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The hard asset equipment online auction market size is estimated to grow by USD 3,028.94 million at a CAGR (Compound Annual Growth Rate) of 22.45% between 2023 and 2028. The growth of the market depends on several factors such as a shift in preference toward online conventional auctioning, raising demand for hard asset equipment in the construction industry and a rise in government surplus asset.
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The rise in government surplus assets is notably driving the market growth. Online auctions are widely used by governments across the world to sell their surplus inventory, including hard assets such as equipment and vehicles, to drive down inventory management costs and procurement costs. Surplus assets offer government agencies the opportunity to increase their revenue as well. Goods sold at government auctions will usually be unreserved, which means that they will be sold to the highest bidder.
Furthermore, the Government of the District of Columbia, US, surplus assets online through GovDeals. GovDeals conducts auctions of city assets such as vehicles, police automobile accessories, office furniture, and other supplies through its online marketplace. Thus, a rise in government surplus assets will drive the growth of the market during the forecast period.
Mobile phones and other wireless devices have become primary platforms for people to access the Internet, resulting in large-volume m-commerce. Globally, most businesses are attempting to keep pace with the digital lifestyles of their target audience. In online platforms, mobile auctioning helps buyers bid in live from their homes or offices through mobile apps. Using mobile applications, feedback and responses can be received from buyers easily for future online auctions.
Consequently, many sites are now focused on making their sites mobile-friendly. Some of the market players, such as Ritchie Bros. Inc. offer mobile apps. Therefore, the increasing popularity of mobile auctioning will fuel the growth of the market trends during the forecast period.
With the growing popularity of hard asset equipment online auctions, shill bidding has become a major challenge for bidders. Shill bidding is an illegal practice where a seller or seller's acquaintances deliberately place bids to artificially drive up the price of a product in forward auctions and reduce the price in reverse. It is difficult to manually investigate many bidders for shill bidding activities. Shill bidding creates a sense of mistrust among real participants online for hard asset equipment, which can negatively impact the process of bidding.
However, shill bidding is acknowledged as a problem, there is currently no established way to stop it. The majority of Internet auction businesses lack the tools necessary to identify shill bidders during live sessions. Furthermore, most businesses do not take any action against shill bidding until bidders file formal complaints. Owing to the rise in shill bidding, bidders may avoid online transactions, which is expected to restrict the market growth and trends during the forecast period.
The market share growth by the enterprise buyer segment will be significant during the forecast period. Enterprise buyers generally consist of business organizations or companies involved in the buying and selling of hard asset equipment, such as construction and agricultural equipment. Enterprise buyers generally purchase in bulk to sell it to different customers according to their needs and specifications.
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The enterprise buyer segment was the largest and was valued at USD 321.96 million in 2018. The global demand for construction equipment is being fueled by the increase in residential and non-residential construction projects. Construction companies must purchase new or used equipment as demand for it rises. Also, hard asset equipment online auction service providers provide post-discounts to enterprise buyers. In programmatic advertising, a post discount is a deal that the publisher makes with the buyer after the auction is over. In online, the asset is comparatively offered at a low price compared to the conventional auction. All these factors will induce enterprise buyers to purchase assets through online services. Thus, all these factors will contribute to the growth of the market through the enterprise buyer segment during the forecast period.
Based on product, the market has been segmented into construction, transportation, agriculture, and others. The Construction segment will account for the largest market share. Construction equipment includes cranes, excavators, loaders, backhoes, dozers, compactors, graders, skid steers, and other construction-related equipment. Globally, infrastructure projects are increasing at a significant rate, owing to the rising population and growing regulatory support from various government bodies for building projects. Further, used equipment is a better option for infrastructure projects. If the used construction equipment is refurbished and maintained properly, it can have an active lifespan of up to three times longer. This helps increase the demand for used construction equipment, which will fuel the demand for used construction equipment online auctions, which in turn will boost the growth of the market in focus through the construction segment during the forecast period.
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North America is estimated to contribute 55% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. North America is the largest geographical segment of the market and will continue to remain the largest segment during the forecast period. The US and Canada are significant revenue contributors to the market in North America, with a high number of online auctions. There is a significant presence of various industries, such as construction, petroleum refining, and mining, across North America. Significant investments in infrastructural activities in countries such as the US and Canada are likely to be the major reasons behind the market growth.
In addition, North America is one of the world's top oil and gas-producing regions, with the US and Canada being the major contributors. Petroleum refining is one of the major industries in the US. As industries such as construction, automotive, petroleum refining, and mining grow in North America, there will be a simultaneous rise in demand for equipment used in them. As the demand for equipment increases, companies need to procure it, either new or used. Hence, end-users opt for asset as they are convenient and increase their purchase options. Such factors are expected to drive the market growth during the forecast period.
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.
Absolute Auctions and Realty Inc - The company offers hard asset equipment online auctions such as vehicles, warehouses, and real estate.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including Absolute Auctions and Realty Inc., Alex Lyon and Son Sales Managers and Auctioneers Inc., AllStar Inc., Asset Auctions, Auction Technology Group Plc, Bar None Auction, bidadoo Inc., BPI Auctions Ltd., Bruce Schapansky Auctioneers Inc., Euro Auctions UK Ltd., Heritage Global Inc., Hess Auction Group, Joey Martin Auctioneers LLC, MachineWeb Inc., Montway LLC, NetBid Industrie Auktionen AGf, Perfection Global LLC, Ritchason Auctioneers Inc., Ritchie Bros. Inc., Steffes Group Inc., Sullivan Auctioneers LLC, Tauber Arons Inc., and TBAuctions B.V.
Technavio market forecasting 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 Global Hard Asset Equipment Online Auction Market showcases exponential growth, driven by the surge of e-commerce and digital commerce trends. Auction houses facilitate transactions of industrial machinery, oil and gas assets, and mining equipment, contributing to the market's value. In the global economy, businesses capitalize on online platforms to trade quality hard assets, benefiting from competitive prices and efficient timeframes. Access to international bidders expands market reach, although challenges such as lack of knowledge and trust in online auctions persist. However, the convenience offered outweighs concerns, although measures to mitigate fraud or scams and reduce high costs are continuously evolving to foster a secure and transparent marketplace.
The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Hard Asset Equipment Online Auction Market Scope |
|
Market Report Coverage |
Details |
Page number |
164 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 22.45% |
Market Growth 2024-2028 |
USD 3,028.94 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
21.65 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 55% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Absolute Auctions and Realty Inc., Alex Lyon and Son Sales Managers and Auctioneers Inc., AllStar Auctions Inc., Asset Auctions, Auction Technology Group Plc, Bar None Auction, bidadoo Inc., BPI Auctions Ltd., Bruce Schapansky Auctioneers Inc., Euro Auctions UK Ltd., Heritage Global Inc., Hess Auction Group, Joey Martin Auctioneers LLC, MachineWeb Inc., Montway LLC, NetBid Industrie Auktionen AGf, Perfection Global LLC, Ritchason Inc., Ritchie Bros. Auctioneers Inc., Steffes Group Inc., Sullivan Auctioneers LLC, Tauber Arons Inc., and TBAuctions B.V. |
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 market growth and forecasting 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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