Global backhoe loader market to pass $4 billion in sales by 2026: report

9 Sep, 2019 | posted in: News | 0
Global backhoe loader market to pass $4 billion in sales by 2026: report

Global sales of backhoe loaders across various applications are expected to grow significantly over the next few years, exceeding $4 billion by the end of 2026, according to a market report published by Persistence Market Research. The projected growth is mostly due to an increasing demand for backhoe loaders in the construction, mining and agricultural industries.

Persistence reports:

“Backhoe loaders have gained paramount importance in the construction industry due to their versatility in operations and compact size. The past few years have favored the use of backhoe loaders in the residential construction sector, owing to rapid population expansion and rise in gross household disposable incomes in the developed as well as developing economies.

“A rapid growth in migration of families and individuals from rural to urban areas has been attracting investments towards the development of sustainable and smart cities. Such developments involve the adoption of technologically advanced machinery such as backhoe loaders that facilitate construction activities.

“In addition, various governments worldwide are shifting their focus on infrastructure development including the construction of highways, ports, roads, and railways, which in turn is creating newer vistas for manufacturers of backhoe loaders.”

According to Persistence’s analysis, a growing number of small and medium sized construction contractors are opting to rent backhoe loaders and other types of equipment rather than purchase them. This eliminates the large investment and maintenance cost that comes along with buying new equipment.

“In addition,” Persistence reports, “using rental construction equipment such as backhoe loaders on a monthly basis helps end-use contractors in minimizing the cost of their construction projects. Several construction equipment manufacturers, including Volvo and Caterpillar, have been offering backhoe loaders to construction companies on a rental basis, which in turn has enabled these companies in curtailing their operating expenses.

“Rental equipment further aids construction companies in utilizing the most recent innovations, enabling such companies to divert capital expenditure initially set aside for equipment ownership towards other resources, thereby facilitating business expansion.”