Skid Steer Loader Market, Trend, Analysis & Competition Tracking - Forecast 2021 to 2031 With the construction industry growing steadily, demand for skid steer loaders is also increasing, and construction is the largest end user of these machines. Vertical lift skid steer loaders are highly sought-after across sectors, with the mid-range type witnessing high demand as far as operating capacity is concerned. Fact.MR’s report has a detailed region-wise analysis, where the region of APEJ leads the way for skid steer loader demand and usage. The report comprises extensive primary research with detailed analysis of qualitative as well as quantitative aspects by various industry experts and key opinion leaders, to gain deeper insights into industry performance. It also provides in-depth analysis of parent market trends, macro-economic indicators, and governing factors, along with market attractiveness as per segment. The study also details how the COVID-19 pandemic has affected this industry, and what the outlook for the years ahead looks like. Future Outlook to Match Pace with Historical Trends Demand for skid steer loaders has been rising at a CAGR between 2.5% to 3% over the last 5 years. This market continues to witness significant opportunities across the globe, on the backdrop of increasing demand for energy-efficient construction equipment. According to studies, by 2050, 64% of the developing world and 86% of the developed world will be urbanized. As such, increasing investments made by governments in developed and developing countries for infrastructure development projects are anticipated to drive the construction industry, thereby heightening the need for skid steer loaders. Fact.MR forecasts a compound annual growth rate of over 3% from 2021 to 2031 for this market. What is the Impact of COVID-19 on the Market? Skid steer loaders are used in various industries, from mining, agriculture, forestry, ground maintenance, etc. However, their use in construction activities greatly outweighs all these sectors. Due to the onset of COVID-19, most countries imposed nationwide lockdowns to curb the deadly virus, which brought the construction industry to a standstill, besides causing disruptions in the supply chain and shortage of human resources. The manufacturing of skid steer loaders as well was significantly affected. The USA is a key producers of skid steer loaders, and according to UNIDO, its machinery industry saw a decline of 4.9% in 2020, directly affecting the skid loader market. However, as the world gets used to the new normal, and industries gradually get back on track, demand for skid steer loaders will pick pace from 2021 and onwards. Growth will be gradual, and most sectors find different ways to optimize their resources and move ahead in these tough times. What are the Challenges Faced by Skid Steer Loader Manufacturers? Skid steer loaders are comparatively costlier, and this is why builders find it difficult to purchase or even rent them on a large scale. Even in the agricultural domain, high cost prevents poor farmers from purchasing these machines. There are a lot of improvements and modifications in skid steer loaders that are noteworthy, but high prices are preventing the adoption of this equipment in various sectors, affecting overall growth of the industry.
Moreover, owing to their complex mechanism, sales are not as high as expected, because their working principles vary greatly as compared to common tractors. Stringent emission norms regarding the use of construction equipment are also affecting demand for skid steer loaders. Government agencies such as EPA (Environmental Protection Agency) inflict heavy fines on manufacturers who do not meet standard norms. However, these norms vary from one region to another, and one territory to another. For instance, in North America and Europe, new machinery has to follow even more rigorous emission regulations as compared to other parts of the world, which is hampering the growth of the skid steer loader market in these regions to some extent. In most countries in the Asian region, though this is a fast-growing industry, manual labour is still an ideal choice for limited construction-related activities, because of the low cost and cheap availability labour, which again restricts the market from attaining its full potential.