Used Construction Equipment Market, Global Industry Analysis Report, Regional Outlook, Trend, Competitive Market Share & Forecast, 2020 – 2026
Report ID: GMI4793
Used Construction Equipment Market size is expected to witness high growth during the forecast timeline. The increasing demand to reduce the operating costs in construction businesses will drive the market growth. Used construction equipment is available at a low-cost from various aftermarket vendors, significantly assisting construction companies to reduce their cash flow. Purchasing used construction equipment allows companies to instantly procure the equipment rather than waiting for the machine to be manufactured and then delivered. Used construction equipment can be bought at a lower price for specialty jobs and can be sold off again, providing the construction companies a good return on investment.
Construction OEMs sell used equipment through their websites and verified dealers to generate a new revenue stream, further driving the market growth. Used equipment sold by OEMs is properly maintained, which will increase the value of the equipment. OEMs provide after-sales services to used construction equipment such as maintenance of parts and accessories, warranty on the used equipment. It also allows construction companies the benefit of adding features that are available in the latest models at an extra cost. This gives a sense of satisfaction to the construction companies about the quality of the products purchased.
The availability of low-quality construction equipment on third-party e-commerce websites will create a hindrance to used construction equipment market growth. Third-party e-commerce websites allow the sale of construction equipment without a proper quality check. The equipment available is not properly maintained and is sold without a warranty & guarantee. Customers purchasing from these websites face issues related to after-sales service within a few months of operational activities. The COVID-19 pandemic is also restricting the growth of the used equipment market due to a halt on infrastructure projects to contain the spread of the virus.
The backhoe construction equipment will experience a significant demand during the forecast timeline due to the availability of multi-purpose backhoe loaders in the construction industry. These are highly versatile machines that can be used for off-road and on-road activities. Bulldozers are the most used equipment for cleaning and demolition of construction sites due to their heavy weight and size, contributing to the segment growth. Bulldozers can also be used on rough terrains, which adds to their versatility.
The Asia Pacific region poses a huge growth opportunity for the used construction equipment market due to high investments in construction activities. Government & private sector companies in this region are spending heavily on improving public infrastructure and construction of residential buildings & roads to provide connectivity between the rural & urban areas. Some of the public infrastructure projects include the construction of airports, metro connectivity, and construction of a robust road network connecting the towns and cities of a country. The building construction market will also create a demand for used machines. Large-scale construction of high-rise commercial & residential buildings is creating the demand for used equipment such as bulldozers, AWP equipment, and backhoe loaders. The construction companies operating in the region prefer high-quality used construction equipment than new construction equipment.
North America is expected to witness a rapid demand for used construction equipment. Construction is one of the largest industries in this region. The U.S. construction industry makes up to about 10% of the national GDP. The growth in the construction industry is majorly attributed to the construction of high rise commercial and residential buildings. Furthermore, increasing investments in the maintenance and repair of public infrastructure are also fueling the regional market growth.
The used construction equipment market is fragmented with various individual e-commerce and large OEM’s operating in the industry. Some of the key players include Caterpillar, Inc., Komatsu Ltd., Hitachi, Volvo, Terex, Liebherr, John Deere, and Goosmann Baumaschinen GMBH. These industry players focus on conducting auctions of used construction equipment to generate sales. Some OEMs offer certified rebuild programs that upgrade machines with the latest features similar to new machine models. For instance, Caterpillar offers CAT Certified Rebuild Program, which provides customers with rebuilt machines that are updated for a very low-cost.
Market, By Product
- Earthmoving & road building equipment
- Compaction equipment
- Material handling & cranes
- Storage & handling equipment
- Engineered systems
- Industrial trucks
- Bulk material handling equipment
- Concrete equipment
- Concrete pump
- Transit mixer
- Asphalt paver
- Batching plant
The above information has been provided for the following regions and countries:
- North America
- Asia Pacific
- South Korea
- Latin America
- Saudi Arabia
- South Africa
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