Construction Equipment Finance Market Analysis

Construction Equipment Finance Market Analysis

Based on financing type, the construction equipment finance market is divided into loans and mortgage. The loans segment accounted for around 72% of the market share in 2022. The loan segment is growing as loans offer businesses the flexibility to own the equipment outright, allowing them to build equity over time. Low-interest rates and attractive financing terms encourage borrowers to opt for loans. The growing demand for construction equipment due to infrastructure development projects and increasing construction activities further boosts the demand for financing options. Favorable government policies & incentives for equipment financing contribute to the expansion of the loan segment in the market.
 

Based on equipment, the construction equipment finance market is categorized into earthmoving, material handling, concrete & road construction, and transportation. The earthmoving equipment segment held around 62% of the market share in 2022. The earthmoving equipment segment is expected to grow due to several factors including growing urbanization and infrastructure development projects globally that are creating a higher demand for earthmoving machinery. Technological advancements, such as improved fuel efficiency and telematics integration, are garnering the interest of businesses to invest in newer & more efficient equipment. Additionally, the availability of flexible & customized financing options is encouraging construction companies to upgrade their fleet without significant upfront costs.
 

Asia Pacific led the global construction equipment finance market with a share of over 43% in 2022. Rapid urbanization, infrastructure development initiatives, and growing industrialization are increasing the demand for construction equipment in the region. The availability of flexible financing options and supportive government policies are encouraging businesses to invest in modern & advanced machinery. As the construction sector continues to expand, Asia Pacific presents vast opportunities for construction equipment finance providers to cater to the growing needs of businesses.