Construction Equipment Market: Current Analysis and Forecast (2020-2030)

Ever-changing demand from different regions is not the only big change for the Construction equipment market. The sector is also renovating in response to changing customer preferences, product technology, business models, and regulatory developments. These innovations and developments, combined with the ongoing economic uncertainty in various regions are expected to offer more changes to the future of the construction equipment market, including the competitive landscape. Although the construction industry is facing a slow-down in the recent past, eventually affecting the sale of new construction equipment, the market for construction equipment is predicted to recover during the forecast period, owing to the growth of public-private partnerships (PPP), characterized as a joint venture between the government and private companies for the construction of public infrastructure systems in the country. Growing public-private partnerships in countries such as India, China, and other developing regions are expected to boost the growth of construction equipment sales.

Based on equipment type, the construction equipment market is bifurcated into heavy construction equipment, and compact construction equipment. Currently, the heavy construction equipment segment dominates the market and is expected to maintain its dominance throughout the forecast period. Heavy equipment is designed to offer superior performance and productivity. In addition, these equipment are effective and efficient tools that help to increase the rate of output through the work progress and reduce the overall construction costs, especially for large contracts.

Based on product type, the construction equipment market is bifurcated into cranes, loaders, forklifts, excavators, dozers, and others. Loaders acquired a considerable share in the construction equipment market owing to their essential requirements for heavy-duty construction and mining operations. In addition, they are versatile machines that can be used to move large amounts of material quickly and efficiently.

Based on application, the construction equipment market is bifurcated into earthmoving, concrete equipment, material handling, and material processing. Earthmoving equipment dominates the market and is expected to witness considerable growth in the forecasted period as well. It is mainly owing to the increasing demand for earthmoving equipment from the mining industry. Additionally, the growth in public infrastructure spending will raise the need for earthmoving equipment globally in the years to come.

Based on Industry, the market is segmented into oil & gas, construction & infrastructure, manufacturing, mining, and others. Currently, the construction & infrastructure segment dominates the market for construction equipment. Rapid urbanization and increasing investment in sustainable development infrastructure across the globe are accelerating construction activities which is further propelling the market growth of construction equipment.

Based on End-user, the construction equipment market is bifurcated into commercial, residential, and industrial. The industrial segment owing to increased government spending on infrastructure development is expected to witness significant growth during the forecast period. Expanding manufacturing footprint and rising foreign investments in emerging nations are also enhancing the construction market growth further escalating the demand for construction equipment.

Based on the sales channel, the construction equipment market is bifurcated into OEMs and aftermarkets. The OEMs segment dominated the market in 2020. However, the aftermarket segment is expected to witness significant growth during the forecast period. Caterpillar dominates the market for construction equipment with more than 16% share. Caterpillar's combination of innovation and continuous improvement, paired with the company's formidable reputation, is expected to help the company to maintain its dominance in the heavy equipment manufacturing sector

For a better understanding of the market adoption of construction equipment, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, UK, France, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of Asia-Pacific), Rest of World. The Asia Pacific market is expected to register the highest growth rate in the forecast period. It is mainly owing to the growing construction, oil and gas, and mining sector demand in the region. Furthermore, due to lower housing costs and growing urbanization in India and China, the demand for construction equipment in the residential development market is increasing.

Some of the major players operating in the market include: Caterpillar Inc., Komatsu Ltd., AB Volvo, Xuzhou Construction Machinery Group Co., Ltd., Zoomlion, Deere & Company, The Liebherr Group, Doosan Heavy Industries Co., Ltd., Sandvik AB, J C Bamford Excavators Ltd.