Market Outline – Construction Equipment Market
Construction equipment is a type of machinery designed used for the purpose of performing construction operations. Such equipment is also used for various functions like grading, drilling, hauling, paving and excavating. Different industries come under construction equipment market like oil & gas, construction & infrastructure and manufacturing. Even if, the construction sector is low presently and affecting the sales of construction equipment, the market is anticipated to recover during estimated period soon.
Market Drivers & Restraints
Public-private partnerships are the leading reason of construction equipment industry market growth. These partnerships refer to a joint venture between private sector and government sector companies to build public infrastructure systems. Increasing public private partnerships in various countries like China. India, Africa is anticipated to boost the construction equipment market growth. Another prominent reason to drive the market growth is increasing urbanization around the world leads to increase in demand for building infrastructure like transportation and residential. Technology advances are anticipated to create profitable opportunities for industry players of the market. Another significant market driving factor is increasing number of smart city projects. Increasing demand for backhoe loaders, huge excavators and heavy construction equipment lead to drive the market growth. There are some factors like carbon emission and government guidelines can contribute in restraining the market growth. High price of oil and equipment can hinder the market growth.
By Equipment Type
- Mini Excavators
- Motor Grader
- Wheeled Excavator
- Road Roller
- Skid-Steer Loader
- Rigid Dump Truck
By Application Type
- Residential Buildings
- Commercial Buildings
- Industrial Buildings
There are several manufacturers entering into offering rental services to encourage the demand for construction equipment. Consequently, it will enable manufacturers to provide rental as well as leasing services. For example, Hyundai Construction Equipment firm provides such leasing and rental services to customers and this will drive the construction equipment market growth. In spite of the negative impact of COVID-19 on construction industry, it stated setting to recover traction by 2021 because of the government initiatives for augmenting as well as stabilizing the financial circumstance caused by COVID-19. US Transportation Department made an announcement of doing investment through the infrastructure to rebuild America discretionary grant program. As a result, this investment is evaluated to increase the construction equipment use and drive their demand in market.
The Asia Pacific region was considered as the most profitable region in this sector. It covered the market profit size of almost USD 60 billion in the year 2019 and is evaluated to expand at a CAGR of 4.9% during the forecast period. China also witnessed a powerful performance in the year 2019 as the investment in infrastructure is increased.. Heavy commercial truck sales and excavator recorded great performance last year as a result of the increasing number of construction projects. China is another crucial contributor in the manufacturing construction equipment because of the low production price, availability of best manufacturing facilities in the region, low labor cost and several OEMs. On the other hand, Corona Virus pandemic created negative effect on the manufacturing as well as supply chain sector. The European region is witnessing a positive outlook in the construction segment, which has led to the increasing demand for construction equipment. Increasing demand for technologically advanced machinery in North American region is driving the construction equipment market growth.
The market is hugely concentrated and competitive as the topmost industry players are ruling the market share. Industry players operating in the market are Liebherr, Volvo Construction Equipment, Caterpillar Inc. recorded the huge market share. Fuel efficient machinery, improved design and technological innovation are the key parameters of these industries follow in the market.