In the past few years, there has been an upsurge in the rollout of a series of advanced hybrid excavators by various market players. Many companies are considering the introduction of products and machines for securing a strong competitive edge.
For instance, in May 2022, Collins Earthworks hit the headlines for the addition of a pair of Volvo EC300E hybrid excavators to the company’s wide fleet. The excavators joined other hybrid machines in Collins’ portfolio. Owing to the company’s focus on the reduction of environmental impact, the new machines would run on Hydrotreated Vegetable Oil (HVO).
Similar advancements are set to impel the industry expansion over the forthcoming years. According to Business Research Insights, the global hybrid excavators market size was US$ 757.9 million in 2021 and is forecast to a readjusted size of USD 2102.9 million by 2028 with a CAGR of 15.7%.
How Has the Coronavirus Pandemic Affected the Product Adoption?
The COVID-19 pandemic negatively affected the industry growth. The excavators are extensively used in the mining and construction sectors. These activities were hit due to financial problems, supply chain issues, and labor shortage. The temporary halt on infrastructural and construction activities resulted in a decreased demand for construction equipment, hindering product consumption to some extent. However, efforts toward economic revival by various government bodies are expected to fuel product adoption over the estimated period.
North America: An Overview of the Regional Landscape
The industry value in North America is slated to record appreciable expansion over the forthcoming years. The rise can be credited to the escalating deployment of hybrid excavators in a range of settings. Owing to their versatility, the machines are being deployed in marine dredging, materials handling, forestry, mining and aggregates, road building & repair, demolition, utilities and public works, grading, and landscaping, and pipe laying projects.
Increase in Collaborations & Ambitious Targets by Major Industry Players
Several industry participants are focused on entering into partnerships, agreements, and collaborations for sustaining their market position. For instance, in July 2022, Ventia funded the first Komatsu Hybrid HB365LC-3 excavator. The machine was commissioned in New Zealand at the company’s Puketona-based transport sector quarry. The firm is committed toward the adoption of a more sustainable low emissions technology.
In addition, many companies are showing a keen interest in embarking on the journey toward the reduction of the environmental impact of their fleet. For instance, in August 2022, ECL, a civil engineering firm, set off on a journey with Molson Equipment, the company’s mobile plant supplier, to dramatically reduce the environmental impact of their fleet. The former is focused on the reduction of carbon emissions by 78% until the year 2035. The move forms a part of the U.K. government’s bid to reach net zero carbon emissions by 2050.
A list of major companies in the market has been provided below:
1. Hyundai Heavy Industries (South Korea)
2. Hitachi (Japan)
3. Takeuchi (Japan)
4. Sunward (Belgium)
5. Kobelco (Japan)
6. Caterpillar/Cat (U.S.)
7. Sumitomo (Japan)
Other initiatives undertaken by leading market players to sustain the industry competition include mergers, acquisitions, and the formation of alliances. These are further supplemented by surging participation in trade conferences and fairs for the enhancement of business prospects.
Surging Demand for Rental-based Offering to Propel Industry Expansion
The industry has recorded an escalating inclination toward the procurement of machinery on a rental basis. As the construction sector expands, the renting of construction equipment is progressing. This is expected to provide profitable market opportunities as hybrid excavators are expensive in nature.
Besides, a majority of builders in the infrastructural sector prefer not to purchase the machines but outsource them. Contractors are increasingly preferring the option of equipment renting, owing to the high initial price of purchase. In addition, increasing government expenditure in the public infrastructure sector is further slated to impel the demand for construction machinery on a rental basis.
Way Forward
The coming years are expected to record a rise in the adoption of hybrid excavators, owing to the environmental benefits on account of a combination of two power sources. This is mainly attributed to a range of features. These comprise the recovery of renewed power and the efficient discharge of electricity. Further, the machines exhibit a range of distinctive features that aid in achieving lower carbon emissions and reduced fuel consumption.