Panels & Furniture Asia September/October 2020

8 | NEWS
September / October 2020, Issue 5 | Panels & Furniture Asia
STUDY: FORESTRY MACHINE MARKET TO WITNESS DECLINING
SALES AMID COVID-19; LONG-TERM OUTLOOK POSITIVE
ACCORDING to a report published by
Fact.MR, the forestry machinery market
will witness declining sales in the near
term amid the COVID-19 outbreak, but
the long-term outlook remains positive.
The global forestry machinery market is
expected to be valued at over US$4 billion
by the end of 2020 and is anticipated to
surpass US$6 billion by the end of the
forecast period of 2020-2030. However,
the COVID-19 pandemic has interrupted
the growth of the industrial equipment
machinery market due to nationwide
lockdowns, leading to a steep fall in the
sales of forestry machinery, globally.
In addition, high initial investment of
forestry machinery adds another layer of
complexity, as several users are hesitant
to invest in new forestry machinery at
this time. This, in turn, is expected to
see a decline in the demand for forestry
machinery in the near future.
However, ongoing development plans
formulated to boost the forestry industry in
key countries such as China and Indonesia
are expected to drive the demand for
relevant solutions, such as forestry
machinery and equipment. Moreover,
growing focus of manufacturers on
designing machinery for high production
applications, demanding operations, and
extreme terrain conditions, is expected to
augur well for the growth of the forestry
machinery market during the forecast
period of 2020-2030.
KEY TAKEAWAYS FROM THE
GLOBAL FORESTRY MACHINERY
MARKET STUDY
• The global forestry machinery market
is projected to create an absolute
dollar opportunity of around
US$2 billion, and is anticipated to
expand at a value CAGR of 5% during
the forecast period.
• By machine, forwarders are set to hold
a share-wide market dominance with
over 38% of the total market value by
the end of the forecast period.
• Skidders are projected to progress at
a value CAGR of 5%, and be valued 1.5
times more than bunchers by the end
of 2020.
• By region, Europe is expected to
emerge as the fastest-growing forestry
machinery market and surpass a
market valuation of US$2.5 billion by
the end of 2030.
“The impact of COVID-19 will have
long-term implications on the growth
of the forestry machinery market. It is
anticipated that, even if the pandemic
is brought under control, demand is
expected to remain muted till the end
of 2020, owing to uncertain economic
conditions. However, a positive outlook
for forestry machinery in developing
countries of Asia Pacific, coupled with
a shift towards mechanized mode of
operations, is anticipated to foster the
demand for forestry machinery over the
coming years,” said a report analyst.
INDUSTRY PLAYERS FOCUSING ON
PRODUCT LAUNCHES TO STIMULATE
GROWTH
Key players in the forestry machinery market
are Komatsu Ltd., Tigercat International
Inc., Deere & Co., Barko Hydraulics L.L.C.,
Caterpillar, Inc. AGCO Corporation, Kubota
Corporation, Ponsse Oyj, and Rottne
Industri AB, among others. Prominent
manufacturers are focusing on introducing
new products in order to broaden their
customer base and gain a competitive edge
over other players. For instance,
• In 2020, Komatsu introduced its new
901XC 8WD Harvester, which is a thinning
powerhouse for challenging steep, rough
or soft terrain. Further, the harvester is
integrated with a "Double Comfort
Bogie" drive system that provides
excellent handling and follows the
terrain more closely than competitors’
8WD machines.
• In 2020, Tigercat introduced its
H-series Skidders. The new skidder line
includes the 620H, 630H and 632H
four-wheel models, as well as the
625H and 635H six-wheel models.
These skidders are integrated with a
Turnaround system that lets the operator
rotate its seat 220°.
• In 2020, John Deere launched its Mechanical
Self-Leveling Loader (MSL) option for small
tractors. These are designed to keep loads
level throughout the lift. The new loaders
are compatible with John Deere 1E, 1R,
2R and 3E compact utility tractors. P
These insights are based on a report on the Forestry Machinery Market by Fact.MR.
VIETNAM FORESTRY EXPORTS EXCEEDS US$5 BILLION IN
FIRST HALF OF 2020
THE Vietnam Administration of Forestry
has announced that the export revenue of
forestry products hit US$5.3 billion in the
first half of 2020, up 2.7% over the same
period last year. The total export value
of such products is expected to reach
between US$11.75 to US$12 billion.
On the other hand, the import value
of wood and wood products over
the same period decreased 8.8% to
US$1.2 billion, and the agency estimates
the yearly figure to match 2019 at around
US$2.55 billion.
In the first six months, 106,300 ha of
forest were planted, fulfilling 48.3% of the
yearly target of 220,000 ha. P