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DUBLIN--(BUSINESS WIRE)--Nov 24, 2022--
The "Global Construction Equipment Market by Type (Excavator-Crawler & Mini; Loader-Backhoe, Skid-steer, & Wheel; Dozer, Dump Truck, Compactor, Crane), Electric Equipment, Propulsion, Power Output, Rental, Aftertreatment Device, and Region - Forecast to 2027" report has been added to ResearchAndMarkets.com's offering.
The global construction equipment market is projected to grow from USD 180.4 billion to USD 223.1 billion by 2027, at a CAGR of 4.3%
The construction equipment market is led by established players such as Caterpillar (US), Komatsu Ltd. (Japan), Deere & Company (US), Hitachi Construction Machinery Co. Ltd., Xuzhou Construction Machinery Group (China), SANY Group (China), and AB Volvo.
Urban growth and development activities are increasing the demand for construction equipment. The compact construction equipment would showcase the most potential market opportunities in the coming years.
Asia is projected to lead the construction equipment market over the forecast period. Further, the growth in construction industry has led to the increase in demand of compact construction equipment. The rise in demand of compact construction equipment is due to the features offered by them like high versatility, easy maneuverability, lower operational cost and ease of operational ability especially in congested areas of cities and urban places where the movement of heavy machines is difficult.
The compact construction equipment include the backhoe loader, mini excavators, skid steer loader, telescopic handlers and wheeled loaders. The compact construction equipment is projected to grow at a CAGR of 4.9% from 2022 to 2027.
Increased construction activities to lead the growth of the earthmoving equipment category
Earthmoving equipment covers a broad range of machines that can excavate and grade soil and rock, along with other construction tasks like excavators (crawler and wheeled), loaders (backhoe, skid-steer), and motor graders are considered under earthmoving equipment.
The increasing urban population and the demand for better infrastructure facilities have led to significant global construction activity growth. Asia is projected to account for the largest share of >55% of the earthmoving equipment market in value by 2027.
The developmental activities have grown immensely in Asia countries like China, India, and Japan. For instance, as per the National Bureau of Statistics, China has initiated 10,644 new water conservancy projects, including 609 projects the country initiated 10,644 new water conservancy projects for 2022.
Also, in May 2022, the Indian government declared to build the country's second-largest dam at Yingkiong, Arunachal Pradesh, India. The National Highways Authority of India (NHAI) planned to develop 23 new highways, including a network of expressways and economic corridors by March 2025.
Further in 2021, five major infrastructure projects started in Japan and more are expected to announce in coming years. Thus, such development projects would drive the demand for the earthmoving equipment category during the forecast period.
Increase in remote location construction activities would showcase promising demand for the compact construction equipment
The <100 HP construction equipment segment is estimated to be the second largest segment with >30% market share in 2022. The <100 HP power output construction equipment are nothing but the compact construction equipment.
The demand for compact construction equipment is rising due to the ability of compact construction equipment for easy movement in intricate and remote places, which assists in efficient construction operations. Also, less maintenance costs and increased work productivity contribute to the demand for compact construction equipment.
Due to increased preference towards these equipment types, OEMs are focusing on launching new compact construction equipment that suits customer requirements. For instance, Bobcat company (US) is among the major compact construction equipment manufacturer. The company provides 5 models of mini excavators under the 100 HP power output category.
Similarly, Caterpillar (US) has developed 5 models of skid steer loaders that are power output less than 100 HP. Recently in March 2022, Kobelco Construction Machinery Co., Ltd. (Japan) launched a new KS45SRX-7 compact excavator. Therefore, the rising developments in the compact construction equipment would create opportunity of growth for the <100 HP power output construction equipment segment during the forecast period.
North America is anticipated to be the second largest market for construction equipment by 2027
According to analysis, North America is projected to hold the second largest share of the construction equipment market by 2027 because of the increased private and government investments supporting the developmental activities in the region.
According to the Associated General Contractors of America (AGC), the construction market is attributed to an increase in residential construction and construction spending in North America, which would create an opportunity for the sale of construction equipment. Many pending construction sites and new infrastructure development projects are announced in North America.
US is the largest contributor to the growth of construction equipment market in North America with a contribution of nearly 79.2% in 2021. The large construction projects in the country support the development of the construction equipment market. For instance, in Q1 of 2022, the project for the construction of a steel mini-mill got initiated in Arkansas, US.
Thus, such developmental activities would create an opportunity for the growth of the construction equipment market in North America during the forecast period.
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INDUSTRY KEYWORD: CONSTRUCTION & PROPERTY OTHER CONSTRUCTION & PROPERTY
SOURCE: Research and Markets
Copyright Business Wire 2022.
PUB: 11/24/2022 08:26 AM/DISC: 11/24/2022 08:26 AM
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