Construction Equipment Market: Current Analysis and Forecast (2021-2027)

Report Description

Construction Equipment accounted for more than 1 million unit’s sales in 2019 and 2020 both. The market is expected to witness CAGR growth of around 8% during the forecast period 2021-2027. Ever changing demand from different region is not the only big change for Construction equipment market. The sector is also renovating in response to the changing customer preferences, product technology, business models, and regulatory developments. These innovations and developments, combined with the ongoing economic uncertainty in various regions is expected to offer more changes to the future of construction equipment market, including the competitive landscape. Although the construction industry is facing a slow-down in the recent past, eventually affecting the sale of new construction equipment, the market for construction equipment is predicted to recover during the forecast period, owing to the growth of public private partnerships (PPP), characterized as a joint venture between government and private companies for construction of public infrastructure systems in the country. Currently, construction industry represents 13% of the world’s GDP. Over the past 3 decades, the construction sector has delivered high performance characterized by robust growth but flat profits.

Trends in the construction industry

Insights Presented in the Report

“Amongst Equipment type, Heavy construction equipment segment dominates the market”

Based on Equipment type, the Construction Equipment Market is segmented into Heavy construction equipment, Compact construction equipment. Currently, Heavy construction equipment segment dominates the market and is expected to maintain its dominance throughout the forecast period. However, compact construction equipment market is expected to witness significant growth during the forecast period.

“Amongst Product type, Loader segment dominates the market in 2020”

Based on Product Type, the Construction Equipment Market is bifurcated into Cranes, Loader, Forklift, Excavator, Dozers, Others. Based on estimates Loader segment is expected to witness significant growth owing to increased government spending on infrastructure development.

“Amongst Application, Earthmoving equipment dominates the market”

Based on Application, the Construction Equipment Market is bifurcated into Earthmoving, Material Handling, Heavy Construction, Other Equipment. Based on analysis Earthmoving equipment dominates the market. However, material handling segment is expected to witness highest CAGR growth during the forecast period.

“Amongst Industry, Construction & Infrastructure segment dominates the market”

Based on Industry, the market is segmented into Oil & gas, Construction & Infrastructure, Manufacturing, Mining, Others. Currently, Construction & Infrastructure segment dominates the market for Construction Equipment. Private sector has emerged as a key player across various infrastructure segments, ranging from roads and communications to power and airports.

“Amongst End-user, Industrial segment dominates the market”

Based on End-user, the Construction Equipment Market is bifurcated into Commercial, Residential, Industrial. Industrial segment owing to increased government spending on infrastructure development is expected to witness significant growth during the forecast period. Growing investment in road and infrastructure construction globally is expected to drive the market for construction equipment in the industrial sector.

“Amongst Sale Channel, OEMs segment dominated the market in 2020”

Based on Sales channel, the Construction Equipment Market is bifurcated into OEMs and Aftermarket. OEMs segment dominated the market in 2020. However, Aftermarket segment is expected to witness significant growth during the forecast period. Caterpillar dominates the market for construction equipment with more than 16% share.

“Asia-Pacific represents the largest market for construction equipment”

For a better understanding of the demand of Construction Equipment, the market is analyzed for major regions including North America (US, Canada, Rest of North America); Europe (Germany, UK, France, Italy, Rest of Europe); Asia-Pacific (China, Japan, India, Australia, Rest of Asia-Pacific); and Rest of World. Asia-Pacific dominated the market in 2020. Some of the major players operating in the market include Caterpillar Inc., Komatsu Ltd., AB Volvo, Xuzhou Construction Machinery Group Co., Ltd., Zoomlion, Deere & Company, The Liebherr Group, Doosan Heavy Industries Co., Ltd., Sandvik AB, J C Bamford Excavators Ltd.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future of the Construction Equipment were the three major steps undertaken to create and analyze the demand and sales of the technology globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were conducted, with industry experts across the value chain of the industry. Post assumption and validation of market numbers through primary interviews, we employed a bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below.

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detailed secondary study was conducted to obtain the historical market size of the Construction Equipment through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Construction Equipment, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report are equipment type, product type, application, industry, end-user, sales channel. Further regional level analyses were conducted to evaluate the overall demand of Construction Equipment in global context.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size. Further, we conducted factor analysis using dependent and independent variables such as growing investment in infrastructure development and technological advancement in the construction sector etc. Historical trends and their year-on-year impact on the market size and share was analyzed. Demand and supply side scenario was also thoroughly studied.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Market, and market shares of the segments and company. All the required percentage split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., bottom-up approach was applied to arrive at the market forecast to 2027 for different segments and subsegments across the major regions globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the demand of Construction Equipment across the major regions globally
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Construction Equipment Market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major countries. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the Construction Equipment market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of equipment type, product type, application, industry, end-user, sales channel, and region.

The main objective of the Construction Equipment Market Study

The current & future market trends of the Construction Equipment Market are pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends would determine the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of Construction Equipment in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments of the industry
• Segments in the study include equipment type, product type, application, industry, end-user, sales channel, and region
• Defined analysis of the regulatory framework for the Construction Equipment industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors pertaining to the industry
• Major regions analyzed in the report include North America (US, Canada, Rest of North America); Europe (Germany, UK, France, Italy, Rest of Europe); Asia-Pacific (China, Japan, India, Australia, Rest of Asia-Pacific); and Rest of World. Define and analyze the competitive landscape of the Construction Equipment sector and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry