What is OPE?
The outdoor power equipment market is segmented into the following categories which include both Consumer and Commercial (professional) type products:
- Walk Behind Mowers
- Riding Mowers and Tractors
- Other Large Wheeled Garden Equipment
- Handheld Garden Power Tools
The initial focus of Infinitrak's business within this market is the riding mowers and tractors sector, which includes commercial mowers, lawn and garden tractors, compact tractors and utility vehicles.
OPE Product Types
Lawn Tractor: A category of riding mower, aimed largely at the consumer market, powered by a 10 to 25 horsepower, front mounted gasoline fuelled engine to cover large mowing areas, but not strong enough to power ground-engaging equipment or to pull a tow.
Garden Tractor: A heavy-duty lawn tractor powered by a 18 to 27 horsepower front-mounted, gasoline-powered engine and able to power ground-engaging implements such as garden tillers, plows, cutting blades, snow throwers, etc.
Compact Tractor: More powerful than lawn and garden tractors, the Compact Tractor usually has a power rating of up to 40 horsepower, a standard 3 point hitch and a 540 rpm Rear PTO. A variety of attachments is available including spreaders, plows and loaders.
Utility Vehicles: Any self-propelled, operator controlled via non-straddle mount seating, off-highway vehicle primarily intended to transport material loads and people using a platform, cargo bed, flat bed, or spray tank. This sector does not include all-terrain vehicles, golf carts, tow tractors and people movers.
Commercial Mower: A Commercial Mower is designed to be used by businesses and operators that are typically revenue generating, and these products have a longer expected life span than consumer units. They are more durable and are made to be used for extended periods on a daily basis, unlike the Lawn or Garden Tractors.
The Riding Mower and Tractor OPE market
The global ride-on mower market is dominated by the United States. This is largely due to the large average size of domestic, residential plots as well as to homeowners having access to large disposable incomes which enables them to afford the convenience of a ride-on machine. The market is also growing globally with notable increases in Canada and France. The US market had sales of close to two million ride-on units in 2005 while the worldwide market including all categories was over $12 billion.
The global ride-on mower market is currently growing and this trend is forecast to continue due to the increasing popularity of these machines. The US based Outdoor Power Equipment Institute (OPEI) has forecast the US ride-on market to be flat for most of 2006, but with increased growth in the fourth quarter of the year and then slow growth in 2007, of approximately two percent over 2006 shipments.
New technological improvements such as zero-turn mowers and better transmissions are helping to increase the revenues created by this market.
Who buys ride-on mowers?
- Homeowners with gardens and plots in excess of 1/3 acre
- Local authorities and government agencies
- Athletic and sports teams
- Professional landscapers
- 'Hobby' farmers
Advantages of the IVT to ride-on mowers
The full-toroidal Infinitely Variable Transmission (IVT) provides a refined, smooth drive with no gear changes. Its precise control and ability to shuttle seamlessly from forwards to reverse allows ease of manoeuvrability around obstacles. The consistent and easily controllable delivery of power to the wheels reduced the tendency to wheel spin and leads to a consequent reduction in ground damage. IVT is also very quiet in operation and therefore offers reduced noise pollution.
Major Players in the OPE Market
According to consumer research, four major manufacturers control close to 90% of the ride-on mower market and dominate the outdoor power equipment market. The brands they trade under are shown under each company name.
MTD Products Inc
Deere & Company Inc
Briggs and Stratton
The Electrolux Group
