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The used construction machinery market size is forecast to increase by USD 27.33 billion, at a CAGR of 5.3% between 2022 and 2027. The market experiences steady expansion, driven by various influential factors. Notably, the burgeoning secondary market for machinery presents a significant growth opportunity. This sector's increasing popularity is attributed to the cost-effective acquisition of high-quality, pre-owned machinery. Moreover, the construction industry's expansion plays a pivotal role in market growth. With the increasing demand for infrastructure development and real estate projects, the need for construction machinery is on the rise. Investment in infrastructure is another critical factor fueling market growth. Governments and private entities worldwide are investing heavily in infrastructure projects, leading to an increased demand for construction machinery. In summary, the market benefits from the growing secondary machine market, the expansion of the construction industry, and increased investment in infrastructure. These factors collectively contribute to the market's steady growth. Our report examines historical data from 2017 - 2021, besides analyzing the current and forecasted market scenario.
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The market encompasses a wide range of equipment used in various construction activities, including excavators, loaders, cranes, motor graders, and heavy machinery. These machines are essential for urbanization and infrastructure projects, such as residential and commercial construction, railway tunnels, port extensions, and underwater tunnels. The real estate industry and civil engineering sector have seen significant technological innovation, leading to increased demand for used construction machinery on third-party e-commerce websites. Further, Europe's construction industry, a key player in the global construction market, relies heavily on the use of cranes, excavators, and motor graders for various projects. Contractors and Original Equipment Manufacturers (OEMs) in the construction industry often opt for used machinery due to cost-effectiveness and availability. Heavy machinery, such as excavators and loaders, are crucial for excavating and moving large quantities of soil and debris during construction activities. Cranes are essential for lifting and transporting heavy materials, while motor graders are used for grading and shaping surfaces. In conclusion, the market plays a vital role in the construction industry, providing cost-effective solutions for contractors and OEM while ensuring the timely completion of infrastructure projects and construction activities.
Several American and European manufacturing and mining industries, particularly in countries such as Romania and Germany, have closed due to high labor costs and strict pollution laws. This has led to an increase in the availability of used machines. As many industries have moved to APAC countries due to the availability of cheap manufacturing facilities in the region, machines from the US and Europe are being used especially in emerging economies such as China and India.
It has been observed that many Asian contractors and mining companies are looking to buy used European construction equipment such as excavators at low prices. Used machines allow entrepreneurs to manage their capital investment as these machines are available at affordable prices. China has become an important market for used machines among European construction machines. Thus, such factors are expected to drive the demand for used construction machinery, which in turn will fuel the growth of the focus market during the forecast period.
Used construction equipment such as crawler excavators are usually very expensive and require a large initial investment. Therefore, it is difficult for mining companies to purchase such machines for small-scale or short-term projects. In order to achieve flexibility and adapt to the prevailing economic conditions, mining and construction companies prefer to rent their machines for a fixed period according to the needs of their projects.
Also, this helps construction and mining companies save on new equipment acquisition costs and related maintenance costs. Renting used construction machinery is widespread among countries in Europe, MEA, and North America. This trend of renting construction machines is rapidly gaining momentum in developing countries. Rising infrastructure spending in Asia is driving construction in the region.
The emphasis on fighting climate change and making production and construction processes cleaner and more environmentally friendly has forced environmental organizations around the world to develop strict emission regulations. Environmental governing bodies around the world have set strict emission standards for factories, vehicles, production facilities, waste management, machinery, and equipment.
The need to comply with new and strict emission regulations imposed by various countries has weakened the profit margins of various manufacturers of used construction machinery. Designing and manufacturing machines according to new standards requires manufacturers to equip equipment with new components, which increases costs. Consequently, this increase in price will increase the price of such machines, which is expected to curb the growth of the market during the forecast period.
The market share growth of the crane segment will be significant during the forecast period. The rising demand for cranes for construction and industrial applications is a significant factor that caters to the growth of the segment. Cranes are increasingly being used in the construction of chemical, energy, power distribution, utilities, and other industrial plants. In the construction sector, the increasing number of high-rise buildings for residential and commercial purposes is expected to drive the demand for used cranes.
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The crane segment was valued at USD 43.42 billion in 2017. Governments of developing countries are expanding infrastructures such as roads, bridges, and dams, which need used construction equipment and machinery. Hence, these countries provide abundant opportunities to used construction machinery manufacturers of the crane. Furthermore, the expansion of automotive manufacturing units with additional assembly lines is expected to drive the demand for the crane segment, which, in turn, is expected to propel the growth of the market in focus during the forecast period.
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APAC is estimated to contribute 56% to the growth during the forecast year. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Growing construction activities in emerging Asian economies contribute to the growth of the market in the region. The used construction equipment 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. Hence, such factors are driving the market in APAC 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.
XCMG Group - The company offers used construction machinery equipment for sale such as excavators, wheel loaders and many others. The company offers various products such as earthmoving machinery, hoisting machinery, pilling and drilling machinery, road machinery, trucks and special purpose vehicles, and aerial working equipment.
We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:
AB Volvo, Ais Construction Equipment Service Corp., Caterpillar Inc., Deere and Co., Equippo AG, Guangxi LiuGong Machinery Co. Ltd., Hitachi Construction Machinery Co. Ltd., Hyundai Construction Equipment Co. Ltd., Infra Bazaar, Kobelco Construction Machinery Co. Ltd., Komatsu Ltd., Liebherr International AG, Mico Cranes & Equipment LLC, Plantmaster UK, Ritchie Bros. Auctioneers Inc., Shriram Automall India Ltd., Tadano Ltd., Terex Corp., Vintage Infra Equipment Solution Pvt. Ltd., and XCMG Group
Technavio market forecast is 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 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
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In the dynamic and evolving global market, online platforms have emerged as key players in facilitating transactions. Earthmoving equipment, a significant segment of this market, is increasingly adopting technology-enabled equipment innovations such as telematics, GPS tracking, and autonomous features for improved operational efficiency and bulk material handling equipment. The market landscape depends on the Depreciation, Certified Pre-Owned Program, and Traffic linking. Rapid urbanization and economic uncertainty have fueled the demand for modern, technology-driven equipment, leading to a shift toward automation and fuel efficiency. Rental equipment has gained popularity due to its cost-effective nature, making it an attractive option for projects with short durations. Online marketplaces offer certified pre-owned programs, ensuring quality and reliability. OEMs and dealers are also leveraging technology to provide equipment fleet control, minimizing downtime and enhancing operational efficiency.
Further, the high-speed rail market, port extension projects, energy and biofuel infrastructure, and the power sector are major contributors to the market's growth. Modern innovations in technology, such as GPS tracking and telematics, are essential for managing large-scale projects and ensuring timely delivery. Atlas Crane Service and other industry players are capitalizing on these trends to cater to the diverse needs of the construction industry. The Olympic Games and other mega-events have further boosted the demand for used construction machinery, as host countries invest in infrastructure development. The market is poised for continued growth, driven by the need for sustainable, efficient, and cost-effective solutions in the construction sector.
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Market Scope |
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Report Coverage |
Details |
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Page number |
156 |
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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 5.3% |
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Market growth 2023-2027 |
USD 27.33 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
5.07 |
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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 56% |
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Key countries |
US, China, India, Japan, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AB Volvo, Ais Construction Equipment Service Corp., Caterpillar Inc., Deere and Co., Equippo AG, Guangxi LiuGong Machinery Co. Ltd., Hitachi Construction Machinery Co. Ltd., Hyundai Construction Equipment Co. Ltd., Infra Bazaar, Kobelco Construction Machinery Co. Ltd., Komatsu Ltd., Liebherr International AG, Mico Cranes & Equipment LLC, Plantmaster UK, Ritchie Bros. Auctioneers Inc., Shriram Automall India Ltd., Tadano Ltd., Terex Corp., Vintage Infra Equipment Solution Pvt. Ltd., and XCMG Group |
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Market dynamics |
Parent market analysis, market research and growth, 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 |
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Customization purview |
If our market 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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