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The global telehandler market size was USD 5.87 billion in 2020. The regional impact of COVID-19 has been unprecedented and staggering, with telehandlers witnessing a positive demand amid the pandemic. Based on our analysis, the market exhibited a modest growth of 5.4% in 2020. It is projected to grow from USD 6.19 billion in 2021 to USD 9.38 billion in 2028 at a CAGR of 6.1% in the 2021-2028 period. The considerable rise in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.
The global market growth is driven owing to technological advancements in infrastructure development. Investments in this machinery with heavy load-bearing capacity and high-reach facilities are increasing in emerging economies. For instance, in February 2015, JCB launched a wide range of telescopic handlers in India with lift heights ranging from 7-17 meters owing to the increasing demand from the infrastructural sector in India.
COVID-19 has Severely Affected Construction and Manufacturing Sectors by Limiting Investments
With the sudden surge in the growth of the COVID-19 pandemic worldwide, manufacturing and industrial sectors have been hit tremendously, thus impeding the global telescopic handler market in the year 2020. Construction and industrial manufacturers from developed economies have invested several billion in the infrastructural projects across the developing economies. The sudden lockdown and halt in construction projects led to a loss of investors around the world.
Investments in natural gas pipeline projects across the Asian and Middle Eastern countries were severely affected. Therefore, it has further impacted the production and consumption rate in the global market. Moreover, due to the sudden emergence of the pandemic, purchasing of this equipment has reduced, wherein customers are opting for renting these high-priced machines for the time being. The impact of the lockdown, demand destruction, supply and value chain disruption, and change in customer purchasing behavior are some of the basic reasons that affected the global telescopic handler market in the pandemic period.
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Emerging Renewable Energy Investments is Fueling the Demand for Telescopic Handlers Worldwide
Governments and local authorities across the world are encouraging the usage of renewable energy by introducing efficient and environment-friendly techniques for industrial and household applications. For example, Europe’s National Energy & Climate Plans (NECPs) regulated the Clean Energy Law, under which the major European players are manufacturing eco-friendly engines for the telehandler. The demand for hybrid and electric machinery increased from various applications, including construction, manufacturing, and agriculture industries. The growing investment in the manufacturing sector is expected to result in the popularity of telescopic handlers, thereby resulting in the growth of the global market. As per the statement of the European Commission (EU), Europe invested approximately USD 35 million in the manufacturing sector in 2016-2018.
Introduction to Electric Engine Technology is Expected to Drive the Market Growth
The up-gradation to electric engines is increasing as a result of the rising stringent environmental policies. For instance, India’s National Clean Air Program (NCAP), launched in 2019, gives subsequent information on how to prevent, control, and reduce air pollution. Furthermore, electric engines can reduce CO2 emissions at construction sites, leading to the development of a green working environment. Thus, the increasing demand for green products by environmentally concerned consumers is expected to drive the electric telehandler market.
Furthermore, the adoption of an upgraded telescopic handler reduces labor costs and can track the work done at every stage. It also minimizes operational costs. Moreover, high lift machines are gaining more demand as construction projects are emerging in developing countries. For example, in April 2019, Faresin Industries Spa introduced a high technological telehandler electric model at Bauma with a lifting height of 6-17 meters with a loading capacity of 2.6-7 tons.
Availability of Low-cost Telehandler Rental Services to Impede Telehandler Market Growth
Construction machinery is known to be expensive. It is the heavy industrial machinery used for various purposes in the industry, owing to which customers tend towards opting for rental service. Ongoing renewable projects around the world have led to the increasing demand for rental services as they are available at low cost and are effective from the investment point of view. It may hamper the sales and growth of the global telescopic handler market.
Compact Segment to Grow at a Higher CAGR in the Near Future
By type, the market is further trifurcated into compact, high lift, and high load.
The compact segment is anticipated to witness progressive market growth in the near future with the rising demand for compact construction machinery in dense and rough locations. These machines have better functioning than the heavy machines as they are easy to transport and cost-effective from the purchasing point of view.
The high load segment is expected to have substantial market growth because of the primary need for lifting heavier loads at construction sites. Similarly, high lift machines are projected to propel the demand for the equipment over the forecast period with the increasing skyscraper constructions in developing economies.
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Electric Segment to Exhibit Highest CAGR Backed by Rising Demand for Electric Vehicles
By technology, the market is segmented into hybrid, electric, and combustion.
The electric segment is projected to show the highest CAGR in the upcoming years with the rising customer inclination towards electric machines and vehicles concerning global environmental issues. Hybrid engines are expected to witness substantial demand till 2025 as the shift from combustion to electric would not be easier. Hence, hybrid machines will offer varied features, making the switch to electric machines easy.
The combustion segment will hold the highest market share in the forthcoming years, as these types of machines have been in the market for several decades. Combustion machines often lead to harmful emissions causing environmental degradation and are thus expected to have stagnant growth in the near future.
More than 15 Meters Segment to Hold the Highest Share in the Global Market
By lift height, the market is split into less than 5 meters, 5 to 15 meters, and more than 15 meters.
The more than 15 meters segment is the ideal height for most end-user applications. Thus, it is expected to exhibit the highest CAGR in the upcoming years. This lift height is essential for wind projects and the construction of tall buildings.
The 5 to 15 meters lift height of the equipment will showcase high demand in renewable projects, specifically in solar projects. The segment is hence projected to have substantial growth in the global market. These types of machinery are designed for high-reach applications. Therefore, machines with less than 5 meters of height are expected to exhibit the least demand in the near future.
Less Than 3 Tons Segment is Expected to Grow Exponentially
By lift capacity, the market is segmented into less than 3 tons, 3-10 tons, and more than 10 tons. Generally, lifting raw materials and other machinery is the primary job at any agriculture, transportation, or construction site, thus requires telescopic handlers with less than 3 tons of lifting capacity. Moreover, the more than 10 tons segment is anticipated to witness stagnant growth in the global market with limited end-user applications around the world. The 3 to 10 tons segment is projected to showcase moderate growth over the forecast period with rising construction projects in developing countries.
Construction Sector to Dominate the Market in the Upcoming Years
End-user sectors, such as construction, forestry, agriculture, oil & gas, manufacturing, transport & logistics, and power utilities, will show high investments in the upcoming years.
The construction and agriculture segments would exhibit the highest demand for telehandlers owing to several upcoming and ongoing construction projects and farming plans supported by governments of developing countries. The transport & logistics, and manufacturing sectors are expected to witness progressive market growth with the increasing trading and manufacturing investments amongst developed and developing economies. The power and utilities and oil and gas segments have been spiking the sectoral growth for the last two decades with their expansion of renewable energy projects and crude oil businesses worldwide. The forestry sector is expected to grow at a stable CAGR over the forecast period with limited applications.
Asia Pacific Telehandler Market Size, 2020 (USD Billion)
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Major market players are investing in construction projects, thereby leading to an increase in the demand for the product. As per our research, in Asia Pacific, construction projects worth USD 19.12 million by Larsen & Turbo were initiated in 2017. This, in turn, is expected to drive the global market. As per the research, APAC is the fastest-growing region globally as there are various emerging economies, followed by Europe and North America.
China to Witness Highest CAGR Backed by Presence of the Largest Construction Industry
China being the world’s largest populated country, stands in the second position in terms of the global construction industry. Its highest number of ongoing construction project investments is estimated to be approximately USD 1117.42. The country offers ample market opportunities for emerging local or regional players to expand their businesses with beneficial global trading policies. It is thus projected to witness the highest growth rate over the forecast period.
North America is expected to showcase the second-highest CAGR in the market over the forecast period. A rising number of investors is emerging into the power and utilities, agriculture, and transport and logistics sectors. Europe is exhibiting a trend of the growth of smaller telescopic handlers such as skid steer handlers or compact wheeled handlers, mostly in the agricultural sector. The lifting capacity and lifting height play a major role while selecting the machinery for the industry according to its applications. For example, Genie, a Terex brand, introduced a new telehandler model called Genie GTH- 1256. It has a high lift capacity of 5443 Kg (12,000 lb) and a lift height of 17 meters (56 ft.) and is useful for the construction, manufacturing, and transport industry.
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The Middle East & Africa and Latin America are projected to witness stable growth with the rising rental services across both regions. Emerging manufacturers are offering extensions and other accessories instead of the whole machine, thereby limiting the market growth over the long run.
JC Bamford, Caterpillar, and Doosan Bobcat to Focus on Research & Development Activities
Major players of the market are investing in R&D for up-gradation of the equipment to provide efficient handling capabilities. For example, Manitou upgraded its combustion engine telehandler (MT 1135) to a hybrid. The growing demand for aerial platform equipment is further expected to drive the global market in the near future. JCB is focusing on expanding its business portfolio across the developing economies while investing in new plants. In March 2019, JCB invested Rs. 650 crores to set up a new manufacturing plant in Gujarat, India
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The global market research report provides a detailed competitive landscape of the market. It focuses on key aspects, such as leading companies, product/service types, and leading product applications. Besides, it offers insights into the current market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.
Value (USD Billion)
Type, Technology, Lift Height, Lift Capacity, End- User, Region
By Lift Capacity
Fortune Business Insights says that the market value accounted for USD 5.87 billion in 2020.
In 2028, the market is expected to be worth USD 9.38 billion.
Robust growth of 6.1% CAGR will be observed over the forecast period (2021-2028).
Asia Pacific is anticipated to be the dominant region and its market value stood at USD 2.07 billion in 2020.
Within the type criterion, the compact segment is expected to lead during the forecast period.
The upgradation to electric engines is increasing as a result of stringent environmental policies. It is expected to drive market growth in the near future.
JC Bamford, Caterpillar, and Doosan Bobcat are the key market players.
The construction end-user segment is expected to hold the highest share in the market.
The emergence of low-cost rental services will impede the market growth over the forecast period.
Emerging renewable energy investments throughout the world is the key market trend.
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