The global heavy construction equipment market is regaining its prominence after a downfall that lasted around seven long years. As per the new research conducted by confianza Market research & consultancy, the global heavy construction equipment industry was valued at USD 132.52 billion in 2018 and is anticipated to grow at CAGR of 5.7% over the forecast period. These types of equipment are widely used in industries including construction, mining, & energy & power among others. The key reasons behind this tremendous growth are increasing residential and commercial construction demand, stringent emission regulations on heavy equipment and increasing PPP (Public-Private Partnership) in the development of infrastructures. Technological enhancement such as Artificial Intelligence in the construction market is expected to further boost the market growth over the forecast period.
Heavy construction equipment includes earthmoving machinery such as excavators, loaders, dozers; material handling equipment including tower crane, forklifts, dump trucks, etc.; Concrete & road construction machinery such as concrete mixer, concrete pump, paving equipment, etc. The type of equipment required differs from project to project, excavator, loader are the most widely sold types of equipment.
The enormous growth in the construction sector accompanied by economic growth in the developing countries has opened many opportunities for the construction equipment industry in the last 5 years. However, increasing property prices and loan interest rates are hindering the market growth significantly. Governments around the world are offering subsidies and low-interest rates to the economically weaker section; for instance, The Government of India, launched ‘Pradhan Mantri Awas Yojana’ in May 2015, the scheme aims at providing affordable houses to the low-income group and subsidy for mid-income section. Such initiatives increase the demand for heavy construction equipment market.
The housing renovation, remodeling is also a key application area of construction equipment. The trend for renovation is growing steadily in western countries, especially the U.S. Construction of roads, dams, bridges is on the rise in India, UAE, and South-East Asia. All such projects require various construction equipment, thus increases market growth significantly.
By product type, the construction equipment market has been segmented into earth moving equipment, material handling equipment, concrete & road construction machinery. The Earthmoving machinery such as excavators, loaders have a huge demand across the globe owing to their multiple applications in areas such as mining, construction, demolition among others. The segment alone holds greater than 45% market share in the heavy construction machinery market.
Cranes are gaining significance in the last few decades as the demand for skyscrapers, bridges are increasing in metropolitan cities across the globe. Tower cranes are the most powerful cranes with capacity ranging up to 1800 metric tons, these machineries have greater significance in heavy industries such as dock shipping, ship & plane manufacturing, heavy metal industries, etc.
The companies are also trying to strengthen mobile cranes capacity, for instance, Liebherr Group, the German crane manufacturing company launched the Liebherr LTM 11200-9.1 crane with 1,200 metric tons capacity & longest telescopic boom of 100 Meters.
The market has been segmented based on the type of application into construction, mining, energy and power, shipping, port infrastructure, and others. The construction is the largest application segment for construction machinery such as excavators, loaders, mobile cranes, concrete mixer trucks. The mining sector is expected to gain significance in the upcoming years, especially in South Africa and Latin America as the demand for metals and minerals is rising across the globe.
Construction Equipment Market Share Insights
The construction equipment market was dominated by companies such as caterpillar, Komatsu, Hitachi heavy construction equipment, among others. The companies focus on developing new products and upgrading the existing models for grabbing greater market share. New companies entering this market focus on bringing technological innovation to establish themselves in this ever-growing market. High machinery and operation cost act as a key entry barrier for new companies entering this market. Following are key companies listed in this report:
- Volvo Construction Equipment
- CNH Industrial
- John Deere
- Hitachi Construction Equipment
- Market, by equipment type
- Earth Moving Equipment
- Mini excavator
- Wheeled excavator
- Mini loader
- Wheeled loader
- Material Handling equipment
- Tower crane
- Mobile crane
- Dump trucks
- Concrete & road construction machinery
- Concrete mixer
- Earth Moving Equipment
- Market, by application type
- Energy and power
- Market, by region
- North America (U.S., Canada)
- Europe (UK, Germany, France, Italy)
- Asia Pacific (China, India, Japan, South Korea, Taiwan)
- Latin America (Brazil, Mexico)
- Middle East & Africa