Trenchers are heavy machinery used for digging trenches, ditches, holes, or hallow ways into soil for the laying of pipes, cables or other underground infrastructure. They are commonly used in construction activities for laying pipes for water supply, sewer lines, gas pipes and more. The global construction industry has been witnessing significant growth over the past few years with rising investments in infrastructure projects, commercial and residential construction. This increasing construction activities have created a surge in demand for trench digging, thereby driving the need for trenchers.
The global trencher market is estimated to be valued at US$ 390.2 Mn in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the trencher market is the rising adoption of hybrid and electric trenchers. Traditionally, trenchers used diesel and gasoline engines as their power source which caused air and noise pollution. However, with growing environmental concerns, manufacturers have started developing hybrid and electric trenchers. These eco-friendly trenchers have fewer emissions and are more sustainable options. For instance, Ditch Witch introduced JT2070 electric trencher recently which provides zero-emission trench digging. Similarly, Vermeer launched T555IP mini trencher with hybrid power options. Such innovations are expected to drive the demand for green trenchers. Another notable trend is the increasing demand for compact and lightweight trenchers. With more construction activities taking place in urban areas and tight workspaces, contractors prefer trenchers that offer better maneuverability. Leading brands have launched mini and skid steer mounted trenchers to cater to such requirements. This has expanded the applicability of trenchers in restricted job sites.
Porter’s Analysis
Threat of new entrants: Low barriers to entry means there is a moderate threat of new players entering the trencher market. However, established brands have strong reputation and relationships which new entrants will find difficult to counter.
Bargaining power of buyers: Buyers have moderate bargaining power. Trenchers are specialized equipment requiring technical expertise to operate. However, presence of several brands provides options to buyers.
Bargaining power of suppliers: Suppliers have low bargaining power given fragmented nature of raw material suppliers. Established trencher manufacturers can switch to alternative suppliers if faced with high prices.
Threat of new substitutes: Technological development in related industries pose threat of substitution. However, trenchers offer advantages of being cost-effective and suitable for variety of soil conditions.
Competitive rivalry: Intense competition due to presence of numerous global and regional players. Manufacturers compete on product design, features, pricing and service.
Key Takeaways
The Global Trencher Market Demand is expected to witness high growth over the forecast period supported by rising construction of utilities infrastructure globally. North America currently dominates the trencher market owing to large network of utilities and rapid pace of infrastructure modernization projects in the region. Replacement of aging utility networks is driving demand for trenchers particularly in United States and Canada.
Europe also has significant share in the trencher market led by Germany, United Kingdom and France. Growth in the region is driven by rising focus on development of smart water, gas and telecom grids. The Asia Pacific region is expected to be the fastest growing market for trenchers between 2023-2030 with China, India and several Southeast Asian countries expected to massively invest in upgrade of infrastructure.
Key players operating in the trencher market are Wolfe Heavy Equipment, EZ-Trench, Tesmec, Ditch Witch, Marais, Vermeer, Toro, UNAC, Port Industries, Guntert & Zimmerman, Mastenbroek, Shandong Gaotang trencher, Rongcheng Shenyuan, and Inter-Drain among others. Manufacturers are focusing on introducing multi-functional and remote controlled trenchers to improve efficiency.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it