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The Construction and Mining Equipment Market size is forecast to increase by USD 62.13 billion at a CAGR of 6.7% between 2022 and 2027. The market's growth hinges on several key factors, notably the expansion of construction and mining equipment manufacturing and distribution facilities to meet the growing demand for heavy machinery. Additionally, increasing investments in infrastructure projects drive the need for advanced equipment to support construction activities. Moreover, the rising number of launches of new equipment reflects the industry's commitment to innovation and technological advancement. As these sectors evolve, there is a heightened focus on enhancing operational efficiency and productivity through the adoption of modern equipment. These trends underscore the dynamic nature of the market, characterized by a continuous drive towards improving equipment capabilities and meeting the evolving needs of various industries reliant on heavy machinery for their operations.
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The market report extensively covers market segmentation by product (loaders, dozers, excavators, pulverizing screening equipment, and crushing), application (infrastructure, mineral mining, residential building, and metal mining), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market encompasses a wide range of machinery used in the infrastructure sector for the development of Residential Buildings and Non Residential Buildings, Roads, Tunnels, Bridges, and Mining projects. This market includes equipment for Mining applications such as Underground Mining, Drilling, Mineral Processing, and Metal or Coal mining. Key components of this market are Dozers, Excavators, Crushing, and Drilling machinery. The increasing demand for Infrastructure development and Energy consumption in various sectors drive the growth of this market. The integration of Advanced technologies like Artificial Intelligence (AI), Machine Learning, and Automated Technology in Energy-efficient Equipment is a significant trend.
The reduction of Greenhouse gases emissions is a major concern, leading to the development of eco-friendly and sustainable solutions. The Construction Machinery industry faces Labour requirements challenges, making the adoption of Robotics and Automation essential for productivity enhancement. The market for Coal mining applications and Rare Earth Metals is expected to grow due to their increasing demand in various industries. Overall, the market is a vital sector, contributing significantly to the global economy. 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. A holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The expansion of construction and mining equipment manufacturing and distribution facilities is notably driving market growth. The market is witnessing significant growth, leading companies to enhance their production capabilities to meet the global demand. Volvo Group, through its subsidiary Volvo Construction Equipment, expanded its parts distribution network in the Western US by adding 75,000 sq. ft to its Nevada distribution center in 2021. In April 2022, JCB inaugurated a new manufacturing plant in Gujarat, India, to boost the production of vehicles and raw material transportation equipment. These expansions will enable companies to efficiently cater to the needs of end-users worldwide. Thus, the expansion of manufacturing and distribution facilities by various companies operating in the market is expected to fuel the growth of the global market during the forecast period.
The digitization and automation of construction and mining equipment is a primary trend in the market. The global market is witnessing significant advancements with the integration of technologies like robotics, drones, and telematics. These innovations enhance productivity and efficiency. Telematics enables real-time monitoring of equipment performance, fuel usage, and maintenance needs. In the realm of raw material transportation, vehicles are being digitally optimized for improved efficiency. Drones are utilized for surveying, mapping, and inspecting construction and mining sites, providing precise data for informed decision-making. Robotics is being adopted to automate tasks such as welding, concrete pouring, and bricklaying, reducing labor-intensive work and increasing precision. Growing automation and digitization of equipment in the market will drive the growth of the market in focus during the forecast period.
The stringent regulations related to emissions, noise, and safety standards are a primary trend in the market. The market encounters challenges due to rigorous regulations governing emissions, noise, and safety for vehicles used in raw material transportation. Compliance with these regulations necessitates significant capital investment in research and development and advanced technology. For instance, the European Union's Stage V emission standards regulate engine emissions of nitrogen oxides and particulate matter in construction equipment. To adhere to these regulations, manufacturers must integrate costly emission control technologies, such as diesel particulate filters (DPF) and selective catalytic reduction (SCR) systems, which ultimately increase the production cost of this equipment. Thus, such factors will negatively impact the growth of the global market during the forecast period.
Our analysis of the adoption life cycle of the market research and growth 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 market growth and forecasting strategies from 2022 to 2027.
Customer Landscape
Companies 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 construction mining equipment such as wheel loaders, excavators, rigid haulers, and compactors.
Atlas Copco AB - The company offers construction mining equipment such as Angle Cable Nutrunner Tensor ES, Angle Cable Nutrunner Tensor SR, Angle Cable Nutrunner Tensor ST, and Angle Cable Nutrunner Tensor STR.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The loaders segment will account for a major share of the market's growth during the forecast period. The market encompasses autonomous machinery and various types of equipment, including loaders, used for material handling, transportation, and extraction in the construction and mining industries. Technological advancements, such as 3D imaging, plasma technology, and teleoperation systems, have reduced labor requirements and increased productivity.
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The loaders segment was valued at USD 44.32 billion in 2017 and continued to grow until 2021. Loaders, which can handle materials like sand, gravel, rocks, ores, and metallurgical or thermal coal, are essential for projects involving metals and commodities, mineral fertilizers, agricultural yield, and the construction of roads. Extraction technologies, including automation and exploration and surveillance using drones, enable efficient mining of resources like gold, iron ore, copper, bauxite, and rare earth minerals. The market is influenced by factors like energy security, coal demand, coal supply chain, thermal power generation, and coal mining capacity. Additionally, the use of electric machinery and lithium-ion batteries in mining and construction contributes to the market's growth.
Based on Application, the market has been segmented into infrastructure, mineral mining, residential building, and metal mining. The global market is driven by the expansion of public infrastructure, particularly in developing economies. This sector encompasses the construction of transportation networks, such as roads, railways, and airports, as well as industrial facilities. In recent years, governments in emerging economies, including India and China, have advocated for Public-Private Partnerships (PPPs) to finance and develop infrastructure projects, thereby expediting their execution. These collaborations facilitate the transportation of raw materials to construction sites using specialized vehicles.
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APAC is estimated to contribute 49% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The market in APAC is driven by the expanding construction and sectors in China and India. The region's growth is attributed to the rising demand for new residential and commercial infrastructure to accommodate urban population growth. Technological advancements, such as autonomous construction equipment and electric machinery, are reducing labour requirements. Metals and commodities, including Metallurgical coal, Thermal coal, Gold, Iron ore, Mineral fertilizers, and Agricultural yield, are key sectors benefiting from the construction of roads and mining projects.
Further, extraction technologies, like 3D imaging, plasma technology, and automation, are enhancing mining efficiency. Automotive technology and copper are also significant components of the market. The Coal supply chain, Thermal power generation, and Energy security are influenced by coal shortages, power rationing, and coal capacity. Rare earth minerals and Lithium-ion batteries are essential for the production of high-tech equipment and renewable energy sources. The market is further characterized by innovations in mining machinery, bauxite processing, and exploration and surveillance using drones and telematics. On the other hand, emerging economies are expected to experience huge growth in both commercial and residential construction activities during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
The market is a significant industry, encompassing various types of machinery used in construction and mining projects. Equipment such as excavators, bulldozers, cranes, and mining trucks play crucial roles in these sectors. The market experiences continuous growth due to increasing infrastructure development and mining activities worldwide. Mining operations require heavy-duty equipment for tasks like digging, transporting, and processing minerals. Mining equipment includes mining trucks, excavators, drilling machines, and crushers. In the construction sector, equipment like cranes, bulldozers, and cement mixers are essential for building structures.
Further, the market is driven by factors such as growing urbanization, increasing government investments in infrastructure projects, and the need for efficient and productive machinery. Additionally, advancements in technology lead to the development of more sophisticated and eco-friendly equipment, catering to the evolving needs of the industry. The market is a dynamic and competitive landscape, with key players including Caterpillar, Komatsu, Volvo Construction Equipment, and Hitachi Construction Machinery. These companies invest in research and development to innovate and improve their product offerings, ensuring they remain competitive in the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.7% |
Market growth 2023-2027 |
USD 62.13 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.81 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 49% |
Key countries |
US, Canada, China, India, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, Atlas Copco AB, Caterpillar Inc., CNH Industrial NV, Deere and Co., Doosan Corp., Hitachi Construction Machinery Co. Ltd., J C Bamford Excavators Ltd., Kawasaki Heavy Industries Ltd., Komatsu Ltd., Kubota Corp., Liebherr International Deutschland GmbH, SANY Group, Schaeffler AG, Sunward Europe Heavy Industry NV, Terex Corp., Xuzhou Construction Machinery Group Co. Ltd., Yanmar Holdings Co. Ltd., ZEPPELIN GmbH, and Kobe Steel Ltd. |
Market dynamics |
Parent market growth analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market 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 Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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