Crawler Excavator Market

Market Overview

The global crawler excavator market size was valued at USD 43 billion in 2022 and is projected to reach USD 55.5 billion by 2031, registering a CAGR of 2.77% during the forecast period (2023-2031).

Crawler excavators, sometimes called track excavators, are large construction equipment for excavating, grading, and demolishing. They have a long arm and a digging bucket linked to a spinning platform on continuous rails. Because of its excellent efficiency and productivity, crawler excavators are widely employed in various construction and mining industries.

The global market is predicted to expand significantly in the next years due to the rising need for government assistance for construction and mining sector expansion, particularly in emerging economies like China, Japan, and South Korea. Governments in all regions are encouraging infrastructure development. Developing countries are implementing reforms and legislation to improve their infrastructure and real estate. Due to the expansion of the construction sector, such changes are likely to boost the growth of the crawler excavators market.

Highlights

• The short tail holds the major share in the market based on product type
• Medium Bucket Capacity is the highest contributor to the market
• 22,650 to 30,200 Kg holds a significant share of the market based on operational weight
• The construction segment accounted for the largest market share based on end-user vertical.
• Asia-Pacific is the leading region in the market.

Market Dynamics

Global Market Drivers

Infrastructure Development and Construction Projects

A large-scale infrastructure development project, such as constructing a new highway, necessitates substantial excavation, earthmoving, and foundation work. In such operations, crawler excavators are needed for digging trenches, removing dirt, and placing items. They are essential equipment in infrastructure building because of their capacity to handle high loads and work in various terrains. Furthermore, government initiatives such as the "Belt and Road Initiative" in China, the "National Infrastructure Pipeline" in India, and other similar projects around the world are expected to drive demand for construction equipment, including crawler excavators, as these projects focus on improving transportation networks, developing industrial zones, and enhancing overall infrastructure. The construction sector's ongoing expansion, driven by urbanization and the need for greater infrastructure, continues to fuel global demand for crawler excavators. Furthermore, new technology such as GPS systems and telematics in these equipment increases their productivity and efficiency, attracting more consumers to the construction business.

Global Market Restraints

High Cost

The high expenditure required for crawler excavators' installation continues to limit their use in small-scale construction and mining industries. The added expense of upkeep limits its use and renders it unviable for many. Crawler excavators remain unpopular for short-term building projects since their rental costs can significantly add to the overall cost. Mandates from regulatory agencies, such as annual service for appropriate operation, have been noted as another critical factor impeding the long-term expansion of the crawler excavator industry.

Global Market Opportunities

Technological Advancement

The industry will benefit greatly from continued technical advances. Manufacturers rapidly use innovative technology to improve crawler excavators' performance, efficiency, and safety. These technologies boost construction production and improve the user experience, attracting more clients. Incorporating GPS devices in crawler excavators is one example of technical improvement. Operators may use GPS technology to precisely find and measure the excavation area, assuring precision digging and minimizing mistakes. This speeds up building projects and decreases the time and effort necessary for manual measurements, resulting in increased efficiency and cost savings for construction firms.

Telematics and IoT (Internet of Things) integration in crawler excavators provides real-time machine performance and health monitoring. This data-driven strategy enables predictive maintenance, decreasing downtime, and maximizing equipment longevity. Construction firms increasingly appreciate the advantages of such technology, and their demand for modernized crawler excavators is expected to drive market expansion.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global crawler excavator market research is analyzed in North America, Europe, Asia-Pacific, the Middle East, Africa, and Latin America.

Asia-Pacific is one of the largest and fastest-growing markets and is expected to grow at a CAGR of 3.4% during the forecast period due to its flourishing construction industry, accelerated urbanization, and extensive infrastructure development. Asia-Pacific nations' robust industrialization and urbanization play a crucial role in generating lucrative market opportunities and revealing growth prospects for the market participants that dominate this region. Increasing investments in infrastructure development and the construction of highways in developing countries such as India and China are driving market growth. The region's expanding mining and quarrying sectors have also increased demand for crawler excavators for material management and excavation. Major ongoing projects in China include, among others, the Shanghai Metro Line 23: Phase I, Foshan Metro Line 4: Phase I, Liuzhou-Wuzhou Railway Line, Zhongwei Ji'an Natural Gas Pipeline project, Shanghai Chip Manufacturing Plant, and Belt and Road Initiative. China's demand for excavators has increased substantially due to these initiatives. In addition, expanding mining operations in countries such as India, Thailand, China, and Vietnam also contribute to the market's expansion. Governments in several Asia-Pacific nations have made substantial investments in infrastructure projects, thereby stimulating the market for construction equipment, such as crawler excavators.

North America is expected to expand substantially at a CAGR of 2.8%. The growing need for additional housing units in North American countries. Increasing government initiatives and strategic permits are driving the building sector in this region even further, offering prospects for crawler excavators in the infrastructure sector. Government efforts and infrastructure financing, such as the Federal Highway Administration's Highway Trust Fund in the United States, have fueled the construction sector and, as a result, demand for crawler excavators. The North American equipment rental sector is well-established, with many construction companies opting to hire equipment for specific projects. This tendency has also boosted demand for crawler excavators since rental businesses provide contemporary, well-maintained machines for short-term hire. Crawler excavators are one of North America's most often hired pieces of equipment. Crawler excavators will account for 25% of the entire equipment rental industry in North America by 2022. The rising need for building projects in North America will likely fuel demand for crawler excavators in the future.

Crawler excavators have always had a strong market in Europe. Statista said the European construction equipment industry was worth over 23 billion euros in 2019. Construction of new buildings, infrastructure projects, and urban redevelopment drive demand for crawler excavators in the region. The region's ongoing urbanization has increased the need for modern infrastructure, including roads, railroads, airports, and utilities. Crawler excavators are essential in these projects, propelling market expansion. European countries have demonstrated a significant commitment to environmental sustainability and preservation. This is reflected in their policies and laws to reduce pollution and protect the environment. The European Union, for example, has set high objectives for lowering greenhouse gas emissions. As a result, there is a greater need for environmentally friendly construction equipment, such as crawler excavators with low emissions and fuel-efficient engines. These devices reduce the environmental effect of building projects, making them more sustainable.

Political instability and regulatory obstacles can discourage foreign investment and impede infrastructure development in certain parts of Latin America, the Middle East, and African nations. These uncertainties could affect the demand for crawler excavators in these markets. The market for crawler excavators is extremely competitive, with well-established manufacturers from other regions capturing a substantial market share. Local companies in Latin America, the Middle East, and Africa may struggle to contend with these global entities.

Segmental Analysis

The global crawler excavator market is segmented based on product type, operational weight, bucket capacity, end-user vertical, and region.

Product type is further segmented into standard, hybrid, short tail, and super long front for better understanding.

The short tail holds the major share of the market.

Short tail models

Short-tail models, also known as zero-tail swing excavators, have a compact design that enables the machine's rear to rotate within the breadth of its tracks. This characteristic makes them ideal for working in confined spaces and on compact job sites, minimizing the risk of structural damage to nearby structures.

Standard

These are the most widespread crawler excavators. The configuration of the boom, limb, and container is standardized. Standard excavators are adaptable and appropriate for various applications, making them the go-to choice for various construction projects.

By bucket capacity, the segment can be further bifurcated into Small (0.30 to 2.00), Medium (2.00 to 4.00), and Large (Above 4.00).

Medium Bucket Capacity is the highest contributor to the market.

Medium-capacity excavators

Medium-capacity excavators achieve a balance between versatility and digging force. They are appropriate for various construction and excavation tasks, including foundation work, road construction, and material handling. Medium-sized excavators are frequently favored for general use in various construction locations.

Small-bucket capacity

Small-bucket capacity crawler excavators are typically compact and maneuverable. They are ideal for light to medium-duty excavation projects, such as trenching, landscaping, and minor construction jobs. These excavators are frequently employed in urban and confined construction locations.

By operational weight, the segment can be further categorized into 12,500 to 22,100 Kg, 22,650 to 30,200 Kg, 34,300 to 45,750 Kg, 51,000 to 70,650 Kg, 78,500 to 93,300 Kg, and Above 95,900 Kg.

22,650 to 30,200 Kg holds a significant share of the market.

22,650 to 30,200 Kg

This weight class of crawler excavators strikes a compromise between size and power. They are adaptable equipment capable of performing various excavation and construction activities such as digging, lifting, and material handling.

12,500 to 22,100 Kg

This weight class includes crawler excavators that are compact and lightweight, making them ideal for small to medium-sized construction jobs. They are lightweight and easy to move, making them suitable for urban and limited job locations.

The segment can be further sub-segmented by end-user vertical into Construction, Mining, Forestry and Agriculture, and Others.

The construction segment accounted for the largest market share.

Construction

Crawler excavators are widely used in the construction sector. These machines are widely employed in various construction projects, including building construction, road construction, infrastructure development, and earthmoving. Crawler excavators are essential on construction sites for excavation, trenching, material handling, and foundation work.

Mining

For large-scale mining operations, the mining sector mainly relies on crawler excavators. These excavators are outfitted with heavy-duty attachments and strong components to withstand the harsh circumstances of mining sites. They are used in open-pit mining, mineral extraction, and mine material handling.

Recent Developments

• March 2023- Tata Hitachi introduced the ZX670H Mining Excavator, which promises flawless performance and unmatched productivity.
• July 2023- Komatsu Ltd. intends to introduce PC200LCE-11 and 210LCE-11 models of its 20-ton class electric excavators equipped with lithium-ion batteries as rental machinery in the Japanese and European markets in October or later. In addition to Asia, North America, and Australia, Komatsu intends to introduce these electric models progressively.