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The Japan excavator market size is estimated to increase by USD 963.34 million and grow at a CAGR of 4.75% between 2022 and 2027. Market expansion in Japan hinges on several pivotal factors, notably the advancement of healthcare facilities and disaster prevention initiatives, alongside robust infrastructure development and a thriving construction industry. However, challenges persist, including the incapacity to offer customization options, thereby impacting customer satisfaction adversely. Moreover, the soaring prices pose a significant obstacle, hindering market accessibility. Additionally, the market faces fierce competition from loaders, intensifying the competitive landscape. Addressing these challenges necessitates strategic maneuvers, such as enhancing customization capabilities, implementing cost-effective measures, and innovating to differentiate from competitors. Despite these hurdles, the market's potential remains promising, propelled by Japan's commitment to bolstering essential sectors and fostering economic growth.
Analysis Period | 2017-2027 |
Market Size (2017) Historic Year | USD 3527.26 mn |
Market Size (2027) - Forecasted Year | USD 4654.64 mn |
Historic Opportunity (2017-2021) | USD 43.09 mn |
Historic CAGR | 0.30% |
Forecasted Opportunity (2023-2027) | USD 963.34 mn |
Market Opportunity Transformation Growth | 31.96% |
Market Opportunity Capitalization | USD 1006.43 mn |
This report extensively covers market segmentation by type (crawler excavator, mini excavator, and wheeled excavator) and application (construction, mining, and utilities). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The crawler excavator segment is estimated to witness significant growth during the forecast period. One of the most commonly used segments in Japan is the crawler excavator. The main functionality of the crawler segment is for digging and earthmoving tasks and is widely used in the construction industry in Japan.
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The crawler excavator segment was the largest segment and was valued at USD 2.26 billion in 2017. Some key features of the crawlers excavation segment include tracks, versatility, stability and balance, and digging power. The tracks of crawlers enable them to move through different surfaces, including muddy, sandy, or uneven terrains. Similarly, crawlers are highly versatile as can be equipped with various attachments, such as buckets, hammers, augers, and grapples which enables them to perform a wide array of tasks such as digging trenches, excavating foundations, demolition, forestry work, and more. There is increasing adoption of crawlers across the construction industry due to their strong digging capabilities. Hence, such benefits are expected to drive the growth of this segment which in turn will drive the market growth in Japan during the forecast period.
Based on application, the segment is classified into construction, mining, and utilities. Excavators are mainly heavy construction equipment designed for digging and earthmoving tasks which are widely used in the construction industry. Some of the various construction projects where excavators are utilized include building construction, road construction, landscaping, mining, and more. The different types of excavators used in construction activities are crawler excavators, wheeled excavators, and mini excavators which vary depending on their size and project requirements. Factors such as construction activities, infrastructure development, and economic conditions are influencing the growth of this segment. Hence, such applications are expected to drive the market growth in Japan during the forecast period.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Customer Landscape
In Japan, the industry stands at the forefront of innovation, catering to diverse sectors such as construction, mining, and infrastructure development projects. With a focus on technological development, excavators are increasingly equipped with features like recyclers, hydraulic material handling attachments, and mini processing plants to enhance efficiency. Advanced camera, laser, and sensor technologies further optimize performance in tasks such as earthmoving for road and port construction and urban development. Fuel efficiency remains paramount in addressing environmental concerns, particularly in oil and gas construction industries and private construction companies undertaking residential and commercial projects. As Japan accelerates its infrastructure development efforts, including airports and heavy construction machinery, the excavator market continues to evolve, driving progress in the nation's construction and mining sectors. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Key Driver
One of the key factors driving the market growth is the infrastructure development in the region. Japan has been known for its advanced infrastructure and continuous efforts to enhance it further. Hence, there is a rising demand in different construction projects nationwide. Some of the key applications in construction areas include building new roads, bridges, tunnels, railways, and other transportation systems.
Moreover, the excavator is an essential component in these construction areas as they are used for tasks such as digging foundations, trenching, and earthmoving. Furthermore, the maintenance and expansion of existing infrastructure are also significantly contributing to the global market growth in the region. Hence such factors are expected to drive the market in Japan during the forecast period.
A key factor shaping the growth is the availability of attractive offers and financing options. Most utility operators in Japan prefer to own their own excavators rather than rent them for excavation activities, but the ownership involves high upfront investments. Hence, some manufacturers are providing these end-users with attractive financing options to boost their sales.
One of the main advantages of these financing options by manufacturers is that it offers the end-user companies the opportunity to procure the equipment with a minimal effect on their finances. As a result, these manufacturers are promoting these financial options to market their products. Some of the attractive options offered by manufacturers include complementary attachments, accessories, and customization options. Hence, such factors are expected to drive the market growth in Japan during the forecast period.
High prices are one of the key challenges hindering the market growth. Excavators are made up of a number of parts, including hydraulic cylinders, diesel tanks, air ducts, protective covers, lamp holders, hydraulic oil reservoirs, and fenders. In order to manufacture these various parts, raw materials like stainless steel, hardened steel, cast iron, aluminum, brass, bronze, and other metal alloys are needed.
Moreover, their production costs fluctuate as a result of the varying prices of these raw materials and their availability. High assembling costs diminish the overall revenues for hardware producers in Japan, which will obstruct the development of the market in the center in the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Caterpillar Inc: The company offers excavators such as C, D, D Pro series and A, B, B Pro series.
Deere and Co: The company offers excavators such as mini, medium, large, and small.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
The market in Japan is thriving, driven by dynamic factors such as the bustling construction sector and the burgeoning demand for road and port construction projects. Technological advancements have propelled the industry forward, emphasizing fuel efficiency and technologically upgraded equipment. Private construction companies, engaged in diverse projects including residential, commercial, industrial, oil and gas, mining, road, and port construction, are increasingly opting for hybrid technology and environmentally friendly solutions to comply with stringent environmental regulations. Amidst rising concerns over carbon footprint and emission standards, the market is witnessing a shift towards cleaner and more efficient technologies, encompassing mini excavator equipment and compact excavator-specific automated measurement equipment. As Japan's urbanization drives expanding construction activities, the excavator industry remains at the forefront of innovation, catering to evolving needs with advanced construction technologies and cutting-edge hydraulic systems.
Moreover, the market is diverse and vibrant, catering to various sectors including the oil and gas construction industries, residential projects, commercial projects, industrial projects, mining projects, and road construction projects. Excavators equipped with advanced hydraulics are indispensable for tasks such as muddy conditions, debris removal, and digging procedures across different industries. Fuel efficiency is a key consideration in the face of rising operational costs and stringent safety standards. As Japan continues its path of industrialization and develops new housing units and urban infrastructure, the demand for heavy construction machinery like excavators remains robust. Technological advancements drive the market, with a focus on energy efficiency and environmental concerns. The emergence of mini/compact excavators is notable, offering accessible and fuel-efficient solutions for diverse applications in urban construction and landscaping activities.
Excavator Market Scope In Japan |
|
Report Coverage |
Details |
Page number |
133 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.75% |
Market growth 2023-2027 |
USD 963.34 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.67 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Caterpillar Inc., Deere and Co., Doosan Corp., Guangxi LiuGong Machinery Co. Ltd., HD Hyundai Co. Ltd., Hitachi Construction Machinery Co. Ltd., J C Bamford Excavators Ltd., KATO WORKS CO. LTD., Kawasaki Heavy Industries Ltd., Kobe Steel Ltd., Komatsu Ltd., Kubota Corp., Liebherr International Deutschland GmbH, Marubeni Corp., Mitsubishi Heavy Industries Ltd., Sumitomo Heavy Industries Ltd., Sunward Intelligent Equipment Group, Takeuchi Mfg. Co. Ltd., AB Volvo, and Yanmar Holdings Co. Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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