(MENAFN- GlobeNewsWire - Nasdaq) NEW YORK, Jan. 25, 2023 (GLOBE NEWSWIRE) -- From a recent IndexBox report on the global forestry machinery market, here are some interesting takeaways.
Market Overview
The global forestry machinery market is expected to grow from $10B in 2022 to $12B, increasing at a CAGR of 2.3% during the forecast period. The rise in demand for wood products, coupled with the expanding agricultural sector, is expected to drive the growth of the market. Additionally, government initiatives to promote forestry activities are expected to create a positive outlook for the machinery market.
view a sample report and free data online
The feller buncher segment accounted for the largest share of the market and is expected to maintain its dominance during the forecast period. These machines are used for cutting and gathering trees into large bundles. Feller bunchers help save time and labor as they can cut and gather a large number of trees in a short span of time. Moreover, these machines offer high productivity and versatility, which makes them ideal for use in various applications such as forest thinning, forest management, and wood harvesting.
The skidder segment is projected to be the fastest-growing segment during the forecast period. These machines are used for dragging logs out of forests or steep terrain after they have been cut down.
asia is expected to be the fastest-expanding market for forestry machinery during 2022-2030, owing to the presence of a large population and an increase in agricultural activities. The region has been witnessing significant investments in its manufacturing sector, which is expected to create a positive outlook for its forestry machinery industry. Moreover, growing awareness about sustainable forest management among governments in this region is projected to spur the market growth.
Market Challenges
One of the key challenges is the high cost of equipment. This is a major barrier to entry into the market for many potential new players. As such, it is essential that manufacturers find ways to reduce the cost of their products.
Another challenge facing the industry is the shortage of skilled labor. This is particularly acute in developed countries where the pool of potential workers is shrinking as older ones retire.
Finally, environmental concerns are also likely to continue to be a major issue for the forestry machinery market. With increasing pressure on governments and businesses to reduce their carbon footprints, there is a risk that demand for forestry equipment could slump if environmental regulations become more stringent.
Government Supporting Programs
The supporting programs are also one of the key drivers of market growth. Several governments across the globe are investing in afforestation projects to increase the green cover and also providing subsidies and tax benefits on the purchase of forestry equipment to encourage private landowners to invest in such machinery.
One of such support measures, the Forest Machine Program (FMP) from the United States Department of Agriculture (USDA) provides financial assistance to purchase or lease new or used qualified forestry machines , including skidders, feller-bunchers, track harvesters , processors, and log forwarders.
The FMP can help eligible entities offset some of the cost associated with new machine purchases or leases, making it easier for them to add or expand their fleet. In addition to the purchase or lease price of the machine, the program also covers related costs such as those for site preparation, installation, and training.
The FMP is just one of many programs offered by the USDA that aim to support the forestry industry. Others include the Forestry Incentives Program (FIP) and the Forest Stewardship Program (FSP).
About IndexBox
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
Companies Mentioned in the Report
John Deere, Caterpillar, Komatsu Forest AB, Hitachi Construction Machinery Co., TimberPro Inc., Tigercat Industries Inc., Ponsse Plc., Doosan Infracore Co., Valmet Corporation, Bombardier Recreational Products Inc.
Sources
world – forestry machinery - market analysis, forecast, size, trends and insights
eu - forestry machinery - market analysis, forecast, size, trends and insights
asia - forestry machinery - market analysis, forecast, size, trends and insights
u.s. - forestry machinery - market analysis, forecast, size, trends and insights
