Construction Equipment Market size worth around $160 Bn by 2026
Published Date: June 15, 2020 Authors: Preeti Wadhwani, Prasenjit Saha
Construction Equipment Market size is set to be over USD 160 billion by 2026, according to a new research report by Global Market Insights, Inc.
The construction equipment industry is driven by the rising demand for equipment rental across the globe. The high cost of new equipment is encouraging building contractors to rent the required machinery. The growing demand is encouraging rental equipment companies to provide technologically advanced, high-quality construction equipment to their customers, contributing to the market growth.
Rising labor costs and stringent labor safety regulations are promoting the demand for autonomous machinery in the construction industry. China’s new Workplace Safety Law revised in 2014 penalizes companies involved in serious workplace accidents with fines up to USD 3.25 million. Similarly, worker safety regulations enforced by authorities, such as ANSI and OSHA, are encouraging infrastructure development companies to adopt high-quality construction equipment, augmenting the construction equipment market size.
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Lack of standardization related to emission regulations of construction equipment may challenge the growing market. Varying emission norms in different geographical regions is one of the major industry challenges impacting the market. However, the ongoing efforts to standardize emission regulations by organizations, such as ISO and IEC, will minimize the impact of this restraint. Additionally, the high production cost involved in the manufacturing of complex construction equipment is posing a threat to the new entrants in the market.
Analyst view: “The construction equipment industry will witness a rapid growth owing to the emergence of smart machines integrated with IoT and AI technologies. Significant improvement in performance and enhanced operator safety provided by these machines will drive the market growth.”
The growing spread of COVID-19 in several countries has impacted the construction equipment sector. The industry is facing a temporary slowdown owing to disruptions in logistics and delays in raw material supplies. Social distancing measures implemented by government authorities and labor shortages are posing several challenges to construction activities. Moreover, the sales and distribution facilities of several market players are temporarily shut down, impacting the industry growth. The market forecast shows that the construction equipment market will witness a steady growth with the reduction in the spread of the virus.
Browse key industry insights spread across 250 pages with 221 market data tables & 29 figures & charts from the report, “Construction Equipment Market Size By Product (Earthmoving & Road Building Equipment [Backhoes, Excavators, Loaders, Compaction Equipment, Others], Material Handling & Cranes [Storage & Handling Equipment, Engineered Systems, Industrial Trucks, Bulk Material Handling Equipment], Concrete Equipment [Concrete Pumps, Crushers, Transit Mixers, Asphalt Pavers, Batching Plants]), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020-2026” in detail along with the table of contents:
Increasing demand for material handling equipment for large construction projects
Market data shows that the material handling equipment market segment was valued at over USD 30 billion and will grow at the CAGR of over 4% from 2020 to 2026. The rising importance of bulk-material handling equipment for speedy completion of large infrastructure projects is augmenting the equipment demand in the market. The growing market trend of construction of large commercial establishments and skyscrapers will promote the use of material handling construction equipment in the industry.
Features, such as high mobility and large load carrying capacity, offered by industrial trucks are expected to proliferate their deployment in the construction industry. These vehicles integrated with hydraulic systems significantly assist in moving heavy machinery and loads across construction sites. The consistent advancements in technology have propelled the introduction of electric and hybrid industrial trucks in the construction market, contributing to the segment growth.
Industry leaders in the construction equipment market are making significant investments to manufacture industrial trucks in response to the high demand. For instance, in March 2019, German industrial truck manufacturer KION Group AG announced its plans to expand its geographical footprint in the Asia Pacific region. The group will invest approximately USD 17 million in capital expenditure to develop its 94,000 square meter plant in Pune, India. The new facility will comprise an R&D center and production unit, assisting the business growth and market representation of the company in India.
Rising demand for commercial infrastructure development in North America
The North America construction equipment market is anticipated to reach at over USD 30 billion by 2026. The rapid development of commercial and residential establishments in North America is fueling the demand for advanced construction equipment in the region. Moreover, increasing government investments in infrastructure development are favoring the market growth. For instance, the government of Canada invested USD 81.2 billion under its ‘Invest in Canada’ program for the development of public and commercial infrastructure in the country. Furthermore, the rising disposable income and high demand for sophisticated residential and office buildings in North America are driving the growth of the market.
Leading market players are focusing on new product launches and business expansion strategies to cater to the growing demand for construction equipment across the globe. For instance, in April 2020, Terex Corporation announced the launch of its new mobile bulk handling solutions. The ‘ProStack’ range of material handlers offers an extensive portfolio of equipment to cater to the requirements of bulk material handling and construction industries. The market applications of the products include mining, agriculture, ports & terminals, and recycling industries.
Key players in the construction equipment market include Caterpillar, Hitachi Construction Machinery, Komatsu Ltd, CNH Industrial, Terex Group, Liebherr, Kobelco Construction Machinery Co., XCMG Group, Zoomlion, and Sany.
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