It’s Hotting Up

EQUIPMENT TIMES takes a peek into the latest product offering and technology trends in the backhoe market.

The Research and Market Report points out of a high concentration of demand for the backhoe loader in the global market space. The report says that the global backhoe loaders market is concentrated in a few countries with India and the US accounting for approximately 55%-60% of backhoe loaders unit sales worldwide. China and Europe accounts for less than 1% and 3% of the global backhoe loaders unit sales respectively. A slowdown in the construction sector of these countries will pose as a risk to the growth of the backhoe loaders market due to the over reliance of the market on few countries.

According to the forecast of Off-Highway Research, the Indian market for backhoe is expected to cross 45,000 units in an year, and it is huge! No wonder, there have been new launches and new upgrades offering multiple features that help the end-user enhance productivity, reduce fuel consumption and optimize O&M cost, and ease of operation and maintenance. The past couple of years have witnessed new players entering the backhoe space, and as per our understanding yet new players have already gone ahead with their plans to hit the already cluttered market with new launch!

Yes, the competition is hotting up and most of the players have focused more on enhanced efficiency of engine, hydraulics, transmission and structural stability that can bring more value to the user segments, most importantly, telematics and machine control technologies.

The use of telematics and machine control technologies for large construction equipment has already been in vogue right from 2000. However, leveraging its potential for compact equipment such as backhoes, skid steers, and mini excavators is a recent phenomenon, especially in the Indian market space.

In fact it has become the buzz word, and has caught on beyond imagination. As per the report the construction industry is growing rapidly in Asia, Africa, and the Middle East, this have led to an increase in fleet size and boosted the demand for onboard telematics in small construction equipment. With the scope of telematics being expanded from basic features, the increasing use of telematics in compact and small construction equipment will drive the growth of backhoe loaders market during the forecast period. The analysts have predicted that the backhoe loaders market will register a CAGR of almost 6% by 2023.

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