Compaction Equipment Market

Compaction Equipment Market – Overview

The global compaction equipment market is projected to grow at a promising rate from 2021 to 2031 (forecast period). Compaction equipment is a machine that removes soil from soil mass in order to obtain high soil density and water content. The primary application of compaction machinery is in the construction of water reservoir structures, roadways, and large commercial, residential, and industrial sites.

Rapid urbanization, increased development of transportation infrastructure, destruction of old sites, and construction of new ones are major aspects projected to drive the global compaction equipment market. A considerable transition from a labor-centric strategy to mechanization is also projected to be a significant driving factor for the compaction equipment market during the forecast period. Furthermore, the trend of renting out compaction equipment is on the rise. This feature is expected to generate enormous growth opportunities for the compaction equipment market in the near future. Moreover, marketing of compaction equipment via numerous online channels is also expected to provide profitable prospects to the compaction equipment market in the coming years.

Compaction Equipment Market – Competitive Landscape

Prominent players operating in the worldwide compaction equipment market include Hitachi Construction Machinery Co., Ltd., Caterpillar, Atlas Copco AB, CNH Industrial America LLC., AB Volvo, AMMANN GROUP, J C Bamford Excavators Ltd., ALTRAD Belle, BOMAG GmbH, and Deere & Company. These players are expected to experience healthy competition in the near future due to the presence of a significant number of local firms in the market. Moreover, to strengthen their position in the global compaction equipment market, major players are anticipated to work on developing new products and R&D initiatives.

Compaction Equipment Market – Trends and Opportunities

The global compaction equipment market is expected to benefit from the booming construction sector across the globe. The increase in construction of smart cities and the rise in transportation construction are projected to drive the global compaction equipment market during the forecast period. Moreover, rising urbanization is expected to boost the demand for compaction equipment due to a huge number of deconstruction and new construction sites. The need for compaction equipment stems from the massive investments made by governments to improve infrastructure. Several ongoing and prospective road and dam projects are anticipated to drive the demand for compaction equipment during the forecast period.

Furthermore, the growing population, which would increase demand for residential constructions, is projected to support the compaction equipment market growth during the projection period. In the compaction equipment market, renting and leasing are expected to be popular options during the forecast period. Since compaction equipment is comparatively expensive, many customers prefer to rent or lease compaction equipment.

Compaction Equipment Market – Regional Landscape

The compaction equipment market in the Middle East and Asia Pacific is expected to grow due to the rapid expansion of infrastructure in developing nations such as China, India, Kuwait, Indonesia, and Qatar. In terms of engineering and construction, these developing countries have a high number of projects in the works. The government is concentrating on organized infrastructure in the fields of transportation, hospitals, and tourism.

The compaction equipment market in North America and Europe is projected to rise steadily over the projection period. North American and European countries have stringent regulatory restrictions governing machine vibration and security hazards. Volvo, for example, unveiled its first electric compact excavator, the ECR25 Electric, in Paris in August 2019. It has taken the place of the typical combustion engine excavator in order to reduce noise and carbon emissions.

The compaction equipment market in Latin America is projected to witness slow growth as a result of the volatile economic conditions. Mexico, Chile, Peru, Colombia, and Uruguay have a high potential for investment in the mining, forestry, manufacturing, and construction sectors, which is expected to provide growth opportunities for the compaction equipment market in Latin America.