Wheel Loaders Market by End-user, Power Output, and Geography - Forecast and Analysis 2023-2027

Wheel Loaders Market Forecast 2023-2027

The Wheel Loaders Market size is forecast to increase by USD 22.74 billion at a CAGR of 9.4% between 2022 and 2027.

The market's growth hinges on various factors, such as rising investments in public infrastructure, heightened demand from the agriculture sector, and the global surge in housing projects. These elements collectively drive expansion, fostering a robust market landscape. Increasing infrastructure investments bolster development initiatives, while agriculture's demand stimulates market growth. Moreover, the escalating need for housing projects worldwide further propels market expansion. As these factors converge, the market experiences a notable surge, indicating promising opportunities and sustained growth potential in the foreseeable future.

What will be the Size of the Wheel Loaders Market During the Forecast Period?

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The Wheel Loaders Market is witnessing significant growth due to the surge in residential and infrastructural development activities worldwide. The demand for electric construction equipment, including electric compact wheel loaders, is on the rise, driven by factors such as adaptability, ease of mobility, and high hauling capacity. End-use industries such as construction, mining, and forestry are increasingly relying on these versatile machines for tasks like digging, loading, and material handling. The market also sees innovations like intelligent assistant systems and AGM battery technology, contributing to enhanced productivity and sustainability. With the advent of tech-enabled compact wheel loaders and the push for electrification, the market is poised for further expansion despite challenges such as high initial costs and maintenance expenses.

Technavio’s Exclusive Market Customer Landscape

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. 

Global Market Customer Landscape

Market Dynamics

In recent years, the wheel loaders market has experienced substantial growth driven by various factors, such as increased demand for construction and infrastructure projects worldwide. The introduction of electric construction equipment, including compact wheel loaders, has revolutionized the industry, offering enhanced adaptability and mobility. These loaders boast high hauling capacities, making them indispensable in a wide range of industries, from construction to agriculture. Moreover, advancements in technology have led to the development of intelligent assistant systems and environmentally friendly loaders, addressing sustainability concerns and improving overall efficiency. Despite challenges like high initial costs, the market continues to expand, fueled by the need for efficient material handling solutions in various 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. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.    

Key Market Driver

Increasing investments in public infrastructure is the key factor driving the global wheel loaders market growth. The demand for residential construction projects is increasing with the growing population. This is increasing government spending on public infrastructure such as railways, roads, and bridges. Wheel loaders are used in a variety of tasks at construction sites, such as loading and transporting materials such as soil, gravel, and asphalt. With the growing number of new infrastructure projects, the demand for wheel loaders is likely to increase. The number of residential and commercial buildings is growing rapidly in developing countries, such as the United Arab Emirates, Saudi Arabia, India, China, and others, which will make increase the scope of investment.

In 2022, China announced a USD 1 trillion investment in infrastructure to revive its economy. Increasing public infrastructure, spending plays an important role in stabilizing a country's economy and facilitating its growth. Asia will experience strong investment growth, especially in the transportation sector. Countries like Indonesia and the Philippines are expected to invest heavily in road and highway projects during the forecast period and beyond. These developments are therefore expected to spur strong investment in the construction industry, which in turn drives the growth of the global wheel loaders market.

Significant Market Trends

The shift from conventional fuels will fuel the market growth. Countries around the world are focusing on reducing carbon emissions and emissions through the use of cleaner, greener fuels, and wheel loaders are no exception. Since wheel loaders are heavy-duty, high-powered equipment, they also consume relatively higher amounts of fuel, resulting in higher emissions. Manufacturers in the loader market are developing unique and clean fuel-powered products.

For example, in October 2021, AB Volvo introduced the Volvo LX03 prototype, which is a self-propelled battery-electric loader. It represents the next step in Volvo's exploration of artificial intelligence and battery-powered wheel loaders to decarbonize the construction industry. The development of clean fuel-powered wheel loaders is expected to have a positive impact on the global loader market during the forecast period.

Major Market Challenge

The growing rental equipment market can majorly impede the growth of the market. Wheel loaders are very expensive and require a high initial investment. Therefore, for short-term projects or small-scale projects, it is difficult for construction companies to buy them due to their low rate of return on investment (ROI). The 2008 financial crisis had a negative impact on construction companies, forcing them to adapt to the changing global economic landscape. In order to gain flexibility and adapt to prevailing economic conditions, construction companies have started to lease their machines for a fixed term according to their needs. That way, construction companies can save on machinery purchase costs and eliminate maintenance costs.

Various types of construction machinery, such as wheel loaders, are widely rented at moderate prices. Some third-party companies, such as MacAllister Machinery Co. Inc., United Rentals Inc., American Equipment LLC, and RentalYard.com, offer wheel loader rental services. Increased availability of rental equipment may encourage small end users to opt for such products. This will reduce the purchase of new equipment and negatively impact new loader sales. As a result, increasing competition from rental companies can affect the ability of Companies to attract and retain buyers in the market as well as limit their revenue opportunities. These factors will negatively affect the growth of the global loader market during the forecast period.

Who are the Major Wheel Loaders Market Companies?

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.

AGCO Corp.: The company offers wheel loaders such as MF 9500 Super Shuttle Series, MF 9500, and many more.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

• Caterpillar Inc.
• CNH Industrial NV
• Deere and Co.
• Doosan Corp.
• Hyundai Heavy Industries Co. Ltd.
• Hidromek Hidrolik ve Mekanik Makina Imalat Sanayi ve Ticaret A.S.
• Hitachi Ltd.
• J C Bamford Excavators Ltd.
• Komatsu Ltd.
• Liebherr International Deutschland GmbH
• Lonking Holdings Ltd.
• Manitou BF SA
• Groupe Mecalac SAS
• SANY Group
• Schaffer Maschinenfabrik GmbH
• Shandong Heavy Industry Group Co. Ltd.
• AB Volvo
• Wacker Neuson SE
• Yanmar Holdings Co. Ltd.

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies Companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak based on their quantitative data analysis.  

Market Segmentation 

This report extensively covers market segmentation by end-user (construction and agriculture), power output (more than 80 HP, 40 to 80 HP, and less than 40 HP), and geography (APAC, North America, Europe, South America, and Middle East and Africa).  Furthermore, the report includes historic market data from 2017 to 2021. Compatibility is key, ensuring seamless integration of equipment into various operations. Effective material management enhances efficiency and productivity on job sites, optimizing resource allocation and reducing wastage. Operator comfort and controllability are prioritized features in modern loaders, offering precise control for intricate tasks like landscaping and waste management. With advancements like joystick steering and intelligent assistance systems, operators can navigate complex environments with ease. Additionally, innovations like AGM battery technology contribute to quieter operation, addressing concerns regarding noise emission regulations. Amidst the push for sustainable infrastructure, loaders play a crucial role in supporting mechanization and facilitating large-scale construction activities.

By End-User

The construction segment will contribute a major share to the growth of the global market. The construction segment was valued at USD 17.85 billion in 2017 and continued to grow until 2021. The global construction industry is mainly driven by increasing spending by different governments around the world on infrastructure. The global construction industry is analyzed on a residential and non-residential basis. According to the World Bank, globally, cities account for about 80% of the gross national product (GNP). The growing number of megacities will lead to an improvement in global economic activities, thereby leading to an increase in the middle-class population.

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Today, the middle class makes up 38% of the total population, which is expected to grow to 46% by 2025 and 55% by 2035, according to the World Bank. The population growth of the middle class represents an increase in the spending capacity of the population, which in turn drives the consumption of most goods and products. Growing investment in the real estate sector is expected to increase residential construction activity worldwide, which in turn drives demand for new homes. In addition to the housing sector, the non-residential sector is also expected to receive a large inflow of investment capital, especially in the manufacturing, social, transport, and telecommunications sectors. All these factors positively influence the market growth.

Power Output Analysis

Wheel loaders with a power output greater than 80 HP hold the largest share of the global wheel loader market. Rapid urbanization, especially in developing countries, will lead to an increase in the number of megacities. It is estimated that by 2030, the number of megacities globally will increase significantly, most of which are established in developing countries such as India, South Africa, and China. The growth in the number of megacities reflects the increasing migration of people from rural to urban areas. This migration is also a sign of increasing disposable income of people. Due to the increase in disposable income and the migration of people to urban areas, cities must expand to accommodate the growing population.

Therefore, major infrastructure development in the form of the construction of roads, railways, residential buildings, hospitals, and hotels, among other things, is underway. This development will lead to increased construction activity and increased infrastructure spending, which will lead to increased demand for wheel loaders with over 80 HP capacity during the forecast period. Major developing countries like India, China, and South Africa are experiencing major urbanization trends that are expected to contribute to the demand for these machines during the forecast period.

Regional Analysis

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APAC is estimated to contribute 32% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Increasing construction activities in emerging economies, supported by increased government spending on infrastructure development, will drive the growth of the construction machinery market in the region. The construction market in the region is expected to grow steadily over the forecast period, creating demand for new residential and commercial infrastructure for the growing urban population. In addition, emerging economies in APAC are experiencing significant growth in the residential and commercial construction sectors. Countries like China, Japan, India, Australia, and others are among the biggest revenue contributors to the APAC market.

There is an increase in residential and commercial construction activity, as well as increased investment in infrastructure development, in the region. Population growth and urbanization have also fueled the demand for smart and sustainable infrastructure solutions. In addition, some APAC countries, such as China and India, have started to implement self-sufficiency policies for all major agro-food items, mainly to meet the growing food needs of the population. These policies include increasing agricultural production, such as market price support, agricultural subsidies, and rural land reform. This will help to improve agricultural production in these countries and hence will lead to an increase in demand for agricultural machinery such as wheel loaders during the forecast period.

Market Analyst Overview

Operator controllability is key, ensuring seamless integration of equipment into various operations. Effective material management enhances efficiency and productivity on job sites, optimizing resource allocation and reducing wastage. Operator comfort and compatibility are prioritized features in modern loaders, offering precise control for intricate tasks like landscaping and waste management. With advancements like joystick steering and intelligent assistance systems, operators can navigate complex environments with ease. Additionally, innovations like AGM battery technology contribute to quieter operation, addressing concerns regarding noise emission regulations. Amidst the push for sustainable infrastructure, loaders play a crucial role in supporting mechanization and facilitating large-scale construction activities.

In the domain of construction and material handling, the market has become indispensable, offering unparalleled efficiency and versatility. They seamlessly adapt to various tasks, from handling stockpiled materials to transporting trucks, rubble, and pipes on construction sites. These robust machines, along with other heavy machinery like bulldozers, play a pivotal role in facilitating construction activities and supporting residential and infrastructural development worldwide. With a focus on sustainability and automation, automotive machines in the construction sector is witnessing a transformation, integrating technologies like telematics and diverse loader types, such as skid steer loaders and track loaders, to enhance productivity and streamline operations across the mining, forestry, and construction industries.

Segment Overview

The wheel loaders market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• End-user Outlook
  • Construction
  • Agriculture

• Power Output Outlook
  • More than 80 HP
  • 40 to 80 HP
  • Less than 40 HP

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Argentina
    • Brazil
    • Chile

Market Scope
Report Coverage	Details
Page number	174
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 9.4%
Market growth 2023-2027	USD 22.74 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	8.25
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 32%
Key countries	US, China, India, Japan, and Germany
Competitive landscape	Leading Companies , Market Positioning of Companies , Competitive Strategies, and Industry Risks
Key companies profiled	AGCO Corp., Caterpillar Inc., CNH Industrial NV, Deere and Co., Doosan Corp., Hyundai Heavy Industries Co. Ltd., Hidromek Hidrolik ve Mekanik Makina Imalat Sanayi ve Ticaret A.S., Hitachi Ltd., J C Bamford Excavators Ltd., Komatsu Ltd., Liebherr International Deutschland GmbH, Lonking Holdings Ltd., Manitou BF SA, Groupe Mecalac SAS, SANY Group, Schaffer Maschinenfabrik GmbH, Shandong Heavy Industry Group Co. Ltd., AB Volvo, Wacker Neuson SE, 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 forecast period.
Customization purview	If our market research and growth 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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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth analysis between 2023 and 2027
• Precise estimation of the size of the wheel loaders market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and changes in consumer behavior
• Growth of the market industry across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about Companies
• Comprehensive analysis of factors that will challenge the market growth and forecasting of Companies

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