There are many industries that are performing well and making a strong impact on the world’s economy. The construction equipment industry is one of the industries that are increasing and enhancing its demand over the entire world. There are many new trends that have been set in the market that is driving huge demand for this industry.
Before taking the start and talking about the market trends and demand drivers, let us discuss the worth of the construction equipment industry worldwide in terms of economy. According to the reports of market insights, the worldwide construction equipment market size was expected to raise a little over 129 USD billion in 2019. It is estimated to cross the USD 160 billion market size by the year 2027 at a CAGR (compound annual growth rate) of 2.8%. The construction equipment market size of the Asia Pacific region dominates with an estimation of USD 60 billion in 2019. The above-mentioned figures are a source of encouragement for this particular business sector.
Now if we talk about the key trends that are making a strong impact on the construction equipment market worldwide, below discussed are the ones that top the list.
Rising Demand for Construction Equipment Rental Service
Construction equipment rental service is something which is highly in demand and gaining momentum particularly in the Asia Pacific Region. The urbanizing countries such as China and India having intensive infrastructure and construction activity in both the sectors are public and private has set this trend on high.
Heavy construction machines are very expensive and to own this machine is not a piece of cake as you need a lot of money. There are some new technologies that have been installed in the machines and due to which the cost of machines are going up and high. This is the main reason why heavy machine manufacturers are experiencing high demand in rental equipment from construction firms, builders, contractors, and another respected source that needs construction equipment for a shorter time. Contractors go for rental equipment because to avoid the high purchasing cost and other maintenance works.
An increase in demand in the rental equipment business is being considered as an additional income and a profitable potential stream for heavy machinery manufacturers. The construction equipment owners are renting out their old machines that are performing well and have a high demand. These machines offered some benefits to the customers for the better outcome such as high reliability, safety, and flexibility to attach extra tools that help the machine to do some other tasks as well and these benefits are the reason that demand for these machines is increasing in the market. So, it is found statistically that the trend of rental heavy equipment is a major contributor to the overall growth of the construction equipment global market.
Demand for Technologically Upgraded Equipment
Besides the rental equipment business, technologically upgraded equipment has also become a global trend in the construction equipment market. With the introduction of the latest technologies in construction equipment, the demand for machines has increased. Earthmoving equipment such as bulldozers, excavators, and backhoe loaders are strong and rough surface specialist machines and perform well in construction equipment-related tasks.
The new generation of earthmovers has improved cutting-edge features and innovative technology. There are some digital instruments that have become a part of heavy equipment due to which the efficiency of the machine enhances and productivity increases. Some of the famous technologies that have been installed in the machines are telematics, control grade system, payload weighing, Drones, and some others. Telematics technology increases the operational capabilities of the machine and allows the machine operator to stay updated with the current situation of the machine. Live Tracking, Accurate Refills, Predictive Vehicle Health Monitoring, Fuel Efficiency Analysis, Fuel Consumption, Theft Alerts all these valuable information are possible because of telematics technologies.
Hence, due to the installation of these useful technologies in the construction equipment the outcome and efficiency of the machine have enhanced and that is the reason that these technologically upgraded machines are high in demand and have become a global trend.
Key Industry Players
The famous market brands such as CAT, KOMATSU, HITACHI, VOLVO dominates the global market and having market shares of 16.4%, 11.9%, 5.1%, 4.8% respectively. All these figures are according to the 2017 business report. Their dominance in the market is due to the customer’s trust and choice from all over the world. CATERPILLAR holds the highest and strongest market share in the construction equipment industry because of the trusted quality they have provided to their customers. Besides CATERPILLAR there are other brands that hold a strong name and reputation in the market. That is why these brands and manufacturers are considered as the key partners of the construction machinery industry. These respected sources are making a great effort to meet the trends and requirements of the construction industry and making a massive amount of profit through the manufacturing of heavy machines. Moreover, the key partners of the heavy equipment industry are transforming the old heavy machine into the next generation machines with the installation of new technologies such as the connection of IoT, automation, and others.
Huge investment on Construction & Infrastructure Projects
As we have seen the huge development in both the sectors that is private and public all over the world. Especially the development of roads, buildings, and other construction projects where the demand for construction machines is at the peak as the government is also investing a lot in development that is why the demand for these heavy machines has increased. The demands for heavy machines have increased all over the world especially in North America, Europe, and Asia Pacific region. The concept of introduction to smart cities has also boosted the demand for construction machines around the globe.
All these demands and trends that have been running all over the world have set up the construction equipment industry on high and have built a great impact on the economy as well. Due to such an increase in demand, the manufacturers have provided quality heavy equipment for sale to the customers so that they can get such machines that will increase their efficiency and productivity.
