Bourgeoning Global Furniture Industry to Stimulate Demand for Lumber Equipment Globally
The lumber equipment market had a global market value of $44.8 billion in 2017 and is expected to grow at a CAGR of 3.72% from 2018 to 2026. Lumber equipment is used to manufacture wooden products with greater precision, quality, and scale than manual processing. Lumber equipment is extensively used in pulp and paper, construction, timber factories and sawmills, and other industries.
Besides, professionals from municipalities, arborists (tree surgeons), park districts, and universities, among others, are using lumber equipment. Rapidly growing urbanization further promotes furniture consumption. The urbanization rate in China increased from 49.95% in 2010 to 57.35% in 2016, augmented by an annual rate of 1.23%. Growing urbanization and increasing per capita disposable income are expected to drive the growth of the furniture industry, thereby driving the subsequent surge of the lumber equipment market.
Market Synopsis
Sawmills to Cement the Dominating Position in the Lumber Equipment Market
Sawmills are used to convert softwood or hardwood into lumber and other finished products. The effective use of raw materials is a critical factor in increasing productivity in the lumber industry. Sawmills are increasingly becoming automated, which improves accuracy as well as productivity. Further, modern sawmills offer functionality to prioritize the speed and volume of log sawing.
Additional factors that influence the achieved yield are positioning accuracy in sawing machines and the usage of a curve or straight sawing technique. With the aforementioned benefits, sawmills expect to witness promising demand in the following years. Nevertheless, in the coming years, the CNC router segment is expected to register a higher growth rate.
The segment's growth is primarily stimulated by the growing demand for customized lumber designs. CNC routers offer an entirely automated cutting process, which enables the handling of multiple projects without variation in design. By complex coding designs in machine language, CNC routers handle complicated operations with more ease. When compared to other equipment, the rapidly growing automation in the lumber manufacturing process drives the segment's higher growth.
The thriving furniture industry, combined with rising discretionary income, will ensure the fastest growth of the Asia Pacific Lumber Equipment Market.
In 2017, the Asia-Pacific market represented the largest share in terms of value. The region is also expected to exhibit comparatively higher market growth throughout the forecast period, principally due to the development of the furniture industry. As the global furniture industry continues to shift towards developing countries, the dominating position of regions in the global lumber equipment market continues to improve across the forecast period. From 2000 to 2015, China's furniture manufacturing industry revenue increased by 24% per year, from US$ 4.73 billion to US$ 11.40 billion. Similarly, rising per capita disposable income is expected to boost demand for designer lumber products, propelling the region's lumber equipment market growth. For example, China's per capita disposable income increased from US$ 1650 in 2006 to US$ 4800 in 2016, with an annual compound growth rate of 11.07%; as a result, residents' purchasing power increased significantly.
At the same time, the proportion of furniture consumption in total retail sales also increased, from 0.21% in 2006 to 0.84% in 2016. Similarly, growing end-use industries from India, Japan, and South Asian countries are expected to drive the demand for the lumber equipment market across the forecast period.
Improving Equipment Reliability Will Remain the Primary Strategy
The lumber equipment market is considered fragmented, with players aiming for product evolution to cater to a broad application area. The range of lumber equipment available on the market is more diverse than before. Manufacturers should offer a highly reliable product range in light of the rapid pace of changing lifestyles and the competitive environment in the end-use industry. Manufacturers are integrating various control platforms with lumber equipment to enhance its reliability. Such controlling platforms include systems-based control, NC/CNC, PLC, and other automated functionality through various software modules.
Key players in the global lumber equipment market include Bandit Industries, Inc., Vermeer Corporation, Avant Techno Oy, Trevan Manufacturing, Changzhou LEFA Industry and Trade Co., Ltd., Redwood Global Ltd., Salsco, Inc., EMB MFG, Inc., Teknamotor Company, UNTHA Shredding Technology GmbH, Laitilan Metalli Laine Oy, Oliver Machinery Corporation, Michael Weinig AG, Biesse Group, IMA-Schelling Group, and others.
Periods of History and Forecast
This research report presents the analysis of each segment from 2016 to 2026, considering 2017as the base year for the research. The compound annual growth rate (CAGR) for each of the respective segments was calculated for the forecast period from 2018 to 2026.
Report Scope by Segments
The lumber equipment market report provides market size and estimates based on market dynamics and key trends observed in the industry. The report provides a holistic view of the global lumber equipment market based on equipment type, operating principle, end-user, and geography. Key segments covered in the report are as follows:
Key questions are answered in this report.
What was the market size of lumber equipment in 2017, and what is the forecast up to 2026?
Which is the largest regional market for lumber equipment?
What are the key market trends observed in the lumber equipment market and the outlook for the smart security industry?
Which are the most promising equipment type, operating principles, and end-user in the lumber equipment market?
Who are the key players leading the market?
What are the key strategies adopted by the leading players in the market?
What are the key technology trends in lumber equipment across different geographies and sub-geographies?
Frequently Asked Question:
The market for Lumber Equipment Market is expected to reach USD$ 44.8 Bn in 2026.
The Lumber Equipment Market is expected to see significant CAGR growth over the coming years, at 3.72%.
The report is forecasted from 2018 -2026.
The base year of this report is 2017.
Changzhou LEFA Industry and Trade Co., Ltd., Redwood Global Ltd., Salsco, Inc., EMB MFG, Inc., Teknamotor Company, UNTHA Shredding Technology GmbH. are some of the major players in the global market.
