Excavator Remanufactured Components Market Forecast - 2030

[Research Report] The excavator remanufactured components market size was valued at US$ 1,882.22 million in 2022 and is projected to reach US$ 2,739.25 million by 2030; it is expected to register a CAGR of 4.80% from 2022 to 2030. The report includes growth prospects in light of current excavator remanufactured components market trends and driving factors influencing the market growth.

Analyst Perspective:

The expansion of construction and mining industries is significantly transforming the global excavator remanufactured components market. THe mining sector in the Asia Pacific countries such as India, Japan, and China is growing at rapid pace. The globally Chinese mining operations of the copper extraction contributed around7% of the global copper supply. China is handling 38% of the global copper supply across the overall mining sector. Excavators are widely used for material handling across the mining sector. In the construction sector, the demand for excavators for landscaping, digging, trenching, and the construction of public infrastructures such as roadways, highways, utilities, and railways is rapidly growing. In November 2023, the US government announced an investment of ~US$ 1.2 trillion as the federal fund for the public infrastructure toward energy, transportation, and climate-related infrastructure projects across the country. Thus, the growth of mining and construction industries is propelling the global excavator remanufactured components market growth.

Market Overview:

The process for remanufacturing excavator components involves several steps, including the needs of customers, the types of components to be remanufactured, and different models and their components. Excavator remanufacturing involves the production and finishing of the used excavator components to perform efficiently. Remanufacturing, the process of restoring discarded products to a like new condition with a matching warranty, is seen as a more sustainable way of manufacturing because it can be more profitable and less destructive to the environment than traditional production.

The rise in construction work across residential and commercial sectors, owing to the increase in urbanization, contributes to the growing excavator remanufactured components market size. According to the Ceramics Organization Report, the global market for residential buildings, including new construction, renovation buildings, and remodeling, was valued at US$ 6.80 trillion in 2022. Government bodies are putting additional emphasis on strengthening construction and infrastructural development, further enduring the demand for excavators' remanufactured components. As per Global Construction 2030, the volume of construction output worldwide is expected to increase by 85% to US$ 15.5 trillion by 2030. The US, China, and India contributes largest share in the excavator remanufactured components market  and India is growing with the highest CAGR during the forecast period. Moreover, investment to renovate old buildings and structures and increased inclination toward a greener future are boosting the requirement for green buildings, further nurturing the excavator remanufactured components market growth.

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Excavator Remanufactured Components Market: Strategic Insights

Market Size Value in	US$ 1,882.22 million in 2022
Market Size Value by	US$ 2,739.25 million by 2030
Growth rate	CAGR of 4.80% from 2022 to 2030
Forecast Period	2022-2030
Base Year	2022

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Market Driver:

Reduced Cost Compared to New Components Driving Excavator Remanufactured Components Market

The costs involved with manufacturing of the new excavator components is high as compared to remanufactured components. Hence, the key players are launching programs to remanufacture the old components of the excavators. Increasing infrastructure development projects such as roads, public infrastructure, and commercial offices is also driving the demand for the excavators remanufactured components market during the forecast period. Other company-built infrastructure, such as roads, railways, bridges, power plants, and seaports, are frequently uses excavators to assist in extraction and shipping. Also, there are  increase in day-to-day expenses in the actual mining process is major driving factor for the remanufactured excavators components. In all the phases mentioned above, equipment such as wheel dozers, wheel loaders, crawler dozers, and haul trucks play an important role and account for a notable share of the mining industry costs. These vehicles cost ~10–15% of the total mining operating expenditure. Continuous wear and tear of such equipment leads to the requirement for component replacement, which results in capital investment. Thus, many mining and equipment OEM companies have turned toward remanufacturing components to reduce overall mining operating costs. Caterpillar, one of the leading mining equipment manufacturers, claims that its remanufacturing and rebuilding program for wheel dozers reduces 40–70% costs compared to new manufacturing.

Segmental Analysis:

The excavator remanufactured components market analysis has been carried out by considering the following segments: component and industry. Based on component, the global excavator remanufactured components market is segmented into engine, axle, transmission, hydraulic cylinder, and others. The engine, transmission, and hydraulic cylinder segments are likely to account for significant shares of the excavator remanufactured components market share. The state of a mining vehicle is highly affected by the way it is handled and the environment around it, necessitating continuous replacements. If any equipment breaks down in case of engine, axle, transmission, or hydraulic cylinder failure, the profitability of mining companies is affected. Thus, most mining companies prefer replacing equipment with remanufactured components due to their cost-effectiveness and reliability. This factor is driving the excavator remanufactured components market.

Regional Analysis:

North America is growing at moderate CAGR during the forecast period. The North America excavator remanufactured components market is segmented into the US, Canada, and Mexico. The mining sector in North America, particularly in countries such as the US, Canada, and Mexico, majorly drives the demand for excavators' remanufactured components market. The excavator remanufactured components market in North America is expected to continue its growth trajectory due to the steady expansion of various end-use industries and continuous investments in infrastructure development. For instance, according to the data published by the Canadian government, with US$ 89 billion in capital expenditures spread across 119 major mining-related projects, the industry demonstrated continued interest in mine constructions, redevelopments, expansions, and processing facilities. The country witnessed an increase in capital expenditures from US$ 82 billion and 120 projects in 2020 to US$ 89 billion and 119 projects in 2021, which signifies continued interest in mining-related projects despite the challenges posed by the onset of the COVID-19 outbreak. The continued focus on infrastructure development, including construction projects, ports, and terminals, also contributes to the demand for excavator-remanufactured components in the region. Thus, the increased demand for minerals and metals is propelling the growth of mining activities in the region, creating a growth opportunity for the excavator remanufactured components market in North America.

Key Player Analysis:

Atlas Copco, AB Volvo, Caterpillar Inc., Hitachi Construction Machinery Co. Ltd., Epiroc AB, Komatsu Ltd., Liebherr Group, SRC Holding Corporation, J C Bamford Excavators Ltd., and Swanson Industries are among the key players covered in the excavator remanufactured components market report.

Excavator Remanufactured Components Market Report Scope

Recent Developments:

Inorganic and organic strategies such as mergers and acquisitions are highly adopted by companies in the excavator remanufactured components market. The market initiative is a strategy adopted by companies to expand their footprint across the world and to meet the growing customer demand. The market players mentioned in the excavator remanufactured components market report are mainly focusing on product and service enhancements by integrating advanced features and technologies into their offerings. A few recent developments by key market players are listed below: