Compactor Market

Market Overview

The global compacter market size was valued at USD 2.8 billion in 2023 and is projected to reach USD 3.7 billion by 2032, registering a CAGR of 3.5% during the forecast period (2024-2032). The abundance of options and the substantial demand in end-use industries are the key market drivers enhancing the market growth.

Compactors are equipment used to compress or reduce the size of various materials, such as soil, construction waste, and other types of refuse. These machines operate primarily using hydraulic technology and are highly effective and efficient regarding demanding and time-consuming tasks. Compactors have many applications, including house organizing, construction projects, landfilling, and soil compaction.

The increase in the cost of disposable waste is a primary factor driving the growth of the compactors market. Strict regulatory requirements and increased waste disposal costs are significant factors that contribute to expanding markets in industrialized countries. Anticipated concerns over limited landfill capacity and the need to prevent hazardous gas emissions from trash incineration are expected to increase demand for compactors. Moreover, the market is expected to experience growth due to the introduction of compactors designed for household use.

Top 2 Key Highlights

• Trash categories generate the highest revenue share based on type.
• Residential influenced the market growth by end-users.

Market Dynamics

Market Drivers

Availability of a Wide Range of Products 

The main factors fueling the expansion of the compactors market are the abundant availability of diverse commodities and the rising demand in end-use industries. Compactors are utilized by various industries, such as chemical, automotive, pharmaceutical, and paint industries. In addition, compactors are the favored choice for garbage management among restaurants, hotels, and the public sector. Municipalities utilize compactors as a cost-effective method for collecting landfill waste. The Environmental Protection Agency (EPA) reported that the United States experienced a 23.7 million tonne rise in municipal solid waste (MSW) generation in 2018, reaching 292.4 million tonnes.

Consequently, it is expected that the need for compactors will rise in tandem with the growth of municipal solid waste (MSW). Moreover, the technology allows waste processing plants to engage in more regular recycling of materials. The significance of effectively handling food waste is projected to rise, amplifying the need for compactors.

Rise in Population and Growing Awareness

The increasing awareness among individuals regarding the advantages of enhanced rubbish collection services and the implementation of waste management programs such as Pay as You Throw in various cities is expected to increase demand for refuse compactors. Approximately 2.01 billion metric tons of municipal solid waste are generated annually. At least 33% of these must be more adequately managed, posing an environmental threat. Anticipated increases in the market for rubbish compactors are driven by concerns over diminishing landfill capacity and the need to prevent hazardous gas emissions from waste incineration in landfills.

Additionally, the surge in population and subsequent increase in waste generation is a significant catalyst for the growth of the garbage compactor industry. In recent years, federal and state governments have initiated multiple endeavors focused on waste management. The Swachh Bharat Mission (SBM), India’s nationwide initiative for cleanliness, promotes urban local authorities to oversee and implement methods for managing municipal solid waste.

Market Restraints

Inefficient Management Practices 

Inadequate management methods concerning the reutilization of destinations might lead to unhygienic situations, thereby hindering the growth of the worldwide compacter market. Efficient waste management depends on appropriately managing and disposing of waste products, especially those produced from reused locations. Inadequate waste management can result in environmental contamination, public health hazards, and a deterioration in sanitary standards.

A significant obstacle in reusing destinations is the risk of contamination. Without strict processes, waste materials may only undergo appropriate sorting or treatment after reintegration into the environment. This can result in the dissemination of infections, poisons, and other detrimental substances, presenting substantial hazards to human health and ecosystems. Moreover, insufficient waste management procedures can discourage investment and hinder innovation in the corporate market. Potential stakeholders may hesitate to participate in a market affected by sanitation issues due to concerns about possible harm to their brand or increased attention from regulatory authorities. Furthermore, the lack of a dependable waste management infrastructure could restrict the scalability and profitability of computer technologies.

Market Opportunity

Robust Application in Building and Construction

Compactors are sturdy instruments utilized to compact materials in building and construction endeavors. These devices compress or decrease the size of soil, gravel, concrete, or asphalt for constructing roads, dams, airports, and other structures. They aid users in enhancing overall productivity and reducing labor expenses. Consequently, the market demand for compaction equipment will continue to increase because of the growing utilization of such equipment for compacting paving materials, such as asphalt mixes and roller-compacted concrete. Moreover, rising investments in construction projects are anticipated to drive the compactor market throughout the projected timeframe. As the construction business advances, numerous upcoming projects require state-of-the-art equipment such as tandem and pneumatic rollers. These instruments can efficiently complete tasks in a shorter period.

In addition, in April 2024, CASE Construction Equipment, a trademark of CNH, reached a noteworthy achievement by manufacturing its 20,000th vibratory compactor at its advanced factory in Pithampur, Madhya Pradesh. The plant in CNH is the only manufacturing hub for CASE’s compactors worldwide. The company’s current objective is to increase its production capacity to 10,000 units for all products annually by the following year. This would establish it as the second-biggest manufacturing facility worldwide for CNH and the largest export hub for CASE. Consequently, this led to an increase in the income of the compactors market.

Regional Analysis

The global compacter market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America's compacter market share is estimated to grow at a CAGR of 3.6% over the forecast period. The United States dominated the market with the highest share, whereas the Canadian compactors market experienced the highest growth rate in North America. The urbanization process and the resulting increase in population density result in more trash being produced, which in turn requires effective waste management strategies. Trash compactors provide an efficient and eco-friendly solution for managing substantial amounts of rubbish in metropolitan settings while saving space. 

Furthermore, implementing strict rules and proactive attempts to minimize landfill waste and encourage recycling catalyzes the widespread use of trash compactors in both business and domestic settings. North America has stringent government rules regarding machine vibration and security threats. Volvo introduced the ECR25 Electric, its inaugural electric compact excavator, in Paris in August 2019. It has replaced the traditional combustion engine excavator to mitigate noise pollution and carbon emissions. Moreover, the increasing consciousness of customers toward environmental sustainability motivates the adoption of trash reduction strategies, such as using compactors. Furthermore, the progress in compactor technology, including enhanced efficiency, durability, and automation, amplifies the attractiveness and efficacy of these devices in garbage management. Moreover, the financial benefits derived from decreased transportation and waste disposal costs motivate enterprises and governments to adopt trash compactors, fueling the expansion of the North American market on a global scale.

Europe is anticipated to exhibit a CAGR of 4.2% over the forecast period. The German Compactors market dominated the market share, while the UK Compactors market experienced the highest growth rate in Europe. This can be attributed to the strong industry demand and increasing public awareness regarding home waste management. Europe produces an annual trash of 2.1 billion tonnes. There is significant variation in the quantity of garbage and its management practices among EU countries. However, a notable trend has been increased recycling and reduced reliance on landfilling.  

Asia-Pacific region is anticipated to experience substantial expansion in the forecast period. Many countries in the Asia-Pacific region are experiencing significant growth in their investment in waste management systems, resulting in a rise in demand for the trash compactor market. Trash compression is necessary in the region because of the limited availability of dumping places, especially when contrasted to the substantial waste produced by densely populated countries such as China and India. Additionally, the municipality extensively utilizes the compactor daily, especially for compacting solid trash. According to the World Bank, it is projected that the Asia Pacific region will need to recycle between 2.2 billion to 2.5 billion tons of municipal solid waste (MSW) by 2025. To meet this demand, the International Solid Waste Association World Congress has decided to implement new recycling technologies and expand the capacity of existing recycling plants in the region. In addition, the Asia Development Bank has introduced a project to offer financial assistance to the waste management program and encourage social and economic progress in the area, thus fostering the expansion of the Asia Pacific garbage compactor market.

In addition, in February 2021, the New Delhi Municipal Council (NDMC) introduced six compressed natural gas (CNG) compactors to mitigate pollution and ensure efficient transportation and collection of household rubbish. Thus, due to the factors above, it is anticipated that the Asia-Pacific region will have a predominant position in the refuse compactor market throughout the study period. 

Segmental Analysis

The global compacter market is segmented based on type and end-users.

The market is segmented based on type: Landfill Compactors, Trash Compactors, Vibratory Plate Compactors, and Others. 

The trash compactors segment dominated in 2023. The latest trend in the garbage compactor industry is incorporating a built-in Wi-Fi connection and a solar power transmitter. This technology allows transmitting signals to collect the empty bins once they are complete. This will help mitigate the problem of excessive waste accumulation. Two notable technological advancements in the garbage compactor market include implementing an automatic loading door and integrating a moving photo-eye sensor.

The landfill compactors segment is the fastest growing. Landfill compactors play a crucial role in driving the growth of the worldwide compactor market by increasing garbage density, reducing the amount of space needed in landfills, and minimizing the adverse effects on the environment. The global increase in trash production has led to a growing demand for effective landfill compactors. This demand has resulted in expanding the market and developing innovative landfill compaction technology to comply with changing environmental standards and address the shifting waste management requirements.

The vibratory plate compactors segment is the fastest growing. Vibratory plate compactors play a crucial role in the growth of the global compactor market by providing effective solutions for compacting dirt and asphalt in building projects. Due to their adaptability, compact design, and capacity to accomplish high degrees of compaction, these machines are essential in many infrastructure works, leading to increased demand and market growth.

The market is segmented into Residential, Commercial, Industrial, and Others based on end users. 

The residential segment dominated in 2023. Urbanization and economic development in emerging economies have led to a significant rise in the generation and disposal of solid waste. The residential sector is a crucial growth driver in the worldwide compactor market due to the rising need for compactors to manage domestic waste. With the rapid increase in urbanization, it is essential to have effective garbage disposal methods, which have led to the widespread use of compactors. In addition, the growing environmental awareness among homeowners contributes to the rise of the industry by placing a high priority on trash reduction and recycling efforts.

The industrial segment is the fastest growing. The growth trajectory of the global compactor market is mainly influenced by the industrial end user, who drives demand for compactors in sectors such as manufacturing, construction, and logistics. Industries increasingly focus on efficiency and trash management, making compactors crucial for maximizing space usage and improving garbage disposal procedures. This trend is driving market growth and fostering innovation.

The commercial segment is the second largest. Commercial end users are essential for driving growth in the worldwide compactor market as they use compactors for garbage management in retail, hospitality, and office environments. The need for compactors increases as organizations seek cost-effective garbage disposal solutions and environmental sustainability. This is driving market expansion and technological developments in compaction technology.

Recent Developments

• March 2024– Caterpillar Inc. made announcements regarding the upgrades to its series of mid-sized asphalt compactors. The Cat® CB7, CB8, and CB10 Asphalt Compactors enhance the established performance of their previous models by offering edge-management choices, an optional cab, optional split drums, and a redesigned mapping display.
• April 2024– GERTEIS®, experts in dry granulation, reaffirmed its growing significance in the burgeoning pharmaceutical production industry of South Korea as it participates at the COPHEX pharma expo near Seoul. The GERTEIS® display will feature a functioning POLYGRAN® manufacturing roller compactor that will be continuously demonstrated.
• March 2024– Hamm launched a new line of VC compactors designed to crush and compact rock and stone. These compactors are compatible with the EU Stage V/EPA Tier 4f and Tier 3 exhaust emission regulations and will be available starting in autumn 2024. The HC 250 C VC (Tier 3) and HC 250i C VC (EU Stage V/EPA Tier 4f) models optimize construction site operations, reducing up to 50% in time, costs, and CO? emissions in specific applications.