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.
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
- Others (graders, roller and such others)
- Material Handling Equipment
- Crawler Cranes
- Trailer Mounted Cranes
- Truck Mounted Cranes
- Concrete and Road Construction Equipment
- Concrete Mixer & Pavers
- All types of Pumps
- Construction Vehicles
- Parts and Attachment for Construction Equipment
Agriculture Equipment Market by Type
- Harvesting Equipment
- Plowing and Cultivating Equipment
- Planting and Fertilizing
- Other Agricultural Equipment
Construction Equipment Market by Geography
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.
- 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