U.K. Crawler Excavator Market - Strategic Assessment & Forecast 2024-2029

INDUSTRY OVERVIEW

The U.K. crawler excavator market size accounted for 23.5 thousand units in 2023 and is expected to reach 27.9 thousand units by 2029, growing at a CAGR of 2.87% during the forecast period. There is a surge in infrastructure development projects in the U.K. market in 2024. The U.K. government planned the National Infrastructure and Construction Pipeline (NICP) in 2023, which comprises 660 projects, programs, and other investments across a wide range of infrastructure sectors, including transports, water & sewerage, energy, social infrastructure & power generation. Furthermore, the growing investment in the infrastructure is expected to drive the U.K. crawler excavator market. There is a sharp demand for mini and small crawler excavators in the United Kingdom industry. These machines can operate smoothly in urban locations without producing high air and noise pollution.

Growing Government Investment in Infrastructure Projects

1. With the rising concern for Environmental safety, the OEMs of crawler excavators are upgrading the engine standard to stage V emission norms. Several OEMs have recently launched electric crawler excavators in the UK industry in 2024.
2. The demand for crawler excavators is expected to decline slightly in 2024 due to various industry challenges, such as rising inflations & surge in building material costs. However, the industry is expected to recover gradually from 2025 onwards.
3. The rising inflation rate is expected to negatively impact the United Kingdom crawler excavator industry, resulting in a surge in building material costs.

KEY HIGHLIGHTS

1. In 2023, mini-size excavators will have the largest market share in the U.K. crawler excavator market due to their versatile use in the construction and mining industries.
2. The rise in public infrastructure, mining, and renewable energy projects drives the sales of crawler excavators in the UK.
3. In 2023, the construction end-user accounted for the largest share of the U.K. crawler excavator market.
4. The U.K. is the largest producer of construction equipment in Europe and the fifth largest producer after China, Japan, the US & India in the global market. The country is the leading producer of crawler excavators in the European market.
5. JCB maintains a significant lead in revenue and unit production, followed by Caterpillar & Komatsu in the UK market in 2023.
6. The production of hydraulic excavators in the U.K. is primarily focused on JCB in Staffordshire, which serves the domestic industry. In 2020, JCB expanded its capacity to 7,400 units to meet increased local demand, a target that was surpassed in 2022.
7. In 2024, XCMG awarded Molson Group the distribution rights to its excavators in Scotland. The Molson Group will support sales, service, and aftermarket care for XCMG excavators in the U.K. market.
8. Hyundai launched new 100-tonne HX1000A L and 80-tonne HL985A Stage V crawler excavators. These machines are designed to operate in mines and quarries, as well as in bulk earthmoving for construction and infrastructure project applications.
9. In 2024, SANY launched a 78-tonne crawler excavator in the UK market. SANY SY750H is the largest crawler excavator with a Stage V standard engine in the U.K. crawler excavator market.
10. The demand for mini and small crawler excavators is strong in comparison to medium & large size crawler excavators in the U.K. crawler excavator market. Rising environmental concerns have a negative impact on the demand for large crawler excavators in the UK industry.

MARKET TRENDS & DRIVERS

Growing Demand for Modern Technology Excavators

1. Technological development has increased the demand for construction equipment, including crawler excavators, in the U.K. crawler excavator market. Modern equipment offers several features that increase productivity, reduce fuel consumption, & have a low environmental impact.
2. There has been a surge in environmental safety concerns in the UK industry. The government has placed a greater emphasis on sustainability and tightened the country's emission laws, leading to the demand for electric and hybrid crawler excavators in the U.K. crawler excavator market.
3. The construction sector also witnessed significant transformation due to the rise in automated and semi-automated technologies. These technologies help reduce the project deadline, increase operator safety, and improve accuracy.

Surge in Demand for Demolition Excavators in the U.K. Crawler Excavator Market

1. The U.K. government is investing in various renovation and rebuilding projects nationwide. Several aged infrastructures have been demolished for renovation purposes, which has prompted the use of demolition excavators in the United Kingdom crawler excavator industry. Crawler excavators with high durability are used for demolition. High-durable equipment can withstand demolition projects.
2. Hitachi Construction Machinery in Europe sells crawler excavators designed solely for demolition. These machines provide excellent protection in the cab and outstanding durability for the most challenging demolition projects. They can reach up to 40 and are fitted with mono, two, or three-piece booms.

Increased Investments Under the National Infrastructure and Construction Pipeline to Support the U.K. Crawler Excavator Market

1. The U.K.'s significant infrastructure pipeline comprises projects funded by both public and private sources. Energy and utilities such as water and electricity/gas transmission, which are privatized sectors, rely heavily on private financing. Private funding is crucial for the UK's transition to net zero.
2. Transport and social infrastructure projects primarily receive funding from the public sector or through a combination of public and private sources.
3. The energy sector is expected to receive the largest share of funding, totaling USD 337.2 billion, covering the Hinkley Point C and Sizewell C projects and nuclear decommissioning efforts.

Rise in Investments in Green Energy Projects

1. In November 2023, the U.K. government planned to invest USD 1,201 million in the Green Industries Growth Accelerator to bolster clean energy manufacturing. This funding, available from 2025 for five years, targets the development of domestic clean energy supply chains, encompassing the areas of carbon capture, electricity networks, hydrogen, nuclear, and offshore wind. It is aimed at providing long-term certainty for industry investments.
2. In April 2024, RWE, a prominent U.K. power producer, signed a significant deal to provide clean electricity to Kerry Group's UK facilities for more than ten years.
3. A surge in investment in green energy projects is expected to drive the demand for large and medium-sized excavators in the U.K. crawler excavator market during the forecast period.

INDUSTRY RESTRAINTS

Increased Construction Costs

1. According to the Building Cost Information Service (BCIS) forecast in March 2024, both tender prices and building costs are projected to rise over the next five years. New construction output is expected to contract further by 3.2% in 2024 before rebounding after a 2.1% decrease in 2023.
2. Total new work output from 2024 to 2029 is expected to grow by 21%. Building costs are predicted to increase by 15% over the next five years, while tender prices are expected to rise by 17% during the same period.

Shortage of Skilled Labor

1. The construction industry is among the largest sectors in the UK. However, it faces challenges in recruiting new talent and acquiring the necessary skills. The most recent Construction Skills Network (CSN) report indicates that approximately 225,000 new construction workers will be required by 2027 to meet the industry's demands.
2. Post-Brexit immigration rules added further pressure to the already existing skilled labor shortage. Brexit led to a shortfall of 330,000 people in the U.K. labor force. In June 2022, the Office for National Statistics (ONS) highlighted an overall reduction in net immigration of 540,000. Around 460,000 EU-origin workers would have moved to the U.K. had Brexit not happened, according to the report. 
3. The scarcity of skilled workers is one of the significant restraints negatively impacting the construction industry, directly affecting the U.K. crawler excavator market.

VENDOR LANDSCAPE

1. JCB, Hitachi Construction Machinery, Caterpillar, Komatsu, and Volvo Construction Equipment have a strong market share in the U.K. crawler excavator market. These manufacturers are market leaders in the industry.
2. Bobcat, Takeuchi, LiuGong, John Deere, Mecalac, Yanmar, and Wacker Neuson are niche players in the U.K. crawler excavator market. These manufacturers offer little product diversification and are more concentrated in the local market.
3. XCMG, SANY, Kubota, Kobelco, Develon, Hyundai Construction Equipment, and Liebherr are emerging players in the U.K. crawler excavator market. These manufacturers are introducing innovative products to the market.
4. Sunward, CNH Industrials, and Hidromek are the stragglers in the U.K. crawler excavator market. The manufacturers have established a significant presence and diverse product offerings. However, these companies generally fall short of their rivals in providing innovative and advanced products.