US
demand for power lawn and garden equipment will increase 5.7 percent yearly to
$10.4 billion in 2015 as the industry rebounds from the 2007-2009 recession.
Overall growth in equipment sales will be
promoted by an improvement in US housing activity, including new construction
and existing single-family home sales.
Equipment demand will also benefit from a return to growth in the landscaping
services business.
While industry sales
will post a strong rebound through 2015, longer-term growth will be more
moderate due to slowing product pricing gains and declining opportunities in
some key commercial markets, particularly golf courses. These and other trends,
including market share and product segmentation, are presented in
Power
Lawn & Garden Equipment, a new study from
The Freedonia
Group, Inc., a Cleveland-based industry market research firm.
Between
the residential and commercial markets, residential sales account for the
larger share of power lawn and garden equipment demand.
The residential market will experience a
healthy rebound through 2015, spurred by improving US housing activity and
pent-up demand among consumers who postponed equipment purchases during the
2007-2009 recession.
Sales to the
commercial market will grow more slowly than residential equipment sales
through 2015, while still rebounding from a low 2010 level.
Commercial sales will benefit from
improvements in landscaping service revenues and increases in the number of US
landscaping establishments, which represent the largest commercial market
segment.
In addition, pent-up demand
from the recession will promote sales of higher-value commercial equipment to
golf courses and government and other facilities.
Over the longer term, equipment demand in the
golf course segment will be inhibited by the declining number of courses.
Through
2015, equipment demand will pick up across nearly all the product segments.
Turf and grounds equipment and garden
tractors and rotary tillers will be the fastest growing segments in value
terms.
The high prices commanded by turf
and grounds equipment make this the largest equipment category after
lawnmowers.
Demand for snow throwers
will return to more normal levels after the peak sales seen in 2005 and, to a
lesser extent, 2010.
Parts and attachments
will be another exception to the growth trend through 2015, showing little
improvement in sales gains from the pace of the 2005-2010 period.
Parts and attachments generally post stronger
growth when economic uncertainty favors repair activity over new equipment
purchases.
The Freedonia
Group is a leading international
business
research company, founded in 1985, that publishes more than 100 industry
research studies annually. This industry analysis provides an unbiased outlook
and a reliable assessment of an industry and includes
product
segmentation and demand forecasts, industry trends, demand history, threats
and opportunities, competitive strategies, market share determinations and
company profiles.
