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The construction machinery market size is estimated to grow at a CAGR of 4.3% between 2022 and 2027. The size of the market is forecast to increase by USD 41.41 billion. The growth of the market depends on several factors, including the increased investment in infrastructure, the expanding manufacturing and distribution facilities, and the new product launches.
This construction report extensively covers market segmentation by application (commercial, residential, and infrastructure), product (earthmoving machinery, material handling machinery, concrete and road construction machinery, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). 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 researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving growth in the construction equipment market is the increased investment in infrastructure. The demand for construction machinery is growing due to the increasing investment in infrastructure projects across the world. Governments across the world are investing significantly in the development of sports infrastructure and facilities. The 2022 FIFA World Cup to be held in Qatar is increasing construction spending in the Middle Eastern regions. Similarly, Qatar's local organization is planning to build nine new stadiums and renovate three existing stadiums for the event.
Furthermore, the spending on capital-intensive projects and infrastructure development is expected to grow significantly in the next decade, which will augment the growth of the global construction machinery market during the forecast period. Moreover, some construction projects were on hold owing to the COVID-19 pandemic-induced restrictions and norms. However, governments across the world are looking forward to investing in healthcare infrastructure and building hospitals.
The growing trend of construction equipment rentals is a primary trend for supporting the construction equipment market share growth. The global construction machinery rental market has high penetration in the developed countries of Europe, MEA, and North America. This trend of renting construction machinery is rapidly gaining momentum in developing countries as well. The growing infrastructure spending in Asia is fueling construction activities in the region, which will drive the construction machinery rental market in the region during the forecast period.
Moreover, Construction machinery can be leased to a mining or construction company for a specific time period, and after the completion of a project, it can be leased to another company. Thus, the steady growth of the global construction machinery rental market is anticipated to limit the growth of the construction machinery market in focus. The vendors in the market are aligning their business operations and handing over some of their facilities as a part of their business strategy to achieve optimum benefits. Such factors will increase the market growth during the forecast period..
The growing secondhand machine market will be a major challenge for the construction equipment market during the forecast period. Several manufacturing and mining industries in the US and Europe, especially in countries such as Romania and Germany, were closed because of high labor costs and strict pollution laws. This has resulted in the increased availability of secondhand machines. Furthermore, many Asian contractors and mining companies are eager to buy secondhand European construction machinery such as excavators at low prices. By using secondhand machines, contractors can control their capital investments as these machines are available at affordable prices.
Moreover, small manufacturers find it challenging to buy new European machines due to their high costs. Once refurbished and reconditioned, these machines become as good as new ones. Therefore, the growing secondhand machine market will limit the demand for new construction machinery.
The construction market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Construction Machinery Market Customer Landscape
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 construction equipment market.
Volvoce- The company offers construction machinery such as Compact excavators, Crawler excavators, Wheeled excavators, Compact wheel loaders, and Pavers.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The construction equipment market share growth by the commercial segment will be significant during the forecast period. The commercial segment consists of commercial buildings, such as shops, hotels, restaurants, office spaces, industrial buildings, schools, and hospitals. This segment is expected to grow as both developed and developing economies are likely to invest heavily in this segment during the forecast period.
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The commercial segment was valued at USD 68.44 billion in 2017 and continue to grow by 2021. Growth in the commercial segment will accelerate the growth of the global construction equipment market during the forecast period. The emergence of multinational companies has led to a rise in the number of employees and office spaces globally. Moreover, the rising number of technological and business parks is triggering the demand for construction machinery in commercial spaces, which is expected to increase further during the forecast period.
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APAC is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Growing construction activity in emerging countries such as India, Afghanistan, and Bangladesh, attributes to the growth of the construction equipment market in APAC. The construction market is expected to grow steadily in APAC during the forecast period, generating demand for new infrastructures to provide residential and commercial spaces for the growing urban population. On the other hand, emerging economies are experiencing huge growth in both commercial and residential construction.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to an upsurge in the demand for APAC. However, in 2021 after the vaccination drive, everything was slowly getting back to normal. The governments in APAC countries made appropriate efforts to improve the construction industry. The construction machinery industry accounts for 8% of India's GDP and is valued at approximately $126 billion. The industry reports forecast building materials to record a CAGR of 15.7% y-o-y to reach $738.5 billion by 2022. The government of India has allocated $1.93 billion for Urban Rejuvenation Mission, AMRUT, and Smart Cities Mission in the Union Budget. This will lead to moderate growth in the market during the forecast period.
The construction machinery report 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.
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Construction Machinery Market Scope |
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Report Coverage |
Details |
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Page number |
183 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.3% |
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Market growth 2023-2027 |
USD 41.41 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.5 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 42% |
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Key countries |
US, China, India, Japan, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AB Volvo, Caterpillar Inc., Deere and Co., Doosan Bobcat Inc., Hitachi Ltd., Hyundai Motor Co., J C Bamford Excavators Ltd., Kawasaki Heavy Industries Ltd., Kobe Steel Ltd., Komatsu Ltd., Liebherr International AG, Linamar Corp., Manitou Group, SANY Group, Tadano Ltd., Terex Corp., XCMG Group, Zoomlion Heavy Industry Science and Technology Co. Ltd., Yanmar Holdings Co. Ltd., and CNH Industrial NV |
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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 forecast period. |
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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
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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