Report Overview
The international heavy building equipment market dimension to be valued at USD ninety.4 billion by 2025 and is predicted to develop at a compound annual development price (CAGR) of 5.4% in the course of the forecast interval. Increased investment in the infrastructure sector is expected to drive growth over the forecast interval. Heavy-duty development tools is likely to witness high demand from the infrastructure sector owing to an increase in building actions. The U.S. development sector has witnessed sluggish demand in the earlier couple of years. Despite this slowdown, spending on non-residential non-public construction increased from USD 267 billion in 2010 to USD four hundred billion in 2016. Steady funding within the business is anticipated to be a key catalyst in market growth.
The construction sector within the country has seen regular growth in 2017 owing to excessive demand from the residential segment and this has boosted the demand for heavy-duty gear. Unit sales elevated by practically 9,675 in 2017 from that in 2016. Positive dynamics of the true property sector across cities such as Seattle, Austin, Dallas, and Fort Lauderdale is prone to spur infrastructure improvement actions, thereby fueling the market development over the forecast interval.
A regular rise in the value of residential properties, coupled with a rise in demand for residential houses, is driving demand for brand new investments in the sector. Seattle posted the very best growth in housing prices in 2016, clocking in a 10.7% improve. New housing models witnessed a year-on-year progress of practically 6.2% in February 2017, based on the U.S. Census Bureau.
The market is very concentrated in nature, with the bulk held by Caterpillar in 2016. Other industry gamers embrace Volvo and Komatsu. Market gamers have also started selling refurbished equipment backed by guarantee certificates to increase their industry share.
However, a significant concern for this industry was a drop within the export of several sorts of equipment throughout the globe. The Association of Equipment Manufacturers revealed that the us export of building equipment witnessed a decline of almost 17% in 2014 in comparison to figures in 2013. This trend continued in 2015 and total export declined by almost 25% from 2011 to 2015. Exports in the Asia Pacific declined by practically 38% from 2011 to 2015. Even at such a time, Chinese producers stayed sturdy, with XCMG and SANY among the leading manufacturers of building equipment.
Heavy Construction Equipment Market Trends
The increased give attention to infrastructure as well as the development of automation in manufacturing and development processes has a optimistic impression on business growth. The highway construction machinery market has grown considerably in recent years as a end result of increased street growth programs conducted by numerous central and state governments. The rising incidence of such initiatives in the Asia-Pacific area is driving the market progress in the forecast period.
Renting or leasing building tools is becoming extra popular due to the improve in the price of the equipment and the maintenance course of. In addition to the low cost, there are a quantity of other benefits to renting development gear. Leasing companies present machinery in addition to required professional workers and drivers. Owing to such benefits and a shift in consumer preference towards rental, the market is expected to expand within the forecast period.
Region-specific authorities laws are one of the main challenges that heavy construction equipment firms face. To begin heavy construction, a company should undergo a prolonged and strict methodology of getting a permit after passing numerous required checkpoints. For instance, the development industry makes use of diesel engines than another industry and due to this issue correct benchmark data is collected to adequately characterize the environmental situation of the world to fulfill the EU emission rules. This is predicted to hamper the market progress in the forecast period.
Product Insights
Earthmoving equipment is likely to dominate the market over the forecast period. Product demand is basically catered to by creating nations similar to India, Malaysia, and Indonesia. These international locations have invested in the improvement of transport infrastructure, which majorly uses earthmoving equipment, to help economic growth. For instance, the East Coast Rail Link project to link Malaysia’s eastern and western area commenced in August 2017. This project is valued at practically USD thirteen.zero billion and is half of China’s formidable “One Belt and One Road” infrastructure program.
Material handling equipment accounted for 28.0% of the heavy construction tools market when it comes to income in 2016. Construction of high-rise buildings is anticipated to generate steady demand for materials handling machinery. Cranes, dumpers, forklifts, and telescopic handlers are a few examples of material handling equipment extensively used within the improvement of high-rise buildings.
Concrete and road development tools constituted 18.9% of the market by revenue in 2016. Concrete and highway machinery include equipment similar to asphalt pavers, rollers, and transit mixers, which are used within the development of roads and handling or transporting concrete materials. Road development initiatives are anticipated to be a key driver for the growth of this product section. For occasion, in the U.S., funding in roadways development is predicted to increase from nearly USD ninety one.0 billion in 2016 to USD 99.zero billion by 2020.
Application Insights
Heavy-duty development gear is majorly used in the infrastructure sector and thus 49.9% of the market was held by this sector in 2016. Increased urbanization has created a global demand for higher transportation techniques. As international locations develop plans to fulfill this demand, the infrastructure sector is expected to grow significantly over the forecast interval, with the majority of the demand stemming from countries like India and China.
Demand for affordable housing has elevated along with an increase in demand for social, transport, and utility infrastructure. Governments across the world have launched various plans to offer reasonably priced housing at profitable interest rates. Initiatives to provide inexpensive housing to the middle- and the low-income group is anticipated to further boost residential improvement. Also, the limitation of horizontal expansion because of limited availability of land has forced developers to adopt construction practices for high-rise buildings. This, in turn, is likely to fuel the demand for heavy-duty building equipment over the forecast period.
Regional Insights
APAC is more doubtless to dominate the worldwide market over the forecast period. This region is anticipated to reinforce its market share from 39.4% in 2016 to forty three.9% by 2025. Currently, APAC is experiencing vital demand for heavy-duty construction equipment, because of the rising potential for growth of the development sector.
The Chinese authorities has planned to upgrade the country’s transportation infrastructure via initiatives such as the nationwide high-speed railway and the 7918 Network (also known as the National Trunk Highway System). As a end result, rail infrastructure is predicted to be the fastest-growing sector within the nation. China has a really distinct market comprising numerous regions, every with its financial development trajectory and local weather change. Northwest China is expected to develop at the quickest price due to the government’s “Western Development Strategy” initiative, which is prone to result in sizeable infrastructure spending.
Central and South America are more likely to record a high growth price out there for heavy-duty construction tools. This could be largely attributed to investments in the growth of roadway infrastructure. For instance, the federal government of Argentina has deliberate a major highway growth project across the country. To be completed by 2025, the project has recognized 16 key highway plans with a complete length of practically 7,000 kilometers. The complete cost of the project is estimated to be around USD 16.7 billion.
Key Companies & Market Share Insights
Global distributors similar to Caterpillar, Komatsu Ltd., and AB Volvo are a variety of the leading market gamers. These vendors dominate the market in phrases of expertise, expertise, and quality. Local vendors are forming joint ventures with international gamers to maneuver up the worth chain by buying varied technologies. For instance, in 2016, India-based SRB Group entered right into a three method partnership with Russia-based Uralmash Machine-Building Corporation to fabricate heavy-duty construction tools.
The rise in the prominence of Chinese vendors within the trade has been noticed in the earlier couple of years. Manufacturers in China have capitalized on government-funded infrastructure tasks and are constantly evolving by acquiring European distributors. For occasion, Liugong Machinery Co. Ltd., a leading producer of wheeled loaders in China, acquired bulldozer manufacturer Dressta in 2012. Manufacturers in China are growing at an exponential price and investing in the expansion of their facilities.
Recent Developments
* In May 2022, “VOLVO CONSTRUCTION EQUIPMENT AND WORLD RX TO WORK ON DEVELOPING THE NEXT GENERATION OF RALLYCROSS TRACKS” Volvo CE introduced that it is going to broaden its involvement– becoming the Series’ Official Track Build Partner’ after turning into the Official Construction Equipment Supplier to WORLD RX.
* In March 2022, “Komatsu and Anglo American Minas-Rio shaped a partnership for a wide-ranging ICT mining bulldozer remote management in Brazil”.Komatsu and Anglo American Minas-Rio have signed a memorandum forunderstanding the aim of conducting a trial comprising a huge ICT mining bulldozer with remote control performance through Komatsu Brazil International Ltd. The firms constituted ahope to construct a new solution that improves mine website safety and productiveness by way of this trial.
* In June 2021, SafeAI and Siemens partnered as a lot as develop an autonomous, electric fleet for Obayashi, a Japanese construction company. Obayashi will be succesful of scale quicker with its present fleet as a outcome of retrofit technique provided by SafeAI and Siemens’. This collaboration is another example of automated driving’s proliferation into nooks and crannies.
Some of the key manufacturers include:
* Hitachi Construction Machinery Co. Ltd.,
* Liebherr,
* Deere & Company,
* Doosan Bobcat,
* XCMG Group,
* SANY Group,
* Zoomlion Heavy Industry Science & Technology Co. Ltd.
Heavy Construction Equipment Market Report Scope
Report Attribute
Details
Revenue forecast in USD 90.4 billion
Growth price
CAGR of 5.4% from 2018 to Base 12 months for estimation Historical knowledge Forecast interval Quantitative models
Revenue in USD billion and CAGR from 2017 to Report coverage
Revenue forecast, company rating, competitive landscape, development factors, and trends
Segments covered
Product, software, and area
Regional scope
North America, Europe, Asia Pacific, CSA, and Middle East & Africa
Country scope
U.S., Canada, U.K., Germany, Japan, China, India, UAE, and Brazil
Key firms profiled
Hitachi Construction Machinery Co. Ltd., Liebherr, Deere & Company, Doosan Bobcat, XCMG Group, SANY Group, Zoomlion Heavy Industry Science & Technology Co. Ltd.
Customization scope
Free report customization (equivalent to up to 8 analysts working days) with buy. Addition or alteration to country, regional & section scope.
Pricing and purchase options
Avail personalized purchase options to meet your precise analysis needs.Explore purchase options
Global Heavy Construction Equipment Market Segmentation
This report forecasts income progress and provides an analysis of the newest trade trends in each of the sub-segments from 2014 to 2025. For this report, Grand View Research has segmented the worldwide heavy development tools market report primarily based on product, application, and area:
* Product Outlook (Revenue, USD Million, ) * Earth Moving Machinery * Material Handling Machinery * Concrete & Road Machinery * Others
* Application Outlook (Revenue, USD Million, ) * Infrastructure * Real Estate * Others
* Regional Outlook (Revenue, USD Million, ) * North America * Europe * Asia Pacific * Central & South America Brazil * The Middle East and Africa