Construction equipment generally used for excavation or demolition of any property across the globe. Construction equipment is an essential part of a building, including facilities such as water supply, drainage, heating, ventilation, air conditioning, and electricity, elevators, communications and building intelligence. The construction equipment is cost-effective as it is a one-time investment for the construction company as the equipment work for many years. Apart from it, due to government stringent rules and regulations, various equipment manufacturing companies are manufacturing construction equipment that emits low carbon.
The global construction equipment market expected to drive at significant CAGR during 2020-2027. The considerable investments in infrastructure activities, operating cost efficiency, and the surge in smart city projects are vital factors expected to boom in the global construction equipment market. According to the World Bank, the world population has increased from 3 billion to 7.5 billion over three decades. It is owing to this, increased investment in the infrastructure industry and improvements in facilities for governments and private companies, the construction equipment market expected to grow at a higher rate. Market growth of construction equipment can attribute to factors such as increased precious mineral and metal mining activities around the world and increased natural disasters for excavators for rescue operations.
Additionally, the construction equipment’s run on diesel, which is the primary source of Green House gas and exhaust emissions during the large infrastructure projects. The construction equipment’s caused serve health issues and pollutes the environment as it releases various pollutant gases such as nitrogen oxide, carbon monoxide. Therefore, with a rise of less carbon emission fuel vehicles, the construction equipment market has increased in recent years.
Moreover, construction equipment is applied to save the time of labor and increase productivity and also reduce the overall cost. Many construction companies use rented construction equipment to cut down the huge investment and utilize the cost to some other purpose. Earlier construction equipment with old techniques was used in the construction of buildings, mining, etc. Due to urbanization, the government has started taking the initiative scheme to build more housing, commercial buildings, increases the adoption of new construction equipment, which are fuel efficient, less carbon emission vehicle, save time and cost as well. Therefore, the construction equipment market is estimated to grow in the forecast period.
Construction of housing, commercial buildings, mining has been growing due to the increasing population and urbanization. Additionally, pollution in the construction industry is causing, as old construction equipment are high in carbon emission consumes more fuel and are less productive. Thus, construction companies have started adopting new heavy construction equipment that has fewer pollutants, and fuel vehicles now shifted to an electric or hybrid vehicle, which increases the productivity of the project. Moreover, construction equipment are heavy investments; therefore, construction companies used to rent new technology equipment, which reduces cost as well as saves time and maintenance of the construction equipment.
The rising need for smart housing and smart commercial buildings is increasing the demand for more construction. Thus, heavy construction equipment is required for construction and also creating ample employment opportunities, thus boosting the economy. With rising GDP, construction companies are demanding new technology in construction equipment that increases productivity and utilized the production and labor cost.
Based on Type, the global construction equipment market segmented into Excavator – Crawler and Mini, Loader-Backhoe, Skid-steer, Wheeled, and Other Equipment. Loader-Backhoe created the highest demand in 2019, owing to its benefits in terms of safety, increasing productivity, low cost. Additionally, the upcoming construction projects around the globe where the port extension and the underwater tunnel are constructing, which leads to demand for loaders and cranes for it. Therefore, the emerging need for the loader has captured substantial growth in the construction equipment market.
Based on category, the global construction equipment market classified into Earthmoving Equipment, Material-Handling Equipment, Heavy Construction Vehicles, and Other Equipment. The earthmoving equipment segment has captured a significant market share in 2019 and expected to boost the market in the forecast period from 2020-2027. A rise in the construction of public works and road & rail transportation has increased the need for earthmoving equipment to move the sand and rocks with the help of loaders and cranes.
Based on Application, the global construction equipment segmented into Infrastructure, Commercial Buildings, Residential Buildings, and Industrial Buildings. The infrastructure segment expected to grow at a substantial rate due to increasing urbanization, and rising disposable income of the population, which lead to more purchasing power, thus given a boost to the construction sector. Moreover, infrastructure demand is emerging due to commercial construction activities, public-private partnerships, and global economic growth, which has given rise to the construction equipment demand.
Based on geography, the global construction equipment market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. The Asia Pacific region is the dominant market for construction equipment in the forecast period, as increasing urbanization rate along with high paced industrialization activities is followed in the region. Further, China, Japan, Australia, and India are among the significant markets for heavy construction equipment.
Moreover, other emerging economies, such as the Middle East and countries in South America, are experiencing a high demand for infrastructure. Rapid urbanization in these countries requires faster construction, and a growing population demands more excellent facilities. Further, increased government investment in infrastructure activities provides the potential for growth in these countries’ construction equipment markets.
Companies such as Volvo Construction Equipment, CNH Industrial, Komatsu, Caterpillar, John Deere, Hitachi Construction Equipment, Liebherr, and others are the prominent players in the global construction equipment market.