Several factors, including the rising utilisation of off-highway vehicles in multiple sectors such as agriculture, construction, mining, and infrastructure, will propel the revenue to reach $ 1.3 trillion by 2031.
According to the latest report by Transparency Market Research, the growing adoption of port and material-handling equipment vehicles generate revenue streams. In addition, automation in agriculture spurs demand for off-highway vehicles, especially agricultural tractors; massive infrastructure development in the Asia Pacific underpins vast, lucrative avenues.
Many off-highway vehicle manufacturers are augmenting their R&D to meet the latest emission standards. Furthermore, focusing on autonomous technologies in vehicles will help them set apart from competitors.
The study stated that the key players are expanding their off-highway vehicle market shares by expanding their construction / mining equipment product portfolio.
The rise in demand for the agriculture and forestry segments will grow the off-highway vehicle market size in the near future. In addition, the increasing trend of mechanised automaton to address the paucity of skilled labour in the industry has enriched the demand for the off-highway vehicle market.
Some of key players includes Scania AB, Nidec Corporation, Liebherr, Kubota Corp, Komatsu, Husqvarna, Cummins Inc., Epiroc AB, Deutz, Deere & Company, Daimler, Caterpillar Inc., AGCO Corporation AB Volvo, and Mahindra Powertrain.
Rising Use Of Machines
The rise in demand for machines to automate tasks in numerous industries is propelling growth opportunities in the off-highway vehicle market. There is abundant demand for these vehicles in large-sized infrastructure projects. In addition, the availability of heavy construction equipment has made them more affordable, observed the study authors, the report noted.
Uptake Of Agriculture Tractors & Equipment
According toTransparency Market Research, the demand for agricultural tractors and equipment presents enormous growth prospects underpinned by the rapidly increasing trend of mechanised automation. Of note, agriculture tractors are expected to gather widespread adoption in developing countries, supported by growing spending by farmers on automating numerous farming activities. Moreover, the demand from the port and material handling industry is buoyant, spurred by the expansion of international trade over the decades. Thus, port & material handling equipment vehicles present abundant opportunities, the report said.
Transparency Market Research noted that the off-highway vehicle market is making strides on the back of the rapid pace of organised urbanisation and the increasing trend of mechanised automation in multiple industries.
Over the years, import-export trade has gathered considerable momentum, reinforced by favourable Government policies and tariff rules. This, in turn, spurred investments in developing port and material handling infrastructure in several countries around the globe.
Moreover, the emphasis of end-use industries to reduce the carbon emissions of off-highway vehicles has nudged automotive companies to develop environmentally friendly vehicles, thereby expanding the horizon.
The demand for off-highway vehicles has picked up a tremendous pace in North America to meet the demands from coastal ports, inland ports, and waterways. As a result, the regional market is expected to expand at a promising growth rate during the forecast period.
China is estimated to account for a major share of the global off-highway vehicle market during the forecast period. The rest of the Asia Pacific region, which is the one excluding China, is also remarkably lucrative. Growing investments in large-ticket infrastructure projects in key cities of the country in recent years have filliped the demand.
The rising uptake of products in India, Japan, Australia, and ASEAN, particularly for mining and construction industries, has generated sizable revenue streams in the rest of the Asia Pacific market.
The study observed that key players are keen on commercialising new services to expand market shares. However, the competition landscape is largely fragmented because several vendors hold stakes in the market.
Courtesy: Transparency Market Research. Photo is representational; courtesy: Caterpillar.