Forestry Equipment Market (2025-2031) | Share, Outlook, Forecast, Size, Industry, Growth, Companies, Trends, COVID-19 IMPACT, Value, Analysis & Revenue

Forestry Equipment Market Highlights

Report Name	Forestry Equipment Market
Forecast Period	2025-2031
Market Size	USD 16 Billion by 2031
CAGR	6.8%
Growing Sector	Textile

Topics Covered in the Forestry Equipment Market Report

The Forestry Equipment market report thoroughly covers the market by type and regional analysis. The report provides an unbiased and detailed analysis of the on-going market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.

Forestry Equipment Market Size & Analysis

The Forestry Equipment Market is projected to reach approximately $ 12 billion by 2031, growing at a compound annual growth rate (CAGR) of around 6.8% from an estimated $ 16 billion in 2025.  The textile sector holds the highest market share in the region.

Forestry Equipment Market Synopsis

The global forestry equipment market is experiencing steady growth, driven by the increasing demand for timber, pulp, and wood-based products in industries such as construction, furniture, and biomass energy. The rise in forest conservation efforts and sustainable logging practices has led to the adoption of advanced harvesting, processing, and transportation machinery, improving efficiency and reducing environmental impact. Key equipment includes feller bunchers, forwarders, skidders, harvesters, and sawmill machinery, which enhance productivity in both mechanized and semi-mechanized forestry operations. North America and Europe lead the market due to high levels of mechanization, strong government regulations, and growing investments in sustainable forestry practices. Meanwhile, Asia-Pacific is witnessing significant expansion due to rapid urbanization, increasing demand for wood-based products, and government initiatives promoting afforestation and timber harvesting. Technological advancements, such as automation, GPS tracking, and electric-powered forestry equipment, are further driving market growth by enhancing operational efficiency and reducing carbon footprints.

According to 6Wresearch, the Forestry Equipment market size is projected to grow at a CAGR of 6.8% during 2025-2031. The global forestry equipment market is driven by several key factors, including the rising demand for timber, paper, and wood-based products, which fuels the need for efficient and advanced forestry machinery. Increasing mechanization in logging and wood processing is a major growth driver, as industries seek to improve productivity and reduce labor costs. Technological advancements such as automation, GPS tracking, sensor-based monitoring, and electric-powered forestry equipment are enhancing operational efficiency, minimizing waste, and reducing environmental impact.

Additionally, the growing focus on sustainable forestry practices and afforestation initiatives in regions like North America and Europe has led to increased adoption of eco-friendly machinery. The expansion of the biomass energy sector is further boosting demand for forestry equipment, particularly in developing regions like Asia-Pacific and Latin America, where industrialization and infrastructure projects are accelerating. However, the market faces significant challenges, including high initial investment and maintenance costs of advanced forestry machinery, which can deter small and medium-sized enterprises (SMEs) from adoption.

Forestry Equipment Market Trends

The global forestry equipment market is witnessing several emerging trends, primarily driven by technological advancements, sustainability initiatives, and increasing mechanization in forestry operations. One of the key trends is the adoption of automation and smart forestry technologies, including GPS tracking, IoT-enabled sensors, and AI-driven analytics, which enhance precision, reduce waste, and improve overall efficiency. The demand for electric and hybrid forestry equipment is rising as companies focus on reducing carbon emissions and fuel dependency, in line with global sustainability goals and stricter environmental regulations.

Another significant trend is the growing preference for sustainable logging practices, leading to an increased demand for low-impact machinery that minimizes damage to forest ecosystems. North America and Europe are at the forefront of this shift, with governments enforcing reforestation initiatives and incentives for eco-friendly forestry equipment. Additionally, Asia-Pacific is experiencing rapid expansion, driven by rising demand for timber in construction, furniture, and paper industries, particularly in China and India.

Investment Opportunities in the Forestry Equipment Market

The global forestry equipment market presents lucrative investment opportunities, particularly in advanced automation, sustainable machinery, and emerging markets. With the growing emphasis on precision forestry and sustainable logging practices, there is a rising demand for smart forestry technologies, including AI-driven analytics, GPS tracking, and IoT-enabled monitoring systems, which enhance operational efficiency and reduce environmental impact. Investors can capitalize on the increasing shift toward electric and hybrid forestry equipment, as governments worldwide implement strict emission regulations and offer incentives for eco-friendly machinery adoption. The Asia-Pacific region, particularly China, India, and Southeast Asia, offers significant potential due to rapid urbanization, rising timber demand, and government-backed afforestation programs. Additionally, the expansion of the biomass energy sector is creating demand for specialized forestry equipment used in wood pellet production and renewable energy generation.

Key Players in the Forestry Equipment Market

The global forestry equipment market is highly competitive, with key companies focusing on technological innovation, sustainability, and strategic expansion to strengthen their market position. Leading players include John Deere (Deere & Company), Caterpillar Inc., Komatsu Ltd., and Tigercat Industries Inc., which dominate the market with a wide range of harvesters, skidders, feller bunchers, and forwarders equipped with advanced automation and fuel-efficient technologies. Husqvarna Group and STIHL specialize in chainsaws and handheld forestry tools, catering to both professional loggers and small-scale operators.

Ponsse Oyj and Eco Log Sweden AB are known for their focus on sustainable and high-performance forestry machinery, particularly in Europe and North America. Doosan Infracore (now part of Hyundai Heavy Industries) and Volvo Construction Equipment are also key players, expanding their presence in the forestry sector with heavy-duty loaders and excavators tailored for logging applications. Additionally, some of these players hold majority of the Forestry Equipment market share. Moreover, companies are increasingly investing in electric and hybrid forestry equipment, with manufacturers like Komatsu and John Deere leading efforts in low-emission, high-efficiency machinery.

Government Regulations in the Forestry Equipment Market

Government regulations in the global forestry equipment market play a crucial role in shaping industry operations, emphasizing sustainable logging, environmental conservation, and worker safety. In North America, agencies such as the Environmental Protection Agency (EPA), the U.S. Forest Service, and the Occupational Safety and Health Administration (OSHA) enforce strict guidelines on deforestation limits, emissions control, and safe forestry practices. The European Union (EU) follows stringent environmental policies under the EU Timber Regulation (EUTR) and the Forest Law Enforcement, Governance, and Trade (FLEGT) Action Plan, promoting responsible logging and sustainable forestry management.

Additionally, REACH (Registration, Evaluation, Authorisation, and Restriction of Chemicals) regulations impact the use of chemicals in forestry machinery. In Asia-Pacific, regulations vary by country; China has implemented logging bans and afforestation programs, while India’s Forest Conservation Act strictly monitors deforestation and sustainable land use. Further, these initiatives have further boosted the Forestry Equipment market revenues. Moreover, countries like Brazil and Indonesia, known for their vast forest resources, face increasing global pressure to curb illegal logging and adopt eco-friendly forestry equipment.

Future Insights of the Forestry Equipment Market

The future of the global forestry equipment market is poised for significant growth, driven by technological advancements, sustainability initiatives, and rising demand for timber and biomass energy. The industry is shifting towards automation, AI-driven analytics, and IoT-enabled forestry machinery, which enhance operational efficiency, reduce environmental impact, and optimize logging processes. The demand for electric and hybrid forestry equipment is expected to surge as governments worldwide enforce stricter emission standards and carbon reduction goals.

Additionally, the expansion of precision forestry techniques, including drone-based monitoring, GPS tracking, and sensor-equipped machinery, will revolutionize forest management and timber harvesting. The Asia-Pacific region is projected to witness the fastest growth, fueled by urbanization, increasing construction activities, and government-backed afforestation programs in countries like China and India. The biomass energy sector will further drive demand for specialized forestry equipment as the world shifts toward renewable energy sources.

Market Segmentation Analysis

The report offers a comprehensive study of the following market segments and their leading categories:

North America to Dominate the Market - By Regions

According to Ravi Bhandari, Research Head, 6Wresearch, the North American forestry equipment market is experiencing steady growth, driven by rising demand for timber, increasing mechanization, and strict environmental regulations promoting sustainable logging practices. The United States and Canada lead the market, supported by advanced forestry management programs, high adoption of automated machinery, and strong investments in eco-friendly forestry solutions.

Government regulations from agencies such as the Environmental Protection Agency (EPA), U.S. Forest Service, and Canadian Forest Service are pushing for low-emission and energy-efficient forestry equipment, encouraging the adoption of electric and hybrid machinery. The increasing use of GPS-enabled harvesters, AI-driven analytics, and IoT-based monitoring systems is improving operational efficiency and minimizing waste. Additionally, the demand for biomass energy and wood-based products in North America is fueling the need for high-performance forestry machinery.

On-Site Processing Equipment Category to Dominate the Market – By Type

The on-site processing equipment category is witnessing significant growth in the global forestry equipment market, driven by the need for efficient, high-speed, and sustainable wood processing solutions directly at logging sites. This category includes chippers, grinders, sawmills, debarkers, and portable processors, which enhance log-to-lumber conversion, reduce transportation costs, and optimize resource utilization. The increasing demand for biomass energy, paper production, and wood-based products is fueling the adoption of advanced on-site processing machinery, especially in regions with high timber production such as North America, Europe, and Asia-Pacific.

The integration of automated, sensor-based processing units is improving efficiency and reducing waste, while the shift towards electric-powered and hybrid processing machines is helping companies comply with stringent environmental regulations. Additionally, the rise of modular and mobile sawmills is supporting small-scale forestry operations, making on-site processing more accessible.

Key Attractiveness of the Report

• 10 Years Market Numbers.
• Historical Data Starting from 2021 to 2024.
• Base Year - 2024.
• Forecast Data until 2031.
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report:

• Forestry Equipment Market Outlook
• Market Size of Forestry Equipment Market, 2024
• Forecast of Forestry Equipment Market, 2031
• Historical Data and Forecast of Forestry Equipment Market Revenues & Volume By Type for the Period 2021-2031
• Historical Data and Forecast of Forestry Equipment Market Revenues & Volume By Felling Equipment for the Period 2021-2031
• Historical Data and Forecast of Forestry Equipment Market Revenues & Volume By Extracting Equipment for the Period 2021-2031
• Historical Data and Forecast of Forestry Equipment Market Revenues & Volume By On-site Processing Equipment for the Period 2021-2031
• Historical Data and Forecast of Forestry Equipment Market Revenues & Volume By Others for the Period 2021-2031
• Historical Data and Forecast of Europe Forestry Equipment Market Revenues & Volume By Type for the Period 2021-2031
• Historical Data and Forecast of Europe Forestry Equipment Market Revenues & Volume By Felling Equipment for the Period 2021-2031
• Historical Data and Forecast of Europe Forestry Equipment Market Revenues & Volume By Extracting Equipment for the Period 2021-2031
• Historical Data and Forecast of Europe Forestry Equipment Market Revenues & Volume By On-site Processing Equipment for the Period 2021-2031
• Historical Data and Forecast of Europe Forestry Equipment Market Revenues & Volume By Others for the Period 2021-2031
• Historical Data and Forecast of Africa Forestry Equipment Market Revenues & Volume By Type for the Period 2021-2031
• Historical Data and Forecast of Africa Forestry Equipment Market Revenues & Volume By Felling Equipment for the Period 2021-2031
• Historical Data and Forecast of Africa Forestry Equipment Market Revenues & Volume By Extracting Equipment for the Period 2021-2031
• Historical Data and Forecast of Africa Forestry Equipment Market Revenues & Volume By On-site Processing Equipment for the Period 2021-2031
• Historical Data and Forecast of Africa Forestry Equipment Market Revenues & Volume By Others for the Period 2021-2031
• Historical Data and Forecast of Asia Pacific Forestry Equipment Market Revenues & Volume By Type for the Period 2021-2031
• Historical Data and Forecast of Asia Pacific Forestry Equipment Market Revenues & Volume By Felling Equipment for the Period 2021-2031
• Historical Data and Forecast of Asia Pacific Forestry Equipment Market Revenues & Volume By Extracting Equipment for the Period 2021-2031
• Historical Data and Forecast of Asia Pacific Forestry Equipment Market Revenues & Volume By On-site Processing Equipment for the Period 2021-2031
• Historical Data and Forecast of Asia Pacific Forestry Equipment Market Revenues & Volume By Others for the Period 2021-2031
• Historical Data and Forecast of North America Forestry Equipment Market Revenues & Volume By Type for the Period 2021-2031
• Historical Data and Forecast of North America Forestry Equipment Market Revenues & Volume By Felling Equipment for the Period 2021-2031
• Historical Data and Forecast of North America Forestry Equipment Market Revenues & Volume By Extracting Equipment for the Period 2021-2031
• Historical Data and Forecast of North America Forestry Equipment Market Revenues & Volume By On-site Processing Equipment for the Period 2021-2031
• Historical Data and Forecast of North America Forestry Equipment Market Revenues & Volume By Others for the Period 2021-2031
• Historical Data and Forecast of Latin America Forestry Equipment Market Revenues & Volume By Type for the Period 2021-2031
• Historical Data and Forecast of Latin America Forestry Equipment Market Revenues & Volume By Felling Equipment for the Period 2021-2031
• Historical Data and Forecast of Latin America Forestry Equipment Market Revenues & Volume By Extracting Equipment for the Period 2021-2031
• Historical Data and Forecast of Latin America Forestry Equipment Market Revenues & Volume By On-site Processing Equipment for the Period 2021-2031
• Historical Data and Forecast of Latin America Forestry Equipment Market Revenues & Volume By Others for the Period 2021-2031
• Historical Data and Forecast of Middle East Forestry Equipment Market Revenues & Volume By Type for the Period 2021-2031
• Historical Data and Forecast of Middle East Forestry Equipment Market Revenues & Volume By Felling Equipment for the Period 2021-2031
• Historical Data and Forecast of Middle East Forestry Equipment Market Revenues & Volume By Extracting Equipment for the Period 2021-2031
• Historical Data and Forecast of Middle East Forestry Equipment Market Revenues & Volume By On-site Processing Equipment for the Period 2021-2031
• Historical Data and Forecast of Middle East Forestry Equipment Market Revenues & Volume By Others for the Period 2021-2031
• Forestry Equipment Market - Key Performance Indicators
• Forestry Equipment Market - Import Export Trade Statistics
• Forestry Equipment Market - Opportunity Assessment By Regions
• Forestry Equipment Market - Opportunity Assessment By Type
• Forestry Equipment Market - Top Companies Market Share
• Forestry Equipment Market - Top Companies Profiles
• Forestry Equipment Market - Comparison of Players in Technical and Operating Parameters
• Forestry Equipment Market - Strategic Recommendations

Markets Covered

The Forestry Equipment market report provides a detailed analysis of the following market segments -

By Type

• Felling Equipment
• Extracting Equipment
• On-Site Processing Equipment
• Others

By Regions

• North America
• Latin America
• Europe
• Asia Pacific
• Middle East and Africa