Construction Equipment Market Growth & Trends
The global construction equipment market size is projected to reach USD 161.99 billion by 2030, registering a 3.9% CAGR from 2023 to 2030, according to a new study by Grand View Research Inc. The rising investments made by governments around the world in the development of public infrastructure is one of the key factors anticipated to fuel the growth of industry over the projected period. Additionally, the demand for construction equipment is predicted to rise as a result of the increased residential and commercial construction activity caused by the growing population in emerging nations like India.
In the upcoming years, the industry is predicted to grow due to favorable government efforts. For instance, the U.S. federal government’s announcement of stimulus packages in August 2021, which included USD 550 billion in new federal investment for infrastructure modernization, is anticipated to spur building spending in the nation. Similar to this, the Government of India announced in 2019 that it will invest USD 1.4 trillion for infrastructure projects from 2019 to 2023; this represents the country’s anticipated demand for construction equipment throughout the forecast period.
The COVID-19 pandemic hindered the market expansion due to supply chain interruptions and temporary closure of dealer locations. The resumption of building for ongoing and new projects, however, resulted in a significant rise in demand for construction equipment in 2021. The market’s expansion is anticipated to be hampered over the forecast period by an abrupt demand for infrastructure and development, which will lead to a lack of inventories and an increase in the price of base materials.
High ownership costs are one of the key factors limiting the expansion of the construction equipment business. These machines need frequent maintenance, such as oil and other lubricant changes, engine and hydraulic motor service, filter replacement, and tire-related work, which has a significant impact on market data. Additionally, industry players are concentrating on providing intelligent construction equipment, which needs skilled operators for safe and secure utilization. The adoption of construction equipment is being hampered by a lack of qualified and professional operators in the market.
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Construction Equipment Market Report Highlights
The earthmoving machinery segment dominated the market in 2022. The segment is expected to witness progressive demand owing to the increasing investments for industrial and commercial construction projects in emerging economies of the Asia Pacific and the Middle East and Africa
The material handling machinery segment is expected to register a CAGR exceeding 4.9 % over the forecast period. It can be ascribed to an increase in demand for crawler cranes that offer greater convenience and ease of accessibility in small construction sites, especially in urban areas
The concrete and road construction machinery is projected to expand at a CAGR exceeding 5.8% in the forecast period. Favorable government initiatives to increase their investment in highway construction are anticipated to drive the growth of the segment.
Industry expansion will be aided by construction companies and building contractors directing their attention to accelerating construction operations without sacrificing safety and security.
Several governments, including those in the Taiwan, New Zealand, U.K., Brazil, and France, are concentrating on enhancing their transportation and construction infrastructures. To speed up their economic growth, these governments are significantly funding numerous infrastructural projects.
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