Used Construction Equipment Market size is predicted to expand at over 5.8% CAGR from 2023 and 2032. The high cost of new construction equipment stands as a prominent catalyst for the burgeoning demand for used machinery. As new equipment prices continue to surge due to factors such as technological advancements and inflation, construction companies, including those engaged in smart city initiatives, are increasingly turning to the used equipment to optimize their expenditure. This cost-conscious approach allows firms to allocate resources more strategically, ensuring that budget limitations do not hinder the progress of vital infrastructure projects. This factor, coupled with the rising number of refurbishment and reconstruction projects is boosting the growth of used construction equipment market.
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The increasing utilization of pre-owned construction equipment in smart city projects for agile, fficient, and cost-effective construction process is favoring the market outlook. The concerns regarding the reliability and quality of pre-owned machinery will act as a major challenge. Potential buyers may face apprehensions regarding the condition and performance of used equipment, necessitating stringent inspection and verification processes. Moreover, the rapid pace of technological advancements in the construction industry can render older equipment less compatible with modern construction practices, thereby hindering seamless integration into contemporary projects.
|Forecast Period:||2023 to 2032|
|Forecast Period 2023 to 2032 CAGR:||5.8%|
|Historical Data for:||2016 to 2022|
|No. of Pages:||200|
|Tables, Charts & Figures:||243|
|Pitfalls & Challenges:|
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The COVID-19 pandemic had a huge impact on the used construction equipment market, attributed to the disruptions across the construction sector and broader economic uncertainties. The initial lockdowns and subsequent supply chain disruptions impeded both the trade and transport of pre-owned machinery. There were prolonged project delays and financial constraints faced by construction companies, leading to cautious spending. While the businesses showcased resilience and adaptability, the pandemic highlighted the significance of agile strategies and digital platforms in the evolving business development.
Escalating environmental consciousness has shifted the focus to sustainable practices, driving demand for eco-friendly and energy-efficient machinery. Additionally, the integration of advanced technologies such as telematics and IoT solutions has revolutionized equipment monitoring & maintenance, enhancing operational efficiency with minimized downtime. Most importantly, the rise of rental and leasing models provides flexibility to construction companies, enabling them to access required equipment while mitigating capital expenditures.
The road building & earthmoving equipment segment is anticipated to witness high demand for machinery, such as excavators, loaders, backhoes, and compaction equipment. The segment growth is backed by the increasing urbanization and rapid infrastructure development. The usage of pre-owned earthmoving & road building equipment helps in expediting projects and optimizing resources, while ensuring efficient construction. The constant focus and inflowing investment for the development of public infrastructure, including roads, railways, bridges, and highways among others will bolster the demand for used construction machinery that is capable of operating in varied terrains with minimal capital investment.
Europe used construction equipment market held a significant revenue share in 2022 and is poised to impressive growth over 2023 to 203, owing to the supportive regulatory frameworks, and technological advancements. The region has been at the forefront when it comes to the development of advanced infrastructure with the continuous funding by the governments.
As per the provisional data released by Federal Statistical Office (FSO) of Switzerland, the nation’s investment in construction surged by 1.8% 2022 as compared to 2021. Also, the focus on sustainable construction practices that promotes repurposing and recycling to minimize waste and carbon footprint is augmenting the demand for used construction machinery in Europe, adding the market value.
Some of the key used construction equipment market players are
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