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The used construction machinery market is estimated to grow at a CAGR of 5.3% between 2022 and 2027. The size of the market is forecast to increase by USD 27.33 billion. The growth of the market depends on several factors, including the growing secondhand machine market, the growth of the construction industry, and increased investment in infrastructure.
This report extensively covers market segmentation by product (crane, excavator, material handling equipment, and others), application (commercial, residential, and infrastructure), and geography (APAC, North America, Europe, South America, and the 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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The growing secondhand machine market is notably driving the market growth, although factors such as stringent regulations may impede the market growth. 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.
Key Used Construction Machinery Market Driver
The growing secondhand machine market is notably driving the used construction equipment market growth. 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, used 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.
Significant Used Construction Machinery Market Trend
The growing trend of used construction equipment rentals is the key trend in the used construction equipment market. 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. 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.
Major Used Construction Machinery Market Challenge
Stringent emission regulations are the challenges that will continue to hamper the used construction equipment market during the forecast period. 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.
Key Used Construction Machinery Market Customer Landscape
The 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 Used 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 used construction equipment 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.
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 used construction equipment 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 and continued to grow until 2021. 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 of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the used construction equipment market during the forecast period.
Growing construction activities in emerging Asian economies attributes 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.
The outbreak of COVID-19 negatively affected the growth of several industries in APAC, including the construction industry, as several construction projects were delayed or canceled. However, the governments of these emerging economies have been investing in infrastructure development projects. For instance, the government of India has allocated USD 1.93 billion for Urban Rejuvenation Mission, AMRUT, and Smart Cities Mission in the Union Budget. Moreover, China has allocated USD 28.4 billion in 2022 for its Belt and Road Initiative. Such developments are expected to propel the demand for used construction machinery, which, in turn, is expected to drive the growth of the regional market in focus during the forecast period.
The reports categorize the global construction machinery and heavy trucks market within the global capital goods market. The parent market covers a variety of product categories, including heavy-duty trucks, heavy earthmoving equipment, compact earthmoving equipment, road construction, and compaction equipment, crushing and screening equipment, concrete equipment, civil engineering equipment, lifting equipment, and other related equipment. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The 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. The market has been segmented by Product (Crane, Excavator, Material handling equipment, and Others), Application (Commercial, Residential, and Infrastructure), and Geography (APAC, North America, Europe, South America, and Middle East and Africa).
Used Construction Machinery Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.3% |
Market growth 2023-2027 |
USD 27.33 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.07 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 56% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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 |
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, and 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. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
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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