Construction Site Preparation Equipment Market Size

Construction Site Preparation Equipment Market Size

Construction Site Preparation Equipment Market size surpassed USD 900 million in 2021 and is expected to grow at over 6.5% CAGR between 2022 and 2028. Growing construction and infrastructure development activities across the globe are likely to drive the industry growth.

The equipment is used in site preparation that involves the upfront identification of site complications and confronting them prior to initiating any construction work, creating a positive market outlook. New innovations and increasing construction companies’ investments in equipment are enhancing the industry statistics.

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Supportive government initiatives toward infrastructure development are propelling the market demand. Governments of countries, such as India, China, and the UAE, are funding smart city projects and emphasizing on multi-level smart parking, urban mobility, market redevelopment, development of multi-modal transport hubs, solar power generation, and educational hubs.

The shifting construction companies’ focus toward machines for site preparation instead of manual method is fueling the industry revenue. Market players, such as Chicago Pneumatic and General Equipment Company, are unveiling new equipment to enrich their share. For instance, in August 2021, General Equipment Company announced the addition of 12 & 10-inch-diameter (305 and 254 mm) sizes to its 2350 Bor Max earth augers series. The product range can be utilized with the two-man operation EPIC series hole diggers range.

The key factors restricting the expansion of the construction site preparation equipment market are high capital investments for setting up manufacturing facility and high maintenance costs. Industry participants require large factories for new product testing & development, further adding to the overall property costs. The requirement for advanced manufacturing set-ups and a high working capital for this equipment are making entry barriers for new players in the sector. Additionally, the equipment’s frequent blade replacement and motor lubrication increase its maintenance cost.

The demand for construction site preparation equipment significantly declined in the first three quarters of 2020 owing to the spread of COVID-19 virus worldwide. This industry was challenged in 2020 by strict safety measures enforced by majority of governments globally. Construction site preparation equipment sale was hampered during the COVID-19 pandemic by the shutdown of sales channels and suspension of various construction projects. However, the market is predicted to witness traction from early 2022 on account of significant government investments in construction sectors to accelerate the economy growth.