Ground Engaging Tools Market Contributing Large Share In Construction And Mining

 

Ground Engaging Tools Market

The Ground Engaging Tools Market is estimated to be valued at US$ 7,087.4 Mn in 2022 and is expected to exhibit a CAGR of 23.1% over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Ground engaging tools are used in heavy equipment vehicles such as excavators, loaders, dozers, and graders for various construction and mining activities. These tools are critical for loading, excavating, grasping, grading, and other tasks. They include buckets, rippers, and breakers used for various functions in mining, material handling, agriculture, forestry and construction activities. The rising infrastructural development and mining activities globally drive the demand for heavy construction equipment and associated ground engaging tools.

Market key trends:

One of the key trends driving growth of the ground engaging tools market is the increasing demand from the construction industry. Rapid urbanization and industrialization are leading to rising construction of roads, bridges, buildings, and other infrastructural projects globally. This is increasing the demand for earthmoving and material handling equipment such as excavators, loaders, which in turn is fueling sales of ground engaging tools. Furthermore, growing investments in public infrastructure from governments worldwide are also boosting construction activities. For instance, the US government passed a $1 trillion infrastructure bill in 2022 to improve the country's infrastructure. This rising focus on infrastructure developments is expected to augment demand for ground engaging tools over the forecast period.

Porter's Analysis

Threat of new entrants: The threat of new entrants in the Ground Engaging Tools Market is moderate. The market requires a large capital investment to set up manufacturing facilities and gain certifications. However, new players face moderate threat from established market players who hold a major market share.

Bargaining power of buyers: The bargaining power of buyers is moderate. The presence of several key players offering a variety of ground engaging tools provides buyers with variety of options at competitive prices. However, switching costs associated with testing and adopting new tools increases buyer's dependence on existing suppliers.

Bargaining power of suppliers: The bargaining power of suppliers is moderate to low. Suppliers of raw materials face moderate differentiation in their offerings. However, ground engaging tools manufacturers source raw materials from numerous global suppliers, reducing supplier concentration and dependence on individual suppliers.

Threat of new substitutes: The threat of new substitutes is low in the ground engaging tools market as there are limited substitute products that can perform critical applications of ground engaging tools. However, new technology such as laser cladding is emerging as potential substitute.

Competitive rivalry: High due to presence of numerous international and regional players competing on pricing and product innovations.

SWOT Analysis

Strength: Wide product portfolio and strong distribution network of key players enhances brand awareness. Increasing construction activities drives demand.

Weakness: Fluctuations in raw material prices increases production costs. Dependence on economic conditions makes market volatile.

Opportunity: Growth in mining and infrastructure sectors present new growth avenues. Developing nations increasing investment in construction and mining industries.

Threats: Stringent emission norms requiring fuel efficient equipment impact sales. Trade wars and political instability pose challenges.

Key Takeaways

The global ground engaging tools market is expected to witness high growth of 23.1% CAGR over the forecast period of 2022 to 2030, due to increasing investments in infrastructure development and mining activities worldwide. Asia Pacific dominates the market with over 35% share driven by major economies like China and India ramping up investments to develop road, rail and mining sectors.

North America follows Asia Pacific, with presence of numerous mining sites and an advanced construction industry. Europe holds substantial market share supported by increasing investments to upgrade transport and utility infrastructure. Germany, U.K and France accounting for major revenue share in Europe.

Key players operating in the ground engaging tools market are Atlas Copco AB, Caterpillar, Inc., Hitachi Construction Machinery, Komatsu Limited, Sandvik AB, Columbia Steel Casting Co., Inc., Doosan Corporation, USCO S.p.A, Volvo AB, and MB America, Inc. These players dominate through extensive R&D, new product development and strategic collaborations with OEMs

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