DUBLIN, 23 December 2021 / PRNewswire / – The “Construction Equipment Market – Growth, Trends, COVID-19 Impact, and Forecast (2021 – 2026)” report has been added to ResearchAndMarkets.com offer.
The construction machinery market was valued at 161 billion dollars in 2020, and it is expected to achieve 228 billion dollars by 2026, registering a CAGR of over 6% during the forecast period (2021-2026).
The COVID-19 outbreak and the closures that followed affected the construction industry in several countries. The negative impacts of the pandemic are visible in various timelines of major projects.
The increasing attention to infrastructure and the development of automation in construction and manufacturing processes has had a significant impact on the growth of the market. The road construction machinery market has experienced significant growth in the recent past, owing to the increase in road development programs undertaken by central and state governments, especially in Asia Pacific.
The demand for cost-effective machines, along with regulatory pressures to reduce emissions, is driving construction equipment manufacturers to switch to electric and hybrid vehicles over traditional hydraulic and mechanical vehicles.
Rental or leasing of construction equipment is increasing, due to the cost of the equipment and the cost of the maintenance process. Besides the cost, there are also other benefits associated with renting construction equipment. Rental companies provide the machines, with the required machine operators and professional drivers included in the rent.
The construction industry is getting smarter and smarter. Digitization, connectivity and automation drive development forward, leaving a substantial impact on construction projects. In addition, rental companies are committed to investing in new technology to meet the growing demand for advanced construction machinery and replace old ones with a fleet of new or modernized machines.
Key market trends
The crane should be the largest segment
Major construction projects around the world are expected to boost the crane and construction machinery market shortly. Europe plans various construction projects. Germany, France, and Italy has experienced the highest growth rates due to construction projects in the region. The projects include the extension of the port, the underwater tunnel connecting the main European countries and the rail tunnels, including the use of many types of cranes, driving the whole crane market.
For example, in March 2021, Rothmund GmbH Kran und Montage bought its second LTM 1230-5.1 from Liebherr after purchasing the first six months ago. In the same month, Schussmann Kranservice GmbH also received the new LTM 1230-5.1.
Africa and Latin America are expected to emerge as good markets after 2021, improving the economy, and overseas investment is expected to further encourage infrastructure development and construction activity.
The number of cranes in North America has reached a new high. About 40% of the total number of cranes in North America works for the residential market. Toronto is a leader in this market, with 70 cranes dedicated to high-rise cooperative projects. Mixed-use development is the second largest market, accounting for nearly 25% of all cranes in North America.
The increase in the net number of cranes indicates that the construction market is holding up and thriving. This growth will continue as many cities in North America continue to add to their list of proposed developments.
Asia Pacific expected to dominate the global market
Asia Pacific occupies the first place in the construction equipment market, with a significant market share held by China, India, and Japan. The progress of the South-North water transfer plant project in China, scheduled for completion by 2050, will deploy various construction machinery either by leasing or owning the machine, thus increasing the demand for construction machinery over the next three decades.
The increasing number of dam constructions, real estate activities, commercial and residential complexes and the expansion of rail and road infrastructure in the APAC region are some of the drivers of the construction machinery market.
Companies introduce products dedicated to the region. For example, in december 2020, Komatsu announced that it will launch affordable excavators in South East Asia. A 20 tonne mid-size excavator for residential land development and road construction will be marketed in Thailand and Indonesia from April 2021.
Manufacturers of construction equipment are trying to reduce their dependence on gasoline and diesel, as regulators in Asia set ambitious goals to become carbon neutral by 2040. For example, by January 2021, Komatsu announced a partnership with Proterra to use battery packs in Komatsu’s electric hydraulic excavators. The company will use Proterra’s battery systems to develop a proof-of-concept electric excavator by the end of 2021.
Some of the large companies that have dominated the market studied are Caterpillar Inc., Kobelco Construction Machinery Co., Ltd, CNH Industrial NV, Deere & Company, Komatsu Ltd, JCB India Limited, Volvo Group, Doosan Infracore and XCMG, which have captured a significant market share.
The construction equipment market is characterized by many international and regional players, resulting in a highly competitive market environment. Besides the main players, small-scale or national players represent a significant share of the market.
- Caterpillar Inc.
- CNH Industrial SA
- Hitachi Construction Machinery Co. Ltd
- Deere & Company
- Kobelco Construction Machinery Co. Ltd
- Komatsu Ltd.
- Liebherr-International Deutschland GmbH
- Volvo Group
- Zoomlion Heavy Industry Sci & Tch Co. Ltd
- Terex Company
- Sany Heavy Industry Co. Ltd
- XCMG Construction Machinery Co. Ltd
For more information on this report visit https://www.researchandmarkets.com/r/hkci8a
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SOURCE Research and Markets