Industry market research shows that this demand will be maintained until 2019.
The demand includes both purpose-built and converted machines. Total world demand will reach $ 9.3 billion in 2019. The sales increases are largely driven by ongoing mechanization of forestry operations in developing regions. However, in mature markets, acceleration in economic growth and a more favourable investment climate will allow forestry companies to try and reduce their operating costs and improve productivity through the use of technologically sophisticated, high-value machinery.
The US and Canada represent the largest geographic market for forestry equipment, consisting of about one-third of global product demand in 2014. Western Europe is the second largest market, with a 22 percent share, followed by the Asia/Pacific region, Eastern Europe, Latin America, and the Africa/Mideast region. The US is predicted to record the largest forest machine market increase. This is due to a pickup in economic activity and construction expenditures, a good capital spending environment, and growth in roundwood output. Brazil will register larger increases in percentage terms, with 6.5 percent per year expected through to 2019. The research predicts that a number of smaller markets such as New Zealand, Poland, Finland, and Indonesia will also have above average demand gains.
Felling equipment constitutes the largest share of world forestry equipment sales, followed by separately sold parts and attachments, and extraction equipment. On-site processing equipment and all other forestry equipment make up the remainder. Harvesters and forwarders will capture the most market gains, due to the increased use of cut-to-length harvesting methods relative to tree-length and whole-tree systems. Sales of on-site chippers and grinders will also rapidly increase due to the demand for wood pellets. Harvesting and other cutting heads will also grow at an above average rate. The research was carried out by Freedonia. The report can be purchased from their website. Source: http://www.freedoniagroup.com/%28S%28osdsnvqqvoxyeaahpnmcfh45%29%29/industry-study/3270/world-forestry-equipment.htm