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Construction Equipment Aftermarket Size By Product (Earth Moving & Road Building Equipment [Hydraulic Systems, Engine Parts, Axle & Transmission Parts], Material Handling & Cranes [Hydraulic Systems, Engine Parts, Axle & Transmission Parts], Concrete Equipment [Hydraulic Systems, Engine Parts, Axle & Transmission Parts]), By Sales Channel (Online, Offline), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 - 2027

  • Report ID: GMI5131
  • Published Date: Sep 2021
  • Report Format: PDF

Industry Trends

Construction Equipment Aftermarket size exceeded USD 20 billion in 2020 and is forecast to grow at over 5% CAGR from 2021 to 2027. Growing usage of construction equipment in infrastructure development and mining & energy transformation activities will drive the market revenue.

Rising equipment safety concerns and government regulations on equipment emissions are contributing to the industry statistics. High usage of machinery in construction activities leads to frequent wear & tear of spare parts, thus resulting in poor equipment and thereby supporting the demand.

Construction Equipment Aftermarket

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Stringent government regulations on emission and the safety of construction equipment are forcing equipment owners to check their equipment periodically to avoid any major failure. Regulations also mandate the periodic replacement of engine, suspension & hydraulic components if they are causing excess pollutions or creating a possibility of equipment failure. For instance, in Canada, as per the Occupational Health and Safety Act, R.S.O. 1990, c. O.1, defective parts in the equipment will be immediately removed & tagged as being defective. The newly replaced parts will provide safety and operations similar to the previous one.

The construction equipment spare parts industry is witnessing an upward market trend due to high investments in maintenance and refurbishment activities. Market leaders, such as Wajax Corporation, Hitachi Construction Machinery Loaders America Inc., and Palfinger AG, are establishing strategic partnerships to enhance their aftersales services. For instance, in August 2021, Hitachi Construction Machinery Loaders America Inc. and Wajax Corporation jointly announced their expansion plan from March 2022 in Canada. The companies will enable regional distributors to include mining equipment, excavators, and construction equipment aftermarket parts in their service offerings.

One of the key factors limiting the market growth is the high initial cost of replacement parts and services. Most of the company warranty plans do not cover all the spare parts, thereby increases replacement cost excluded parts that have a warranty. Additionally, construction equipment OEMs are establishing training facilities to train their equipment operators. Well-trained operators carefully handle construction equipment, reducing the wear and tear of machine components, thus negatively affecting the market statistics.

Technological developments, such as digital twin and connectivity solutions, in equipment are reducing equipment maintenance, affecting the industry revenue. Moreover, construction equipment owners are focusing on purchasing fail-safe machines with advanced sensor integration to reduce downtime and maintenance costs. Fail-safe machines offer the component’s overall statistics related to performance to the owner, enabling efficient management of equipment spare parts.

The construction equipment aftermarket experienced a decline in 2020 owing to the outbreak of COVID-19 pandemic. Construction equipment sales witnessed the hit worst in the first two quarters of 2020 impelled by the suspension of manufacturing operations, low demand, and disruptions in international logistics services. Companies including John Deere, Sany Global, and Kobelco Construction Machinery Co., Ltd. reported a sales decline of nearly 15% in their equipment & aftermarket services in 2020. The industry is anticipated to observe steady and slow recovery after the flattening of the pandemic curve.

Increasing adoption of earthmoving & road building equipment

In 2020, the North America earthmoving & road building equipment segment held more than 50% of the market share.  Key players, such as Volvo Construction Equipment, CNH Industrial, and Caterpillar Inc., are adopting 3D spare parts printing for cost reduction & shorter lead time.

Rising forestry work and digging of foundations & trenches are accelerating the adoption of excavators & loaders. High and consistent usage of these machines are propelling the construction equipment aftermarket demand globally. JCB India, Liebherr Group, and Terex Corporation are focusing on expanding their parts center networks to cater to the growing demand. For instance, in December 2020, JCB India established its largest part center, which is spread about 1,50,000 square feet in Haryana. This center will provide spare parts for earthmoving equipment to Northern India and fulfill approximately 40% of the market demand for JCB parts in India.

The increasing demand for hydraulic systems is encouraging component suppliers to expand their production capabilities to enhance their market shares.

The COVID-19 pandemic boosted parts sales through online sales channels

Europe Construction Equipment Aftermarket, By Sales Channel

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The online sales channel segment in Europe is predicted to register a growth rate of around 6.5% through 2027. The shutdown of offline service stores due to the pandemic has provided a positive market outlook for online sales channels. Several OEMs including Liebherr Group and HIAB AB are utilizing online portals to interact with their suppliers, customers, and dealers regarding parts replacement & maintenance activities. These players are expanding their warehouse networks worldwide to provide quick parts delivery to their existing clients.

Online portals, such as Heavy Equipment Spare parts, klickparts, Exkavator.ru, Chicago Pneumatic, and Blumaq provide a wide range of construction equipment aftermarket parts across the globe. Online portals are adopting different strategies including event organization to enhance their brand identity & presence.

Expansion of construction equipment companies in North America

North America Construction Equipment Aftermarket, By Region

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The construction equipment spare parts market size in North America crossed USD 5 billion in 2020. Industry participants, such as The Manitowoc Company, Inc., Terex Corporation, and Alta Equipment Group, Inc., are emphasizing on expanding their equipment sales & spare parts services on a regional level for revenue growth. For instance, in September 2021, Alta Equipment Group, Inc. acquired Gibson Machinery, LLC, a construction equipment provider, to expand its footprint in the U.S. market. With this acquisition, Alta Equipment Group, Inc. will be able to offer its equipment sales & parts replacement services in Cleveland, Ohio.

Construction equipment manufacturing companies are offering component care plans for new equipment to strengthen their corporate liaison with their clients. For instance, in April 2021, HIAB AB received an order of 108 HIAB loader cranes from Marshall Group. The company will also provide HIAB ProCare service for necessary maintenance and spare parts replacements without any extra charge for eight years. Marshall Group offers its equipment sales and spare parts replacement services to various construction companies in Europe and North America.

Key construction equipment aftermarket industryplayers include Volvo Construction Equipment, The Manitowoc Company, Inc., Terex Corporation, Tadano Limited, Palfinger AG, Liebherr Group, John Deere, Caterpillar Inc., Hitachi Construction Machinery Co., Ltd., Kobelco Construction Machinery Co., Ltd., Sany Global, and Zoomlion Heavy Industry Science and Technology Co., Ltd.

Market leaders are focusing on increasing their spare parts availability to offer quick spare part replacement services to their customers worldwide, which will accelerate the market expansion. For instance, in October 2020, Liebherr GmbH announced to build a central spare part warehouse in Ehingen, Germany by May 2023. The company is constructing its warehouse in cooperation with Jungheinrich, an automated warehouse & material handling service provider, to automate parts distribution in the warehouse.

The construction equipment aftermarket research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2021 to 2027 for the following segments:

Market, By Product

  • Earthmoving and Roadbuilding Equipment 
    • Hydraulic Systems
    • Engine Parts
    • Axle & Transmission Parts
    • Others
  • Material Handling and Cranes 
    • Hydraulic Systems
    • Engine Parts
    • Axle & Transmission Parts
    • Others
  • Concrete Equipment 
    • Hydraulic Systems
    • Engine Parts
    • Axle & Transmission Parts
    • Others

Market, By Sales Channel

  • Online
  • Offline

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Latin America
    • Brazil
    • Mexico
  • MEA
    • Saudi Arabia
    • UAE
    • South Africa


Authors: Preeti Wadhwani, Prasenjit Saha

Frequently Asked Questions (FAQ) :

The construction equipment aftermarket size was around 20 billion in 2020 and is anticipated to rise at a 5% CAGR up to 2027 owing to rising adoption in infrastructure development and mining & energy transformation activities.

Europe construction equipment aftermarket share from online sales channels could observe a 6.5% growth rate through 2027 driven by higher utilization of online portals by a wide number of OEMs.

North America construction equipment spare parts market size was worth USD 5 billion in 2020 and will grow with the increasing emphasis of industry participants on expanding their equipment sales & spare parts services.

Some of the companies supplying and manufacturing construction equipment include Volvo Construction Equipment, The Manitowoc Company, Inc., Terex Corporation, Tadano Limited, Palfinger AG, Liebherr Group, John Deere, and Caterpillar Inc.

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Premium Report Details

  • Base Year: 2020
  • Companies covered: 14
  • Tables & Figures: 271
  • Countries covered: 16
  • Pages: 190

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