Construction Equipment Market worth over $155bn by 2027
Published Date: May 25, 2021 Authors: Preeti Wadhwani, Prasenjit Saha
Construction Equipment Market size is set to exceed USD 155 billion by 2027, according to a new research report by Global Market Insights Inc.
Rising demand for equipment rental services is driving the market growth. Rental service providers are making large investments in expanding their equipment fleet to cater to the rising demand for rental services. For instance, in March 2018, Briggs Equipment invested around USD 14.4 million to expand its forklift hire fleet. This aided the company to increase its forklift fleet to 5,000 units.
Increasing urbanization and growing population, primarily in Africa and Asia Pacific region, are propelling the construction equipment market demand. With an increase in the number of people living in urban areas, demand for new houses, industries, public transport infrastructure, schools, and malls is on the rise. For instance, the Airports Authority of India (AAI) is planning to develop at least 100 airports, heliports, and waterdromes by 2024 under the regional air connectivity scheme.
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The rapidly developing oil & gas, mining, and real-estate industries across the Middle East are fueling the construction equipment market expansion. According to the International Trade Administration, in May 2020, new construction & infrastructure projects worth around USD 3.1 billion were announced in GCC with the UAE accounting for around 55% of the value of total new construction announcements.
The high price of construction equipment is a major factor challenging the market growth. Equipment manufacturing companies are making large investments in automated machines and improving material quality to enhance safety and to meet government regulations pertaining to operator & equipment safety, increasing the total cost of new equipment. Moreover, a lack of skilled operators is hampering the industry growth.
Browse key industry insights spread across 250 pages with 221 market data tables & 28 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]), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 - 2027” in detail along with the table of contents:
The COVID-19 pandemic has significantly impacted the overall value chain of the construction equipment manufacturing process. Industry players are primarily facing a shortage of raw materials and components. The unavailability of labor and decreasing market demand due to lockdown in several economies are hampering the production process. For instance, during the first two quarters of 2020, Volvo, Caterpillar, and Terex reported a temporary shutdown of their production facilities across the globe to align the product supply with reduced product demand.
Growing demand for material handling machines
The material handling & cranes segment in the construction equipment market is poised to grow at a CAGR of over 4.5% through 2027. The rapidly growing transport & logistics industry across the globe is creating a huge demand for pallet racking equipment, sortation systems, and forklifts.
Industry participants are introducing new forklift models to cater to the rising demand for advanced material lifting solutions. For instance, in September 2020, Doosan launched a new 9-Series line of forklifts. The new Stage V compliant equipment is specifically designed for the European market. The new model has improved speed limits, LED lights, and visibility that aids in enhancing operator safety.
Growing investments in the North America public and private construction sectors
The North America construction equipment market size is anticipated to reach USD 30 billion by 2027, attributed to rising public and private sector investments in construction projects. According to the U.S. Census Bureau, during the first three months of 2021, the construction industry spending in the U.S. accounted for USD 328.3 billion, around 4.5% for the same period in 2020.
The growing demand for fuel-efficient & advanced construction equipment is rapidly gaining popularity in North America owing to their cost-effective performance and high level of safety. Several construction companies in the region prefer to use fuel-efficient construction equipment as they allow fuel savings and emit less carbon. Moreover, the introduction of stringent government policies in the region pertaining to carbon emission levels will spur the adoption of advanced construction equipment.
The presence of several established construction equipment rental services providers including United Rentals, Ahern Rentals, and Herc Rentals will boost the market expansion. Rental companies are expanding their fleets and adopting automated construction machinery to support the construction equipment market growth trend.
Industry players are focusing on new product launches, partnerships, and strategic acquisitions to enhance their market share and gain a competitive edge over rivals. For instance, in March 2021, JSC KAMAZ launched a new range of Atlant automation-ready dump trucks, primarily designed for the mining industry. The new truck is integrated with Allison 4700 complete automatic transmission, progressive steering, and hydraulic retarder, offering high safety and maneuverability.
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