Global Infrastructure Investments Drive Growth in Heavy Equipment Market
The global outlook for construction equipment is good and expected to get better according to a recent report by Allied Market Research. The report says the market will see a compound annual growth rate of 8.9 percent during 2015 to 2020. The growth will take the market value to $240 billion by 2020.
The report forecast changes in the market beginning in 2014 and ending in 2020. It’s titled “Global Construction Equipment Market – Size, Industry Analysis, Trends, Opportunities, Growth and Forecast, 2014-2020.”
Spurring growth are investments in infrastructure (production upgrades), including residential and commercial building construction. The Asia-Pacific market is expected to account for much of the growth in heavy-equipment demand as construction continues to increase in the region. North American market growth will remain moderate during the forecast period, according to the report.
Heavy equipment includes machines used for moving earth and materials. Excavators, dozers, loaders, cranes and forklifts are expected to be in demand. Loaders and cranes in particular will be needed for large-scale construction. These machines are versatile and can be used in a wide-range of building construction and mining projects.
Driving much of the global market growth are public works projects and rail construction. Oil and gas, manufacturing and mining will also contribute substantially to the demand for equipment.
Loaders are expected to account for more than 44 percent of the 2020 market revenue. Loaders are used in construction to move earth, asphalt and other heavy materials. Demand for cranes will increase steadily, the report says. Cranes are used to lift and handle materials. Earth-moving and material-handling equipment comprised about 50 percent of the 2014 market value.
An increase in commercial and residential infrastructure construction is expected to give earth movers a faster growth rate than other types of heavy equipment.
Other findings of the report are:
- The Asia-Pacific construction equipment market during 2015 to 2020 will grow at a CAGR of 10.2 percent.
- During the forecast period, the material-handling equipment sector will see a 12.4 percent CAGR. This is expected to be the fastest growing market segment.
- The mining and excavation equipment market will grow at 9.5 percent during 2015 to 2020.
Some equipment manufacturers have adopted strategies to take advantage of the projected growth in infrastructure construction. Manufacturers see the next few years as the right time to launch products and acquire properties. The report profiles several prominent equipment manufacturers that may prove to be key players in meeting the global demand for heavy equipment.