Factors such as the booming demand for housing units, owing to rapid urbanization, and mounting investments being made in the infrastructure sector will drive the construction equipment market growth during the forecast period (2021–2030). According to P&S Intelligence, the market generated a revenue of around $180 billion in 2020. In recent years, the increasing use of electric and autonomous equipment, due to the high requirement for greater worker safety on-site and enhanced productivity, has become a prominent market trend.
One of the primary growth drivers for the market is the burgeoning demand for housing projects, on account of the escalating urbanization rate in several countries. People across the world are shifting from rural areas to urban areas in search of employment opportunities and improved living standards. The surging influx of people in urban localities can also be ascribed to the soaring global population. According to the United Nations Department of Economic and Social Affairs (UNDESA), around 68% of the world population will reside in urban areas by 2050.
At present, the construction equipment market is consolidated in nature due to the presence of a few players such as Caterpillar Inc., Doosan Infracore, Sany Heavy Industry Co. Ltd., Hitachi Construction Machinery, Joseph Cyril Bamford Excavators Ltd., Volvo Construction Equipment, Deere & Company, Terex Corporation, and Liebherr AG. These players are focusing on product launches to gain a competitive edge. For instance, in April 2019, Volvo Construction Equipment announced its plan to introduce electrically-propelled compact excavators (EC15 to EC27) and wheel loaders (L20 to L28) to stop the development of diesel engines for these models.
Geographically, Asia-Pacific (APAC) will account for the largest share in the construction equipment market during the forecast period, due to the rising number of construction projects in the developing countries of the region. Moreover, the soaring demand for housing units in India, China, Japan, and South Korea, owing to the rapid urbanization, will also augment the demand for construction equipment in the region in the foreseeable future. Additionally, the increasing government investments being made in the construction industry will also supplement the market growth in the region in the coming years.
Thus, the mushrooming demand for housing projects will propel the demand for construction equipment in the years to come.
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