Market Overview
Construction equipment is specially designed machinery that carries out heavy-duty operations in the construction sector with high efficiency & in minimal time. With the growing number of construction & development projects worldwide, many contractors and construction companies are augmenting the demand for this equipment to speed up the project without compromising safety & security.
The most common varieties of construction equipment include excavators, loaders, bulldozers, skid steer loaders, motor graders, crawler loaders, trenchers, dump trucks, cranes, forklifts, tippers, road rollers, & diesel generators, among others. Hence, as the construction industry is growing astronomically in response to the tremendous demand for infrastructure development from emerging economies, the demand for construction equipment is expected to continue growing in the coming years.
Market Insights
The Global Construction Equipment Market is projected to grow at a CAGR of around 5% during the forecast period, i.e., 2022-27. The market is driven by an exponentially rising population & growing government focus on infrastructural development to facilitate & habituate the public. It is also demonstrating a swift rise in construction activities and an upsurging demand for different construction equipment.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 5% |
| Regions Covered | North America: The United States, Canada, Mexico |
| Europe: The UK, Germany, France, Russia & CIS, Rest of Europe | |
| Asia-Pacific: India, China, Japan, South East Asia, Others | |
| South America: Brazil, Chile, Argentina, Others | |
| Middle East & Africa: Saudi Arabia, UAE, Qatar, Kuwait, Nigeria, South Africa, Rest of Middle East | |
| Key Companies Profiled | Caterpillar, Volvo, Komatsu, CNH Industrial, Liebherr, Hitachi Construction, John Deere, Doosan, JCB, Terex, Others |
| Unit Denominations | USD Million/Billion |
In addition, governments of various countries are actively participating in the industry through investments & initiatives associated with development & construction across sectors like residential, commercial, & industrial, among others. It, in turn, is generating growth opportunities for the players to increase their production & distribution capacities for construction equipment & cater to the burgeoning demands globally. Since this equipment enables speeding up the process & successful completion of the project, different equipment like Earthmoving Equipment, Material Handling Equipment, & other construction equipment like road rollers & diesel generators, among others, are gaining popularity & demand across locations. For instance:
Besides, owing to the benefits of quicker task completion, minimal utilization of human power, and cost-effectiveness, several manufacturers are introducing new equipment integrating advanced technologies like the Internet of Things (IoT), Artificial Intelligence (AI), and Machine Learning (ML), among others. It is principally to bring automation & efficiency to construction & development projects & stimulating the overall industry growth worldwide. Moreover, many countries like India across regions like Asia-Pacific are emerging as opportunity areas for the players owing to the mass-scale domestic markets & rapid infrastructure development activities, exemplifying a long-term demand for construction equipment.
Hence, many players are diverting their product offerings to these regions & establishing production units to attain the highest revenue profits. In the same view, many Public-Private-Partnerships (PPP) are also observed across locations to widen the consumer base & brand visibility and attain a competitive edge in the industry. For this, many players are demonstrating product upgrades to expand the equipment applicability across sectors like mining, forestry, agriculture, waste management, and material handling, among others, and drive the market through 2027. For instance:
Key Trends in the Global Construction Equipment Market
Since many contractors understand the high investment cost for construction equipment comes with additional expenses like maintenance, repairs, transportation, and project duration-based requirements, among others, many of them are now procuring construction equipment on a rental basis for the duration of the project. In this way, they can mitigate additional costs and instead invest them in other endeavors.
It, in turn, is also instigating construction equipment owners to offer rental services to contractors and gaining more traction in the industry by making higher profits across locations. According to Construction Equipment Rental Association (CERA), countries like China & India are anticipated to demonstrate a surging demand for rental services for construction equipment, backed by the increasing number of development & construction projects during the forecast period.
