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Report Overview: Construction Equipment MarketThe global construction equipment market size was estimated at USD 113.6 billion in 2020 and it is anticipated to expand at a CAGR of 3.2% from 2021 to 2027. Increasing investments by governments across the world for developing public infrastructure has been one of the prime factors driving the market demand for this equipment. Furthermore, the growing population in emerging economies such as India has resulted in increased residential and commercial construction activities. Thus, the market is anticipated to grow steadily over the forecast period 2021-2027. The growing public-private partnerships to implement infrastructure work coupled with wide-scale adoption of the rental business model have induced an increased demand for this equipment over the past few years. Different types of construction machinery are procured to conduct a set of specific tasks and require technical expertise in operating them. The construction machinery is an expensive commodity, thus not every builder, contractor, or construction firm could afford to buy it. Also, there are many construction projects that require construction machinery temporarily. The cost of machinery has increased over the past few years owing to the incorporation of advanced safety technologies, which has triggered the end user’s inclination toward procuring these types of machinery on a rental basis. The rental providers have identified the growth opportunity and have started to upgrade their existing fleet, thereby driving the demand for construction equipment. Additionally, to save on the cost of machinery and cost incurred behind its maintenance and repairs, small builders, contractors, and construction firms take machinery on a rental basis from the rental service providers. Many companies are entering the construction equipment rental business owing to its high profitability. Construction equipment is very robust machinery with a life span of 7 to 10 years, due to which companies prefer to rent out old machinery for profit. This growing trend of equipment rental business is a significant factor in promoting the market growth. The demand for construction equipment is high from the residential construction sector owing to speeding urbanization in countries including China and India. The urbanization triggers not only the demand for residential space but also other related infrastructures such as roads, hospitals, schools, and commercial areas. To cope up with the demand for these public infrastructures, the government spends a significant amount on the construction sector. For instance, according to the India Brand Equity Foundation (IBEF), India plans to spend USD 1.4 trillion on infrastructure in the coming five years. The government of India would highly invest in the infrastructure sector, significantly on urban transport infrastructures such as the metro rail network, renewable energy, and highways.
Product Insights: Construction Equipment MarketThe construction equipment market has been segmented into earthmoving machinery, material handling machinery, and concrete and road construction machinery on the basis of product. The earthmoving machinery segment lead the market in 2019 however the concrete and road construction machinery segment is anticipated to grow at the highest CAGR of 5.1% from 2021 to 2027. Among the earthmoving machinery type, the excavators lead the market in 2019. The need for conducting excavation or digging in confined spaces has contributed to the development of compact excavators. Furthermore, increasing stringency of emission norms and the need for reduced noise emissions have compelled the manufacturers to develop eco-friendly machinery. The earthmoving machinery segment, especially the excavators, are being subjected to the integration of telematics and convenience and safety technologies such as lift assist and touchscreen infotainment systems for delivering enhanced operational capabilities. The demand for material handling machinery such as cranes is rising in developed countries. Increasing trend of constructing massive infrastructures, skyscrapers, and commercial buildings is expected to raise the demand for these types of machinery globally. Increasing investment in road construction projects has boosted the demand for concrete and road construction machinery such as concrete mixers and pavers. For instance, in countries such as India and China, governments have taken the initiative to improve the road infrastructure. The Indian government recently announced that it would invest INR 15 trillion over the next five years in its ambitious plan to improve highway infrastructure, thus driving the demand for the concrete and road construction machinery segment over the forecast period.
Regional Insights: Construction Equipment MarketThe Asia Pacific region lead the market with revenue size of approximately USD 60 billion in 2020 and is anticipated to expand at a CAGR of 4.9% over the forecast period. China recorded a strong performance in 2019 owing to the boost in the infrastructure investment. The excavator, as well as heavy commercial truck sales, witnessed a strong performance in the previous year, which was a direct effect of the rising number of construction projects. China region is one of the significant contributors to the manufacturing of construction equipment owing to the presence of numerous OEMs, low production cost, low labor cost, and availability of excellent manufacturing facilities in the country. However, the recent Coronavirus outbreak in China has left a gloomy and negative impact on the supply chain and the manufacturing sector. According to Eurostat, the European region has shown a positive outlook in the construction sector, which has increased the market demand for construction equipment. The North American region is prominent and plays a crucial role in the market. The regional growth can be attributed to increasing demand for technologically advanced machinery coupled with a strong push from the rental companies.
Key Companies & Market Share Insights: Construction Equipment MarketThe market is highly competitive and relatively concentrated, with the top five companies dominating the market share. Key players, including Caterpillar Inc.; Komatsu; Hitachi Construction Machinery; Liebherr; and Volvo Construction Equipment, lead the global market. Technological innovation, fuel-efficient machinery, and improved design are expected to be the key parameters for being competitive in this market. For instance, in January 2020, Volvo Construction Equipment introduced a new excavator, which is equipped with boom down motion and reduces fuel consumption and enhances operational efficiency. Similarly, in December 2019, Hitachi Construction Machinery announced the development of a battery-powered mini excavator. Thus, the new product development is anticipated to be a key strategy to achieve market dominance over the forecast period. Construction Equipment Market Report Scope
Key companies Profiled: Construction Equipment Market Report
Product Outlook (Revenue, USD Billion, 2016 - 2027)
- Earth Moving Machinery
- Material Handling Machinery
- Concrete & Road Construction Machinery
Earth Moving Machinery Outlook (Revenue, USD Billion, 2016 - 2027)
Material Handling Machinery Outlook (Revenue, USD Billion, 2016 - 2027)
- Crawler Cranes
- Trailer Mounted Cranes
- Truck Mounted Cranes
Concrete and Road Construction Machinery Outlook (Revenue, USD Billion, 2016 - 2027)
- Concrete Mixer & Pavers
- Construction Pumps
Table of Contents Chapter 1 Methodology and Scope 1.1. Market segmentation & scope 1.2. Market definition 1.3. Information procurement 1.3.1. Purchased Database(Statista, FactSet, Bloomberg, SDC Platinum) 1.3.2. IFF internal database 1.3.3. Secondary sources & third-party perspectives 1.3.4. Primary Research 1.4. Information analysis 1.5. Market formulation & data visualization 1.6. Data validation & publishingCh | read more...