Market Trends of Forestry Machinery Industry
Increasing Mechanization in Forestry Machinery
Factors such as rising mechanization rates in the logging industries of developing nations and the increasing use of cut-to-length logging techniques, which are more machine-intensive, in industrialized countries are also contributing to the market’s growth. Countries with the highest forest cover are some of the most potent markets for forestry machinery, and Russia has the highest forest cover. According to the World Bank's statistics, Russia has a forest cover spanning approximately 49% of the country’s total land area.
According to the European Commission, 550 million solid cubic meters of roundwood were harvested in 2021 in Europe. Wood extraction is carried out using various methods and levels of mechanization, including motor manual, semi-mechanized, and fully mechanized techniques. In Sweden, registration of forwarders rose by over 50% in 2023 compared to the previous year, with more than 400 machines sold. For instance, John Deere, the leading company in the market, maintained its top position and registered 168 forwarders in Sweden in 2023. However, Komatsu, its main competitor, made a significant leap by increasing its sales the most.
The manufacturing of wood products by harvesting forest wood is one of the most profitable forestry industries, and it contributes significantly to various industries in many countries with high forest cover. To improve productivity, dependence on mechanized methods for forest harvesting has increased steadily over the years. High-performance equipment, such as harvesters, can cut a tree from the base, debark it, and cut it into the required lengths within a minute. Automation is expected to aid in new dimensions in the forest industry in the coming years by making tasks easy, productive, and efficient and achieving the desired result. Forest mechanization can potentially increase the penetration of forest equipment, thus boosting the market during the forecast period.
Europe Dominates the Market
Europe is one of the world's most forested regions, with 182 million ha of forest, covering 43% of its total land area in 2023, according to the Eurostat. The growing focus on forest activities, significant advancements in logging techniques, and progress in forest science to enhance operations like reducing the risk of fires and implementing sustainable harvesting practices are projected to stimulate market growth.
Governments and international organizations have put in place more stringent environmental rules and regulations to encourage the sustainable management of forests. For instance, the European Union Timber Regulation (EUTR) prohibits the trade of illegally harvested wood. Equipment with advanced monitoring and tracking features helps ensure compliance with these regulations and increases the need for forest equipment. Thus, integrating GPS control systems into forestry equipment is a key factor in boosting production efficiency by enabling real-time tracking and sustainable operations, thereby driving significant growth in demand across Europe. Besides, European governments have implemented various programs to support forest areas, including financial support through the Common Agricultural Policy (CAP). Additionally, measures taken by European countries to fund forestry activities via national development programs continue to underpin the sales of forestry machinery in the region.
The surging demand for dependable, effective, and time-saving machinery for forestry activities has compelled manufacturers to develop new, efficient, and streamlined products. For instance, in 2022, John Deere introduced a new operator assistance control feature called Intelligent Boom Control (IBC) for the 900 MH-Series Tracked Harvester. This feature offers intuitive operator support, ensuring consistent and smooth operation during work. Hence, the forestry machinery market in Europe is poised to experience substantial growth in the coming years due to an increasing need for mechanized forest activities, along with government support and new product launches by leading companies.
