Heavy Construction Equipment Market size is expected to grow significantly during 2021 to 2027. The equipment increases the efficiency of the machines and reduces manpower & project timeline. The adoption of heavy construction equipment offers profitable opportunities for market players. The rapid urbanization and increasing government investments in the construction & manufacturing industry are the major factors supporting the market revenue. The rising number of building maintenance & reconstruction activities in several countries globally is increasing the demand for heavy construction equipment.
Governments are investing heavily in the smart city infrastructure development program, augmenting the growth of heavy construction equipment market. For instance, in 2019, the U.S. government invested USD 1 trillion for infrastructure development and allocated USD 67 billion for the refurbishment & maintenance of aging buildings in the country. The integration of IoT and sensor technologies into heavy construction equipment increases its operational efficiency, attracting more customers. The major factor challenging the industry growth is the high market price of these machines. Budget constraints in small construction projects restrict the adoption of costly heavy construction equipment.
The COVID-19 pandemic adversely affected the market, which created a situation of lockdown and restricted the global construction and mining operations. The strict lockdown imposed by the government made the companies face a shortage of capital investment and lack of workforce. Mining and construction companies have either avoided or postponed their buying decisions of heavy construction equipment during the year. Supportive government policies and future megaprojects will generate favorable outcome.
The earthmoving equipment market is projected to expand at exponential growth rate over the forecast period due to the need for conducting excavation in confined spaces, supporting the development of earthmoving equipment. The increasing greenhouse gas emissions & harmful substances from the construction equipment and the need for reduced noise emissions have compelled manufacturers to develop eco-friendly machinery, supporting the heavy construction equipment market expansion.
The building & construction segment is anticipated to witness substantial growth through 2027. The rise in construction of business complexes, shopping malls, residential buildings, and airports in Tier 2 & Tier 3 cities is driving the market demand.
Asia Pacific is poised to have a substantial share in the global heavy construction equipment market and is likely to remain dominant by 2027 owing to increasing government and private sector investments in infrastructure development. India and China are developing rapidly on account of the increasing demand for residential apartments. The increasing number of accidents on construction sites is driving the adoption of autonomous construction equipment to ensure labor safety.
The leaders in the heavy construction equipment market are focused on launching new products & solutions; for instance, in August 2019, Caterpillar launched 16 new Cat D3 series Skid Steer Loader (SSL) and Compact Track Loader (CTL) models. The new models have strengthened the company’s portfolio, delivering high performance brush cutting, mulching, mowing, and vegetation control.
Key players in the heavy construction equipment market are AB Volvo, CASE Construction, Caterpillar Inc., Cnh Global Nv, Deere & Company, Doosan Infracoe, Hitachi Machinery Construction, Hyundai Heavy Industries Ltd., JCB, John Deere & Co., Kobelco Construction Machinery Co. Ltd., Komatsu, Liebherr AG, and Sany
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