Aftermarket Parts in Construction Industry Market - Forecast(2022 - 2027)

The Global market for Aftermarket parts in construction industry is forecast to reach $1126.82 million by 2027, growing at a CAGR of 8.37% from 2022 to 2027. The market growth is attributed to significant growth of construction business across different end user verticals including residential, commercial, industrial, public infrastructure, and others. Moreover, rising demand for heavy machinery equipment also boosts the market growth.

Aftermarket Parts in Construction Industry Market Report Coverage

The report: "Aftermarket parts in construction industry market - Forecast (2022-2027)", by IndustryARC covers an in-depth analysis of the following segments of the Aftermarket parts in construction industry market.

By Product Type: New, Rebuilt, Remanufactured, Used

By Equipment Type: Cranes & Hoists, Backhoe, Dump Trucks, Compactors, Loader, Bulldozer, Excavator, Grader, Telehandlers, Pavers, Scrapper/Wheel Tractor Scrapper, Skid Steer, Concrete Pumps, Drilling Machines (Drilling Rigs), Mixer Trucks, Shovel, Specialty Machines, Others

By Components: Tires, Alternators, Starter Motors, Attachments, Axle Components, Engine Parts, Final Drives, Hydraulic Pumps, Hydraulic Cylinders, Linkage Components, Powertrain Parts, Radiators and Cooling, Tracks, Swing Drive Components, Swing Motor, Transmissions, Turbo Chargers, Undercarriage Parts, Swing Gear and Bearing, Others

By End User: Residential, Commercial, Industrial, Public Infrastructure, Roads & Tunnels, Bridges & Flyovers, Airports, Railways & Metro, Others

By Geography: North America (U.S., Canada, Mexico), South America (Brazil, Argentina, Colombia, Others), Europe (Germany, U.K, France, Italy, Spain, Nordics, Others), APAC (China, Japan, India, South Korea, Australia, Indonesia, Others), ROW (Middle East, Africa)

Key Takeaways

Commercial segment is anticipated to witness significant market growth during the forecast period 2022-2027. Commercial sectors include stores, warehouses, restaurants, hospitals and many others. The frequency of modernization is relatively strong in this category, as new infrastructures help to draw more consumers or individuals. Such considerations make it very important to spend extensively in the rehabilitation of existing infrastructures in order to prevent long-term public inconvenience and to avoid injuries, thereby influencing the need for construction machinery equipment.

APAC region held the highest market share in 2019. The market growth is due to growth of construction industry, investments in development of Public Infrastructure, growing residential as well as non-residential construction, and others.

Aftermarket Parts in Construction Industry Market Segment Analysis - By End User

Residential segment held the highest market share in 2019. The market growth for residential construction aftermarket parts is due to enhanced construction activities owing to rising residential housing projects. In 2019, Arihant Group had announced of investing about 250 crore towards development of an affordable residential housing project at Greater Noida. The company had also revealed that the first phase of the project is expected to be completed by April 2022 while the entire project will get completed by November 2024 under affordable housing scheme of the central government. According to statistics data from U.S Census Bureau and Department of Housing and Urban Development, privately-owned housing completions in June 2020 showed an annual rate of 1,225,000, which is comparatively higher (4.3 percent) than the estimates in May 2020. The rapid increase of residential buildings inevitably signifies the expansion of heavy construction equipment parts by contractors over the long term. Moreover, Commercial segment is anticipated to witness significant market growth during the forecast period 2022-2027. Expansion of commercial construction facilities is part of the development of various countries, and act as a core factor for the high rise in commercial construction operations. In September 2020, Anderson Healthcare announced its plans of building a 50,000 ft two-storey building on its Goshen Campus in Edwardsville. This development will offer medical facility such as outpatient services including imaging centre, urgent care, lab services as well as outpatient rehab therapies. Such expansion will eventually make high use of construction machinery to deliver applications such as land clearance, rock breaking, digging and many others. All these factors together boosts the growth of the market.

Aftermarket Parts in Construction Industry Market Segment Analysis - By Geography

APAC region held the highest market share in 2019. The market growth in this region is mainly due to growth of construction industry, governmental initiatives towards creating better transport connectivity, growing residential as well as non-residential construction, and others. As per data from KB Kookmin Bank, South Korea housing index increased to 104.10 points during August 2020 as compared to 103.30 points in July 2020. In 2020, Doosan Infracore, one of the leading suppliers of equipment, implemented within its machinery an integrated smart construction solution capable of handling numerous tasks such as equipment operation, terrain analysis and others that improve high efficiency in construction site operations. The deployment of such systems allows contractors to conduct highly precise building tasks and to properly track and manage construction machinery equipment. MEA (Middle East and Africa) region is anticipated to witness significant market growth during the forecast period 2022-2027. Favourable government policies and programmes are in momentum to support the development of this region's construction industry. As long-term construction projects need construction equipment in a suitable conditions, the growing construction industry in this region is undoubtedly considered to trigger the market growth rate. In Saudi Arabia, building projects such as the Riyadh metro, Qiddiya, Rabig 2 IPP and so on are primarily driving the construction market. In September 2020, Egyptian government has awarded the high speed railway project of the Ain Sokhna-El Alamein. In November, 2019, the government of Ghana has signed a concession agreement with Ghana Infrastructure Investment Fund and Africa Investment SkyTrain Consortium Holdings to develop a world-class mass transport system in the country costing around $3bn. Such developments in this region is set to boost the market growth during the forecast period 2022-2027.

Aftermarket Parts in Construction Industry Market Drivers

Growing construction industry

Real estate firms, residential and non-residential building companies, developers, architecture companies and heavy construction companies are main sectors in the construction industry. Over a limited period of time, changes in the world economy will mostly be driven by private residences, transport and economic construction practises. In the coming years, the commercial building sector continues to lead the market, outstripping the growth in other segments of the industry. Economic growth in countries such as China and some Middle East countries are some of the factors behind the commercial sector's growth. Thus with the growing construction industry demand for construction machinery rises which is set to boosts the market growth for aftermarket parts during the forecast period 2022-2027.

Aftermarket Parts in Construction Industry Market Challenges

Stringent government regulations:

Regional government policy is one of the biggest obstacles faced by heavy construction machinery players. Construction industry deploys diesel engine more than any other sector that add pollution to the environment. Thus, if a company has to commence heavy construction, it has to undergo a lengthy and detailed process of acquiring a permit. Surveys are performed on natural and heritage wealth, soil, plants, habitats, surface and groundwater hydrology, climatology and ecosystems. Before the permit is prepared and submitted to the regulatory agency, it proceeds by conformance and technical regulations. As a result, hindrance in the market growth of construction industry obstructs the market growth for aftermarket parts in construction industry

Aftermarket Parts in Construction Industry Market Landscape

Partnerships and acquisitions along with product launches are the key strategies adopted by the players in the Aftermarket parts in construction industry market. As of 2019, the market for Aftermarket parts in construction industry market is consolidated with the top players including XCMG Group, John Deere, Caterpillar Inc, Komatsu, Volvo, Kubota, Hidromek, SANY Heavy Industry Co. Ltd., Takeuchi, Yanmar and among others.

Acquisitions/Technology Launches/Partnerships

In June 2020, Volvo launched 90-tonne EC950F excavators that can be used in harsh construction applications owing to its combination of power and stability. It is equipped with 450KW of Volvo D16 diesel engine.

In January 2019, Komatsu launched Hydraulic Excavators PC300LC-8M0 and PC350LC-8M0 which are applicable for stone/marble segment. These products launched by Komatsu have the benefits of reduced fuel usage and improved machine performance.

In June 2018, Caterpillar India has introduced its next generation 20-ton size class excavators, Cat 320D3 and Cat 323D3, to cater to the Indian construction industry thereby offering customers for a more reliable and more powerful heavy-duty excavator equipped with state-of-the-art technology, higher productivity, lower fuel consumption and lower maintenance costs.