Construction Machinery Market Size
The global construction machinery market is anticipated to reach a market value of USD 272.15 billion by 2023, by recording a CAGR of 7.98% over the forecast period, 2018-2023. The increasing focus on infrastructure and development of automation in the construction and manufacturing processes had a significant impact on the market growth.
Areas Where Scope of Construction Machinery Is Growing
The road construction machinery market has witnessed significant growth in the recent past, owing to the increased road development programs undertaken by the central and state governments, especially in the Asia-Pacific countries.
Growing demand from irrigation industry, increasing number of upcoming highway construction projects and advanced vehicles equipped with emission control systems are some of the factors expected to drive the construction machinery market, during 2017-2022 (the forecast period).
The demand for machines that are cost-effective, along with regulatory pressures for lower emissions, is pressurizing construction-equipment manufacturers to opt for electric and hybrid vehicles over the traditional hydraulic and mechanical ones.
Great Man-Made River (GMR) project in Libya has been working since 1985, to irrigate more than 3, 50,000 acres of arable land, and is scheduled to complete by 2030. Dubai has undertaken a project to improve its economy by constructing Dubailand, which includes sports venue, theme parks, eco-tourism, health facilities, science attraction, and hotels, in 278 km2 by 2025. Moreover, this project is in the process of employing advanced automated construction machinery.
Rise in Construction Machinery and Equipment Renting
The renting or leasing of construction equipment has been on the rise, owing to the equipment cost and also the cost of the maintenance process. Apart from the cost, there are also other benefits associated with renting the construction equipment. Rental companies provide the machinery, along with the required professional machine operators and drivers, included in the rent. This is certainly a better way that helps the renting companies to make more profits and for the customers getting the job done right. Generally, renting is an inclusive cost; however, given that a rental company bears all the cost in an economical and effective manner, the cost burden is fairly less. Thereby, for a short-term construction application, it is always preferred to go for renting than a purchase. Also, renting allows for the optimum utilization of the machinery. The renting companies can invest in new technologies when the older ones get obsolete.
Cranes - the Largest Segment by Vehicle Type
The market for cranes is expected to grow at a steady pace, witnessing a CAGR of 8.04%, during the forecast period.
The large construction projects, across the world, are expected to drive the crane and construction machinery market shortly. Europe is planning on various construction projects. Germany, France, and Italy have witnessed the highest growth rates, owing to the construction projects happening in the region. The projects include the port extension, underwater tunnel connecting major European countries, railway tunnels, among others, which include the use of many types of cranes, thus driving the entire crane market.
Africa and Latin America are expected to emerge as good markets post 2021, improving the economy, and overseas investments are expected to encourage more infrastructural development and construction activity.
The North American crane count has reached a new peak. Approximately 40% of the total crane count in North America is working for the residential market. Toronto is leading this market with 70 of their cranes dedicated to high-rise cooperative projects. Mixed-use development is the second largest market, making up nearly 25% of all cranes in North America.
The increase in net crane count indicates that the construction market is not merely holding steady, but prospering. It is anticipated that this growth will continue through 2018, as many cities in North America continue to add to their roster of proposed developments.
Increasing Demand in Asia-Pacific for Construction Machinery Market
The Asia-Pacific construction machinery market is projected to register a CAGR of 8.60% during the forecast period. Asia-Pacific ranks first in the construction equipment market with major market share held by China, India, and Japan. The progress of South-North water transfer plant project in China, anticipated to complete by 2050, would deploy various construction machinery either by leasing or owning the machinery, thus growing the demand for construction machinery over next three decades.
The increasing number of dam construction, real-estate business, commercial and residential complexes, and expansion of rail and road infrastructure in the APAC region are few drivers for the construction machinery market.
Key Developments in the Construction Machinery Market
December 2017: Volvo Construction Equipment launched new EC200D excavator in India to strengthen its earthmoving product line in 20 ton machinery category.
December 2017: Kobelco Construction Machinery Co., Ltd, launched three new models in the hydraulic crawler cranessegment namely CK3300G-2 (North American model), CKE3000G ( European model) and CKS3000 (Standard model).
Major Players in Construction Machinery Market