Sales Forecast by Equipment Type, 2022 - 2026 (% CAGR)

Figure 4-3 | Autonomous Off-Road Equipment: Top Developers

Figure 4-4 | Drones: Product Examples

Figure 4-5 | Electric Powered Off-Road Equipment: Product Examples

5. Construction Machinery

Figure 5-1 | Construction Machinery: Product Examples

Figure 5-2 | Global Construction Machinery Demand, 2004 - 2026 (billion dollars)

Figure 5-3 | Construction Machinery: Demand Growth by Region, 2022 - 2026 (% CAGR)

Figure 5-4 | Construction Machinery: Key Innovation Trends

Figure 5-5 | Smart Construction Machinery Demand, 2021 - 2026 (million dollars)

Figure 5-6 | Construction Drones: Product Examples

6. Agricultural Equipment

Figure 6-1 | Agricultural Equipment: Product Examples

Figure 6-2 | | Global Agricultural Equipment Demand, 2004 - 2026 (billion dollars)

Figure 6-3 | Agricultural Equipment: Demand Growth by Region, 2022 - 2026 (% CAGR)

Figure 6-4 | Agricultural Equipment: Key Innovation Trends

Figure 6-5 | Smart Agricultural Equipment Demand, 2021 - 2026 (million dollars)

Figure 6-6 | Agricultural Equipment: Autonomous Machinery in Development

Figure 6-7 | Agricultural Equipment: Selected Robots in Development

7. Mining Equipment

Figure 7-1 | Mining Equipment: Product Examples

Figure 7-2 | Global Mining Equipment Demand, 2004 - 2026 (billion dollars)

Figure 7-3 | Mining Equipment: Demand Growth by Region, 2022 - 2026 (% CAGR)

Figure 7-4 | Mining Equipment: Key Innovation Trends

Figure 7-5 | Smart Mining Equipment Demand, 2021 - 2026 (million dollars)

8. Forestry Equipment

Figure 8-1 | Forestry Equipment: Product Examples

Figure 8-2 | Global Forestry Equipment Demand, 2004 - 2026 (billion dollars)

Figure 8-3 | Forestry Equipment: Demand Growth by Region, 2022 - 2026 (% CAGR)

Figure 8-4 | Forestry Equipment: Key Innovation Trends

Figure 8-5 | Smart Forestry Equipment Demand, 2021 - 2026 (million dollars)

Figure 8-6 | Advanced Software for Forestry Equipment: Product Examples

Figure 8-7 | Winch-Assist Systems for Forestry Equipment: Product Examples

9. Manufacturer Spotlight

Figure 9-1 | AGCO: R&D Overview & Key Focus Areas

Figure 9-2 | Caterpillar: R&D Overview & Key Focus Areas

Figure 9-3 | CNH Industrial: R&D Overview & Key Focus Areas

Figure 9-4 | Deere: R&D Overview & Key Focus Areas

Figure 9-5 | Hitachi: R&D Overview & Key Focus Areas

Figure 9-6 | Komatsu: R&D Overview & Key Focus Areas

Figure 9-7 | Liebherr-International: R&D Overview & Key Focus Areas

Figure 9-8 | Sandvik: R&D Overview & Key Focus Areas

Figure 9-9 | Tigercat: R&D Overview & Key Focus Areas

Global Off-Road Equipment Technology 2022

Featuring 40 tables and 48 figures – now available in Excel and Powerpoint! Learn More

Demand for Smart Off-Road Technology to Climb Six Times Faster than Total Equipment Sales

Rising Labor Costs & Tightening Emissions Standards Drive Purchase of Advanced Equipment

China Has an Outsized Impact on Global Demand for Off-Road Equipment

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