Press release
Forecast on Compact Construction Equipment Market for the Period (2014-2020)
Construction equipment industry comprises of a wide rangeof heavy machines which perform specific tasks for various applications. Construction equipment can be classified according to the size and capability of the construction machinery.However, there have been a few changes in their classification based on design specifications and cost effectiveness. Compact construction equipment is an emerging term used in the construction equipment industry due to its utility advantages.Compact construction equipment are small units which are designed to work on small commercial and residential sites. The major utility factor of compact construction equipment is their versatility and ability to perform those tasks that were earlier dedicated to heavy machinery. The main advantagesof compact construction equipment are that it is low cost, light weight,and easy to transport and operate. However, there is no industry standard to specify any requirements to be met for equipment to be categorised as compact construction equipment.This categorisationis more dependent on the type of application it performs in a particular sector. Generally, track loaders, excavators, backhoe loaders, skid steers and telehandlers are classified under compact construction equipment.
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The compact construction equipment industry has shown a robust double digit growth rate over the past few years. The most popular category in compact equipment market are the track loaders with the largest market share. Skid steers market is the second most attractive market and is anticipated to experience a healthy growth by 2020.Decent growth has been observed in the construction equipment market in North America and Western Europe, and is anticipated to grow further due to an increase in construction and repair activities. Asia is anticipated to be the largest market for compact construction equipment by 2020.
The major factors driving the compact construction equipment market are anincreasing preference for small size construction equipment, affordable pricing, reliability, and improved productivity. The increasing number of new technology attachments available for compact construction equipment such as levelers, soil conditioning tools and trenchersare also driving the growth of compact construction equipment. Also, the private user market such as sundowners or hobby farmers, andreal estate developershave been contributing significantly to the increasing adoption of compact construction equipment. Volatility in fuel prices, low entry barriers and lack of structure are the key challenges for the compact construction equipment market.
The changing trends from pedal operation to the use of joysticks, availability of suspension seats and air conditioners at reasonableprices,is further driving growth in compact construction equipment market. Another emerging trend is the GPS tracking system in compact equipment which isamajor attraction for rental purchasers as it helps them to safeguard their machinery against theft and track its location when needed. Self-monitoring and auto shutdown are other attractive emerging trends in compact construction market. The major players in the market are Case, JCB, Mustang, John Deere, Volvo, Ditch Witch,Gehl, Vermeer, Caterpillar and New Holland.
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The compact construction equipment industry thus comprises products which are small, can fit into smaller places, are versatile in application, and are cost effective. Noticeable drivers of the compact construction equipment industry are mainly tied to the residential and commercial sectors.Also, rental industries areamong the potential growth pockets for the compact construction equipment industry.
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