The global wheel loaders market is expected to grow at a CAGR of more than 9% during the period 2018 to 2022, according to a new market research study by Technavio.

The report categorizes the global wheel loaders by end-user (construction industry and agriculture industry) and by power output (80HP, 40-80HP, less than 40HP). The report also determines the geographic breakdown of the market in terms of detailed analysis and impact, which includes key geographies such as APAC, the Americas and EMEA.

Owing to the weak global crude oil market in 2014 and 2016, the construction sector in oil-producing countries came to a halt. However, global crude oil prices witnessed stabilization during 2017. According to the World Bank, this stabilization will continue in 2018. It is expected that the production cuts by various oil-producing nations will result in global crude oil prices to increase by 100% in 2020 and 116% in 2025, respectively, compared to the price of $30/barrel in 2014.

According to a senior analyst at Technavio for construction research, “It is expected that the stability in oil prices will drive global economic growth and will lead to growth in government spending. This is expected to result in the resumption of pending and deferred infrastructure projects. In addition to this, new developmental projects will be sanctioned, thus leading to the recovery in demand for construction equipment such as wheel loaders.”

The economic crisis of 2008 resulted in a slowdown in all industries, including construction. Following the recession, the construction industry was forced to adapt to changing economic scenarios and make improvements in efficiency. This led to the construction industry becoming one of the most enthusiastic adopters of advanced technology like telematics, which consists of remote communications and informatics, which are used for fleet tracking or managing a group of vehicles and other assets.

Construction machinery such as wheel loaders and tracked excavators are very expensive and require high initial investments. Therefore, for short duration projects or small-scale projects, it is difficult for mining and construction companies to buy them, owing to the low return on investment (ROI). To achieve flexibility and adapt to the prevailing economic conditions, mining and construction companies started renting their machinery for a specific time based on their needs. The construction machinery rental market has high penetration in the developed countries in EMEA and the Americas. This trend of renting construction machinery is rapidly gaining momentum in developing nations as well. Technavio expects that the construction machinery rental market will grow at a CAGR of over 3% during the forecast period.

Some of the major contributors in the global wheel loaders market include:

• Caterpillar
• Doosan Infracore
• Hitachi Construction Machinery
• J C Bamford Excavators
• Komatsu
• Terex