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.
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.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|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.
Based on Application:
The demand for construction equipment for Mining applications is likely to increase at an astronomical pace during 2021-26. Mines are industrial sites that require heavy machinery for continuous & highly-efficient operations. The profits in the mining industry are impacted highly by the efficiency of construction equipment.
In addition, the launch of technologically advanced equipment is leading to the enhanced speed of tasks while ensuring safety. Further, the adoption of crews & excavators for the mining of precious stones & minerals Is another crucial aspect projected to contribute to the overall market growth.
Based on Type of Equipment:
Material Handling Equipment is beneficial for the storage & movement of materials & goods during their manufacturing, distribution, and disposal. These types of equipment are used widely in warehouses & manufacturing plants. The surging popularity of material handling equipment in the logistic industry is because it offers perfect control on the material movement as well as saves costs.
Further, the rising demand for automation to increase the speed of operation & enhance the productivity of businesses is providing a lucrative opportunity for the market. Using advanced material handling equipment can help make the supply chain more efficient and minimize downtime of manufacturing plants.
On the geographical front, the Global Construction Equipment Market expands across:
Among all, the Middle East & Africa is anticipated to dominate the market with the largest share during the forecast period. This dominance attributes to the growing focus of the governments of different countries in the region to diversify their economy away from oil and enhance the overall infrastructure of the country to attract foreign investments, making the region a hub of opportunities in the coming years.
It, in turn, is demonstrating a significant number of construction & development activities across residential, commercial, and industrial sectors, projecting a high & continual demand for construction equipment for the efficient completion of projects. Such aspects are generating growth opportunities for the leading players to increase their production & distribution capacities and cater to the burgeoning demands in the region. Besides, many countries in the Gulf also indulged in their plans called "Visions" and positively influence the construction equipment market.
On the other hand, Asia-Pacific is anticipated to exemplify the fastest growth in the Global Construction Equipment Market during 2022-27. The market is driven by the active participation of the governments of countries like China & India, demonstrating a significant number of construction & development projects and augmenting the demand for construction equipment. Besides, the availability of this equipment on a rental basis is also expanding the consumer base across the region and generating lucrative growth opportunities for the leading players.
China is projected to dominate the market with the highest share across Asia-Pacific on the back of numerous emerging players introducing technologically-driven construction equipment and stimulating the industry growth through 2027. Besides, the rise in the number of construction projects by the governments is also positively influencing the demand for construction equipment in China and stimulating market growth. For Instance:
Recent Developments in the Global Construction Equipment Market
Backed by the swift escalation in the number of developmental projects across different countries across the world, various private companies & governments are augmenting the demand for construction equipment for the development & construction of commercial & residential buildings.
Moreover, countries like the US, China, & India, among others, are investing substantially in public infrastructure developments and exemplifying an accelerating demand for this equipment to facilitate tasks efficiently. In addition, snowballing the number of smart city projects is another crucial aspect contributing to the growing demand for construction equipment and stimulating the overall industry expansion through 2027.
Construction equipment currently runs majorly on fossil fuels and emits various emissions like nitrogen oxides (NOx), volatile organic compounds (VOC), and carbon monoxide (CO), negatively & severely affecting the environment and causing imbalances. Such aspects are restraining the fledged utilization of construction equipment owing to the presence of stringent environment sustainability restrictions imposed by the governments of different countries globally.
The same aspect is also emerging as an area of opportunity for the leading players to indulge themselves in the development of new equipment that can run on sustainable sources of power for functioning, like rechargeable batteries with better energy-efficiency.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Construction Equipment Market is projected to grow at a CAGR of around 5% during 2022-27.
A. Increasing infrastructural development projects worldwide is anticipated drive the industry while the environmental imbalance using construction equipment emitting greenhouse gases might restrain the fledged growth of the Global Construction Equipment Market in the coming years.
A. The swift emergence of services like availability of construction equipment on rental basis to avoid additional expenses associated with the maintenance, repairs, and transportation, and others, is a key trend in the market.
A. Material Handling is anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Construction Equipment Market during the forecast period.
A. “Middle East & Africa” would offer substantial growth prospects in the Global Construction Equipment Market during 2022-27.