Global Forest Harvester Head Market Size By Product (20 Inches, 16 Inches), By Application (Harvesting, Processing, Debarking), By Geographic Scope And Forecast

The increased use of wood in the paper and pulp industries is expected to drive the market for forest harvester heads soon. The Global Forest Harvester Head Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global Forest harvester Head Market Executive Summary

Forest harvester heads can work efficiently with wheeled harvesters for thinning dense, challenging stands. They offer reliability, productivity, and profitability in forest harvesting. They are highly effective for large trees, big root flares, and rough limbs in mind. Forest harvester heads are segmented into three major types, 20 Inches, 16 Inches, and Others, based on material type. 20 Inches harvester heads segment is holding the largest share of the global market due to higher demand from applications. However, the other segment is growing with the highest CAGR of 5.27% during the forecasted period.

The Global Forest Harvester Head Market is segmented into four major sub-segments as Harvesting, Processing, Debarking, and Others, based on applications. The demand for Harvesting is high around the world, holding the highest market share of 30.27%. However, Processing is holding the second-largest share of the market and growing with a CAGR of 4.82%.

The Global Forest Harvester Head Market is witnessing significant growth owing to various driving factors such as increasing demand for wood in the pulp and paper industry, numerous applications of wood, and rising demand for forest products, among others. Wood is the major source of pulp and paper manufacturing. Pulp and paper are one of the largest industries in the world. Pulp and paper have the largest and most significant impact on the global economy. The worldwide production of paper and paperboard is around 390 million metric tons and is expected to increase to 490 million metric tons by 2020.

However, the availability of substitutes for wood products, stricter government regulation for the management of forest products, and the rest of other factors might strangle the growth of the Global Forest Harvester Head Market over the forecasted period. Moreover, increasing investments in forest sector development and other factors are creating new opportunities for the Global Forest Harvester Head Market to grow soon.

Global Forest harvester Head Market Attractiveness Analysis

The Global Forest Harvester Head Market is experiencing a scaled level of attractiveness in Europe. Europe has a prominent presence and holds the highest share of the global market. It is anticipated to account for the highest market share of 38.14% by 2030. The region is projected to gain an incremental market value of USD 207.46 Million and grow at a CAGR of 4.80% between 2023 and 2030.

Multiple uses of wood are growing across Europe for the last 10 years. As stated in the Global Forest Goals Report, 2021, Europe is the second region having the greatest increase in multiple-use forests till 2020. Furthermore, the presence of a number of key players manufacturing forest harvester heads is also driving the growth of the market across the region. The major key players such as SP Maskiner, Log Max AB, Kone Ketonen Oy, AFM-Forest Ltd., Nisula Forest Oy, Kesla, and Logset, amongst others, are present and actively working in Europe. SP Maskiner is becoming one of the strongest players in Europe as well as around the world.

Global Forest Harvester Head Market Absolute Market Opportunity

The above diagram represents the absolute market opportunity for the Global Forest Harvester Head Market. The Global Forest Harvester Head Market is estimated to gain USD 59.03 Million in 2023 over 2022 value and the market is projected to gain a total of USD 684.65 Million between 2021 and 2030. The factors that are responsible for the market to create a potential growth opportunity in the forecasted period include

Increasing investments in forest sector development are creating a lucrative opportunity. Emerging market nations like China and Mexico were developing, growing, and improving their forestry industries’ industrial productivity, which in turn increased their GDP contributions. According to the Global Forest Goal Report 2021, about USD 15 billion of private investment goes into the forest sector in developing countries and transitional economies.

The market leads to suffering a decline in the year 2020 owing to the consideration of the pandemic (COVID- 19) effect on the market. The decline is mainly owing to the economic slowdown. To prevent the spread of the virus the government has imposed a lockdown and advised people to stay indoors to practice social distancing. These factors halted economic activity across the globe. In addition, the impact has adversely affected businesses of different sizes. However, the aftershock of the pandemic introduces significant opportunities for the Global Forest Harvester Head Market.

Global Forest Harvester Head Market Outlook

Wood is the major source of pulp and paper manufacturing. Pulp and paper are one of the largest industries in the world. Pulp and paper have the largest and most significant impact on the global economy. The worldwide production of paper and paperboard is around 390 million metric tonnes and is expected to increase to 490 million metric tonnes by 2020. According to FAO, the forest sector almost contributes more than USD 1.52 trillion to the world GDP. Moreover, according to the World-Wide Fund for Nature (WWF), each year, about 405 million tonnes of paper and paperboard are produced. Additionally, according to the WWF, the demand for paper is going to double by 2050. Paper and paperboard are widely used. The major raw materials required for timber, pulp, and paper are largely derived from the forest. Pulps are widely used for making tissue papers, printing and writing papers, and specialty papers. According to Metsa Group, the global annual demand for pulp is about 69 million tonnes per year. According to the FAO, the global production and trade in the pulp have grown by 2 percent to reach a record high in 2018. As a result, the increased use of wood in the paper and pulp industries is expected to drive the market for forest harvester heads soon.

Additionally, issues with the wafer cutting fluid’s impact on the environment and public health will restrain market expansion. The ethoxylation concept, which has the potential to harm the environment, is the basis for the wafer cutting fluid’s manufacturing process. Since these wafer-cutting fluids are not biodegradable, wastewater treatment facilities do not treat them. These consequently end up in aquatic bodies. They are known to cause rashes and allergies. Therefore, the environmental and health issues related to wafer cutting fluid would restrain market expansion. On the other side, certain drawbacks, including high viscosity, restricted filterability, problems with the disposal of liquid waste, and silicon sludge, present a barrier to market expansion. The availability of substitutes and alternatives for wood may reduce wood removal activity or forest harvesting activity. Subsequently, it will negatively impact the forest harvester head market soon. On the other hand, future alternative products from the wood-alternative—metals, plastics, cement, and chemical industries—will continue to pose a threat to the usage of wood products. A future with an increasingly complex interaction between the demands placed on forests and the relative acceptability to consumers of forest products and competing for non-forest substitutes are suggested by a correlation between increasing incomes and preferences for environmentally friendly products and outcomes. To meet the demand for wood products, trees are being cut down at a rapid pace. Carbon dioxide emissions, soil erosion, habitat destruction, migration of wildlife, ecological imbalance, flooding, disruption of the hydrological cycle of water, and loss of biological diversity are the major losses to nature owing to forest harvesting.

Furthermore, plastic is an excellent material because it is light, strong, inexpensive, and easily shaped. However, wood is heavy and costs more compared to plastic. Increased use of recycled plastic furniture due to its long-lasting performance, lower cost, and lower maintenance cost. Additionally, recycled plastic is much cheaper than wood and more environmentally friendly; recycled plastic uses 66% less energy than new plastic. Additionally, plastic is being used increasingly in packaging, construction, and household items.

One of the primary forces driving investment in forest management is the demand for wood products. The FAO predicts an increase in the global population from 6.4 billion in 2005 to 7.5 billion in 2020 and 8.2 billion in 2030. As the world’s population and wealth increase, demand for forest products will also increase. According to the most recent FAO predictions, the world’s consumption of industrial round wood would increase by 60% over present levels by 2030, reaching almost 2,400 million m3. Significant increases in paper and paperboard product use are also predicted. Thus, considering the growing demand for wood and forest products, both the public and private sectors have started investing in the forestry sector, creating a larger opportunity for the forest harvester head market in the coming years.

Furthermore, demand for wood energy creates financial incentives, such as higher timber prices, that encourage investment in forestry, expand the area and productivity of forests, and reduce emissions from further harvesting and wood burning. Additionally, according to the Food and Agriculture Organization, there is a vast requirement for employment and investment in new production units by 2050 to meet the demand for wood products, which may amount to USD 25 billion per annum. Industrial roundwood supply investments are expected to cost USD 40 billion annually by 2050, of which USD 24 billion will go toward naturally regenerating production forests and USD 16 billion toward establishing and replanting forest plantations. Between USD 0.6 billion and USD 2.5 billion in extra investments may be necessary to create enough mass wood and MMCF to replace non-renewable materials per year. Additional annual investments ranging from USD 1.4 billion to USD 4.5 billion would be needed to provide the related industrial roundwood supply from forest plantations.

Porter’s Five Forces Analysis

Porter’s five forces framework provides a blueprint for understanding the behavior of buyers, suppliers, competitors, and major key players, and their strategic positioning in the respective market. Global Forest Harvester Head Market is highly competitive as the major key players have accounted for the largest share of the Global Forest Harvester Head Market. The competitive environment prevailing in the global market can be analyzed through Porter’s Five Forces analytical framework. The bargaining power of buyers in the Global Forest Harvester Head Market is Moderate to High due to the following reasonsThe bargaining power of buyers is moderate to high, due to the environmental concern, stricter regulations on wood harvesting, and the rising availability of alternatives for wood products in the market.

The availability of the number of key players provides the harvester head options for the buyers. Numerous applications of forest wood in the industrial, construction, and packaging sector lowers the power of buyers. However, government regulation towards forest harvesting made the power of buyers moderate to low. Additionally, the cost of customer switching is moderate to low. Thus, the bargaining power of the buyers for the forest harvester head is moderate to low. The bargaining power of suppliers in the forest harvester head market is moderate to high due to the following reasonsThe high-strength steel, Iron, etc. are the major raw material required for the harvester head. The prices of iron and steel in fluctuating globally. The volatility of raw material prices affects the cost of harvester head products, which may moderate the bargaining power of suppliers. The threat of substitutes in the forest harvester head market is Low due to the following reasonsThe threat of substitutes to the market is low as the technology is newly advanced. There are very few or nothing alternatives available for harvester heads. Conventional forest harvesting was time taking, required a larger workforce and management. The threat of new entrants is estimated to be Low to moderate, based on the assessment of the following parametersEstablished players have a strong presence in the forest harvester head market. These established players have a competitive advantage over other players and have already achieved economies of scale. This enables them to offer solutions at relatively lower prices and expand their consumer base, thereby restraining new players from entering the market. The degree of competition in the forest harvester head market is high due to the following reasonsEstablished playersThe forest harvester head market is dominated by large firms such as John Deere, Konatsu Forest, SP Maskiner, AFM- Forest Ltd, Nisula Forest, and Log Max AB. Eco Log, Kesla, Keto These companies provide a forest harvester head, and being in the market for a substantial period, they have optimized their processes and practices to become even more efficient. The presence of a large number of companies has increased the intensity of rivalry in the forest harvester head market.

Value Chain Analysis

The value chain acts as a bridge for connecting suppliers, manufacturers, intermediaries, and end-consumers of a specific product. It involves a series of processes- beginning from the inbound logistics, operation, outbound logistics, sales and marketing, and after-sales service. The value chain analysis for the forest harvester head started with pre-production services, including a raw material supplier of stainless steel and iron. The product resulted by harvester head manufacturers varies in size and type such as roller feed, stroke feed, stem diameter, base machine, etc. Each product’s price differs according to the raw material used and demand.

A key element of the harvester head process’s overall value chain is high-quality raw materials. About 60 percent to 65 percent of the cost structure of the final item is made up of the cost of the raw materials. The major raw materials are made of stainless steel and iron. The value chain of harvester head manufacturing consists of inbound logistic, where activities regarding receiving and warehousing of steel material takes place. Operation activities involved transforming components and raw materials into a final product. Outbound logistics involves the distribution of the harvester head, including the packaging, sorting, and shipping of the forest harvester head. Marketing and sales activities include promotion, advertising through advertisement, television, social media platform, and involvement of brand ambassadors. After-sales activities include the Services rendered following the completion of a sale, such as installation, training, quality control, repair, and customer support.

Global Forest Harvester Head MarketSegmentation Analysis

The Global Forest Harvester Head Market is segmented on the basis of Product, Application, and Geography.

Forest Harvester Head Market, By Product

• 20 Inches• 16 Inches• Others

To Get a Summarized Market Report By Product-

Based on Product, the market is segmented into 20 Inches, 16 Inches, and Others. 20 Inches accounted for the largest market share in2021, and is projected to grow at the highest CAGR during the forecast period. An instance of a forestry harvesting tool is a 20-inch harvester head, which is used to fell trees. It can cut through tree trunks of varied thicknesses because of the circular saw in the center that can be set to various depths. To shear off branches as the head passes past them, the blades on the sides of the head can also be adjusted to the proper height. This makes it possible to make consistent, clean cuts. Larger woods with taller trees that need to be harvested are especially well suited for using the 20-inch harvester head. It is a crucial piece of equipment since it can rapidly and efficiently slice through even the thickest tree trunks. Leading companies such as John Deere, Komatsu, Waratah, Nisula Forest Ltd, and others do provide 20 inches forester head products. Oak, Maple, Teak, Rosewood, and Mohogany are some key forest trees used for furniture manufacturing. A tree such as a teak has a larger diameter, thus it requires near larger diameter cutting equipment.

Forest Harvester Head Market, By Application

• Harvesting• Processing• Debarking• Others

By Application, Forest harvester Headare is classified as Harvesting, Processing, Debarking, and Others. The harvesting segment accounted for the largest market share in 2021, and is projected to grow at the highest CAGR during the forecast period. The process of felling trees and getting them ready for shipment to the mills is referred to as harvesting. Both thinning and clear-felling operations are included. While clear-felling is the removal of the entire crop, thinning entails the periodic removal of the weaker and smaller tree