June 13, 2024
Ground Engaging Tools Market

Ground Engaging Tools Market is Estimated to Witness High Growth Owing to Technological Advancement in Materials and Design

The ground engaging tools market is growing owing to the increased demand for construction equipment such as excavators, loaders, dozers, and graders across several industries including construction, mining, oil & gas, and forestry. Ground engaging tools such as buckets, rippers, teeth, grapples play a crucial role in excavation, demolition, material handling, and grading applications. These tools require high strength and wear resistance materials to withstand heavy loads and abrasive working conditions. Recent technological advancements in material sciences have led to the development of composite and alloy-based ground engaging tools that exhibit improved strength, toughness, and wear life.

The Global Ground Engaging Tools Market is estimated to be valued at US$ 12372.45 Bn in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Ground Engaging Tools are Wire Crafters, Nashville Wire, Apex Wire Shelving, Southwest Solutions Group, Hyloft, Rack Concepts, EZ Shelf, CAEM, W-QUALO, Constructor Group, Titan Wire Shelving, ARACKING & SHELVING SOLUTIONS, Global Industrial, Shelving + Rack Systems, Durham Manufacturing, M&M Wire Shelving, STOREBOXX Australia, EFAB Engineers, Cornerstone Rack & Shelving.

Key opportunities in the market include rising equipment fleets across industries and increasing demand for rental and used equipment. Several governments are also investing in large infrastructure projects which is driving the demand for construction equipment and corresponding ground engaging tools.

Recent technological advancements include development of composite teeth and bucket materials with fibre reinforced polymers, carbide insert teeth technologies, and 3D printed ground engaging tools with superior strength-to-weight ratios. Ground Engaging Tools Market Size These new materials and manufacturing methods are improving component life and reducing overall operating costs.

Market drivers: The major market driver is rapid urbanization and large infrastructure projects undertaken by governments worldwide. Growing construction of roads, bridges, dams, and other civil works is fueling the demand for construction equipment. Additionally, rising mineral extraction and mining activities are augmenting the ground engaging tools market.

Current Challenges in Ground Engaging Tools Market
The ground engaging tools market is facing many challenges due to changing dynamics of the industry. Supply chain disruptions due to Covid-19 pandemic and Russia-Ukraine conflict have delayed construction projects globally. Rising freight and logistic costs have increased overall costs for manufacturers. Strong inflationary pressures have reduced spending power of consumers. Finding skilled labor is also a major challenge for construction companies. Declining commodities prices have negatively impacted mining sector affecting demand for ground engaging tools. Strict emission norms in many countries require transition to new fuel efficient and electric construction equipment, raising compliance costs.

SWOT Analysis
Strength: Wide product portfolio and strong brand presence of top players. Growing infrastructure spending in developing nations.
Weakness: Sensitivity to economic cycles makes demand volatile. High dependence on limited end-use industries.
Opportunity: Shift towards advanced tools with wear monitoring and remote connectivity. Growth in urbanization and smart city projects in Asia Pacific.
Threats: Trade wars and geopolitical tensions impact supply chains. Rising competition from local manufacturers in price sensitive markets.

North America has been the largest geographical market for ground engaging tools historically, accounting for over 30% revenue share in 2023. Strong presence of heavy equipment and construction vehicle OEMs drives tool demand. However, Asia Pacific is emerging as the fastest growing regional market projected to expand at over 9% CAGR during the forecast period. Rapid infrastructure development and infrastructure-led stimulus programs in China and India are fueling growth.

In terms of revenue, Europe is the second largest geographical market for ground engaging tools currently valued at US$ 2917.32 million in 2023. Well established construction industry and recovery in manufacturing sector post Covid-19 aid market growth. Majority of revenue is concentrated in Western European countries including Germany, UK and France.

*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it