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Equipment Times digs into the demand and application trends, factors to be considered while choosing the right wheel loader, design parameters, challenges the industry face to move to completely electric wheel loaders, the government’s plans in infrastructure creation and reforms in mining policies.

The market for wheel loaders is seeing fresh traction due to the buoyancy in road construction activities. Fresh off take of coal due to a surge in thermal power production is adding to the demand. Users want wheel loaders that deliver higher productivity and lesser operating costs, along with enhanced servicing of their machines across their work cycle.

Wheel loaders are mobile shovels with multiple uses. They may move goods from stockpiles to trucks, haul big loads, and move items about job sites. Construction, agriculture, forestry, and mining are just a few industries that use wheel loaders. The public sector also uses wheel loaders, businesses that rent equipment, sand and gravel pits, and businesses that deal with industrial waste for site preparation work, digging, and moving and putting items. They are also used to dig, remove debris, install pipes, and load commodities into trucks, among other things. Since the backhoe loader bucket is primarily utilized as a piece of digging equipment, the front loader bucket capacity is significantly higher than the backhoe loader buckets.

The wheel level of the machine cannot be reached with the backhoe’s digging apparatus. The development of the transportation infrastructure and large-scale construction projects, among other activities, has been driving the market’s overall growth. Another element influencing the market’s expansion is the introduction of new products by the major players. The market’s expansion has been hampered by the high price of wheel loaders and the substantial upfront investment required to manufacture them.

After Covid Impact….

With the rigorous lockdowns and social segregation implemented to stop the COVID-19’s spread, the market for wheel loaders suffered. The market for compact wheel loaders was hurt by the lack of customer confidence, the partial company shutdown, and the uncertain economic climate. Operations in logistics and the supply chain were hampered during the outbreak. The speed at which the COVID 19 issue has intensified has shocked the global economy. The epidemic has had an effect on people’s social well-being, economics, and public health all around the world.

The economic stagnation brought on by the lockdown orders issued by government authorities in several nations also affected the construction equipment industry. However, because of the relaxing of the restrictions, it is anticipated that the market for compact wheel loaders would pick up steam in the post-pandemic scenario.

Growth of the market

Rapid infrastructure development will enhance the growth of the market. The market for wheel loaders will expand due to rising infrastructure investments. Increasing public infrastructure spending is essential for a country’s economy to remain stable and flourish. The public sector and government organizations handle most infrastructure development projects in Asia. Investments are expected to expand rapidly throughout Asia, especially in the transportation industry. During the forecast period and beyond, it’s anticipated that nations like Indonesia and the Philippines will spend significantly on road and highway construction. Thus, these advancements are anticipated to stimulate significant investment in the construction sector, thereby increasing demand for wheel loaders.

Rise of the market

Wheel loaders market is expected to witness an impressive CAGR of 9.5% during 2022-2027.  Increasing investment in infrastructure is driving the growth of the market.  Wheel loaders are mainly utilized to transfer stockpiled materials from one place to another. They are also used to load materials into the truck, clear rubble, place pipes, dig, and execute other such activities. Increasing urbanization and industrialization are providing great support to construction activities. There are certain activities where bulldozers are replaced by wheel loaders due to their large size. The replacement of bulldozers with wheel loaders in situations where flexibility is required to travel across any construction site will support the market growth during the forecast period.

Rental market will restrict the growth of the market

The market for renting construction equipment has a high penetration rate. Renting construction equipment is a trend that is quickly spreading to emerging countries as well. At reasonable rates, wheel loaders and other construction equipment are frequently offered for rent. The expansion of equipment available for rental may persuade small end users to choose such products. As a result, fewer new pieces of equipment will be bought, hurting wheel loader sales. Thus, increased rental company rivalry could negatively impact market vendors’ capacity to draw in and hold on to customers and their ability to generate income. This would impact the expansion of the worldwide wheel loaders market.

Leaders speak…

Deepak Shetty, CEO & Managing Director, JCB India, said, “JCB India has pioneered the integration of digital technology in its range of machines through advanced Telematics called ‘LiveLink’. JCB machines work in off-road and often remote locations and LiveLink helps in remote monitoring and fleet management on the key parameters of Service, Operations and Security of equipment. LiveLink now helps over 2,10,000 JCB machines communicate in real-time on machine location, operations, performance, downtime, service alerts and security. The technology enables better site management and equipment utilisation, thereby improving operational efficiency and cost-saving. Geo-fencing and Time-fencing have enhanced the security of these machines.”

He further added, “Technology has been transforming the way Machine-to-Machine and Machine-to-Customer business is being done. All vital information about the machine is available to customers on their mobile devices through a web browser or also through the ‘LiveLink’ mobile application. Additionally, the system also sends out alert SMSs to registered mobile numbers. LiveLink benefits customers in better fleet and fuel management by enabling remote monitoring and management of their machines. It incorporates GPS, Telecommunications, Machine Electronics and IoT, enabling the equipment to remain in contact with the owner, dealer and JCB. Accurate monitoring of machine hours and service alerts improve maintenance. Technical alerts and maintenance history data help customers manage the machine health to keep their machines running or maximum uptime and return on investment. Early warnings with detailed machine history enable users to plan work effectively.”

Speaking about the factors to be considered while choosing the right wheel loader, BKR Prasad, Head – Marketing & Product Development, Tata Hitachi Construction Machinery Company, said, “There are five important factors to be considered while choosing the right Wheel loader. Firstly, it is important to understand the application needs before choosing any Wheel loader specification. Different applications have varied requirements with the need for different machine configurations, buckets, and features.

The next thing to look for in a Wheel loader is the payload and tipping load. Payload is the amount of material that can be carried by the bucket, measured in Tons. The tipping load is the material that a machine can carry before tipping off. The bigger this number, the more material you can carry at once. It is important to choose a bucket according to material density and payload. Using oversize bucket capacity leads to machine failure in long term as a well as safety issues. Also, the benefit of a high-capacity bucket is reduced by lower cycle time leading to less production. Transmission and axles are also important factors to consider. Most Wheel loaders come with one of two kinds of transmission: hydrostatic or mechanical. The main difference between the two is that a hydrostatic transmission moves by hydraulic power, while a mechanical transmission relies on gears and cogs. Manual transmissions are cheaper but require constant attention from the operator while operating the machine whereas hydrostatic models require less effort on behalf of their operators since they work automatically after adjusting certain settings such as speed and incline angle etc. Tata Hitachi offers India’s only hydrostatic made-in-India wheel loader in 3-ton class, TL340H Prime. ZW225, Tata Hitachi’s 5.5-ton class wheel loader uses hydrodynamic technology.

He further added, “The weight of the machine is another key factor to consider when choosing a wheel loader. The weight of the machine will not only determine how much space it takes up on the truck but also how much fuel will be needed, and the number of drivers required to safely operate it. The next thing to consider is the power output and reliability. It is important to optimize engine size to match machine power requirements. Hydrostatic wheel loader needs lower power thus leading to lower fuel consumption. The type of work that is done will also affect how much fuel the loader consumes per hour – for example, if operated in sandy areas or wet conditions (like mud), then chances are high that the loader will use more fuel than if it were operating on dry ground with loose soil. Tata Hitachi sources a reliable engine from Cummins to give a trouble-free performance. Easy to maintain engine and after treatment device on Tata Hitachi engine lower down maintenance cost. Another important aspect to consider while buying a Wheel loader is its warranty. Tata Hitachi wheel loader offer standard and extended warranty. Pan India support network, genuine high-performance original parts, easy parts availability, and competitive prices are other key considerations for Wheel loaders.

Tata Hitachi dealer network and touch points ensure seamless support so that machines can work uninterrupted for longer durations.”

Surat Mehta, Head of SDLG Business in India, said, “We expect robust and sustained demand for wheel loaders in the near future, thanks to multiple initiatives undertaken by Government of India on the infrastructure front. Foremost among these is a massive increase in capex which will accelerate road construction and infrastructure building activities powered by PM GatiShakti Master Plan, National Infrastructure & Monetisation Pipeline, and National Bank for Financing Infrastructure & Development. Other initiatives include new mining policy to attract fresh investments under PPP model, various PLI schemes for manufacturing & production related sectors, increased mechanization at ports for bulk material handling, thrust on affordable housing, focus on mass transit projects and more. Traditionally, the 3-ton segment has commanded dominant market share for wheel loaders in India. However of late, we find demand shift to 5-ton capacity and increasing interest in 7-ton and 8-ton machines as well. SDLG Wheel Loaders cater to every segment of the market – from 3-ton up to 13-ton. They are preferred by contractors, mining players and infrastructure developers across the country.”

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