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The Europe Construction Equipment Market size is estimated to grow at a CAGR of 4.4% between 2022 and 2027 and the size of the market is forecast to increase by USD 9.04 billion. The growth of the market depends on several factors such as the increasing government infrastructure investments, the increasing urbanization, and the growing demand for sustainable construction.
This report extensively covers market segmentation by application (commercial, residential, and infrastructure), and product (earthmoving equipment, material handling equipment, concrete equipment, road construction equipment, and others). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Construction Equipment Market in Europe Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Increasing government infrastructure investments is one of the key drivers driving the market growth. The large-scale infrastructure projects financed by the European Union (EU) and different national governments are driving significant demand in the construction equipment market in Europe. These investments are intended to develop renewable energy projects, modernize urban areas, and enhance transportation networks. The construction of highways, roads, bridges, railways, airports, and energy facilities has increased due to this.
Moreover, to support these projects, there is an increasing demand for construction machinery such as excavators, bulldozers, loaders, and cranes. The replacement and upgrade of outdated equipment with contemporary, more effective, and environmentally friendly construction equipment have been prompted by the strict regulations pertaining to emissions and safety standards in Europe, which, in turn, will foster the growth of the market during the forecast period.
Increasing demand for electric construction equipment is the key trend driving the market growth. Electric construction equipment, such as excavators, loaders, and compactors that are equipped with electric motors rather than conventional internal combustion engines, is becoming increasingly prevalent in the construction equipment market in Europe. Environmental regulations that are too strict and rising sustainability concerns in the area are the main factors driving this trend. For instance, nations such as Norway are pushing for the adoption of electric construction equipment and have set ambitious goals to ban the sales of fossil-fueled construction equipment by 2025.
Additionally, electric construction equipment has advantages such as lower emissions, lower noise levels, and lower operating costs that appeal to construction companies looking for more economical and environmentally friendly solutions. As a result, there is a rising need for electric construction equipment in Europe, and many manufacturers are investing in R&D to satisfy this new market need. Hence, the growing demand for electric construction equipment will drive the growth of the market during the forecast period.
The high cost associated with construction equipment is hindering market growth. The market is significantly challenged by the high cost of construction equipment. Purchasing expensive construction equipment requires construction companies to invest a significant amount. However, these companies frequently face financial limitations, which can restrict their ability to make investments to purchase new equipment. This can negatively impact the growth of the market. The financial burden on construction companies can be made more severe by the high costs of maintenance and operations.
Due to this, businesses might be forced to use old and outdated equipment, which can reduce productivity and efficiency. To ensure the continued expansion and growth of the market in Europe, it is imperative to address the high costs associated with construction equipment. Therefore, the high cost of construction equipment is a significant issue that can impede the development of the market during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AB Volvo - The company offers trucks, buses, construction equipment, and power solutions for marine and industrial applications. It also offers financing and services.
Atlas Copco UK - The company offers sustainable productivity solutions such as innovative compressors, construction equipment, vacuum solutions, and air treatment equipment.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The commercial segment will account for a major share of the market's growth during the forecast period. Construction equipment for commercial use has been in high demand due to Europe's booming construction sector. The need for construction equipment has increased throughout the region as a result of factors such as urbanization, infrastructure improvement, and increased construction activity.
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The commercial segment was valued at USD 14.51 billion in 2017 and continued to grow until 2021. The adoption of cutting-edge technologies such as telematics and the Internet of Things (IoT) in commercial construction equipment has increased their productivity and efficiency even more. To track fuel consumption, equipment utilization, and maintenance schedules, construction companies in the UK are increasingly using telematics-enabled construction equipment. This improves operational performance and reduces costs. Additionally, the demand for eco-friendly and energy-efficient construction equipment in commercial applications has been fueled by the growing emphasis on sustainability and environmental regulations. For instance, due to their lower emissions and decreased noise pollution, the use of electric-powered construction equipment, including electric excavators and loaders, has become more popular in Europe.
Application Analysis:
Based on application, the market has been segmented into earthmoving equipment, material handling equipment, concrete equipment, road construction equipment, and others. The earthmoving equipment segment will account for the largest share of this segment. Earthmoving equipment is the most contributing product segment of the Europe-construction equipment market. Earthmoving is the beginning of most construction activities and helps prepare a construction site for concrete work. Earthmoving equipment performs digging, moving, grading, and processing a large amount of soil and dirt. Earthmovers are also used for landscaping when a construction site approaches completion. The rise in construction activities and the development of infrastructure by the governments have increased the demand for earthmoving equipment in Europe.
The key drivers of the increased growth of the earthmovers segment are rise in government spending on infrastructure development, increased investments in infrastructure projects from the private sector, growing mining activities due to rising demand for minerals, and strong repair and maintenance work in construction projects. Europe is one of the largest manufacturers of earthmoving equipment and one of the leading exporters. Vendors in Europe provide widespread export of construction equipment. The increase in granting building permits in Europe has been driving construction activities in Europe, eventually increasing the demand for earthmovers. The floor area index is the measure of usable floor space authorized in construction. Hence, the Earthmovers product segment is expected to witness growth, which, in turn, will drive the growth of the market during the forecast period.
The construction equipment market report in Europe forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Construction Equipment Market Scope in Europe |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.4% |
Market growth 2023-2027 |
USD 9.04 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.58 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, Atlas Copco UK, Caterpillar Inc., CNH Industrial NV, Doosan Corp., Hitachi Construction Machinery Co. Ltd., J C Bamford Excavators Ltd., Kawasaki Heavy Industries Ltd., Komatsu Ltd., Liebherr International Deutschland GmbH, Deere and Co., Kobe Steel Ltd., Kubota Corp., SANY Group, Schaeffler AG, Sunward Intelligent Equipment Group, Terex Corp., XCMG Group, Yanmar Holdings Co. Ltd., and ZEPPELIN GmbH |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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