NORTH AMERICA REPORT
Lawn and garden equipment manufacturers make powered lawn and garden equipment, primarily for household and business maintenance of lawns and gardens. Equipment manufactured by this industry includes lawn tractors, riding and standing mowers, hedge trimmers, leaf blowers, woodchippers and other machinery for maintaining lawns and gardens.
Industry Trends. Increased per household spending on lawn care and gardening services by the American family, younger individuals purchasing residential property, easing of COVID-19 restrictions and other factors like lawns adding to the aesthetic appeal of the residential property, is anticipated to bolster the DIY and commercial lawn care market.
Here is a look at the key factors affecting this segment moving forward.
- COVID-19 and related supply chain issues and labor disruptions will continue to impact flow in factories during the first part of 2024 but will ease towards the end of the year.
- The global economy is still facing significant uncertainty, says Briggs & Stratton Vanguard Vice President of Electrification David Frank. A lot of this uncertainty is driven by ongoing supply chain challenges, transportation bottlenecks and onshoring and labor shortages. This has led to price fluctuations and difficulty predicting costs across the supply chain.
- Capacity of lithium-ion battery technology to meet the performance needs of both the homeowner and the commercial landscaper has grown by leaps and bounds. Battery technology can match the power of traditional gasoline-powered lawn and garden equipment.
- Robotics Increase. According to a recent market study by Future Market Insights, the robotic lawn mower market is projected to progress at a compound annual growth rate (CAGR) of 12.5%. Sales of robotic lawn mowers are expected to remain concentrated in residential use, but sales in the commercial segment are projected to experience significant growth over the coming years. GPS and Bluetooth-enabled robotic lawn mowers and wireless mobile devices are potential investment options for manufacturers.
Summary. The lawn care industry is experiencing growing demand for residential outdoor landscaping from younger households across the country. Increased interest in gardens in residential constructions primarily contributes to the expansion and growth of the lawn care market. Increased gardening activities, driven by the need for self-sufficiency in growing indoor fruits and vegetables amidst rising health consciousness, have called for landscaping needs by the younger generation.
Most people tend to pay additional amounts for a residential space or an apartment with a gardening area. Thus, the demand for landscaping is on the rise as developers provide an aesthetic appeal to commercial and residential properties. Trends in the residential and nonresidential real estate markets directly affect demand for lawn and garden equipment, with demand for equipment rising when the number of houses and offices grows.
Despite global supply chain issues and a raging pandemic, key players in the DIY & Hardware Store market experienced double-digit year-over-year growth. These numbers are the result of COVID-19 restrictions, which required many people to stay home and provided them with the opportunity to carry out home improvement activities. A note of caution: industry analysts are beginning to question whether this increasing interest in DIY activities will continue as COVID-19 becomes less of an issue. PSR
Michael Aistrup is Senior Analyst for Power Systems Research
