The global hydraulic attachment market size was valued at USD 7,469.3 million in 2021 and is expected to reach a value of USD 13,165.1 million by 2030, growing at a CAGR of 6.5% during the analysis period (2021–2030). Hydraulic attachments are commonly seen in construction activities and earth-moving gear. It is used in various industries, notably forestry, demolition, recycling, and excavation. Rising building activities, expanding mining and excavation sectors, and a greater emphasis on recycling are critical driving forces in the hydraulic attachments industry. During the forecast period 2021-2030, the worldwide hydraulic attachments market is expected to rise rapidly.
Due to increased spending on infrastructure development initiatives, the global construction business is expanding in the domestic and industrial sectors, particularly in emerging nations. Furthermore, factors such as increased employment potentials, elevated per capita revenue of the population, rising population, growing modernization, and the deployment of lavish lifestyles by the middle-class population as a consequence of urbanization are anticipated to propel the growth of the construction industry globally. During the assessment period, the rising construction industry, with a particular focus on civil engineering applications, is likely to boost the expansion of the global hydraulic attachment market share.
The hydraulic attachment market will take several years to recuperate from the pandemic's demand, distribution, and economic shocks. The main difficulty that hydraulic attachment providers encounter is the lack of laborers to carry out the production process. Furthermore, the construction industry's slump has severely impacted the demand for hydraulic attachments.
Raw materials required to manufacture hydraulic attachments include unformed materials and rough and finished parts. Several micro-and macro-economic factors impact raw materials costs, such as trade relations, geopolitical scenarios, and geographical proximity of the supplier to the buyer location. Raw materials and components account for the largest share of the total manufacturing cost.
Fluctuations in the prices of raw materials and components directly affect the final cost of these products and, ultimately, manufacturers' profitability. In the wake of the prevailing micro-and macro-economic factors for the hydraulic attachments market, the raw material cost is pegged at 21% of the total manufacturing cost. These costs include:
The production of hydraulic attachments requires considerable technical expertise and a high level of precision, which necessitates skilled labor in handling and operating machinery. Despite significant manufacturing automation, there needs to be a human element during the testing of the hydraulic attachments. Labor wages are proportional to the degree of skills required in hydraulic attachment production. Similarly, the labor laws of the economy where the production site is located are pivotal in production economics. Labor is perishable, i.e., labor services cannot be stored. The absence of labor on any day will result in the loss of labor services, resulting in a setback in the manufacturing process, increasing overall production costs.
Furthermore, in countries such as India and the UK, immigrant labor rights are strictly followed to ensure that they receive optimum wages. Additionally, inflation has pressured the governments of several nations to pass regulations that provide a minimum labor wage, which has compelled manufacturers to opt for technology. As per Eurostat, the average hourly labor cost in Europe stood at an estimated USD 30.45 in 2018.
Manufacturing expenses include machine costs, maintenance costs, consumables, and overhead and administrative costs. Volatility in terms of availability of labor and labor wages has led companies to invest more in technology, which has increased capital investments for the procurement of machines and securing transportation for delivering the equipment required for assembling machinery.
Maintenance also includes keeping the production area and outside the production facility clean. Critical strategic decisions have to be taken keeping in view the changing demand for hydraulic attachments, which compels the company to hire key personnel at the management level, thereby increasing administrative expenses.
These are costs involved in the repair and maintenance of assets to ensure optimal performance and avoid disturbances in production. Assets comprise land, buildings, office equipment, furniture, fixtures, and management software.
Prior to the introduction of COVID-19, the hydraulic attachments sector was experiencing rapid expansion due to its applications in a wide range of end-use industries. However, the latest coronavirus pandemic, which caused a decline in demand, may hinder the growth of the hydraulic attachments sector.
Due to the delay in construction activities, the COVID-19 outbreak is projected to significantly influence the worldwide hydraulic attachments market development. The construction sector was closed worldwide due to various governments' lockdown techniques and limits on physical movements, which has resulted in a reduction in demand for construction and a lack of raw materials and workers.
Furthermore, the players involved in the market are facing an economic crisis as the production has been stopped because of the major breakages in the global supply chain. Therefore, the market is anticipated to observe fluctuations in demand and supply-side.
The hydraulic attachment market will take a few years to recover from the demand, supply, and financial shocks caused by the pandemic. The major challenge faced by the hydraulic attachment providers is the unavailability of laborers to carry out the manufacturing activities. Additionally, the slowdown of the construction industry has also negatively impacted the demand for hydraulic attachments.
Furthermore, the market is predicted to recover from the shocks given by the pandemic through new investments and initiatives taken by the governments, such as ‘100 smart cities’ and ‘Housing for All by 2022'. Emerging countries like India, Brazil, China, and South Africa will invest heavily in infrastructure development along with other projects which are expected to ensure the recovery of the market and open new opportunities for the market in the coming years.
The global hydraulic attachment market share is segmented into product type, industry, channel, and regions.
In terms of product type, the global hydraulic attachment market is classified into Breaker, Auger, Grapple, Harvester Head, and Others. The breaker segment has a bigger global market share compared to others. It was valued at USD 3,912.7 million in 2021 and is expected to reach USD 6,554.5 million, growing at a CAGR of 5.9% by 2030. The price of a hydraulic breaker is determined by the application, material, and manufacturing process employed.
Different types of hydraulic breakers are available in the market, such as light-duty, medium-duty, and heavy-duty hydraulic breakers. A breaker is primarily used for demolition and excavation. Upcoming road-building projects will bolster potential segmental growth under challenging terrains and their utilization in urban building and metro projects. The rise in infrastructure investment, such as roads, bridges, tunnels, domestic and non-residential structures, mining, and tight government rules governing blasting environmental safety effects, has fuelled product demand.
Based on industry, the global hydraulic attachment market is divided into Demolition, Recycling, Forestry, Excavation, and Others. The recycling industry is the most dominant. It was valued at USD 1,529.0 million in 2021 and is expected to reach USD 2,605.9 million, growing at a CAGR of 6.1% by 2030. In 2020, the demolition and excavation segments represented the most market share, with USD 2,686 million and USD 1,789 million, respectively. Rapid growth in worldwide waste management, combined with increased government emphasis on garbage reuse and recycling, has fueled the recycling industry's ascent. As the world's population grows and industrialization accelerates, the market is expected to expand further throughout the forecast period.
Based on channels, the global hydraulic attachment market is segmented into direct sales and distributors. Direct sales hold supremacy over distributors. The direct channel was valued at USD 3,035 million in 2021 and is expected to reach USD 5,579.7 million, growing at a CAGR of 7% by 2030. This is because producers and customers are becoming more transparent. Manufacturers market their services directly through an online or physical channel without an intermediary, preventing profit erosion. Organizations using the direct channel must have their transportation and logistics vehicles.
The direct sales channel allows enterprises to engage with client staff to develop an appropriate design. It aids in the maintenance of partnerships and after-sales assistance between producers and consumers. Over the last year, the rise of e-commerce systems has increased direct sales because manufacturers may now provide these products on e-commerce portals with all of their features published. As a result, the customer benefits from improved product transparency and a wide range of options in a bit of space.
The global hydraulic attachment market share is segmented as North America, Europe, Asia-Pacific, South America, and the Rest of the World. The Asia-Pacific region leads the global hydraulic attachments market, valued at USD 3,153.6 million in 2021. It is expected to increase at a CAGR of 6.9% in respect of value between 2021 and 2030. China, India, Japan, and South Korea are growing economies that have contributed to regional market growth. In India, continuing development projects and favorable government regulations drive the demand for hydraulic attachments market.
Furthermore, China and Japan are linked to most of the leading toolmakers, which greatly impacts the regional market. Various tailwind drivers support regional market growth, such as increased government investments in infrastructure, especially those in developing countries. This expansion will have a substantial influence on the local hydraulic attachments industry. Given the region's growing urbanization and industrialization, the Asia-Pacific market is predicted to grow at a profitable rate. Under the auspices of favorable government rules, the region has seen a considerable increase in the number of industries and attracted FDI. Companies establish industrial plants and offices in the region, boosting construction activity.
During the projected 2021-2030, Europe will be the second-largest market for hydraulic attachments. In the Europe region, the global hydraulic attachments market is valued at USD 1,666.8 million and is expected to increase at a CAGR of 4.0% in respect of value by 2030. The region's trend-forward into recycling and better demolition activities is boosting the need for hydraulic attachments. Europe has some of the world's most industrialized nations. However, the United Kingdom (UK), one of the most important trading partners in the European Union (EU), has departed the EU, casting doubt on its commitment to the hydraulic attachment market growth.
Nonetheless, the creation of jobs, wage growth, and favorable policies are expected to help the European economy sustain a solid growth rate. Private investment and consumption, particularly in the construction sector, will likely support the market expansion in Europe. In contrast, public expenditures in the transportation sector are projected to stimulate demand for hydraulic attachments in new building projects. Furthermore, the United Kingdom's point-based immigration system, which attracts talent worldwide, is predicted to provide migrants with a wealth of chances.
The increasing population is predicted to promote the development of residential and commercial projects. As a result, the construction industry is expected to be a significant consumer of hydraulic attachments. The European market is expected to rise significantly in the worldwide hydraulic attachments market during the projected period. This expansion can be ascribed to a surge in substantial construction projects in countries like Germany, France, and Italy. Port expansion, underwater operations, railway tunnels, and heavy mechanical equipment such as hydraulic excavators and attachments are among the projects.