U.S. Truck-Mounted Suction Excavators (Hydrovac) Market

The Truck Mounted Suction Excavators (Hydrovac) market growth is expected to be driven by key factors such as increasing volume of infrastructure development in the United States and growing interest in non-destructive excavation (NDE). Limited awareness and acceptance of truck mounted suction excavators (Hydrovac) continues to pose a challenge to the adoption and ultimate growth of the market in the U.S.

4.2.1 ⁠ INCREASED CONSTRU CTION ACTIVITIES Primary driver for the truck mounted suction excavators (Hydrovac) market is the increasing volume of infrastructure development in the United States. As cities expand and aging infrastructure is being upgraded or replaced, they want to rely on excavation methods that emphasize efficiency and safety. The growth highways, road construction, urban and municipal utilities, telecommunications and even residential construction is shifting towards hydrovac solutions because of the increased precision that hydrovac systems offer and the reduced surface disruption experienced. With the introduction of hydrovac technology, excavation near the utilities is higher in safety and less risk especially if the excavation is in congested urban areas. There is a tremendous amount of investment by the United States Government in large public infrastructure projects, not only funded by the Bipartisan Infrastructure Law, but every year construction activity is being performed. It is noted that Hydrovac systems and technology is extremely useful in conjunction with every major infrastructure funded by the Bipartisan Infrastructure Law which is billions of dollars authorized to be spent directly on roads, bridges, water systems, and broadband sectors, where hydrovac technology can greatly assist in the physical development process. There is also growing demand in the private sector for projects related to energy, fiber optic installation, pipeline maintenance, etc. These sectors benefit from hydrovac technology, particularly since they desire little or no disturbance to the surrounding land, structures, and surrounding utilities. Hydrovac technology is positively affecting timelines and allowing for excavation to be performed year-round, including during the winter months with frozen ground using heated water. The benefit of year-round excavation using hydrovac technology is mainly due to the various U.S. climates. As construction-related activity increases using hydrovac technology, expectations for completion also accelerate. The liability associated with traditional digging techniques is requiring contractors to find uses for services that protect all aspects of a construction operation from safety to environmental protection. Hydrovac excavators are assisting in this push towards performance improvement. In summary, declining liability concerns and increasing construction activity are driving demand. 4.2.2 REGULATORY SAFETY STANDARDS The strict regulations of safety rules are one of the biggest factors driving the U.S. truck mounted suction excavators (Hydrovac) market. Federal, state, and local authorities are increasingly moving towards regulating and protecting workers wherever they work, especially if it is excavation work. Traditional excavation methods such as digging with backhoes or manual digging can be associated with high levels of risk, including cutting utilities, ground collapse, and worker injury. Hydrovac excavation reduces the risk to workers by taking digging out as mechanical, non-mechanical, and regulated work, so there are significantly less hazards. Regulatory bodies such as the Occupational Safety and Health Administration (OSHA) and state organizations have brought in stringent regulations for the purposes of digging and excavating, as well as performs risks management practices for working around underground utilities. All regulations have intentions to encourage and promote practices that reduce workers exposure to Copyright © 2024 Market Research Future 32 high-risk work environments and situations. Hydrovac technology allows for high-pressure water and vacuum usage to expose or uncover buried utilities without any physical contact. Moreover, Hydrovac technologies will meet the regulatory requirements, moreover, with the complexity of most regulations, Hydrovac technology will always be viewed through the lens of complying with regulation due to the intent of the risk mitigation practices from Hydrovac contractors. In addition to worker safety, Hydrovac systems add value to contractors regarding regulatory compliance to avoid damage. Organizations such as the Common Ground Alliance (CGA) and the 811 "Call Before you Dig" campaign advocate for safer options other than digging or manually digging to lessen damage to their utility provider. They are increasingly being used for potholing and daylighting, due to their precision, before further excavating happens so contractors can determine where new utilities are before they potentially hit them. Liability exposure and insurance coverages are also forcing companies to go to regulated excavation options to be safer. Contractors also lower exposure to fines and project interruptions from cutting utilities or damaging utilities, where those damages can increase the costs of repair. As legislation and technologies continue to change, Hydrovac excavation can remain one compliant and proactive option for compliance. Non-compliance has a cost, and with excavation standards being introduced regulation will always be a relevant driver of growth in the U.S. hydrovac market. 4.2.3 ⁠ DEMAND FOR NON -DE STRUCTIVE EXCAVATION The growing interest in non-destructive excavation (NDE) is a primary force driving the U.S. truck mounted suction excavators (Hydrovac) market. Hydrovac excavation provides a more precise and less invasive excavation method than excavating with mechanical digging equipment which may be invasive and damaging to underground infrastructure. It uses pressurized water to loosen the soil and then utilizes a vacuum to remove the debris from the excavation safely exposing subsurface utilities without damage. As underground infrastructure gets increasingly complicated and cramped together in utility trenches, especially in urban centres, there is high demand for safer excavation methods. Utilities such as water, gas, electric, telecommunications and fib

4.4.1 ⁠ EXPANSION IN URBAN INFRASTRUCTURE DEVELOPMENT The continuing and expected growth of urban infrastructure throughout the U.S. provides a large opportunity for the truck mounted suction excavators (Hydrovac) market. As urbanization continues to escalate, cities are increasingly focused on modernizing transportation systems (roads, bridges, public transit); sewer lines; service lines such as water mains; communications networks like telecommunications and commercial networks, which often share the same corridors. This growth in urban development corresponds to an increase in the demand for precise excavation, efficient and timely solutions, and, increasingly, non-destructive excavation methods. Traditional excavation practices can be disruptive and dangerous in large urban areas. Utility infrastructure is tightly clustered, and the chances of damaging vital infrastructure such as gas lines or fibre optic cables is high. Hydrovac systems have the flexibility to excavate safely around these critical underground assets without damaging the structure or the service. Their ability to operate in confined operating conditions, such as congested streets, makes Hydrovac systems some of the most useful pieces of equipment on urban job sites. The Federal and state governments are pouring in enormous amounts of public money to fix old and aging infrastructure via legislation such as the Bipartisan Infrastructure Law which allocates around $1 trillion for transportation, water systems, and broadband under one initiative. This investment is sure to spawn thousands of excavation projects that utilize Hydrovac technology to assist in project completion in a productive and non-disruptive manner. Copyright © 2024 Market Research Future 38 Urban growth will also help stimulate the need for underground utility relocates (for example, utility companies remove service lines to new locations), and ultimately new service lines may be installed, as well as the maintenance of existing systems, all of which are friendly to hydrovac excavation. As contractors will be spokespersons for best practices due to the level of public scrutiny on both safety and environmental impact, the best practices will most likely involve hydrovac excavation methods, as urban areas will increasingly be embracing safer and smarter construction approaches. As such, demand for specialized excavation equipment will surely continue to increase. The combination of infrastructure funding, urban density challenges, and heightened regulatory oversight creates strong, sustainable growth opportunities for the U.S. hydrovac market in terms of urban infrastructure development. 4.4.2 GROWING DEMAND FOR UTILITY MAINTENANCE SERVICES Growing demand for utility maintenance services is an opportunity for the U.S. truck mounted suction excavators (Hydrovac) market segment to take advantage of that has strong revenue growth potential. As the U.S. utility infrastructure ages, the maintenance, upgrades, and emergency repairs will begin to increase thereby creating a greater need for utility maintenance services. The infrastructure that will be impacted by increased demand for utility maintenance services include water mains, gas lines, sewer systems, or electrical conduits, many of which have been installed decades ago. These important utilities require routine servicing/preventive maintenance to keep them operating and minimize failures, while ensuring safety and meeting current usage. Hydrovac systems are well-suited and uniquely positioned to support utility maintenance operations and hassle-free work, because of their non-destructive exact excavation ability. ean hile, hydrovacs easily expose buried utilities (an action called “daylighting”) without damaging surrounding pipes/cables making it less likely to cause significant interruptions or disruptions. Hydrovac systems will be relied upon heavily in maintenance situations where utilities are exposed to be accessed while causing minimal or no damages and no downtime for the impacted parties involved. Beyond planned maintenance, hydrovac equipment will play an integral role in emergency response situations such as water main breaks, gas leaks, storm damage, etc. The speed and safety that hydrovacs provide make them highly relied on for excavation in situations when time-sensitive, high-risk, work is required. The complexity of utility networks found in urban and suburban areas will support this trend, i.e. as more and more lines are installed, especially for fiber optics, 5G, and renewable energy. The need for excavation on routine inspection practices and installation will continue to rise. Public utilities and private operators are pressured to reduce outages and improve safety while minimizing public disturbance during maintenance. Hydrovac trucks can address these objectives while complying with rigorous safety and environmental regulations. As the aging infrastructure continues to require maintenance and usage continues to grow, the ongoing demand for maintenance represents a steady and growing market for hydrovac service providers and hydrovac manufacturers. 4.4.3 INCREASED INVESTMENT IN SMART CITIES Heightened investment in smart city projects throughout the United States offers a tremendous growth opportunity for the truck mounted suction excavators (Hydrovac) market. Smart cities, or the integration of smart technologies in urbanization, rely heavily on advanced infrastructure systems like highspeed internet, ubiquities utility servicing, smart traffic systems and smart grids. Deployment of smart technology requires extensive underground work including installing fiber optic, water and power upgrades, and new utility corridors that relates directly to the need for non-destructive excavation. Hydrovac systems play a pivotal role in achieving smart city capability. These systems minimize surface disturbance while maximizing precision and safe

4.3.1 HIGH INITIAL CAPITAL INVESTMENT Initially, it’s orth noting that even ith the high capital initial cost for trucks and suction excavators (Hydrovac), is one of the largest barriers limiting the U.S. hydrovac market. Hydrovac trucks are very specialized machines, and can cost anywhere from $250,000 to over $100,000, based on features and operational capabilities. As such, many small to mid-size contractors that service low-cost sectors, or those that have not evolved to create or build financial undertakings in these hydrovac trucks, are going to have detriments to justifying and absorbing the high capital initial costs. There are also cost with ownership that the potential new market of hydrovac renters, such as infestation, operator training, insurance, fuel costs, and likely downtime. Lifecycle costs may also come into play with the specialized parts and repair. There are and have been several contractors that are used to traditional excavation equipment styles such as backhoe or mini excavators with expected costs of ownership. Many of the new contracting companies that will utilize hydrovac equipment, and those with small margins, these costs can appear high, and maybe even a reason not to consider hiring hydrovac trucks at all. Although there are leasing and rental options possible, many contractors will find these options are either not financially feasible, or not practically or flexible option for longer terms jobs. With fluctuating fuel costs and building regulations regarding emissions moving to Tier 4 equipment compliance makes the ability to manufacture equipment is getting more expensive, while repairs and parts are getting more complicated. Purchasing in the public sector, make it difficult with unstructured budgets and carry longer acquisition processes that complicate, or lessen, purchasing policies. The financial barrier with upfront purchases is compounded in rural or an underdeveloped areas where utilities investment in infrastructure is already limited. Although there is a strong documented ROI on hydrovacs, that include projects with lesser utility strikes, reduced repair costs, and completing work in an expedited amount, the burden of upfront costs has created a constraint in increasing or expanding hydraulic markets. Ultimately, it is going to take cost effective financing possibilities, profitable model alternatives, and communicating the long term operational and safety considerations related to hydrovac trucks, to minimize or inhibit upfront barriers moving forward. Copyright © 2024 Market Research Future 35 4.3.2 LIMITED AWARENESS AND ACCEPTANCE Limited awareness and acceptance of truck mounted suction excavators (Hydrovac) continues to pose a challenge to the adoption and ultimate growth of the market in the U.S. While the benefits of the technology – non-destructive excavation, on-site safer, eco- friendly opportunities – have been realized, many contractors, municipalities, and utility owners still use conventional excavation methods due to lack of exposure or familiarity with Hydrovac excavating. This is especially true for smaller contractors and rural service providers who may not have seen or had any technical training to evaluate hydrovac systems as a legitimate tool. For many, the process of excavation still meant either mechanical digging with a backhoe or manual labour – often without realizing the risks of their buried infrastructure, or costs of potential utility strikes and site damages. As well, there are perceptions that truck mounted excavation is just overkill for smaller or simpler scope excavations. This misconception can lead to key decision makers to either underestimate or ignore the overall broader cost savings and safety benefits of using hydrovac excavating, particularly in over-crowded underground environments, or around critical infrastructure. Furthermore, there has not been any formal education or certification programs available to develop standardized training on the functionality of hydrovac equipment, which may also be a factor in slow adoption. There is a natural reluctance to invest in new technology when it cannot be quantified or fully utilized by contractors or operators. Lastly, many industry specifications and project tenders do not until recently specifically quantify non-destructive excavation as a method or explicitly state that non-destructive excavation will be a requirement of interest to the owners and utilities, which also does not help stimulate any demand for hydrovac excavation. For solutions to this restraint to be achieved will require much more emphasis on industry awareness, stakeholder education, training programs, demonstration projects, and relevant policy facilitation. The anticipated role of industry associations, manufacturers, and government as a connector can enhance awareness and education through field training sessions, safety workshops, best-practice guidelines, etc. As the marketplace matures and there is a great awareness and acceptance of the benefits from hydrovac excavation, awareness and acceptance should improve as well. However, there is still an educational gap that will continue to be a challenge faced by the U.S. hydrovac market moving forward. 4.3.3 REGULATORY AND COMPLIANCE CHALLENGES Regulatory and compliance issues are a major barrier to growth for the U.S. truck mounted suction excavators (Hydrovac) market. Hydrovac technology is often regarded as a safer, more environmentally friendly method of excavation, but it adds complexity for operators and fleet managers who must reconcile a multilayered regulatory context that is sometimes ambiguous, inconsistent, and contradictory and can limit deployment and scalability. One element of regulatory complication is the variation in regulations among states and municipalities, which differs for each jurisdiction and can include how and where water is drained, dumped soil, noise limits, and the timi

Regulatory and compliance issues are a major barrier to growth for the U.S. truck mounted suction excavators (Hydrovac) market. Hydrovac technology is often regarded as a safer, more environmentally friendly method of excavation, but it adds complexity for operators and fleet managers who must reconcile a multilayered regulatory context that is sometimes ambiguous, inconsistent, and contradictory and can limit deployment and scalability. One element of regulatory complication is the variation in regulations among states and municipalities, which differs for each jurisdiction and can include how and where water is drained, dumped soil, noise limits, and the timing and use of roads for heavy vehicles. For example, some municipalities will restrict where hydrovac trucks can dump slurry or treatment type, and this creates logistical hurdles and adds costs for the contractor. The differences between regions can add complexities for contractors that work in multiple counties or states because they must be flexible to adopt changes and revisions in behind-the-wheel or administration practices and equipment. Environmental regulatory issues come into play from two sides. On one side of compliance, hydrovac systems are generally better for the environment; however, on the other side of compliance, working with water usage and wastewater management can be burdensome. Regulators and contractors are determined by requirements for managing slurry that are contaminated or even tank mixed water that also could be considered contaminated; mishandling (if mismanaged) could lead to fines or delay project timelines, or worse, affect the environment. This complication is amplified when working in environmentally sensitive zones or where the penalties for violations of the Clean Water Act are enforced by the EPA. Additionally, licensing and operator certification requirements present another compliance barrier. Hydrovac units require specific training that is inclusive of safe operations and effective use, unlike traditional excavation equipment. However, there are no standardized or recognized training or certification programs for using hydrovac units across the U.S., and this creates hesitation for contractors based on uncertainty when making investments. In addition to encumbrances based on licensing and certification, Copyright © 2024 Market Research Future 36 DOT establishes weight and travel-time for transporting hydrovac trucks and working with debri filled tanks or full tanks, and these guidelines will limit when services and or transport occurs. These variables can negatively impact a contractor's efficiency for their work on-site and adds variable complexities to planning and work scheduling. Until regulations become easier to comply with or become defined regulatory requirements for hydrovac operations, regulatory compliance variables will be likely to continue to restrain larger scale adoption and use in the market.