Construction Equipment Market: Sales hit all-time high with 1.15 million units sold in 2021

The Construction Equipment Market size was valued at USD 177.82 Bn. in 2021 and the total revenue is expected to grow by 4.48% from 2022 to 2029, reaching nearly 252.49 Bn.

Construction equipment, also referred to as heavy equipment are used for carrying out construction operations. In addition to excavating and digging the earth, it is used for dozing, grading, hauling, compacting, and leveling materials. Several players are concentrating on reducing the fuel consumption of construction equipment at the moment due to growing environmental concerns and the growing need to promote energy conservation. However, the market's growth is constrained by strict government rules over carbon emissions and changes in the price of oil. In addition, the demand for new investments in the industry is being driven by a consistent rise in residential property prices and an increase in housing demand. One of the main factors propelling the growth of the construction equipment market is the support of government efforts in developing nations.

Today, the construction industry accounts for 13% of the global GDP. The industry has performed poorly over the previous three decades, with strong growth but stagnant earnings. MMR analysts expect significant changes in the construction ecosystem in the future that will transfer 40 to 45 percent of the industry's value across various stakeholders, including contractors and equipment suppliers.

Construction equipment, a sector whose growth and activities are strongly dependent on GDP, experienced the same challenges as other industries during the pandemic. Recent reports that Construction equipment businesses 2020 sales decreased by between 10% and 25% across markets, despite the industry has started to recover. Regional differences in the figures were significant, with businesses in Europe and North America reporting larger drops than those in Asia.

To know about the Research Methodology :- Request Free Sample Report
Scope of the Report:
The Construction Equipment market report provides a comprehensive analysis of the major revenue-generating segments and the analysis of each segment with its potential revenue estimates. The report has presented the data in graphical and textual format, which has made it easier to understand deeper insights into the global market by country. Along with a year-over-year increase, the aggregate growth for the years 2022–2029 is also estimated and represented. Strategic cooperation among key industry players that includes forward integration as well as backward integration is expected to drive the growth of the construction equipment market during the forecast period. The report has also covered the investments in the market from the last two years by country and key players including major projects globally.

The profiles of the leading players are covered in the report however while estimating the total global and regional market size, all the key players i.e. market leaders, followers, and new entrants' total revenues are considered. The report includes company profiles, which include an overview, a list of services offered, a financial analysis, a SWOT analysis, a strategy pursued, and important recent developments. Aditionally, The report will be a guide to key decision-making processes on cross-border expansion, domestic expansion, new product launches, M&A, and all strategic decisions. By examining both the vendors' and the buyers' perspectives, the analysts were able to identify the common tendencies in countries throughout every region.
Construction Equipment Market Dynamics:
Growing Urbanization, Driving up Demand For Housing Projects

People are moving from non-urban to urban areas, especially in developing countries like China, India, and Brazil, as a result of the rising rate of urbanization in the world's main economies and the growth in employment prospects. As a result of the rising housing demand in these areas due to the growing population, new housing infrastructure, including single-family homes and high-rise structures, is being built. According to the World Bank Group, India's urban population increased from 27.7% of the total population in 2000 to 35.8% in 2021. In addition, during the forecast period, the construction equipment market is expected to be driven by developing nations due to ongoing government backing and significant investments in modernizing the public infrastructure.

Growth in Infrastructure Developments across the World

Thanks to the restart of delayed building projects and expected new investments in the construction sector as part of the infrastructure development activities, the market for construction equipment has progressively increased since the Covid-19 period. Infrastructure investments, improvements to residential and commercial infrastructure, and an increase in institutional capital spending on a global scale are some factors affecting the growth of construction equipment manufacturers. Construction activity has increased in several places in the US, UK, China, and India. For instance, attention has been focused on US infrastructure. The US government announced a roughly $1 trillion plan in November 2021, with 4,300 projects already underway and more than 110 billion dollars in funding as part of the infrastructure investment package. As a result, during the projection period, the demand for construction equipment would be driven by such planned expenditures and increasing construction activity for infrastructure development. As a result, during the forecast period, the demand for construction equipment is expected to be driven by such planned expenditures and increasing construction activity for infrastructure development across the world.

Several governments, like those in the UK, Brazil, Taiwan, New Zealand, and France, place a high priority on enhancing their transportation and construction systems. To accelerate their economic growth, these governments are making significant investments in numerous infrastructure projects. For instance, the UK government said in September 2021 that it will invest over USD 900 billion in both public and private infrastructure over the following ten years. In the upcoming four years, these developments will involve building pipelines, renovating school and college facilities, and adding over 425,000 employment annually.

In light of the increasing emphasis on smart cities and structures, the market for construction equipment is experiencing significant growth. Several government agencies are forming strategic alliances with private companies to speed up their transition to smart cities, which is encouraging the market outlook. For instance, in January 2021, Saudi Arabia revealed plans to build NEOM, a green smart city that will be worth $500 billion and be located within 10,200 square kilometers of Saudi Arabia.

Growing Adoption of Electric and Autonomous Equipment in the Construction Industry

Although it isn't yet a reality, the industry is moving in the direction of totally autonomous equipment. Construction companies are expected to benefit from autonomous equipment if they want to enhance productivity, improve the skilled labor shortage, and increase worker safety on the job site. For instance, the Komatsu Ltd. D51i-24 and D61i-24 dozers are able to capture topography data as they move about a site. The system uses this information to further determine whether it should cut and move material, whether to disperse or fill that material, or whether to complete grading.



Implementation of Digital Tech

The recent technological development in the Construction Equipment industry had occurred pretty quickly all around the world. Environmental concerns have prompted the creation of eco-friendly engines, which resulted in decreased emissions. While ongoing advancements in hydraulics would cut power losses and give a far higher value for users, the introduction of electronics and telematics had driven efficiency. Using technologies like IoT, virtual reality, and self-learning machines, the construction equipment industry is unmistakably moving toward electromobility and autonomous solutions on a global scale.

Changing Trade Policies and Regulations along with Environmental Concerns

Construction equipment manufacturing, import, and export laws and regulations vary from nation to nation. Different import taxes are levied by nations in order to prevent unfair trade practices and benefit domestic producers. Governments typically sign bilateral trade agreements to lower tariffs and obstacles to a free trade zone or single market. Although this can be advantageous, it might also result in more foreign competition. The impact of foreign affairs on trade is greater. Commerce agreements may be stopped in the event of conflicts with other nations, or the worst-case scenario, restrictions may be imposed, limiting trade entirely. As a result, the effects of global trade laws and policies operate as barriers to the growth and sale of the construction equipment industry in many nations.

This huge machinery is the main contributor to ozone emissions, which worsens the condition of the air. The emissions from this equipment, which include carbon monoxide (CO), nitrogen oxides (NOx), and volatile organic compounds (VOC), harm the environment and create an imbalance between rural and urban areas. Another large source of ozone emissions is mining machinery running at the mining sites.

However, in order to achieve control over these emissions, regional transportation authorities, utility companies, governmental organizations, and private businesses are starting to gather information on the locations of construction projects and equipment worldwide. Similar to this, building permits are gathered for residential, commercial, and demolition projects to calculate and monitor the geo-code construction emission substrates. In addition, industrialized nations are actively working to tighten regulations governing exhaust emissions from construction equipment and increase energy efficiency, which will help to reduce the consequences of global warming.
Construction Equipment Market Segment Analysis:
By Type, the Construction Equipment Market is segmented into Loader, Crane, Forklift, Excavator, Dozer, and Others. The Loader segment held the largest market share in 2021. Thanks to the increase of both new and current production facilities, rising household demand, rising disposable income, and government subsidies, loaders are seen to be growing exponentially. In addition, as automated loaders are integrated with smart tools like cellular, Bluetooth, and other sophisticated technologies, demand for them is growing. This function lessens the handling of human resources and aids in tracking the effectiveness and performance of the loaders.

By Power Output, the Construction Equipment Market is segmented into <100 HP, 101–200 HP, 201–400 HP, and >400 HP. Based on power output, the 101-200 horsepower (HP) segment held the majority of the market share in 2021. Thanks to its superior power-to-weight ratio, improved fuel economy, and lower operating costs for construction equipment operators and contractors, 101-200 HP construction equipment has a higher penetration in the market. In addition, a power range of 101-200 HP is appropriate for the majority of projects, including those involving the construction of roads, airports, and commercial buildings. As a result, it is expected that this segment is expected to continue to dominate the market through the forecast period.



By Application, the Construction Equipment Market is segmented into Earth Moving, Transportation, Excavation & Demolition, Heavy Lifting, Tunneling, Material Handling, and Recycling & Waste Management. The Earth Moving segment dominated the market share in 2021, and it is expected that it will continue to rule the industry through the forecast period. Significant development potential is being created for earthmoving construction equipment by the increasing urban population and the need for enhanced infrastructure. Examples of earthmoving machinery include loaders, excavators, and motor graders. However, it is expected that the lifting and material handling sub-segment would grow quickly during the forecast period.

By Industries, the Construction Equipment Market is segmented into Oil & Gas, Infrastructure, Forestry & Agricultural, Manufacturing, Military, and Mining. In 2021, the Infrastructure segment held the largest market share. Sales of construction equipment have increased significantly as a result of rising infrastructure and building spending, particularly in emerging nations. Thanks to increased government investment in infrastructure projects, particularly those in rural areas, sales of construction equipment are expected to climb by double digits through the forecast period.
Construction Equipment Market Regional Insights:
In 2021, Asia Pacific dominated the market with the largest market share. The Asia Pacific market is expected to have the largest revenue share throughout the forecast period thanks to the rapidly growing construction sector in countries like India, China, Thailand, and Vietnam. The growth of the Asia-Pacific construction equipment market is being driven by rapidly growing investments in infrastructure and construction projects.

According to an MMR analyst, India is expected to experience "quantum growth" in infrastructure development projects over the next five to ten years, making it the second-largest player in the Construction Equipment market after China by 2030. For Instance, with a strong push from the government's ambitious infrastructure development programs like National Bank for Financing Infrastructure and Development, National Monetization Pipeline, and Gatishakti is expected to boost the market growth in India.

The second wave of COVID-19 was implemented in the first quarter of FY22, the second wave of COVID-19 resulted in a decrease in the rate of road construction in the second half of 2021, higher raw material prices drove up selling prices, supply-side shortages due to global disruptions brought on by the pandemic and the Ukraine war, and other factors. In the first quarter of the current fiscal year, the Indian construction equipment industry recorded a 14% quarter-over-quarter (QoQ) fall in sales. In comparison to the 26,910 units sold in the previous quarter, it sold a total of 23,037 units in Q1 FY23. While this drop comes on a higher year-end base, given that sales typically increase in the last quarter of a fiscal year, the decline was partly caused by the slowdown in highway building activity from Q4 of FY22.

North America is expected to grow at a rapid rate through the forecast period. Thanks to the demand for technologically advanced equipment, the rapid adoption of automated construction equipment, and the availability of low-interest loans to buy this equipment, North America will have a notable growth rate in the years to come. Middle East and Africa are expected to experience rapid economic growth through the forecast period. This forecast is mostly based on growing Chinese investments in the region's infrastructure.
Competitive Landscape:
Several assumptions about global supply chains are no longer relevant as the world changes in the aftermath of COVID-19, and businesses frequently face greater risks. In fact, according to MMR analysis, supply-chain disruptions may cost the average company up to 40% of a year's earnings before interest, taxes, depreciation, and amortization (EBITDA) in a decade. The Industrial Internet of Things, artificial intelligence, and machine learning are some of the digital and analytical technologies that major players are using to improve end-to-end transparency and boost their supply-chain risk-management skills. Businesses are considering creating network redundancy for both suppliers and regions.

The market key player is currently facing a variety of short-term difficulties, including a lack of experienced workers, excessive raw material costs, and a shortage of semiconductor components. Because of this, OEMs anticipate supply and logistical delays that will affect sales of new construction equipment over the following several quarters of 2022. The goal for practically all significant market players going forward will be to find ways to include affordable and environmentally friendly equipment as a core component of their product offerings.

The demand for Construction Equipment being acknowledged across all buyer categories has fueled market growth on a global scale. The market's existing players are making significant investments in R&D efforts to broaden and differentiate their product offerings as well as to obtain a competitive edge. The global growth and certain future of the construction equipment market are the results of several participants in the industry ecosystem.

Through joint ventures, partnerships, mergers, and acquisitions, OEMs are likely to use both organic and inorganic growth strategies over the coming years, which is expected to help the vendors grow their clientele and solidify their position in the market. For instance, an agreement to acquire Bear Flag Robotics, an artificial intelligence (AI) business that creates autonomous driving technology that is compatible with current machinery, was signed by American company John Deere in August 2021. A long-term objective of the company is to serve client needs, the company stated in the acquisition agreement that it will contribute to the development and delivery of smarter machines with advanced technology.
Construction Equipment Market Scope: Inquire before buying



Construction Equipment Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 177.82 Bn.


Forecast Period 2022 to 2029 CAGR:
4.48%
Market Size in 2029:
US $ 252.49 Bn.


 Segments Covered:
by Type
• Loader
• Crane
• Forklift
• Excavator
• Dozer
• Others


by Power Output
• <100 HP
• 101–200 HP
• 201–400 HP
• >400 HP


by Industries
• Oil & Gas
• Infrastructure
• Forestry & Agricultural
• Manufacturing
• Military
• Mining


by Application
• Earth moving
• Transportation
• Excavation & Demolition
• Heavy Lifting
• Tunneling
• Material Handling
• Recycling & Waste Management



Key Manufacturers in the Construction Equipment Market are:
• Caterpillar
• Hitachi Construction Machinery
• Komatsu Ltd.
• SANY Group
• Xuzhou Construction Machinery Group
• JCB
• Doosan Corporation
• Atlas Copco
• Deere & Company
• Bomag
• CASE Construction Equipment
• Ammann Group
• Hamm AG
• Martin Trailer Company
• MBW Inc.
• Thetford International
• Altrad Belle
• CNH Industrial America LLC
• AB Volvo
• Zoomlion Heavy Industry Science and Technology Co., Ltd

FAQs:

1. What is the study period of the market?
Ans. The Global Construction Equipment Market is studied from 2017-2029.

2. What is the growth rate of the Construction Equipment Market?
Ans. The Construction Equipment Market is growing at a CAGR of 4.48% over forecast the period.

3. What is the market size of the Construction Equipment Market by 2029?
Ans. The market size of the Information Technology Market by 2029 is expected to reach at 252.49 Bn.

4. What is the forecast period for the Construction Equipment Market?
Ans. The forecast period for the Construction Equipment Market is 2022-2029.

5. What was the market size of the Construction Equipment Market in 2021?
Ans. The market size of the Construction Equipment Market in 2021 was valued at USD 177.82 Bn.