Heavy Construction Equipment: A Growing Industry
August 14, 2017- Last month, MarketsandMarkets published a report suggesting the heavy construction equipment industry will increase by a compound annual growth rate (CAGR) of 6.8 percent over the next five years. By 2020, the market is expected to expand to be worth $166 billion.
Greater spending in infrastructure, increased urbanization and adaptations of technological advancements are contributing to the heavy construction equipment industry’s growth. Infrastructure relies on heavy construction equipment the most, so as the investment into infrastructure recreation grows, so does the market. This is becoming especially evident in developing regions, such as India, China and Brazil.
The report from MarketsandMarkets segments the heavy construction market by industry, type, region and application.
In general, heavy construction equipment is used to minimize time and labor costs at work sites. Types of this equipment include:
- Material handling equipment
- Heavy construction vehicles
- Earthmoving equipment
- Demolition technology
- Waste management and recycling equipment
In particular, the earthmoving segment is growing the quickest compared to the others in the heavy construction equipment market. This is because of a global increase of construction of health care centers, residential buildings, educational institutes and roads.
The region expected to see the most growth is Asia-Pacific, followed in order by Europe, North America and the rest of the world. In terms of application, excavation and demolition had the highest market share as of 2014, and continues to grow because of increases of commercial and residential construction activities.
While heavy construction machinery is expensive and the high costs may slow market increases in emerging economies, the use in the global market is expected to continue to grow. In addition to growing market value, new product development is increasing throughout the heavy construction equipment industry. The government has set standards that construction equipment manufacturers have to follow, so as the market keeps growing, investment in research, development and innovation becomes critical.