Construction Equipment Market Overview
The construction equipment market is poised to expand at a CAGR of over 4% during the forecast period of 2020 to 2030. Construction equipment is specially designed machinery used to perform construction operations in various industries such as mining, construction, ports, manufacturing, and forestry, among others. This equipment is used for various functions such as drilling, hauling, excavating, paving, and grading.
The COVID-19 pandemic is having a negative impact on the building and construction industry. Due to the imposition of lockdowns, most construction activities were halted in many countries, though now things are improving. Due to the pandemic, key manufacturers are witnessing fluctuation in demand, which mainly changes market trends.
Manufacturers are also developing temporary solutions to avoid the impact COVID-19 on the global construction equipment market. According to the Committee for European Construction Equipment (CECE), the European construction equipment industry will be impacted by 60%.
Construction Equipment Market Insights by Ownership
Construction equipment rental business has been gaining traction due to rising cost of purchasing equipment, increasing economic uncertainty, lack of capital, technology up-gradation, and unpredictable construction and infrastructure growth. Rising infrastructure development projects across the globe will drive the construction equipment rental business.
Construction companies and contractors are shifting their preferences toward equipment rental services to save cost on construction machines. The construction equipment market will account for nearly 85% of the overall value opportunity during the forecast period.
Manufacturers are venturing into providing rental services, which is encouraging the demand for construction equipment. This, in turn, will push manufacturers to offer rental and leasing services. For instance, Hyundai Construction Equipment engages in offering these rental and leasing services to customers. Such rental and leasing services by equipment manufacturers are foreseen to drive the expansion of the construction equipment market size over the coming years.
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Construction Equipment Market Insights by End Use
The construction end use segment of the construction equipment market is foreseen as the most remunerative segment in the global market, expanding at a significant CAGR of over 5% in terms of value across the forecast period.
Increase in investments made by governments in developed and developing countries for infrastructure development projects are anticipated to drive market growth. For instance, as per a report by Euroconstruct, in 2019, construction output reached about US$ 1,900 Bn in European countries.
Despite challenges posed by COVID-19, the construction industry is set to regain traction by 2021, owing to government initiatives to improve infrastructure and stabilize the economic condition caused by the pandemic. For instance, the US Transportation Department announced US$ 906 Mn investment through the Infrastructure for Rebuilding America (INFRA) discretionary grant program. This, in turn, is anticipated to trigger the use of construction equipment, consequently driving their demand and sales.
Regional Outlook of Construction Equipment Market
East Asia and South Asia are estimated to account more than 45% of the total construction equipment market share in 2020. Asian countries are projected to experience significant growth in construction, infrastructure, and mining industries.
Further, increasing industrialization in developing countries of Asia, owing to rising infrastructure activities, coupled with growing number of agricultural activities, is expected to boost the growth of the construction equipment market. In North America, strong presence of prominent companies is aiding the growth of the construction equipment industry.
The market in the Middle Eastern region is projected to expand at over 3% CAGR during the forecast period. This growth can be attributed to rising demand for infrastructure spending in this region. Europe generated substantial revenue in 2019, and is expected to witness more growth owing to increasing demand from the machine and equipment sector.
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Construction Equipment Market: Competitive Landscape
The global construction equipment market is fragmented in nature, with the presence of numerous global and regional players. Some of the players are Caterpillar Inc., CNH Industrial N.V., Volvo Construction Equipment, Komatsu Limited, Hitachi Construction Machinery Co., Ltd, among others. Market players are focusing on expanding their footprints and increasing their product portfolios to gain a competitive advantage.
Examples of such product expansion are: In 2020, Volvo Construction Equipment launched the new DD128C compactor. This advanced compactor has the highest frequency in the industry, resulting in greater productivity. The new DD128C compactor delivers the fastest rolling speeds whilst maintaining proper impact spacing, to provide the most productive rolling train available.
COVID-19 Impact on Construction Equipment Market
The outbreak of COVID-19 has presented multiple challenges for construction equipment manufacturers. The effect on manufacturers will be profound and lasting due to the restrictions imposed on construction activities, scarcity of labor, and volatile demand for construction equipment.
Post COVID-19 crisis, manufacturers will focus on increasing their presence in developing economies, owing to the positive outlook of various industries in these regions.
As per a recent report published by Fact.MR, it is estimated that, the construction equipment market will be stagnant till the end of 2020, and as the pandemic situation is contained, the market will regain its original growth trajectory.
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The Analyst’s Viewpoint
“Changes in customer behavior and heightened regulatory norms are encouraging manufactures to make a swift transition toward electro mobility. Further, rising consumer awareness and growing prominence of next-generation technologies are anticipated to drive industry focus toward the electrification of construction equipment”.
Global Construction Equipment Market: Scope of the Report
The recent global construction equipment market report by Fact.MR offers a 10-year forecast for 2020 to 2030. The report elaborates on key drivers, restraints, opportunities, and threats to the expansion of the global construction equipment market. A detailed segmental analysis, based on product, power output, ownership, and end use has been provided in the report.
Regional analysis in terms of supply chain analysis, business execution, and market value analysis provides an in-depth perspective about the future scope of the global construction equipment market. In addition, a separate section on the market structure has also been provided. This section provides detailed analysis of key market players and the strategies for expansion in the construction equipment market.
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Key Segments of Construction Equipment Market
Fact.MR’s study on the construction equipment market offers information divided into five key segments— equipment, power output, end use, ownership, and region. This report offers comprehensive data and information about the important market dynamics and growth parameters associated with these categories.
Key Questions Answered in Fact.MR’s Construction Equipment Market Report
- Which regions will continue to remain the most profitable regional markets for construction equipment market players?
- Which factors will induce a change in the demand for construction equipment during the assessment period?
- How will changing trends impact the construction equipment market?
- How can market players capture the low-hanging opportunities in the construction equipment market in developed regions?
- Which companies are leading the construction equipment market?
- What are the winning strategies of stakeholders in the construction equipment market to upscale their position in this landscape?
Construction Equipment Market: Research Methodology
In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the construction equipment market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the conclusions.
Secondary resources referred to by analysts during the preparation of the construction equipment market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of this report as a primary resource.
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Is the market research conducted by Fact.MR?
Yes, the report has been compiled by expert analysts of Fact.MR, through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to a research analyst.
What research methodology is followed by Fact.MR?
Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
What are the sources of secondary research?
Fact.MR conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
Who are the respondents for primary research?
Fact.MR speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, and industry experts. For a full list of primary respondents, please reach out to us.
Is a sample of this report available for evaluation?
Yes, you can request a sample, and it will be sent to you through an email.