Backhoe Market Loaded with Growth

The backhoe loader market is set to surpass $4 billion by 2026. The top global players accounted for a nearly 85-percent revenue share of the $2.14 billion backhoe loader market in 2015. 

APEJ (Asia Pacific excluding Japan), the largest market in terms of volume and value, was worth $866.6 million in 2015, and is projected to surpass $1 billion in revenues by 2018. India will continue to be the world's most lucrative and largest market for backhoe loaders, growing at 6.9 percent, higher than the 5.9 percent global CAGR (compound annual growth rate), through 2026. On the back of strong demand from the U.S. construction sector, North America will maintain its position as the world's second-largest market, followed by Latin America.

The India backhoe loaders market will continue to experience steady gains throughout the forecast period on account of a slew of factors. Government focus on infrastructure development coupled with easy financing has ensured steady buoyancy, and the status quo is anticipated to remain unchanged throughout the forecast period.

Center-mount backhoe loaders will continue to outsell side-shift variants, with the former projected to account for more than 86 percent of revenue share of the market throughout the forecast period.Center-mount backhoe loaders remain sought after among end-users in Asia Pacific and North America, whereas side-shift backhoe loaders are concentrated in Europe.

Backhoe loaders find their application in a wide range of end-use industries, including construction and mining, utility, and agriculture and forestry. Construction and mining remain the largest end-use sector, accounting for nearly 53 percent revenue share of the market in 2016. Frenzied construction activity in Tier II cities, combined with the implementation of "Smart City" programs are anticipated to provide an impetus to overall construction equipment sales in India, which in turn, is expected to have a crucial impact on prospects of the global market.

Related Articles