North America Skid Steer & Compact Track Loader Market, By Vehicle Type (Skid Steer, Compact Track Loader), By Application (Construction, Agriculture, Others), By Country, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

North America Skid Steer & Compact Track Loader Market was valued at USD 11.67 billion in 2024 and is expected to reach USD 14.83 billion by 2030 with a CAGR of 4.12% during the forecast period. North America Skid Steer & Compact Track Loader Market was valued at USD 11.67 billion in 2024 and is expected to reach USD 14.83 billion by 2030 with a CAGR of 4.12% during the forecast period. The North America skid steer and compact track loader market is experiencing steady growth, driven by increasing demand across construction, agriculture, landscaping, and industrial sectors. These versatile machines are favored for their compact size, maneuverability, and ability to perform a wide range of tasks using various attachments. Growing infrastructure development, urbanization, and a surge in residential and commercial construction activities are further fueling adoption. Manufacturers are focusing on technological innovations such as telematics, improved hydraulics, operator comfort, and fuel efficiency to meet evolving customer needs. The rise in equipment rentals also contributes significantly to market expansion across the region. U.S. contractors financed 54,269 new compact track loaders between March 2024 and February 2025, marking a 12.9% year-over-year increase. This surge highlights the growing preference for CTLs, significantly contributing to overall market growth.

Market Drivers

Rising Infrastructure Development and Urbanization

One of the primary drivers of the North America skid steer and compact track loader market is the significant rise in infrastructure development projects and urbanization. Both federal and local governments are heavily investing in modernizing transportation networks, public utilities, and smart city initiatives. According to the U.S. Congressional Budget Office, federal spending on infrastructure is projected to exceed USD 1.2 trillion over the next decade, fueled in part by the Infrastructure Investment and Jobs Act (IIJA). Skid steers and compact track loaders are ideal for these applications due to their ability to operate in confined urban spaces and efficiently perform various tasks such as grading, digging, and material handling. The machines’ compact design and versatility make them indispensable for urban construction, where larger equipment may not be feasible. As urban areas continue to expand across the U.S. and Canada, the demand for these machines in roadwork, residential and commercial building construction, and municipal projects is expected to remain robust.

Increasing Mechanization in Agriculture and Landscaping

The mechanization of agriculture and landscaping activities is another major factor driving market growth. Farmers and landscape contractors are increasingly adopting skid steers and compact track loaders for tasks such as material transport, ground preparation, and land clearing. Compact track loaders, in particular, are well-suited for soft, muddy terrains often found in agricultural fields, where their low ground pressure minimizes soil compaction. In landscaping, the machines’ maneuverability and compatibility with a wide range of attachments allow for enhanced productivity and cost-efficiency. According to the U.S. Department of Agriculture (USDA), farm equipment expenditures rose by 10% year-over-year in 2023, signaling increased investment in machinery to address labor shortages and improve operational efficiency. Additionally, the landscaping services market in North America is expected to grow at a CAGR of 5.1% from 2023 to 2028, further fueling the demand for compact, multifunctional machines. As the agricultural sector seeks to boost output and landscaping demand rises in residential and commercial settings, the reliance on these machines continues to accelerate across the region.

Growth in Equipment Rental Services

The expansion of equipment rental services is significantly boosting the skid steer and compact track loader market in North America. Many contractors, especially small- and medium-sized enterprises (SMEs), prefer renting equipment over purchasing due to cost considerations and project-specific requirements. Rental companies offer flexible access to the latest models with advanced features without the long-term financial commitment. This model also allows end-users to test various machines before deciding on a purchase. With the growth of the rental sector, manufacturers are strengthening partnerships with rental firms and designing more rental-friendly models—easy to maintain, operate, and transport. Additionally, seasonal demand fluctuations in industries like construction and agriculture make renting a cost-effective and convenient alternative. The rising popularity of rental services is thus opening up new growth avenues for the market.

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Key Market Challenges

High Initial Investment and Ownership Costs

One of the primary challenges in the North America skid steer and compact track loader market is the high cost associated with purchasing and owning this equipment. Although these machines offer versatility and efficiency, their initial price can be a significant barrier for small- and medium-sized contractors, landscapers, and farmers. In addition to the upfront cost, ownership includes ongoing expenses such as fuel, insurance, maintenance, repairs, and replacement parts. For compact track loaders, the cost of replacing rubber tracks and undercarriage components can be particularly high. These financial burdens can deter potential buyers, particularly in times of economic uncertainty or when project volumes are inconsistent. While equipment rental offers an alternative, businesses that require frequent or long-term use still face difficult decisions about whether to rent or buy. As a result, affordability continues to be a limiting factor in broader market penetration, especially among cost-sensitive user segments.

Labor Shortages and Skill Gaps

A persistent challenge affecting the adoption and optimal use of skid steer and compact track loaders in North America is the shortage of skilled equipment operators. Despite technological advancements aimed at improving ease of use, many construction, landscaping, and agricultural businesses struggle to find trained professionals who can operate machinery efficiently and safely. The aging workforce and a lack of young entrants into trade and equipment operation have worsened this issue. Additionally, as machines become more technologically sophisticated, featuring telematics, automation, and advanced control system operators require updated training to fully leverage these capabilities. Without adequate training, equipment utilization and productivity can decline, and the risk of machine misuse or accidents may increase. This challenge not only limits the market’s growth potential but also puts pressure on OEMs and dealers to invest in operator education and support services to help close the skills gap.

Key Market Trends

Rising Adoption of Compact Track Loaders Over Skid Steer Loaders

A significant trend in the North America market is the increasing preference for compact track loaders (CTLs) over traditional skid steer loaders (SSLs). While skid steers have long been favored for their agility and performance on hard, flat surfaces, CTLs are gaining ground due to their superior traction, lower ground pressure, and ability to operate effectively in muddy, uneven, or soft terrain. These capabilities make CTLs particularly attractive in applications such as landscaping, agriculture, forestry, and construction work in challenging environments. As job sites become more diverse and weather conditions less predictable, users are shifting toward machines that offer greater stability and versatility. This shift is prompting manufacturers to expand their CTL portfolios and invest in R&D to improve undercarriage durability, hydraulic power, and fuel efficiency.

Growing Demand for Electrification and Sustainable Equipment

Sustainability is emerging as a core focus in the construction and agriculture sectors, driving demand for electric and hybrid skid steer and compact track loaders. Regulatory pressures to reduce emissions, coupled with corporate sustainability goals and the rising cost of diesel fuel, are encouraging users to explore cleaner alternatives. Electric models offer numerous benefits, including lower operating noise, zero emissions, and reduced maintenance due to fewer moving parts. These features make them ideal for indoor work, urban projects, and environmentally sensitive areas. Although electric loaders are still in the early stages of adoption in North America, several OEMs have launched battery-powered models, and continued advancements in battery technology are expected to improve power, runtime, and cost-efficiency. Over the next few years, electrification is poised to become a key differentiator for manufacturers looking to align with sustainable development goals. The U.S. Department of Energy (DOE) and Environmental Protection Agency (EPA) emphasize electrification as a critical strategy for reducing greenhouse gas emissions in the off-road sector, which accounts for approximately 10% of transportation-related emissions. This push toward cleaner technologies supports market growth for electric skid steer and compact track loaders.

Integration of Advanced Telematics and Fleet Management Systems

Another major trend is the growing use of telematics and digital fleet management tools in skid steer and compact track loaders. Equipment owners and fleet operators are increasingly adopting telematics systems that provide real-time data on machine location, usage hours, fuel consumption, maintenance needs, and operator behavior. This data-driven approach enables proactive maintenance, reduces unexpected breakdowns, improves asset utilization, and enhances jobsite productivity. Furthermore, remote diagnostics and over-the-air software updates are becoming more common, helping service teams respond more efficiently to maintenance issues. As a result, OEMs are prioritizing factory-installed telematics systems and integrating them into broader digital platforms that offer dashboards, alerts, and analytics. This trend is also gaining traction in the rental sector, where telematics help rental companies monitor equipment usage and condition across multiple customer sites.

Segmental Insights

Vehicle Type Insights

Skid steer loaders represent the dominating segment in the North America skid steer and compact track loader market due to their widespread adoption across construction, landscaping, agriculture, and industrial sectors. Their compact size, maneuverability, and ability to operate efficiently on hard surfaces make them highly versatile for a range of applications. Skid steers are especially preferred in urban construction sites and indoor operations where space is limited. Additionally, their compatibility with a broad array of attachments enhances functionality, reducing the need for multiple machines. Cost-effectiveness, ease of maintenance, and operator familiarity further contribute to their continued dominance in the region.

Application Insights

The construction segment holds the dominant position in the North America skid steer and compact track loader market, driven by extensive infrastructure development, residential housing projects, and commercial real estate expansion. These machines are highly valued on construction sites for their ability to perform various tasks such as grading, excavation, material handling, and site preparation. Their compact size and agility make them ideal for navigating tight spaces commonly found in urban environments. Additionally, their compatibility with multiple attachments allows contractors to handle diverse tasks efficiently. The growing demand for productivity and versatility in construction operations continues to fuel their dominance.

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Country Insights

The United States was the dominating region in the North America skid steer and compact track loader market, primarily due to its robust construction, agriculture, and landscaping sectors. High demand for compact and versatile machinery across residential, commercial, and infrastructure projects supports strong market growth. Additionally, the country benefits from a well-established network of manufacturers, dealers, and rental service providers that ensure easy access to equipment and after-sales support. Continuous technological innovation, coupled with government investments in infrastructure development and urban renewal, further propels demand. The U.S. market also leads in adopting advanced features like telematics and electric variants.

Recent Developments

• ​In January 2023, Kinderhook-backed All States Ag Parts (ASAP) acquired Californian-based Trojan Tracks, a rubber track and undercarriage parts supplier. The deal expands ASAP’s aftermarket distribution network across North America boosting capacity for skid steer and compact track loader replacement parts.

• In April 2024, FIRSTGREEN Industries debuted its ROCKEAT electric skid-steer loader line featuring cabinless, low-clearance designs with 360° cameras and remote operation. Emissions-free with near-silent performance, the ROCKEAT 700 and 1200 (1,500–3,300 lb load) target safer, eco-conscious mining, construction, and hazardous‑site operations.

• In March 2023, Bobcat revealed its groundbreaking S7X, the world’s first all-electric skid-steer loader, and introduced the RogueX an electric, autonomous, cabless concept machine at CONEXPO 2023. The S7X delivers zero emissions, up to 8‑hour runtime, and instant electric torque.

• In Feb 2025, Hyundai debuted two new skid steer loaders (HS80V, HS120V) and a compact track loader (HT100V). Featuring vertical-lift arms, EU Stage V diesel engines, operator comfort enhancements, and telematics support, these additions deepen Hyundai’s North American compact loader lineup.

Key Market Players

• Bobcat Company
• CNH Industrial America LLC.
• Caterpillar Inc.
• AB Volvo
• KUBOTA Corporation
• Deere & Company
• Manitou Americas Inc.
• ASV Holdings Inc
• Wacker Neuson Group
• J C Bamford Excavators Ltd.

Report Scope:

In this report, the North America Skid Steer & Compact Track Loader Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·          North America Skid Steer & Compact Track Loader Market, By Vehicle Type:

o   Skid Steer

o   Compact Track Loader

·         North America Skid Steer & Compact Track Loader Market, By Application:

o   Construction

o   Agriculture

o   Others

·         North America Skid Steer & Compact Track Loader Market, By Country:

o   United States

o   Canada

o   Mexico

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the North America Skid Steer & Compact Track Loader Market.

Available Customizations:

The North America Skid Steer & Compact Track Loader Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

·         Detailed analysis and profiling of additional market players (up to five).

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