The Global Construction Equipment Market is expected to be valued at an estimated $223.41 billion US dollars by the year 2020, a compound annual growth rate of 7.85 percent from 2015. The global construction equipment market is expected to see a tremendous amount of growth between 2015 and 2020. This growth will be fueled by sizeable investments that will be made in both the commercial buildings and the smart residential sectors.
The rising economies of both the Asian Pacific and the South American regions are experiencing a large demand for heavy construction equipment. As a result, major investments are being made in these areas, and these investments are expected to make a significant contribution to the growth of the global construction equipment market.
Overview of Construction Equipment
Heavy construction equipment is a vital component of all construction projects. They are used at great length in both construction sites and mining sites, as they lower the cost of labor and reduce the amount of time it takes to complete projects.
Heavy construction equipment is extensively used in projects that require a great deal of capital. As a result, fixed investment trends are prominent features of these products. Modernization and technological advancements have led to an increased need for construction equipment for highly disciplined industries, including the military and railway operations. Further advancements in the development of infrastructure in both residential and commercial sectors is predicted to be the key force to fuel the growth of the construction equipment market on a global scale during the forecasted time frame of 2015 through 2020.
Segmentation of the Global Construction Equipment Market by Product Type
Several products in the global construction equipment market are expected to experience growth in the forecasted time period; however, earth moving equipment accounts for the largest market share of the construction equipment worldwide. This type of equipment is comprised of loaders, excavators, backhoes, loaders and motor grades. Earth moving equipment is used for excavation, a vital operation performed on all terrain types throughout the world. This type of equipment is expected to dominate the market through 2020.
Find more statistics at Statista
Regional Segmentation of the Global Construction Equipment market
While several regions are contributing to the growth of the global construction equipment market, the following three areas are expected to fuel the augmentation of this market between 2015 and 2020:
- North America
- South America
- Asia Pacific
- The Middle East
Currently, the Asian Pacific region accounts for an estimated 60 percent of the total global market share. It is anticipated that the market share in this region will continue to experience a compound annual growth rate of about 17 percent during the forecasted time period. An increase in investments in the development of infrastructure throughout all regions in Asia Pacific is expected to fuel the growth of the construction equipment market globally during the predicted time period. Moreover, the ever-growing demand for new transportation and utility infrastructures are expected to add to the augmentation of this market. The boost in the demand for new transport and utility infrastructures is expected to result in a robust compound annual growth rate in Asia Pacific through the year 2020.
Europe has been seeing a gradual improvement in the global construction equipment market since 2015. The Committee for European Construction Equipment (CECE) stated that the European construction equipment market has seen a positive incline in its business climate. Though there has yet to be a large upturn in sales, the existence of positive momentum in this market as a result of incoming orders being placed does indicate that there will be an improvement in the sales of construction equipment in this region over the forecasted time period. Germany, in particular, is expected to head the European market. Spain and Portugal are also expected to largely contribute to the market.
Key Vendors and Competition in the Global Construction Equipment Market
A collection of several key vendors play a vital role in the global construction equipment market. In this industry, vendors compete against one another on the basis of quality, price, innovation, services that are offered post-sale, as well as distribution, in order to gain maximum market traction during the forecasted period.
The key vendors that are currently contributing in the global construction equipment market include:
- Volvo Construction
- Hitachi Construction Machinery Co Ltd
- Hyundai Heavy Industries, Ltd
These companies have contributed large investments in the research and development of new products. They have also adapted the products offered by this market, and are expected to continue adapting these products.
There are additional vendors that hold a prominent role in the global construction equipment market. These vendors include:
- CNH Industrial
- Manitou Americas
- Doosan infracore
- Liugong Machiner
- Lonking Holdings
- Shantui Construction Machinery
- Sany Heavy Industry
- XCMG, Sumitomo Heavy Industries
- Xiamen XGMA Machinery
Benefits of Investing in the Global Construction Equipment Market
Those who are interested in finding a profitable investment should consider the global construction equipment market. The compound annual growth rate that is projected for this market through 2020 indicates that it is stable and that it will promise positive outcomes for investors. Moreover, the amount of money that key players, coupled with the success rate of these key players, is further proof that this industry is a wise investment option. Additionally, the factors that are expected to fuel growth, including increased infrastructure in emerging economies and both residential and non-residential properties, are all on the rise.
Investors will likely see a significant return on the moneys they invest in the global construction equipment market.
The Future of the Global Construction Equipment Market
Up until 2020, the compound annual growth rate of the global construction equipment market, the increased amount of investments, the factors that are expected to fuel the growth of this market, and the companies that act as key players in this industry are all indications that the market will continue to grow through the foreseeable future.