According to a new report published by Allied Market Research, titled, “World Construction Equipment Market – Opportunities and Forecasts, 2014 – 2022”, the world construction equipment market is expected to generate $288.8 billion by 2022, growing at a CAGR of 9.2% from 2016 to 2022. Asia-Pacific is the largest market for construction equipment on account of substantial investments by the government in the manufacturing and infrastructure sector, followed by North America.
In terms of market by product type, the loader segment accounted for the largest market share of around 45% in 2015, due to the widespread adoption of loaders in construction, mining, and public works industries. The segment is projected to remain dominant throughout the forecast period. Collectively, cranes and excavators accounted for a market share of 35% in 2015, and are expected to witness notable growth during the forecast period, owing to the increasing usage of these equipment for lifting heavy loads, material handling, mines and many other purposes.
In terms of market by industries, Public works & railroad industry accounted for the largest share in 2015, as the equipment are extensively used for construction of roads, highways, airports, dams, and other such activities. The segment is anticipated to grow at the fastest rate during 2016-2022, on account of increasing number of infrastructure projects globally. Oil & gas and mining industries together accounted for 28% of market revenue in 2015 and are expected to grow at a notable pace during the forecast period. The growth is primarily attributed to the increasing demand for earthmoving, drilling, trenching and other such equipment in the industry.
Earthmoving application segment held the largest market share in 2015, on account of relatively higher demand for equipment such as loaders and excavators. Lifting & material handling application segment is anticipated to witness fastest growth, with increasing usage in commercial construction activities.
The market is segregated by solution into products and services. The products segment occupies a prominent share of the overall market. However, service market, which includes leasing and repairing of the equipment; is expected to witness faster growth in developing countries due to increasing demand for leased and rented construction equipment among the low and mid-sized construction companies.
Key findings of the study:
- In 2015, APAC was the largest revenue generating region, followed by North America.
- Public works and rail road industry would account for around 45% of the world construction equipment market revenue by 2022.
- Loaders was the largest revenue generating segment in 2015.
- Lifting & material handling application is anticipated to be the fastest growing segment during 2016-2022.
Key market players profiled in the report are AB Volvo, Caterpillar Inc., Komatsu Ltd., Doosan Heavy Industries & Construction Co. Ltd., Hitachi Construction Machinery Co. Ltd., J.C. Bamford Excavators Limited, Kobe Steel Ltd., Liebherr Group, Atlas Copco AB, and CNH Industrial N.V.