Europe Excavator Market Outlook, 2029

Digitalization and technological advancements have become an indispensable part of the construction sector. Manufacturers are integrating digital support tools for effective control, and maximum performance as automation and technological advancements grow. Volvo, for example, introduced Dig Assist technology in March 2017, which provides real-time advice to increase operator productivity and deliver intuitive machine control for crawler excavators. The adoption of such solutions is likely to boost the demand for advanced equipment, boosting excavator market revenue. Various market participants have already adopted much advancement, and others follow the trend. With the evolving demand by the government to move toward greener vehicles, excavator’s manufacturers are turning their conventional vehicles to electric and hybrid to adopt the changes. Most automakers are introducing new electric excavator’s models. With the increased spending from several government authorities in the region on construction and mining activities, the demand for cost-effective machines, along with regulatory pressures for lower emissions, has been pressurizing construction-equipment manufacturers to opt for electric and hybrid vehicles over the traditional hydraulic and mechanical ones.

According to the research report "Europe Excavator Market Outlook, 2029," published by Bonafide Research, the Europe Excavator market is projected to add more than USD 3.39 Billion from 2024 to 2029. Factors, including increased building spending and the government's significant infrastructure development initiatives are likely to further propel the market forward. Excavators are in high demand in the region due to an increase in the number of large-scale projects in the mining, oil and gas sector, and road and port construction. The emergence of the concept of excavator rentals is another major driving factor as it enables operators and manufacturers to utilize the equipment without heavy capital investments and make maximum utilization of the equipment. Additionally, commercial and residential infrastructure developments under smart city initiatives require heavy machines for various applications, including demolishing old buildings, which is expected to further create equipment demand in Europe. Introducing innovative new mini excavators and opening a new European headquarters are key moves by Sunward that will raise the firm’s profile and boost its export operations. The company builds a wide range of machines at its Chinese facilities in Changsha but is best known in Europe for its compact equipment.

Germany and the United Kingdom are anticipated to witness optimistic growth during the forecast period due to government initiatives and the rising adoption of environmentally sustainable products in the market. Germany is expected to witness the fastest growth and is likely to hold a significant market share during the forecast period. The country is an early adopter of the latest technology, and the construction companies in the country are investing heavily in procuring the latest equipment to reduce carbon footprints. For instance, in April 2021, it was reported that the federal government in the country was increasing its expenditure on rail and road infrastructure. This increased spending on transportation infrastructure provides EUR 270 Billion (USD 324 Billion) in funding to improve roads, rail, and waterways, over the next 10 to 15 years.
The European excavator market is segmented into several key categories, each playing a vital role in the region's construction, mining, and infrastructure development. Mini excavators, known for their compact size, durability, and high efficiency, are gaining popularity as energy-efficient equipment, with a focus on reducing carbon footprints. These machines are particularly useful in urban environments where space is limited, and their affordability compared to heavy excavators encourages their adoption. Major players in the European mini excavator market include AB Volvo Group and J C Bamford Excavators Ltd, who offer application-specific models tailored to meet the diverse needs of the construction industry. Crawler excavators, equipped with tracked undercarriages, are the most common type in Europe. These machines are available in a wide range of sizes, with the 6-12 ton class witnessing rapid growth, driven by the increasing demand for efficient and versatile equipment in the mining, oil and gas, and road and port construction sectors. The emergence of the excavator rental concept is another significant factor driving the market, as it enables operators and manufacturers to utilize the equipment without heavy capital investments, ensuring maximum utilization. Wheeled excavators, while more popular in Europe compared to North America, are also gaining traction in the region. These machines are preferred for urban projects due to their gentler impact on finished roads compared to tracked excavators. The growing demand for wheeled excavators can be attributed to the increasing number of large-scale projects in the mining, oil and gas, and construction sectors, as well as the government's significant infrastructure development initiatives.

Based on application, the excavator market is divided into mining and construction, among others. Among these, the construction segment is projected to exhibit a significant CAGR over the forecast period. Road projects and initiatives undertaken by the government in Europe are poised to stir up the demand for excavators. Increasing urbanization and industrialization are leading to a rise in construction activities and, subsequently, an upsurge in excavator demand. Industries are demanding more fuel-efficient, technologically upgraded equipment for improvising construction operations. The adoption of upgraded excavators reduces the labor costs, tracking of work done in every stage of the process, and operational process. Also, it is expected that there will be a significant market growth in the construction segment owing to the growth of the commercial, residential, and industrial sectors of the region.
The economic infrastructure investment needs for energy, transport, water and sanitation, and telecoms are as high as USD 810.46 Billion per year. This investment gap has shadowed its impact on the excavator markets. In contrast to this, the construction industry had a steady increase in YOY base after 2023. This growth is backed by a low interest rate, a stable economy, and a large young population of the region. This promising growth has made way for private and public investment in the industry.

Factors influencing the growth in the market are increasing public infrastructure spending and extremely low-interest rates. Companies are launching new products and are entering collaborations to strengthen their positions in the market. For instance,
• In December 2020, Hitachi Construction Machinery – Europe announced the expansion of its distribution network in Italy to have a closer connection and to better serve the customers. This expansion is expected to offer better insights into the demand for future developments.
• In February 2021, Volvo Construction Equipment unveiled the EX03, the company's first electric prototype in the mid-size excavator range. The 14-ton EX03 is equipped with a battery pack from Volvo Trucks, lower noise levels, and reduced total cost of ownership compared to its conventional counterparts.
• In March 2021, Liebherr launched its R 96600 hydraulic mining excavator with new standards in open-pit mining. The machine comes equipped with assistance systems and semi-automated functions, indicating Liebherr's interest in autonomy.
• In April 2021, John Deere launched its SmartGrade Solution equipped with the 210G LC and 350G LC Excavators. This is used for Grade Control on the construction machinery and to monitor the equipment's health.
• In April 2021, Manitou Group announced an investment of EUR 80 million for the expansion of production sites in Ancencis, Cande, and Lailie in France, in line with the company's plans to move toward electrification of its entire product portfolio.
• In April 2021, Kobelco Construction Machinery Co. Ltd announced a new collaboration with Leica Geosystems of Switzerland to develop integrated 2D and 3D machine control solutions to develop remote operations for Kobelco's excavators.
• In April 2021, Manitou Group announced an investment of EUR 80 million for the expansion of production sites in Ancencis, Cande, and Lailie in France, in line with the company's plans to move toward electrification of its entire product portfolio.
• In April 2021, CASE Construction Equipment of CNH Industrial announced the New G-Series Wheel Loader, which is expected to boost productivity, profitability, and reliability with the help of better loading accuracy and a new payload system.
• In June 2021, Caterpillar Inc. launched Cat M320, along with the M319 wheeled excavator. The M320 offers more swing torque with a longer wheelbase for stability and extended service intervals.
• In June 2021, Komatsu and Honda announced the joint development of Micro Electric excavators, powered by Honda's Mobile Power Pack batteries, and the new establishment of a battery sharing system for the civil and construction equipment industry.



Covid-19 Impact:
The early phase of COVID-19 witnessed a decline in the market as most of the construction projects were halted for the time being. The later phase experienced a gradual restart of the development industry. Public infrastructures such as bridges, railway stations, building metros, repairing railway lines, construction of public buildings, and others took place avoiding the daily human traffic. This has boosted the demand for these machines even during the pandemic. Several countries constructed hospitals and other supporting facilities in urgency which required hi-tech diggers to facilitate the construction. These factors are propelling higher market growth for excavator market in Europe.

Major Companies Present In the Market
Caterpillar Private Limited, CNH Industrial, Doosan Infracore, Epiroc Construction Machinery Co. Ltd, Hitachi Construction Machinery Co. Ltd, J C Bamford Excavators Ltd, John Deere Ltd, Kobe Steel Ltd, Komatsu Ltd., Kubota Corporation, Liebherr Group, Metso Corporation, Sandvik Mining And Rock Technology, Sany Group, Terex Corporation, Volvo Construction Equipments, XCMG Ltd. , Zoomlion Co. Ltd

Considered In the Report
• Geography: Europe
• Historical year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecasted year: 2029

Countries covered:
• Germany
• UK
• Russia
• Spain
• Italy
• France
• Rest of Europe

Aspects Covered In the Report
• Market Size By Value for the historic time period (2018-2023)
• Market Size By Value for the forecast time period (2024-2029)
• Market Share by Application (Construction, Mining, utility & agriculture)
• Market Share by Machine Type (Mini Excavator, Crawler, Wheeled, Others)
• Market Share by Country (2018, 2023 & 2029F)

The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the construction machinery and excavator industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.