Forestry Equipment Industry Insights | Expert Report 2025-2034

According to the report by Expert Market Research (EMR), the global forestry equipment market size stood at USD 11.59 billion in 2024 and is expected to grow at a CAGR of 4.00%, being driven by the shifting global trend toward automated processes and the rise of the construction sector. The market is projected to reach USD 17.16 billion by 2034.

Forestry equipment refers to a range of machinery and tools used in the management, harvesting, processing, and transportation of forest products. These tools are essential for various forestry operations, including logging, land clearing, tree planting, and maintenance of forest roads. The equipment is designed to handle the rugged and challenging conditions of forest environments, ensuring efficiency, safety, and productivity in forestry activities.

The global forestry equipment market value is experiencing substantial growth, driven by increasing demand for timber and wood products, advancements in technology, and a heightened focus on sustainable forestry practices. Forestry equipment encompasses a wide range of machinery used for logging, tree harvesting, wood chipping, and other forest management activities.

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The growing demand for timber and wood products across various industries, including construction, furniture, paper, and packaging, is a significant driver of the forestry equipment market. As the global population increases and urbanisation expands, the need for housing and infrastructure fuels the demand for construction materials, where wood plays a crucial role. Additionally, the rising preference for sustainable and renewable materials is boosting the demand for wood-based products, further propelling the market for forestry equipment.

Technological advancements are revolutionising the forestry equipment market growth, enhancing efficiency, productivity, and safety. Modern forestry machinery is increasingly equipped with advanced features such as GPS tracking, telematics, and automation. These technologies enable precise and efficient operations, reducing the time and labour required for forestry activities. Automation and remote-controlled machinery are becoming more prevalent, allowing operators to perform tasks from a safe distance and minimising the risk of accidents. Furthermore, the integration of data analytics and AI is enabling predictive maintenance and real-time monitoring, optimising machine performance and reducing downtime.

Sustainability is a growing concern in the market, driven by environmental regulations, corporate social responsibility, and consumer awareness. Sustainable forestry practices aim to balance the need for timber production with the conservation of forest ecosystems. One key forestry equipment market trends is the development and adoption of equipment that supports sustainable practices. For example, equipment that minimises soil disturbance, reduces fuel consumption, and lowers emissions is gaining popularity. Additionally, precision forestry techniques, which use data and technology to optimise tree harvesting and forest management, are becoming more widespread, ensuring that forests are managed responsibly and sustainably.

The increasing adoption of biomass energy as a renewable energy source is driving the global forestry equipment market expansion. Biomass energy, derived from wood chips, pellets, and other forest residues, is seen as a sustainable alternative to fossil fuels. The growing focus on renewable energy sources to combat climate change and reduce carbon emissions is boosting the demand for forestry equipment used in biomass production. Equipment such as wood chippers, grinders, and pellet mills are essential for converting forest residues into biomass fuel, supporting the growth of the market.

The expansion of the construction industry, particularly in emerging markets, is contributing to the forestry equipment market expansion. The construction of residential, commercial, and infrastructure projects drives the demand for wood and timber products. Emerging economies in Asia-Pacific, Latin America, and Africa are witnessing rapid urbanisation and industrialisation, leading to increased construction activities. This trend is generating significant demand for forestry equipment to supply the necessary raw materials for construction projects.

There is a growing trend towards mechanisation in forestry operations, driven by the need to improve efficiency, productivity, and safety. Traditional manual logging methods are being replaced by mechanised harvesting techniques, which involve the use of advanced machinery such as feller bunchers, skidders, and harvesters. Mechanisation reduces the physical strain on workers, enhances operational efficiency, and increases the volume of timber harvested. Additionally, mechanised equipment allows for more precise and selective logging, minimising environmental impact and promoting sustainable forest management.

Government regulations and incentives play a crucial role in shaping the forestry equipment market development. Many countries have implemented stringent regulations to promote sustainable forestry practices and reduce deforestation. These regulations encourage the adoption of advanced forestry equipment that meets environmental standards. Additionally, government incentives and subsidies for sustainable forestry practices and biomass energy production are driving the demand for specialised equipment. These policies support the growth of the market by encouraging investment in modern and sustainable machinery.

The development of multi-functional forestry equipment is a notable trend in the forestry equipment market. Manufacturers are designing machines that can perform multiple tasks, such as felling, processing, and loading, thereby increasing operational efficiency and reducing the need for multiple pieces of equipment. Multi-functional machinery offers significant cost savings and convenience for forestry operations, particularly in remote and challenging environments. This trend is driving innovation and the development of versatile equipment that can adapt to various forestry activities.

Urban forestry, which involves the management of trees and green spaces in urban areas, is gaining prominence. The increasing focus on urban green spaces for their environmental and social benefits is driving the demand for specialised forestry equipment. Urban forestry equipment includes smaller, more manoeuvrable machinery designed for use in confined spaces and residential areas. The rise of urban forestry initiatives is creating new opportunities for equipment manufacturers to develop and market products tailored to the unique needs of urban tree management.

The competitive landscape of the forestry equipment market is characterised by strategic partnerships, mergers, and acquisitions. Major players are forming alliances and acquiring smaller companies to expand their product portfolios and market presence. These strategic moves are driving innovation and enhancing the capabilities of forestry equipment manufacturers. Collaborations with technology providers, research institutions, and forestry companies are also common, enabling the development of advanced and efficient equipment solutions. This competitive environment fosters continuous improvement and adaptation to emerging market trends.

Market Segmentation

The global forestry equipment market can be divided based on product, power, and region.

Market Breakup by Product

Harvester
Feller Bunche
Forwarder
Skidders
Bunchers
Loaders
Mulcher
Others

Market Breakup by Power

Electric
Gas
Oil

Market Breakup by Region

North America
Europe
Asia Pacific
Latin America
Middle East and Africa

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Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global forestry equipment market. Some of the major players explored in the report by Expert Market Research are as follows:

Deere & Company
Komatsu Ltd.
Hitachi Construction Machinery Co., Ltd.
Barko Hydraulics, LLC
Caterpillar Inc.
Rottne Industri AB
Others

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