Ritchie Bros. released its latest Market Trends Report for the third quarter of 2024 this week, promising to offer valuable insights into the European used equipment and truck market.
“Drawing on extensive data from Ritchie Bros.’ sales channels — including auctions, Mascus, Marketplace-E, and more — this report highlights trends and forecasts within the region’s used heavy machinery sector, providing buyers and sellers with the information they need to make informed decisions,” says the firm, making it a worth a look for CMME.
At quick glance, the third-quarter 2024 Market Trends Report from Ritchie Bros. paints a complex picture of the European used equipment and truck market, capturing subtle yet telling shifts in demand, pricing, and equipment lifespan across multiple sectors. In Europe, at least, we are witnessing a balancing of traditional machinery preferences with an accelerating pivot towards eco-friendly and digitally connected equipment solutions.
Agricultural Equipment: Shifts in Tractor Demand and Sales
Tractors remain one of the most critical machines in European agriculture, and the used equipment market reflects this demand. Ritchie Bros.’ data shows a significant increase in listings for tractors on Mascus, up by 29% compared to the same quarter last year. However, despite the volume of tractors on the market, buyer inquiries dropped by 26%, indicating a cooling in demand for this category. John Deere continues to lead as the brand of choice, with New Holland and Massey Ferguson trailing closely.
Interestingly, while demand softened, sales activity at Ritchie Bros. auctions was robust, with a 59% increase in tractor sales. The median price for sold tractors surged by 57%, attributed to a younger average age and fewer hours on the meter among available units. This trend suggests a potential shift among buyers toward newer equipment, possibly driven by concerns around maintenance costs and the reliability of older machinery. With Germany, Spain, and Italy leading in purchases, the European tractor market shows a clear preference for younger, lower-usage units, underscoring an evolving strategy to balance cost savings with operational efficiency.
Transportation Equipment: Diesel Truck Tractors Losing Ground to Electric Models
Diesel truck tractors have been a staple in European transportation; however, Ritchie Bros.’ report reveals a nuanced shift toward electric trucks. Although diesel truck tractor listings rose by 19%, buyer demand decreased by 29%. This decline is likely influenced by the stringent emissions regulations coming into effect across Europe, pushing buyers to consider alternatives.
The median price for diesel trucks in Ritchie Bros. auctions fell by 27%, likely due to the aging inventory (median age holding at 10 years) and higher mileage among listed units. Renault saw a rise in popularity among buyers, topping sales volumes, followed by Mercedes-Benz and MAN. Spain, France, and the Netherlands led the buyer market, showing significant regional preferences. This trend may reflect the readiness of these countries to phase out older, diesel-based fleets in favor of more sustainable options. For Ritchie Bros., the popularity of electric alternatives in a traditionally diesel-dominant sector signals a gradual but inevitable transformation in Europe’s transportation market.
Construction Equipment: Rising Demand for High-Efficiency Wheel Loaders
In construction, the demand for versatile, high-efficiency machines like wheel loaders continues, despite a modest cooling off in Q3. Wheel loader listings on Mascus rose by 18%, though buyer inquiries dropped by 18%, indicating a selective market where buyers weigh their options carefully. Ritchie Bros. auction data shows that while sales volumes dropped by 12%, the slight 3% decline in median prices points to relatively stable valuations for this type of machinery.
Volvo, Caterpillar, and Liebherr emerged as the top brands in this segment, with Spanish buyers showing the highest level of interest. Notably, the median age of sold wheel loaders held steady at 11 years, but usage hours climbed significantly, reflecting a possible trend where older models continue to hold value due to their robust build and operational efficiency. For construction firms, this trend may indicate a preference for extending equipment life cycles over frequent upgrades, likely influenced by cost control and the dependable performance of seasoned brands.
Site Dumpers: Growing Popularity of Compact, Electric Models
Site dumpers continue to gain traction as essential machinery in Europe’s construction and agricultural sectors, with Mascus listings up by 13% in Q3. While buyer interest on Mascus decreased by 16%, auction sales at Ritchie Bros. saw a remarkable 43% increase. This surge in sales volume highlights a strong demand for these compact machines, particularly the electric variants that cater to the evolving needs of urban projects and eco-conscious contractors.
Spain, the UK, and Belgium topped the list of site dumper buyers, with Thwaites, Wacker Neuson, and Ausa emerging as leading brands. The average price for site dumpers in Q3 showed a modest 3% rise, a testament to stable demand. The focus on electric site dumpers is a notable trend, reflecting the broader push toward sustainable construction solutions. Given their practicality in tight urban environments, site dumpers with smaller footprints are poised to play a pivotal role in Europe’s shift to greener construction practices.
Lifting Equipment: Diesel Forklifts Facing Market Pressure
The market for diesel forklifts illustrates another shift toward electric models, driven by increasing EU emissions standards. Diesel forklift listings on Mascus rose by 13%, but demand fell by 29%, reinforcing a market slowdown for this traditionally dominant fuel type. Kalmar, Linde, and Hyster remained the top brands, with Germany, the Netherlands, and Sweden showing the highest interest.
In a surprising twist, diesel forklift auction sales through Ritchie Bros. jumped by 131% despite the drop in median prices by 28%. The median age for forklifts sold fell to 13 years, from 16 in the previous year. This activity suggests a “last rush” by buyers capitalizing on lower prices before electric forklifts become the standard. Hyster led the pack in sales, followed by Yale and Linde, indicating that buyers are still opting for diesel-powered models while they remain viable options under existing regulations. This sector seems poised for further disruption, with the shift toward electric forklifts expected to intensify in the near future.
Commentary: Balancing Traditional Preferences with Market Transformation
For Ritchie Bros., these findings emphasise the importance of its multi-channel strategy, combining auction insights with digital platform data from Mascus and Marketplace-E. As Europe’s equipment market leans towards sustainability and regulatory compliance, Ritchie Bros.’ robust data and market analysis provide invaluable guidance for buyers and sellers navigating this transformative phase.
As such, the Q3 2024 report from Ritchie Bros. illustrates a European used equipment market at a crossroads. Buyers and sellers alike face a delicate balance between traditional machinery preferences and the undeniable pull of new technologies and stricter environmental regulations. With each equipment category showing unique trends—such as the rise of electric site dumpers, cooling demand for diesel forklifts, and steady interest in high-efficiency construction equipment — stakeholders must navigate evolving standards while managing costs and operational efficiency.
