The growing emphasis on building new infrastructure and the advancement of automation in the construction and development sector has had a noteworthy effect on market growth. Because of the road improvement programs undertaken by the central and state governments, especially in the Asia-Pacific region, the roadside construction equipment market has seen quite a significant growth in recent years. This has contributed to increasing demand for construction equipment globally.
This increased demand is forcing equipment manufacturers to produce vehicles that are not only cost-effective but also have regulatory pressures for lower emissions. As a result, manufacturers are now opting for electrical or hybrid vehicles instead of the usual hydraulic and mechanical equipment. While there are still some who are making use of used construction machinery, the demand for newer, more capable equipment is rising steadily.
Renting Construction Equipment
Renting construction equipment has become more common due to the high cost of the machinery as well as the high cost of upkeep. Besides being cost-friendly, there are additional advantages to leasing construction equipment. Rental companies can provide the equipment as well as the necessary skilled machine operators and drivers as part of the rental agreement. Construction companies tend to rent machinery rather than buying it for short-term construction projects because renting allows the machinery to be used to its full potential. This is one reason why used construction tools are always in such high demand.
Throughout the forecast period, the crane market is expected to grow at a steady pace with a CAGR of more than 7%. Globally, large-scale construction projects are expected to push the crane and construction equipment market in the blink of an eye. Europe is planning numerous major construction projects. Because of the construction projects taking place in the region, Germany, France, and Italy have seen the highest growth rates. These projects include harbor expansion, underwater burrows and tunnels connecting major European countries, and railway tunnels, among others, all of which require the use of various types of cranes and are, as a result, driving the entire crane market.
During the forecast period, the Asia-Pacific construction equipment market is expected to grow at a CAGR of over 7.5 per cent. The Asia-Pacific region leads the construction equipment market with China, India, and Japan accounting for the majority of the market share. The construction of China’sSouth-North water transfer plant venture, which is expected to be completed by 2050, will bring numerous pieces of construction equipment to the country either on a rental or ownership basis. The result will be an increase in demand for construction equipment over the next three decades.
The heavy equipment market is driven by an increase in dam construction, the real estate industry and construction of both commercial and residential complexes, and the expansion of rail and road infrastructure in the APAC area. With such huge upcoming projects, the Asia-Pacific region is expected to dominate the heavy equipment market in the years to come.
Read through Construction Equipment Market Insights to find out how the Covid-19 pandemic has impacted the heavy equipment market and how soon it is expected to recover. The pandemic ended up changing the construction equipment market, and its impact on the construction industry in 2020 is undeniable. However, the construction industry is expected to make a recovery in the forecast period.