Industry Insights
The global skid steer loader market size was valued at USD 2.44 billion in 2017 and is expected to exhibit a CAGR of 3.3% from 2017 to 2025. Availability of technologically advanced equipment and growing online services are expected to drive the market in the coming years.
U.S. citizens are focusing on maintenance of their gardens and yards for their own enjoyment as well as for raising value of their home. Furthermore, clean and well-kept property is easier to sell as it helps in achieving a high sales price than a property that is poorly maintained.
Global skid steer loader market revenue by application, 2015 - 2025 (USD Billion)
North America is a prominent region in the market owing to increased spending on maintenance of landscape, gardens, and lawns. According to the National Association of Landscape Professionals, an average home spent around USD 500 on landscape and lawn maintenance in 2017 and spending has increased by USD 100 from the previous year. Shifting inclination of homeowners towards implementation of professional landscaping for home improvement projects is expected to foster market growth.
Owners of skid steer loaders are demanding comfort as it increases productivity. This has compelled manufacturers to focus on operator’s comfort and offer products with excellent cabin comfort characteristics associated with heat and air conditioning, suspension seats, and enclosed cabin with sound reduction material. For instance, New Holland offers an exclusive cabin design for its Super Boom units.
Furthermore, advancement in technology has led to enhanced display panel size, featuring information in multiple languages, and innovation of the keyless start system, which has increased security and lowered insurance premium for owners. With growing number of Hispanic operators, there has been enhancements such as the Bobcat deluxe instrument panel, which displays vital functions and warnings in six languages, including Spanish.
Segmentation by Product
• Wheeled
• Tracked
Wheeled skid steer is estimated to hold a prominent share in the market owing to its widespread usage in agriculture applications such as seeding, grading, asphalt, and snow removal. Growing applications that require high speed and extensive usage in firm ground conditions are also likely to fuel product demand. In addition, increasing spending on development of roads and rail infrastructure in countries, including China and India, and supportive investment-friendly policies by domestic governments are projected to fuel growth.
Segmentation by Application
• Construction
• Landscape & Ground Maintenance
• Agriculture & Forestry
• Others
In 2017, construction held a prominent share in the skid steer loader market and is expected to maintain its dominance from 2017 to 2025. This could be attributed to widespread usage of skid steer loaders for grading, hauling, and transportation during material handling process. The compact size of the product makes it suitable for use in indoor applications, such as underground parking space. Moreover, advancements in product attachments, including auger, breaker boring unit, and grapple, are projected to fuel product demand in the construction industry. Landscape and ground maintenance is also likely to emerge as highly lucrative in the coming years owing to increased spending on maintenance of landscapes.
Segmentation by Region
• North America
• Europe
• Asia Pacific
• Rest of the world
Asia Pacific accounted for more than 50% of the overall revenue in 2017 and is projected to witness substantial growth on account of increasing product awareness and visibility in developing countries, such as China and India. For instance, Nepal and China signed an agreement for development of infrastructure in June 2018, including development of 164 MW Kali Gandaki Gorge Hydropower, 75 MW Trishuli Galchi Hydropower, and 40.27 MW Siuri Nyadi Hydropower projects.
Furthermore, emergence of smart cities concept is expected to provide growth opportunity for the market. For instance, the Government of India sanctioned USD 14 billion for development of 100 smart cities and rejuvenation of 500 other cities under the Smart Cities Mission in June 2015.
Competitive Landscape
The skid steer loader market is marked by presence of many well-established players. Key players operating in the market include Volvo; CNH Industrial; Doosan Group; Caterpillar Inc.; JCB; Deer & Company; Hyundai, Komatsu; KUBOTA Corporation; Sunward equipment group; Groupe MECALAC S.A.; and Wacker Neuson SE.
Manufacturers are adopting various strategies such as mergers and acquisitions in order to gain a competitive edge in the market. In addition, they are focusing on product development in order to increase efficiency of existing loaders. In May 2017, Kinshofer GmbH acquired Solesbee’s Equipment and Attachments, LLC, a U.S.-based company, to expand business and enhance local manufacturing in U.S.
