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Published Date: 2012-12-10Number of Pages: 90

Construction Equipment Market - Global and China Forecast, Market Share, Size, Growth and Industry Analysis, 2011 - 2017

The construction equipment market is witnessing significant growth since the past few years owing to massive investments in infrastructural projects. Infrastructural development is driving the demand for construction machinery and related equipments. As a result, the global market for construction equipments displays strong growth potential and creates opportunities for new entrants and existing players in the market. 

 

The global construction equipments market wasestimated at USD 134.1 billion in 2011. The major factors driving the global market include growth in lease-based equipmentsand increasing investment by governments in infrastructural activities, especially in developed countries. Also, governments of most countries are supporting the industry players through growth enabling services such as lowering tax burdens and removing the current tax anomalies. Additionally, demand from the real estate and industrial sector is driving the demand for the construction equipments market, globally. 

 

Growing number of residential and non-residential construction projects and infrastructural renovation is expected to drive the demand for construction equipments in developed and developing economies. Global market players involved in the manufacturing of construction equipmentssuch as Caterpillar, Komatsu and Volvo are rapidlyincorporating technological advancements in their productsto ensure sustainability of such equipments. 

 

Emerging economies such as Brazil, China, and India are among the most promising countries due to increasing infrastructural developments in the IT sector and services industry. China is the major contributor to the global construction equipment industry and accounts for above 40% share of the overall global sales of construction equipment. The construction equipment industry in China is expected to grow at a CAGR of 10.1% from 2012 to 2017. This trend is likely to continue owing to the growth in public projects like schools, railways, better roads, water systems, and other infrastructure. 

 

Demand in Europe is expected to remain flat over the next few years; however, it performedmoderately better in 2012 as compared to previous years. Asia is considered the most promising market for construction equipment worldwide due to relatively good performance of construction and mining industries, in countries like India and China.

CHAPTER 1INTRODUCTION

1.1 KEY POINTS COVERED

1.2 REPORT DESCRIPTION

1.3 RESEARCH METHODOLOGY

 

CHAPTER 2EXECUTIVE SUMMARY

 

CHAPTER 3CONSTRUCTION EQUIPMENT MARKET ANALYSIS

3.1 MARKET OVERVIEW

3.2 CURRENT TREND AND FUTURE OUTLOOK

      3.2.1 DEVELOPMENT OF ELECTRICALLY CONTROLLED EQUIPMENT

      3.2.2 REAL TIME MONITORING OF CONSTRUCTION EQUIPMENT

      3.2.3 INTRODUCTION OF LOW EMISSION EQUIPMENTS

3.3 PRODUCT TREND ANALYSIS

      3.3.1 RANKING OF PRODUCT CHARACTERISTICS IN DIFFERENT REGIONS

3.4 MACRO ECONOMIC ENVIRONMENT

      3.4.1 KEY INVESTMENTS IN CHINA

3.5 MARKET DRIVERS FOR CONSTRUCTION EQUIPMENT INDUSTRY

      3.5.1 BOOM IN INFRASTRUCTURE INDUSTRY

      3.5.2 INCREASING MINING ACTIVITY

      3.5.3 AVAILABILITY OF LEASE BASED EQUIPMENT

      3.5.4 AVAILABILITY OF TECHNICALLY ADVANCED EQUIPMENTS

3.6 MARKET CHALLENGES FOR CONSTRUCTION EQUIPMENT INDUSTRY

      3.6.1 HIGH INITIAL AND MAINTENANCE COST OF CONSTRUCTION EQUIPMENT

      3.6.2 SAFETY AND SECURITY CONCERNS

      3.6.3 UNCERTAIN ECONOMIC CONDITIONS

      3.6.4 DIFFERENCES IN IMPORT DUTIES AND RESTRICTIONS

      3.6.5 STRICT EMISSION REGULATIONS

3.7 MARKET OPPORTUNITIES FOR CONSTRUCTION EQUIPMENT INDUSTRY

      3.7.1 FOCUS ON R&D AND INNOVATION

      3.7.2 GLOBAL EXPANSION THROUGH ACQUISITION ACTIVITIES

      3.7.3 HUGE DEMAND IN REAL ESTATE AND INFRASTRUCTURE DEVELOPMENT

3.8 DRIVING FACTOR ANALYSIS OF CONSTRUCTION EQUIPMENT MARKET

      3.8.1 DEMAND SIDE DRIVER ANALYSIS

      3.8.2 SUPPLY SIDE DRIVER ANALYSIS FOR CONSTRUCTION EQUIPMENT INDUSTRY

      3.8.3 RESTRAINTS ANALYSIS FOR CONSTRUCTION EQUIPMENT INDUSTRY

      3.8.4 MARKET OPPORTUNITIES ANALYSIS FOR CONSTRUCTION EQUIPMENT INDUSTRY

3.9 KEY COMPETITIVE POINTS FOR CONSTRUCTION EQUIPMENT INDUSTRY

      3.9.1 MARKET ATTRACTIVENESS ANALYSIS FOR PRODUCT SEGMENTS

      3.9.2 MARKET ATTRACTIVENESS FOR MAJOR REGIONAL MARKETS

      3.9.3 PORTERS FIVE FORCES ANALYSIS

              3.9.3.1 Bargaining Power of Suppliers

              3.9.3.2 Bargaining Power of Buyers

              3.9.3.3 Threat of Substitutes

              3.9.3.4 Threat of New Entrants

              3.9.3.5 Degree of Competition

3.10 MARKETING STRATEGIES

      3.10.1 NEW PRODUCT DEVELOPMENT

      3.10.2 CREATE BRAND VALUE

      3.10.3 MARKETING TIE-UPS AND GLOBALIZATION

      3.10.4 ADDING VALUE TO CUSTOMERS

 

CHAPTER 4CONSTRUCTION EQUIPMENT MARKET

4.1 GLOBAL CONSTRUCTION EQUIPMENT MARKET OVERVIEW

4.2 CONSTRUCTION EQUIPMENT MARKET

      4.2.1 GLOBAL EARTH MOVING MACHINERY MARKET SIZE AND FORECAST, BY SEGMENT

      4.2.2 GLOBAL MATERIAL HANDLING MACHINERY MARKET SIZE AND FORECAST, BY SEGMENT

      4.2.3 GLOBAL CONCRETE AND ROAD CONSTRUCTION EQUIPMENT MARKET SIZE AND FORECAST, BY SEGMENT

      4.2.4 CONSTRUCTION EQUIPMENT PARTS AND ATTACHMENTS MARKET SIZE AND FORECAST

4.3 CONSTRUCTION VEHILCLES MARKET

      4.3.1 MARKET SIZE AND FORECAST

      4.3.2 MARKET TREND AND RECENT DEVELOPMENT

4.4 AGRICULTURE EQUIPMENT MARKET

      4.4.1 AGRICULTURE EQUIPMENT MARKET SIZE AND FORECAST, BY SEGMENT

      4.4.2 MARKET TRENDS AND RECENT DEVELOPMENTS

 

CHAPTER 5 CONSTRUCTION EQUIPMENT MARKET BY GEOGRAPHY

5.1 GLOBAL MARKET OVERVIEW

5.2 U.S. CONSTRUCTION EQUIPMENT MARKET

      5.2.1 MARKET SIZE AND FORECAST

      5.2.2 THE U.S CONSTRUCTION EQUIPMENT MARKET SHARE OF KEY PLAYERS

      5.2.3 GROWTH DRIVERS

              5.2.3.1 Improving GDP level

              5.2.3.2 Growing replacement market

              5.2.3.3 Credit availability for purchase of construction equipment

      5.2.4 RESTRAINTS

              5.2.4.1 Highly saturated market

              5.2.4.2 Strict emission and safety regulations

              5.2.4.3 Slowdown in the U.S coal industry

      5.2.5 OPPORTUNITIES

              5.2.5.1 Developing advanced technology products and quality

              5.2.5.2 Improving comprehensive after-market services

5.3 EUROPE CONSTRUCTION EQUIPMENT MARKET

      5.3.1 MARKET SIZE  AND FORECAST

      5.3.2 EUROPE MARKET SHARE OF KEY PLAYERS

      5.3.3 GROWTH DRIVERS

              5.3.3.1 Steady recovery in economic conditions after debt crisis

              5.3.3.2 Increasing investment by Russian government in infrastructure

      5.3.4 RESTRAINTS

              5.3.4.1 Slowdown in major markets of Europe

              5.3.4.2 Strict environmental legislations

              5.3.4.3 Increasing oil prices limiting the growth of Europe

      5.3.5 OPPORTUNITIES

              5.3.5.1 Extending aftermarket services in emerging markets

              5.3.5.2 Developing advanced technology products

5.4 ASIA CONSTRUCTION EQUIPMENT MARKET

      5.4.1 MARKET SIZE AND FORECAST

      5.4.2 GROWTH DRIVERS

              5.4.2.1 Increasing Urbanization

              5.4.2.2 Tremendous demand for reconstruction

              5.4.2.3 Growth in infrastructure construction

              5.4.2.4 Emergence of local players

      5.4.3 RESTRAINTS

              5.4.3.1 Higher emission standards

              5.4.3.2 Scarcity of raw materials

              5.4.3.3 High degree of competition

      5.4.4 OPPORTUNITIES

              5.4.4.1 Producing low cost products

              5.4.4.2 Merger and Acquisition

      5.4.5 CONSTRUCTION EQUIPMENT MARKET - CHINA

              5.4.5.1 China Earth Moving Machinery Market Size and Forecast, By Segment

              5.4.5.2 China Material Handling Machinery Market Size and Forecast, by Segment

              5.4.5.3 China Material Handling Machinery Market Size and Forecast, by Segment

              5.4.5.4 China parts and Attachment  Market Size and Forecast

              5.4.5.5 China Construction vehicles market

              5.4.5.6 China Agriculture Equipment Market

              5.4.5.7 China Construction Equipment Market- Key Players

              5.4.5.8 China Construction Equipment Market Drivers

                         5.4.5.8.1 World’s fastest growing economy

                         5.4.5.8.2 Large investment in infrastructure projects

                         5.4.5.8.3 World’s most populous country

                         5.4.5.8.4 Growing mining industry

                         5.4.5.8.5 Increased Mechanization in Construction Equipment Industry

                         5.4.5.8.6 Growing Urbanization in China

              5.4.5.9 China Construction Equipment Market Restraints

                         5.4.5.9.1 Strict emission regulations

                         5.4.5.9.2 Increasing raw material prices

            5.4.5.10 China Construction Equipment Market Opportunities

                         5.4.5.10.1 Joint Venture and Acquisition Program

                         5.4.5.10.2 Technology advancement and development in manufacturing process

5.5 ROW CONSTRUCTION EQUIPMENT MARKET

 

CHAPTER 6COMPETITIVE LANDSCAPE

6.1 SUMMARY

6.2 MARKET SHARE BY KEY PLAYERS - GLOBAL

6.3 NEW PRODUCTS LAUNCHED BY MAJOR PLAYERS

6.4 AGREEMENTS AND COLLABORATIONS

6.5 MERGERS AND ACQUISITIONS

6.6 COMPETITIVE STRATEGIES BY KEY PLAYERS

 

CHAPTER 7CONCLUSION AND RECOMMENDATIONS

7.1 MARKET STRATEGY FOR SUCCESS

7.2 BARRIERS TO BE CONSIDERED

7.3 FUTURE ASSUMPTION

 

CHAPTER 8COMPANY PROFILES

8.1 ATLAS COPCO CONSTRUCTION & MINING

      8.1.1 COMPANY PROFILE

      8.1.2 PRODUCT PORTFOLIO

      8.1.3 GROWTH STRATEGIES

      8.1.4 RECENT DEVELOPMENTS

8.2 CATERPILLAR INC

      8.2.1 COMPANY OVERVIEW

      8.2.2 PRODUCT PORTFOLIO

      8.2.3 GROWTH STRATEGIES

      8.2.4 RECENT DEVELOPMENTS

8.3 JCB SERVICE

      8.3.1 COMPANY PROFILE

      8.3.2 PRODUCT PORTFOLIO

      8.3.3 GROWTH STRATEGIES

      8.3.4 RECENT DEVELOPMENTS

8.4 ESCORTS LIMITED

      8.4.1 COMPANY OVERVIEW

      8.4.2 PRODUCT PORTFOLIO

      8.4.3 GROWTH STRATEGY

8.4.4 RECENT DEVELOPMENTS

8.5 HITACHI CONSTRUCTION MACHINERY

      8.5.1 COMPANY OVERVIEW

      8.5.2 PRODUCT PORTFOLIO

      8.5.3 GROWTH STRATEGIES

      8.5.4 RECENT DEVELOPMENTS

8.6 DEERE & COMPANY

      8.6.1 COMPANY OVERVIEW

      8.6.2 FINANCIAL OVERVIEW

      8.6.3 BUSINESS STRATEGIES

      8.6.4 PRODUCT PORTFOLIO

      8.6.5 RECENT DEVELOPMENT

8.7 DOOSAN

      8.7.1 COMPANY PROFILE

      8.7.2 PRODUCT PORTFOLIO

      8.7.3 GROWTH STRATEGIES

      8.7.4 RECENT DEVELOPMENTS

8.8 KOMATSU LTD

      8.8.1 COMPANY OVERVIEW

      8.8.2 PRODUCT PORTFOLIO

      8.8.3 GROWTH STRATEGIES

      8.8.4 RECENT DEVELOPMENTS

LIST OF FIGURES

 

FIG. 1 GLOBAL CONSTRUCTION EQUIPMENT MARKET BY PRODUCT TYPES

FIG. 2 GLOBAL CONSTRUCTION EQUIPMENT MARKET BY GEOGRAPHY

FIG. 3 MARKET ATTRACTIVENESS FOR PRODUCT SEGMENTS

FIG. 4 MARKET ATTRACTIVENESS FOR MAJOR REGIONAL MARKETS

FIG. 5 PORTERS FIVE FORCES

FIG. 6 GLOBAL CONSTRUCTION EQUIPMENT MARKET BY PRODUCT TYPES

FIG. 7 THE U.S CONSTRUCTION EQUIPMENT MARKET SHARE OF KEY PLAYERS – 2012

FIG. 8 EUROPE CONSTRUCTION MARKET SHARE OF KEY PLAYERS – 2012

FIG. 9 CHINA PARTS AND ATTACHMENT MARKET SIZE AND FORECAST, 2011 - 2017 , (USD BILLION)

FIG. 10 CHINA CONSTRUCTION VEHICLES MARKET ESTIMATE AND FORECAST, 2011 - 2017 , (USD BILLION)

FIG. 11 MARKET SHARES OF KEY PLAYERS - GLOBAL

LIST OF TABLES

 

TABLE 1 GLOBAL CONSTRUCTION EQUIPMENT MARKET SIZE AND FORECAST, BY SEGMENT 2011 - 2017 (USD BILLION)

TABLE 2 RANKING OF PRODUCT CHARACTERISTICS IN DIFFERENT REGIONS

TABLE 3 DEMAND SIDE DRIVER ANALYSIS

TABLE 4 SUPPLY SIDE DRIVER ANALYSIS

TABLE 5 RESTRAINTS

TABLE 6 OPPORTUNITIES

TABLE 7 MARKETING STRATEGIES FOR DIFFERENT REGIONAL MARKETS

TABLE 8 GLOBAL EARTH MOVING MACHINERY MARKET SIZE AND FORECAST, BY SEGMENT 2011 - 2017 (USD BILLION)

TABLE 9 EARTH MOVING MACHINERY MARKET SIZE AND FORECAST, BY GEOGRAPHY 2011 - 2017 (USD BILLION)

TABLE 10 GLOBAL MATERIAL HANDLING MACHINERY MARKET SIZE AND FORECAST, BY PRODUCT 2011 - 2017 (USD BILLION)

TABLE 11 MATERIAL HANDLING MACHINERY MARKET SIZE AND FORECAST, BY GEOGRAPHY 2011 - 2017 (USD BILLION)

TABLE 12 GLOBAL CONCRETE AND ROAD CONSTRUCTION EQUIPMENT MARKET SIZE AND FORECAST, BY SEGMENT 2011 - 2017 (USD BILLION)

TABLE 13 CONCRETE AND ROAD CONSTRUCTION EQUIPMENT MARKET SIZE AND FORECAST, BY GEOGRAPHY 2011 - 2017 (USD BILLION)

TABLE 14 CONSTRUCTION EQUIPMENT PARTS AND ATTACHMENTS MARKET SIZE AND FORECAST, BY GEOGRAPHY, 2011 – 2017, USD BILLION

TABLE 15 CONSTRUCTION VEHICLES MARKET SIZE AND FORECAST, BY GEOGRAPHY, 2011 – 2017, (USD BILLION)

TABLE 16 GLOBAL AGRICULTURE  EQUIPMENT MARKET  SIZE AND FORECAST, BY SEGMENT 2011 – 2017 (USD BILLION)

TABLE 17 CONSTRUCTION EQUIPMENT MARKET SIZE AND FORECAST, BY GEOGRAPHY 2011 - 2017 (USD BILLION)

TABLE 18 U.S. CONSTRUCTION EQUIPMENT MARKET SIZE AND FORECAST, BY SEGMENT 2011 - 2017 (USD BILLION)

TABLE 19 EUROPE CONSTRUCTION EQUIPMENT MARKET SIZE AND FORECAST, BY SEGMENT 2011 - 2017 (USD BILLION)

TABLE 20 ASIA CONSTRUCTION EQUIPMENT MARKET SIZE AND FORECAST, BY SEGMENT 2011 - 2017 (USD BILLION)

TABLE 21 CHINA CONSTRUCTION EQUIPMENT MARKET SIZE AND FORECAST, BY SEGMENT 2011 - 2017 (USD BILLION)

TABLE 22 CHINA EARTH MOVING MACHINERY MARKET SIZE AND FORECAST, BY SEGMENT  2011 - 2017 (USD BILLION)

TABLE 23 CHINA MATERIAL HANDLING MACHINERY MARKET SIZE AND FORECAST, BY SEGMENT 2011 - 2017 (USD BILLION)

TABLE 24 CHINA MATERIAL HANDLING MACHINERY MARKET SIZE AND FORECAST, BY SEGMENT 2011 – 2017 (USD BILLION)

TABLE 25 CHINA AGRICULTURE  EQUIPMENT MARKET SIZE AND FORECAT, BY SEGMNETS, 2011 – 2017 (USD BILLION)

TABLE 26 ROW CONSTRUCTION EQUIPMENT MARKET SIZE AND FORECAST, BY SEGMENT 2011 - 2017 (USD BILLION)

 

Following global economic recovery after the 2008 economic slump, the revival of construction and mining activities has given an impetus to affiliated industries such as earthmoving and construction equipment. For any country0more so for developing countries such as China and India0a robust infrastructure lays the foundation for growth, which paves way for rapid rise in gross domestic product, thence, a better life quality for its population.

The market study on the global market for construction equipment is a top level analysis, which assesses the winning imperatives for market participants and stakeholders to leverage opportunities available in this market.

Agriculture equipment by type, construction equipment by type, and regional markets are the three perspectives based on which the global market for construction equipment is analyzed in the report. The research report is compiled in a chapter-wise format, with the necessary sections and illustrations that portray operational, financial, and competitive aspects of the global market for construction equipment. 

Overview of Construction Equipment Market

In 2011, the global market for construction equipment was estimated at US$ 134.1 bn. In the last couple of years, due to the progressive growth of the construction and mining industries, the construction equipment market is poised to rise at a CAGR of 6.0% from 2012 to 2017. If the figures hold true, the market is expected to be worth US$ 192.3 bn by 2017.

The major factors that are driving the growth of the construction equipment market are: rising lease-based equipment lending practices and increasing investments in infrastructural projects, especially in developing countries. To encourage infrastructural investment by private entities, governments of several countries are offering tax benefits for such undertakings, which is indirectly benefitting the construction equipment market. 

In addition, immigration and influx of population from rural areas to urban areas for better work opportunities has necessitated the need for residential and non-residential construction undertakings, thereby aiding the growth of the construction equipment market.

From a geographical standpoint, emerging economies such as China, Brazil, and India hold promise for the growth of the construction equipment market in the years to come. This is due to the expanding infrastructural developments to cater to the growing IT and services industry. 

In 2012, China stood as the largest contributor to the global construction equipment industry accounting for almost 41.2% sales of construction equipment worldwide. The country is expected to retain dominance due to continual development projects such as educational institutions, road networks, railways, water systems, and other infrastructure. As such, the construction equipment industry in China is expected to rise at a 10.10% CAGR between 2012 and 2017.

Europe stood at a distant second from China in terms of market share in 2012. However, in the coming years, demand for construction equipment in Europe will remain stagnant, whereas demand generation in Asia Pacific will remain high.

Major Companies in Construction Equipment Market

Hitachi (Japan), Volvo (Sweden), John Deere (U.S.), Liebherr (Switzerland), Zoomlion (China), Terex (U.S.), Caterpillar (U.S.), Komatsu (Japan), and Sany (China) are the major companies operating in the global market for construction equipment. 

Global Construction Equipment Market – by Type

  • Earth Moving Equipment
    • Excavators
    • Loaders
    • Others (graders, roller and such others)
  • Material Handling Equipment
    • Crawler Cranes
    • Trailer Mounted Cranes
    • Truck Mounted Cranes
    • Others
  • Concrete and Road Construction Equipment
    • Concrete Mixer & Pavers
    • All types of Pumps
    • Others
      • Construction Vehicles
      • Parts and Attachment for Construction Equipment

Agriculture Equipment Market by Type

  • Tractors
  • Harvesting Equipment
  • Plowing and Cultivating Equipment
  • Planting and Fertilizing
  • Other Agricultural Equipment

Construction Equipment Market by Geography 

  • U.S.
  • Europe
  • Asia
    • China
  • RoW

This report gives you access to decisive data such as:

  • Market growth drivers 
  • Factors limiting market growth
  • Current market trends 
  • Market structure
  • Market projections for the coming years 

Key highlights of this report

  • Overview of key market forces propelling and restraining market growth 
  • Up-to-date analyses of market trends and technological improvements 
  • Pin-point analyses of market competition dynamics to offer you a competitive edge
  • An analysis of strategies of major competitors 
  • An array of graphics and SWOT analysis of major industry segments 
  • Detailed analyses of industry trends
  • A well-defined technological growth map with an impact-analysis 
  • Offers a clear understanding of the competitive landscape and key product segments

 

The construction equipment industry worldwide experienced a steep decline in its market size after 2008 as a result of global economic downturn. The declining trend in the global markets for these equipments continued to prevail in 2009 and 2010 even. However now this market has slowly started to reshape its size and is getting aligned to its expected growth rate, with the construction industry on boom especially in the Asia-Pacific region the market for the equipments offers a huge potential to be unleashed. 

 

In U.S the growth of the construction equipment market is primarily driven by increasing numbers of residential construction projects and non-residential works such as repair and new construction of highways, bridges and other public works. As a matter of fact China is emerging as the largest market for new equipments globally followed by North America.

 

Globally, the companies are again in an investment mode with several world class product launches in different geographies. Apart from the convention product based strategies followed by the manufacturers in this industry, the R&D activities have now started to account for a significant share of investments by a company. With the advancement of the technology leading to the introduction of highly efficient machines, the competition in this market has reached to altogether a different mode and level. To cope with this paradigm shift in the market dynamics globally, the industry is witnessed to move towards a further degree of consolidation through a number of mergers and acquisitions.

 

The report analyses construction equipment market growth rate, industry trends and industry structure. The report analyses the historical data and forecasts the construction equipment market size, production forecasts along with key factors driving and restraining the market. The report also contains In-depth geographic as well as trend analysis.

 

KEY FINDINGS

 

  • Brazil markets continue to be very attractive due to large investments in infrastructure, economic growth and political stability
  • China and India are healthy growing markets, primarily dominated by Joint Ventures, however scope for new market entrants is still available
  • Africa and Middle East are also very promising for Construction Equipment (CE) companies with various construction OEMs about to enter these markets
  • Increasing competition is leading to market consolidation. Recent mergers between Caterpillar (Bucyrus), and Terex (Demag) exemplify the ongoing industry consolidation
  • In the overall construction equipments, Excavators and Wheel Loaders are the leading product segments with Backhoe Loaders catching up
  • Competitive analysis shows that companies are mainly focusing on Quality, Price and Replacement Parts Availability to gain competitive advantage

 

Key Market Challenges

 

  • Emissions regulations
  • Competition from emerging market players
  • Import restrictions especially in developing economies such as Brazil, China and India