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MANUFACTURING & CONSTRUCTION

Construction Equipment Market Segmentation By Solution Type (Products and Services); By Application Type (Excavation & Mining, Earth Moving, Transportation, Lifting & Material Handling and Others); By Equipment Type (Compact Construction Equipment and Heavy Construction Equipment); By Propulsion Type (Diesel, Gasoline and CNG/LNG); By End User Industries (Mining, Oil & Gas, Manufacturing, Infrastructure and Others) - Global Demand Analysis & Opportunity Outlook 2020-2028

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Extensive insights into the Growth of Construction Equipment Market amidst COVID-19

Before we witness the stabilization of economic growth in Europe and North America, Asia Pacific is estimated to bounce back progressively with countries such as China, India, South Korea and Japan witnessing more opportunities to recover from the losses sustained during COVID-19.

Being the biggest market in Eastern Europe, Russia is estimated to take the lowest hit, offering a sigh of relief to the businesses operating in the country. Whereas, GCC is estimated to observe low investments due to the sliding prices of crude oil.

We evaluate the strategies and commitment of the Giant Players in the market towards creating products and services that customers value and rely on.

In an attempt to control and eliminate the surge of coronavirus cases and meet the demand for required medical devices along with providing efficient medical services, there is a drastic shift of investments from authoritative bodies towards the healthcare sector. Where the aftermath of this pandemic may take years to be measured, Research Nester estimates notable expansion of e-health, gaming, and media and entertainment industries till the whole situation is contained and the plan of action for the recovery process is determined. There is an estimated probability of the growth in businesses going back a year if the condition is controlled in the next 2-3 months.                                                         Request Insights

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IN THE NEWS

  • On March 24, 2020: ION Energy announced its strategic partnership with Wamtechnik to enable European construction maker to deploy its first electric excavator. In order to achieve the rated energy capacity, ION Energy excavator would use its 48V, 456Ah battery pack that is constructed using 10 parallel modules of a 14S16P cell configuration.

Introduction to Construction Equipment

Construction equipment are very important resources for infrastructure projects and for other modern-day constructions, where the magnitude of the work is on a large scale. Any major construction projects utilize equipment for most of the work and the choice of equipment defines the construction method along with the time and cost for the project. Construction equipment have certain advantages, such as, to carry out activities which cannot be done manually along with reducing overall cost of construction. Some of the construction equipment include graders, loaders, trenchers, excavators and other equipment.

Market size and Forecast

The market for construction equipment is anticipated to record a CAGR of around 4.5% over the forecast period, 2020-2028. The major key factor expected to boost the market growth includes the rise in the public-private partnerships to implement the infrastructure. These partnerships are for construction of public infrastructure systems, where a private company lends its expertise for the government projects. Further, increase in the urbanization all over the globe is increasing the demand for the construction equipment to build infrastructure such as roads, bridges, residential areas and commercial buildings.

The solution type market is segmented into products and services, out of which, the products segment is anticipated to dominate the market in terms of revenue over the forecast period on the back of increase in the construction projects along with the demand for customized equipment, in order to complete the projects in shortest period of time. Further, initiatives by the government for the development of economy, is also going to boost the market growth.

Growth Drivers

Growing Real Estate Sector to Drive the Demand for Construction Equipment

The demand for construction equipment for the development of smart cities, metros in urban areas and commercial buildings all over the world is rising and in order to meet this demand, the government is spending a huge amount in the construction sector. Further, in order to save the cost of machinery and the maintenance, construction firms prefer to take equipment on rental basis especially modern automated equipment. This provides a huge opportunity for many companies to enter into the construction equipment rental business for its high profitability. These factors are anticipated to drive the market growth over the forecast period.

Foreign Direct Investment to Boost the Market Growth

Over the years, most of the developing and developed countries have seen a tremendous growth in construction industry. Furthermore, improved living standards of people are increasing the demand for improved housing. India is one of the countries showing immense growth in construction sector, and for that consistent growth, Indian government has rolled out several policies to allow the development in India. The government has relaxed FDI regulations related to minimum built-up area and capital requirement. This FDI will help the countries to grow economically along with the bridging of the financial gaps. Hence, these investments will boost the market growth over the forecast period.

Restraints

High Cost of the Construction Equipment

Technological advancements have increased the efficiency of construction projects by improving the quality of construction practices. However, this advancement also increases the complexities of the business. In order to avoid the expensive breakdowns of heavy equipment, regular maintenance is required. Since, the cost associated with the maintenance is relatively high and in case of breakdown, replacing the component becomes very expensive. Therefore, most of the companies are hesitant to take this measure, which in turn, is acting as a key restraint towards the growth of the market over the forecast period.

Market Segmentation

Our in-depth analysis of construction equipment market includes the following segments:

By Solution Type

  • Product 
    • Forklifts
    • Cranes
    • Trucks
    • Motor Graders
    • Wheel Loader
    • Others
    • Services

By Application Type

  • Transportation
  • Excavation and Mining
  • Earth Moving
  • Lifting & Material Handling
  • Others

By Equipment Type

  • Compact Construction Equipment
  • Heavy Construction Equipment

By Propulsion Type

  • Diesel
  • Gasoline
  • CNG/LNG

By End User Industries

  • Mining
  • Oil & Gas
  • Manufacturing
  • Infrastructure
  • Others

By Region

On the basis of regional analysis, the construction equipment market is segmented into five major region including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. The market for construction equipment in North America is prominent and Asia Pacific region is anticipated to dominate the market on the account of improvement in the socio-economic conditions in some of the emerging countries such as India, China and Thailand. Further, the population in India and China is rapidly increasing, which have resulted in an increased number of construction projects such as airports, bridges, metros and renewable energy projects. In order to meet these project requirements, there will be an extensive demand for construction industry in the region. The regions in Middle East & Africa are estimated to grow rapidly owing to the increased infrastructure spending.

The construction equipment market is further classified on the basis of region as follows:

  • North America (US and Canada) Market size, Y-O-Y growth and Opportunity analysis.
  • Europe (France, Germany, Italy, Spain, UK, and Other parts of Europe) Market size, Y-O-Y growth and Opportunity analysis.
  • Asia Pacific (Japan, India, Thailand, China, Indonesia and rest of Asia Pacific) Market size, Y-O-Y growth and Opportunity analysis.
  • Latin America (Mexico and Brazil) Market size, Y-O-Y growth and Opportunity analysis.
  • Middle East & Africa (Middle East and South Africa) Market size, Y-O-Y growth and Opportunity analysis.

Top Key Players Dominating the Market


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