construction equipment Market

The global construction equipment market is expected to grow from US$ 126,062.8 million in 2022 to US$ 223,451.1 million by 2028; it is estimated to grow at a CAGR of 10.0% from 2022 to 2028.

Public-private collaboration involves a joint effort between the government and private entities to construct public infrastructure. In this partnership, private firms take on the responsibility of managing government projects and bring their technical and operational expertise to the table. Such collaborations are becoming increasingly common in India, Africa, and China. The private sector's involvement in infrastructure projects, particularly when private funds are at risk, can enhance efficiency by allowing developers to apply their risk management skills through the genuine transfer of risks and responsibilities. Traditional procurement methods, which overlook commercial and financial concerns, do not yield the same outcomes. Optimal private sector participation and risk transfer can contribute unique risk-management skills, provide a long-term perspective and interest in the project, and absorb other risks without the fear of bankruptcy. Therefore, the growing number of public-private partnerships is driving the growth of the construction equipment market.

The construction equipment industry is undergoing a significant transformation with the advent of electrification, which presents a multitude of opportunities and design options. Electrification is being embraced in various market categories, including construction equipment for automobiles, buses, and other vehicles. The availability and affordability of modern technologies and the imposition of stricter pollution regulations have made electrification a viable option, thus altering the future of the construction equipment industry. Many cities worldwide have prohibited diesel usage within city limits, leading to limitations on construction equipment operations in certain areas. Countries such as China and Europe have imposed stringent pollution standards for heavy machinery and equipment use. The adoption of electric construction equipment offers a solution to meet these emission and noise pollution criteria.

After years of development on previous concept models, the TA15 has been introduced as a key component of the TARA autonomous transportation system, which includes multiple TA15s serving as base vehicles, as well as the necessary infrastructure like charging stations and control towers that are connected to customized cloud solutions to meet specific customer operational requirements, maintenance and repair support, and practical operations arrangements tailored to each site's unique needs. Specifically designed to transport materials in off-road environments such as quarries, the number of machines and charging stations required will depend on production and transport volumes, as well as the haul cycle. With the continued advancement of electric versions of both existing and new products, there are promising opportunities for growth in the construction equipment market in the coming years.

In North America, there has been a rapid increase in urbanization in recent years, leading to a growing demand for smart and sustainable infrastructure solutions, with new buildings being constructed to meet these needs. This has resulted in increased investments in construction from both government and private sectors, particularly in metropolitan regions with high job prospects. Furthermore, the rise of ecommerce companies such as Amazon and eBay has led to heavy investment in warehouses and other storage facilities to meet growing demand for ecommerce. For example, Amazon plans to establish over 1,000 warehouses and delivery facilities in the country's suburban areas. In Europe, the construction equipment market is being driven by several large-scale projects, such as the London Crossrail and the Fehmarn Belt Fixed Link between Germany and Denmark. The demand for construction equipment in Europe has increased in recent years due to the rise in residential buildings in countries such as Germany and France, as well as infrastructural development in Southern European countries. The COVID-19 pandemic has further increased the need for infrastructure, particularly in hospitals, clinics, laboratories, and logistics centers. Additionally, the population of Birmingham is expected to increase by 25% due to the implementation of a large city plan.

In the Asia-Pacific heavy construction equipment market, the demand for products and equipment is expected to rise due to the market returning to some level of normalcy in several countries following the pandemic outbreak. Additionally, the availability of corporate capital investments and the rapid development of infrastructure in growing economies like China and India have fueled demand for heavy construction equipment across the region. In the Middle East and Africa, the construction sector is being propelled by rapid economic growth, an increase in the middle class population, population expansion, and growth in foreign investments. Several countries including Saudi Arabia, the UAE, Oman, and Egypt are launching a variety of infrastructure projects such as new megacities, railways, harbors, airports, and housing developments, which are expected to increase the demand for construction equipment in the coming years. Modest construction projects that enhance the city's infrastructure, such as the construction of new bridges, flyovers, commercial centers, and highways, are also contributing to the need for construction equipment.

Caterpillar Inc.; CNH Industrial N.V.; Hitachi Construction Machinery Co., Ltd; J C Bamford Excavators Ltd.; Deere & Company; Komatsu Ltd.; Liebherr-International Deutschland GmbH; Terex Corporation; Volvo CE; and Zoomlion Heavy Industry Science and Technology Co., Ltd. are among the key companies in the construction equipment market. The report also comprises secondary research work on other companies that hold a significant market share.

The size of the construction equipment market has been determined using a combination of primary and secondary sources. In the initial stages of the research, extensive secondary research was conducted from various internal and external sources to collect qualitative and quantitative information related to the construction equipment market. This process was also aimed at providing an overview and forecast for the construction equipment market, covering all the segments within the region. Additionally, numerous primary interviews were conducted with experts and commentators from the industry to validate the data and obtain further analytical insights into the construction equipment market. The interviewees comprised industry experts like VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants including valuation experts, research analysts, and key opinion leaders with specialization in the construction equipment market.