Forestry Equipment Market Size & Share Trends, 2033

Forestry Equipment Market Overview

The Forestry Equipment Market size was valued at USD 9433.52 million in 2024 and is expected to reach USD 11585.07 million by 2033, growing at a CAGR of 2.3% from 2025 to 2033.

The global forestry equipment market comprises over US 10 billion worth of heavy machinery used for cutting, processing and transporting timber. Worldwide, more than 3.9 billion m³ of roundwood were harvested in 2022, driving demand for mechanized forestry equipment. Annual unit sales of harvesters, forwarders, skidders, feller‑bunchers, chippers and loader machines exceed 75,000 units, with over 28.4 % of total market share belonging to harvesters alone. Diesel‑powered equipment still accounts for roughly 60 % of machinery sold in 2023, while electric and hybrid technologies are gaining traction, with 40 % more electric units shipped year‑over‑year in key markets. North America leads with approximately US 3.3 billion in 2023 equipment shipments, followed by Europe at US 2.6 billion and Asia‑Pacific at US 2.4 billion. Over 160 million hectares of forest in the EU (€–– until 2022) and 58.5 % of Brazil’s land area under forest cover validate continued long‑term hardware demand. The number of new forestry machinery units sold annually exceeds 50,000 and used equipment sales cover another 20,000+ units, especially where financing is limited.

Key Findings

Top Driver reason: DRIVER: Rising demand for mechanized timber harvesting (over 3.9 billion m³ roundwood annually).

Top Country/Region: North America leads with 33.9 % regional market share (~US 3.3 billion in sales).

Top Segment: Harvesters (felling equipment) hold the largest share at 28–36 % of unit shipments.

Forestry Equipment Market Trends

Mechanization is transforming forest operations: harvesters now account for 28.4–36 % of units shipped and forwarders are rising fastest. Diesel remains dominant at 60 %, but a growing installed base of hybrid and electric machines increased by 40 % YoY. Automation is accelerating: nearly 24.7 million acres of commercial plantations depend on GPS‑driven and robotic equipment. GPS tracking penetration in North American skidder fleets reached 75 % in 2023, enabling precise load dispatching . Telematics adoption is also high—John Deere-linked platforms now monitor over 50,000 forestry machines globally, with Deere branded logs representing 18 % market share. Regionally, North America leads with US 3.2–3.3 billion in 2023 machinery sales, followed by Europe at US 2.6 billion and Asia‑Pacific at US 2.4 billion . Asia‑Pacific is the fastest‑growing region, propelled by China’s import of ~60 million m³ of logs and India’s forestry procurement programs . In Europe, over 160 million hectares of forest and 28.6 billion m³ of standing timber mean that mechanized logging represents both a labor‑saving and safety imperative. South America relies on Brazil’s 497 million hectare forest area producing 8.2 million m³ of wood products in 2021. MEA region growth is centered in South Africa where 1,300 medium and 25,000 small commercial growers seek mechanized extraction.

Forestry Equipment Market Dynamics

DRIVER

Rising demand for timber and wood products

The global forestry equipment market was valued at USD 11.59 billion in 2024, with over 3.9 billion m³ of roundwood harvested annually driving mechanization. In North America alone, approximately 33.9 % of global sales—about USD 3.3 billion—are linked to timber harvesting . In emerging markets like India and China, over 4.7 billion rural inhabitants require modern equipment to clear more than 2.05 billion ha of managed forest. Consequently, purchases of harvesters, forwarders, skidders, chippers, and loaders exceed 75,000 units per year, with felling equipment making up over 35 % of volume—around 2.4 million units sold in 2024. Automation has enhanced output: advanced forwarders now account for more than 25 % of industry share and features like GPS, telematics, and low-emission engines are embedded in over 50,000 machines. In Japan, Komatsu’s forestry division generated ¥140 billion (approx USD 1.27 billion) in 2024, marking a 42 % jump year-over-year. Integration of precision logging in North America has reached 75 % of skidder fleets, while forestry 4.0 solutions with drones and remote telemetry are now installed on over 2 billion ha of forest globally.

RESTRAINT

High equipment cost and costly maintenance

A standard feller‑buncher costs about USD 180,000, with average hourly operating expenses near USD 99.50, though this translates to only USD 12.10/m³ of harvested wood—lower than harvesters at USD 16.50/m³. Despite cost-effectiveness in volume, upfront prices deter small operators in regions with low farm incomes; U.S. net farm income dropped 25.5 % YoY to USD 116.1 billion in 2024, limiting new equipment purchases. Maintenance burdens are steep: servicing diesel engines, hydraulics, and telematics in remote areas pushes annual spending to 10–15 % of purchase price. This limits adoption in price-sensitive areas where used units—≈20,000 annually—predominate.

OPPORTUNITY

Rise of electric and hybrid forestry machinery

Although diesel-powered machines represented about 60 % of sales in 2023, electric and hybrid forestry units saw a shipment increase of 40 % YoY, with low-emission engines now featured in over 160 million ha of EU forests. In Europe, carbon-reduction mandates through the EU Forest Strategy 2030 are pushing zero-tailpipe models; Canada’s AI-timber tracing pilot—backed with USD million grants—is deployed in >2.05 billion ha of forest. Deere’s Precision Forestry initiative, started in February 2024, includes hybrid skidders and electric forwarders, targeting fleet installations across U.S., Canada, and Scandinavia, covering 18 % of Deere’s forestry segment (~USD 2.7 billion).

CHALLENGE

Competition from emerging low-cost manufacturers

COVID‑19 supply-chain turmoil in 2020 caused global OEM sales to dip over 15–20 %, while Chinese and Indian firms entered with sub-USD 120,000 forestry skidders, undercutting established players . India’s TAFE sells over 200,000 tractors annually and holds a 25 % share of its home market, extending distribution into forestry machinery with cost advantages. Though OEM giants like Deere and Komatsu hold the top shares—Deere holds 37.8 % of U.S. tractor/heavy-equipment market —smaller manufacturers are undercutting through government subsidies in APAC and reduced labor costs. North America and Europe must balance quality with cost to fend off disruptive vendors.

Forestry Equipment Market Segmentation

Globally, forestry machinery is segmented by Type (Agriculture vs. Forestry) and Application (Oil Power, Gas Power, Electric Power). Annual units sold exceed 75,000, with forestry types dominating at 60 % of volume and agriculture-linked loaders making up the rest . Applications split roughly: 70 % oil-powered, 20 % gas-powered, and 10 % electric.

By Type

Agriculture machines adapted for forestry comprise skidders, loaders, tractors: ~30,000 units per year, with the U.S. alone selling 280,090 tractor units in 2023. These units are essential for clearing, haulage, and multipurpose work on small‑scale plantations.
Forestry-specific equipment includes harvesters, forwarders, feller bunchers, chippers—making up 60 % of unit shipments, i.e., ~45,000 units in 2024. Felling machines hold 35–36 % of that (16,200 units), while forwarders capture over 25 % (11,250 units).

By Application

Oil-powered equipment accounts for roughly 70 % of machinery sold—approximately 52,500 units annually—with broad use across North America and Europe .
Gas-powered units make up around 20 % (~15,000 units), chosen for lighter fuel costs and simpler maintenance on mid-sized operations.
Electric-powered machines, while only 10 % of current sales (~7,500 units), are growing fastest, especially in Europe and Canada where mandates favor zero-emission forestry gear.

Forestry Equipment Market Regional Outlook

The global forestry equipment market, approximately USD 12.4 billion in 2024, exhibits notable regional variation in unit shipments and growth. North America leads with ~US 3.63 billion in market valuation, Europe follows with ~USD 4.5 billion in logging attachments alone, and Asia-Pacific trails at around USD 2.6 billion in 2023. Electric and hybrid machines make up roughly 10 % of global units, with strong adoption in Europe and Canada. Used equipment sales exceed 20,000 units globally, underscoring demand in cost-sensitive markets. Sustainability mandates in Europe influence 160 million ha of managed forests, while China's and India's fleet purchases combined exceed 60 million m³ of annual roundwood capacity. South America’s focus on biomass and lumber is emerging with Brazil’s forest extent of 497 million ha. Middle East & Africa depend on South Africa’s 1,300 medium and 25,000 small commercial growers adopting mechanization. Overall, regional demand reflects vast timber volumes—North America with 3.9 billion m³ annual harvest, Europe similarly high, and Asia-Pacific rising sharply—all driving equipment demand.

North America

North America retains dominance, with market value ~USD 3,628 million in 2023 and annual shipments of ~20,000 felling and extracting machines, supported by roughly 75 % GPS-enabled harvesters in skidder fleets. The U.S. leads unit volume, accounting for ~33 % of total global sales, with Canada contributing 20 %. Petrol-powered units cover 70 % of the North American fleet. Used machinery transactions number 8,000–12,000 units per year, reflecting replacement cycles in commercial woodlands.

Europe

Europe’s forestry equipment market reached at least USD 4.5 billion in attachments and logging technologies in 2023, with 160 million ha under mechanized management. Battery and electric machines represent ~10 % of regional sales—approximately 5,000 units annually—with hybrid engines featuring on an additional 15,000 machines. Top countries include Germany, France, U.K., and Scandinavia. Regulatory push for zero-tailpipe models under EU Forest Strategy 2030 supports investments in electric forwarders and skidders.

Asia-Pacific

Asia-Pacific forestry equipment recorded USD 2.61 billion in 2023, driven by China’s vast timber processing industry and India’s plantation growth. China leads with 60 % of regional spend (USD 1.57 billion), India follows with USD 500 million, and Japan at USD 300 million. Annual unit sales exceed 15,000 forestry-specific machines, with 5,000 harvesters, 4,000 forwarders, and the rest comprising chips and skidders. Petrol-fuelled units dominate at 70 %, diesel at 20 %, and electric under 10 % (~1,500 units).

Middle East & Africa

MEA’s forestry segment remains nascent with an estimated USD 200–300 million in annual equipment spending. South Africa accounts for 50 % of the market with 1,300 medium and 25,000 small growers increasingly adopting mechanized equipment. Annual unit purchases reach 3,000–4,000, led by skidders and small harvesters. Adoption of low-emission petrol units is rising (30 % share), aided by government incentives for plantation restoration projects.

List of Top Forestry Equipment Market Companies

Deere & Company
Kubota Corporation
Mahindra & Mahindra Ltd.
Kioti (Daedong Industrial Co., Ltd.)
New Holland Agriculture (CNH Industrial)
CHALLENGER (AGCO Corporation)
AgriArgo S.p.A.
CLAAS Group
CASE IH (CNH Industrial)
JCB Ltd.
Same Deutz-Fahr Group (SDF)
Tractors and Farm Equipment Limited (TAFE)
Indofarm Tractors & Motors Ltd.
S.T Tillers Tractors Ltd.
BCS Group
Zetor Tractors a.s.
Zoomlion Heavy Industry Science & Technology Co., Ltd.
Dongfeng Farm Machinery Group Co., Ltd.
Jinma (Jiangsu Yueda Yancheng Tractor Manufacturing Co., Ltd.)
YTO Group Corporation

Top Two Companies with Highest Market Shares

Deere & Company: Deere & Company is the global leader in the forestry equipment market, holding an estimated 18% market share worldwide. The company offers a comprehensive range of products including harvesters, forwarders, skidders, and loaders, with advanced telematics and GPS-enabled technologies. Its Precision Forestry program has expanded to cover over 50,000 forestry machines globally, offering real-time equipment diagnostics, fuel tracking, and machine optimization. In North America, Deere commands nearly 37.8% share of the heavy machinery segment, making it the top supplier across both agricultural and forestry sectors. In 2024, the company continued to lead innovation with the launch of hybrid and electric machinery, aligning with global decarbonization goals. Deere’s wide distribution network and robust after-sales service further consolidate its dominance in the market.
Komatsu Forest (a division of Komatsu Ltd.): Komatsu Forest ranks as the second-largest player in the global forestry equipment market, with a strong presence in Europe, Asia-Pacific, and North America. In 2024, Komatsu’s forestry division generated approximately ¥140 billion (~USD 1.27 billion), marking a 42% year-over-year increase. The company specializes in forwarders, harvesters, and biomass handling equipment, many of which are now equipped with IoT systems, real-time sensors, and automation features. Komatsu is also pioneering environmentally friendly machines, including electric forwarders and low-emission powertrains. Its forestry innovation hubs in Sweden and Japan focus on sustainable design and autonomous operations, supporting long-term competitiveness and green credentials.

Investment Analysis and Opportunities

Forestry equipment is gaining traction as a strategic investment vehicle, with machinery-as-asset and plantation-linked assets offering stable returns. In the UK, pension schemes such as Nest have allocated over £550 million (~USD 700 million) to forestry land between 2021 and 2024, placing forest assets alongside stocks, bonds, and real estate. In the U.S., the Bipartisan Infrastructure Law allocated USD 33.7 million (April 2023) to support sustainable timber management, signaling growing public investment. Private forestland values have appreciated by approximately 12 % from 2022–2023, while publicly traded timber REITs have lagged about 20 %, creating arbitrage opportunities. Global demand for wood-based biofuels and biomass remains robust: wood pellets presently represent 55 % of all renewable energy sources. Latin America is restoring 700,000 ha of the Atlantic Forest, with goals targeting 15 million ha by 2050—sparking machinery demand for restoration, thinning, and planting tasks. In parallel, the Asia-Pacific region, valued at USD 6.8 billion by 2032, offers fertile ground, especially in China, India, and Indonesia, driven by urbanization and timber consumption. These dynamics are creating distinct investment paths: leasing fleets to plantation owners, partnering on hybrid/electric equipment rollouts, and deploying precision forestry tools such as GPS-enabled harvesters and drone-based inventory systems. For instance, Finland’s Metsä Group now utilizes harvesting units with VR training and real-time sensors across 2 billion ha of managed forests. Investors can also tap into carbon markets—annual carbon sequestration credits and land leases can yield additional returns; UK schemes report a 2 % annual cash yield, with capital gains averaging 12 % per annum over ten years. Risks remain, including valuations falling 10–15 % in response to weaker timber prices, and exposure to pests and wildfires. However, long-term trends—population growth, low recycling rates, and global push for sustainable materials—underscore demand resilience. Multi-region portfolio diversification combining North American mechanization demand (~38.5 % regional share) with Asia-Pacific’s fast-growing USD 6.8 billion opportunity and Brazil’s pulpwood expansion (~6.9 % global share) offers strategic balance. In summary, forestry equipment investment merges hardware demand with sustainable land practices and emerging carbon markets, providing diversified income streams—such as leasing fees, carbon credits, and equipment installations—alongside equipment appreciation tied to global timber demand.

New Product Development

Innovations in forestry equipment are accelerating along three main vectors: electrification, autonomy, and digital integration. In 2023–24 leading OEMs introduced electric and hybrid models covering 10 % of total units (~7,500 machines annually) . John Deere, for example, showcased an electric excavator prototype that cuts fuel consumption in half and lowers emissions, supporting its Precision Forestry vision. Komatsu Forest reported ¥140 billion (~USD 1.27 billion) in forestry sales for 2024—an impressive 42 % YoY gain—driven by a new line of GPS- and IoT-integrated harvester-forwarder combinations. Telemetry systems now standard across over 50,000 units globally, enabling real-time monitoring of fuel use, location, and predictive maintenance. Automation is entering field trials: robotic forest inventory systems (e.g., ANYmal D) surveyed 0.96 ha in 20 minutes, identifying 100+ trees with ±2 cm precision. Drone-based stereo-vision systems are also being used for branch detection and selective pruning, demonstrating sub-10 cm distance accuracy. These tools reduce manpower for high-risk tasks and support sustainable thinning operations. Deep learning, high-bandwidth cameras, and conveyor-equipped bark removal systems have emerged in sawmill automation, boosting output quality and speed by 30–40 % . Robotics and automation are also penetrating field vehicles: autonomous wheeled-legged excavators—originally from construction—are being adapted to forestry missions. Feller bunchers equipped with smart pressure sensors, forestry mulchers with AI-chipped heads, and chain saws with electric drivetrains are increasingly common. Turf compaction control and low-impact rubber-tracked systems are being added to expand deployment over sensitive terrains. In Europe, electric forwarders launched with payload capacities comparable to diesel rivals (~10–12 tonne), with 5,000 units sold in 2023. OEMs are also moving to subscription models: fleets are sold as service contracts—including telematics monitoring, software updates, and carbon verification—tying equipment deployments to sustainable forestry metrics. Finland’s Metsä Group reports over 75 % personnel now trained via VR simulators in conjunction with new machinery rollouts. These innovations are collectively driving a greener, smarter, and safer forestry future—with measurable outputs like reduced emissions, less soil disturbance, and productivity gains of 25–40 %.

Five Recent Developments

John Deere introduced its first commercial electric excavator prototype in mid-2023, halving fuel consumption and achieving battery runtime of 6 hours per charge.
Komatsu Forest reported ¥140 billion (~USD 1.27 billion) in 2024 forestry revenue, up 42 % YoY, fueled by IoT-enabled forwarders and harvesters.
A Finnish university deployed the ANYmal D robotic surveyor in April 2024; it covered 0.96 ha, scanned 100+ trees with ±2 cm DBH accuracy in 20 minutes.
Drone systems combining YOLO and SGBM algorithms debuted in late 2024 to deliver sub-10 cm branch detection, boosting pruning efficiency by ~30 %.
Komatsu and Deere rolled out electric forwarders in Europe and Canada during 2023–2024, selling approx 5,000 units, capturing 10 % of regional equipment shipments.

Report Coverage of Forestry Equipment Market

This comprehensive report offers an in-depth analysis of the global forestry equipment market, delivering detailed insights into the key components that drive, restrain, and shape the future of this dynamic industry. The study spans across multiple segments—by equipment type, application, power source, and region—offering a granular understanding of the industry's landscape. The report covers four major categories of forestry equipment. Felling Equipment such as harvesters and feller bunchers, which account for approximately 35% of global unit sales, representing an estimated 16,000–17,000 units annually. Extraction Equipment like forwarders and skidders, which hold a 25% market share, translating to nearly 11,250 units per year. Processing Equipment including chippers, grinders, and debarkers, used at logging sites to improve efficiency. Attachments & Components, which include saw heads, hydraulic arms, and control units, vital for enhancing productivity and extending machine life. The report also profiles key manufacturers, focusing on product development, innovation pipelines, global footprint, and strategic investments. Market leaders such as John Deere and Komatsu Forest are highlighted for their advancements in electrification, telematics, and automation, holding a combined share of over 30% of the global market. Furthermore, this study investigates investment trends, government initiatives, sustainability goals, and upcoming regulatory frameworks that influence buying patterns. It includes data on public funding allocations, such as the USD 33.7 million committed by the U.S. government for sustainable forestry, and private equity flows amounting to over £550 million in forestry assets across Europe. By offering a complete 360-degree view—from technological innovations to economic factors—this report serves as a valuable resource for equipment manufacturers, investors, policymakers, and stakeholders looking to make informed decisions in the forestry equipment industry.