Demand for Lawn and Garden Equipment Growing 5.7% Annually

According to a study from Cleveland-based The Freedonia Group, U.S. demand for power lawn and garden equipment will increase 5.7% yearly to $10.4 billion in 2015; demand being driven by recovering economy and pent-up consumer demand.

U.S. demand for power lawn and garden equipment will increase 5.7% 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 U.S. 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 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 U.S. 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 U.S. 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.