The market for construction equipments is anticipated to record a CAGR of around 4.5% over the forecast period 2020-2028. The increasing public-private partnerships with wide scale adoption of the rental business are driving the demand for construction equipments.
Further, urbanization is triggering the demand not only for the residential infrastructure but also for roads, bridges and schools. On the basis of solution type, the market is segmented into products and services, out of which, the leading share in the market will be shown by product segment on the account of increase in the government spending on construction projects along with the rising demand for road construction machinery.
Technological advancements have increased the efficiency of construction projects by improving the quality of construction practices. However, this advancement also increases the complexities of the business. In order to avoid the expensive breakdowns of heavy equipment, regular maintenance is required.
Since, the cost associated with the maintenance is relatively high and in case of breakdown, replacing the component becomes very expensive. Therefore, most of the companies are hesitant to take this measure, which in turn, is acting as a key restraint towards the growth of the market over the forecast period.
Based on the regional analysis, the market for construction equipment is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The construction equipment’s market in North America is leading and in Asia Pacific region, the market is anticipated to dominate on the back of emerging online retail facilities and availability of machinery on rental basis in some of the emerging economies.
Further, the government of China is investing in renewable energy sector and public infrastructure, which in return is predicted to increase the demand.
Increase in Foreign Direct Investment and Growth in Real Estate Sector to Drive the Market Growth
The increasing industrial, residential and commercial construction activities along with the foreign direct investment are driving the market growth of construction equipments. In order to provide with efficient equipments related to agriculture, mining, waste management and material handling, research & development activities are upgrading.
Further, the construction firms prefer to take equipments on rental basis, in order to reduce the cost. Moreover, to increase the productivity, the construction industry is shifting from traditional equipments to modern automated equipments, which is attracting more of the foreign investment. These factors will account for the growth in the market over the forecast period.
However, high cost of construction equipments in addition to the maintenance cost is expected to operate as key restraint into the growth of construction equipments market over the forecast period.
This report also provides the existing competitive scenario of some of the key players of the construction equipments market which includes company profiling of Manitou Equipment India Pvt Ltd.,
- Hitachi Construction Machinery Co. Ltd. (TYO: 6305),
- Caterpillar Inc. (NYSE:CAT), Deere & Company (NYSE:DE),
- Komatsu Ltd. (TYO: 6301), CNH Industrial NV (BIT:CNHI),
- Doosan Infracore Co Ltd. (KRX:042670),
- XCMG Construction Machinery Co. Ltd. (SHE: 000425),
- JC Bamford Excavators Ltd.
- Volvo Construction Equipment.
The profiling enfolds key information of the companies which encompasses business overview, products and services, key financials and recent news and developments.
On the whole, the report depicts detailed overview of the construction equipment market that will help industry consultants, equipment manufacturers, existing players searching for expansion opportunities, new players searching possibilities and other stakeholders to align their market centric strategies according to the ongoing and expected trends in the future.