Husqvarna Group operates in attractive markets with long-term growth potential, currently valued at approximately SEK 300bn. There are several global trends strengthening our business – including electrification, servitization and connectivity, and an increasing demand for autonomous, low-carbon and resource-smart solutions.
The forest and garden market, where both the Husqvarna Forest & Garden and Gardena divisions are active, is valued at approximately SEK 250bn. In addition to the current market size, there is a large untapped market potential in converting professional lawn mowing from a manual task into an automated one. We estimate this potential to SEK 100bn. In 2023, the value of the market was relatively stable measured in SEK. The market was impacted by a challenging macroeconomic development, leading to lower product volumes. However, this was offset by a combination of price increases and a positive currency effect upon conversion to SEK. Despite the decline in volumes this year, the market has grown over the last years – mainly related to a growing interest in gardening as well as underlying economic growth.
The forest and garden market includes segments with high structural growth, such as robotic mowers, smart watering systems, and battery-powered products, driven by a transition from petrol-powered products. Demand in general is mainly driven by economic growth, with key indicators being consumer purchasing power, consumer confidence and employment levels. In addition, weather conditions in a given year may impact the gardening season and thereby affect demand both positively and negatively. Europe and North America are the largest markets and account for around 85 percent of the global market value. Consumers in some of the other markets do not have the same gardening opportunities due to factors such as climate, population density, gardening traditions and purchasing power.
Market for the Husqvarna Construction Division
The Husqvarna Construction Division is a global leader in equipment and diamond tools for the light construction industry and diamond tools for the natural stone processing industry. The market value is estimated at around SEK 50bn. During the year, the market was impacted by a challenging macroeconomic development, leading to lower product volumes, but was offset by a combination of price increases and a positive currency effect upon conversion to SEK. Demand correlates with the development of the light construction industry, which is characterized by cyclical fluctuations. The division's products and solutions primarily address needs arising during renovation (residential and non-residential), infrastructure projects as well as in some industrial segments. Most of our business is thus less cyclical than the broader construction industry, but still impacted by overall economic fluctuations. Our main markets are Europe and North America, both of which are well-developed and established. Demand is also growing in emerging markets, creating attractive growth opportunities. Apart from equipment, the related aftermarket services and consumables continue to be important opportunities for further growth for the division.
Learn more about the markets we operate in here.