Market Trends of Forestry Machinery Industry
This section covers the major market trends shaping the Forestry Machinery Market according to our research experts:
Increasing Mechanization in the Forestry Machineries
Factors such as rising mechanization rates in the logging sectors 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 growth of the market studied. Countries with the highest forest cover are some of the most potent markets for forestry machinery, and Russia is the country with the highest forest cover. According to the World Bank's statistics, Russia has a forest cover covering approximately 49% of the total land area of the country.
The manufacturing of wood products by harvesting forest wood is the most profitable of the 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.
Moreover, many companies consider autonomous vehicles for the forestry sector as they provide benefits such as increased productivity, the elimination of the machine operator bottleneck, significant cost reductions, and support for environmental aspects. Automation is expected to aid in new dimensions during the forecast period in the forest industry by making the task easy, productive, efficient, and achieving the desired result quickly.
Europe Dominates the Market
The European Union has about 182 million hectares of forest, covering 43% of its geographical area, making it one of Europe's most valuable renewable resources. The forests of the European Union are extraordinarily diversified, with a wide range of forest kinds, characteristics, and ownership arrangements. They provide numerous benefits to society and the economy while also being a significant source of biodiversity. Furthermore, they are an important resource for enhancing the quality of life and creating jobs. These socioeconomic benefits are why the EU promotes forestry, specifically through the Common Agricultural Policy.
Europe is the largest market and is expected to remain the leading as well as the fastest-growing market for forestry machinery. Financial support from the common agricultural policy (CAP) to rural areas and the measures taken by the EU countries to encourage forestry activities with the help of national development programs continue to maintain the sales of forestry machinery in the region. The demand for woody biomass for industrial and energy use in the European Union is expected to rise significantly in the coming decades to meet the material and energy needs of the bio-based economy. Moving toward more mechanical harvesting technology has resulted in increased investment in harvesting machinery as the labor input/harvested volume ratio has decreased. Growing food demand globally has resulted in aggressive cultivation activities, which in turn have led to the conversion of forest lands into arable lands. This has further resulted in the adoption of mechanized practices, which has created a significant demand for forestry machinery globally.
