A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Global Construction Equipment Market was worth USD 171.4 billion in the year 2021. The market is projected to grow at a CAGR of 5.30%, earning revenues of around USD 245.3 billion by the end of 2028. The Global Construction Equipment Market is booming because of the increase in government spending on infrastructure development, rising demand for smart city projects that call for a lot of construction equipment, and newly formed emission regulations to kickstart advancements in OHV engine & exhaust technologies. The need for construction equipment has significantly expanded as a result of modernization and technological advancements in highly regulated industries, such as the military and railroad operations. The several types of construction equipment include those used for hoisting, excavation, hauling, grading, paving, drilling, and pile driving. However, supply chain and inventory issues, combined with semiconductor shortages, are anticipated to stymie industry expansion in the coming years.
Equipment Rentals might Generate Excellent Opportunities
Individual firms and heavy construction equipment manufacturers have turned to equipment rental to meet the rising demand for heavy equipment in the construction industry. Renting construction equipment has various advantages, including the fact that the equipment is well-maintained and reliable, that no capital investment is required, and that no service or maintenance fees are incurred. Furthermore, businesses can test and assess new heavy construction equipment types before making a purchase decision. Manufacturers can profit from the power and precision of cutting-edge technology while also saving money. Because they are subjected to regular maintenance checks, these pieces of equipment require no maintenance, and rental companies include maintenance in their contracts. As a result, the Global Construction Equipment Market is predicted to develop at a significant rate during the forecast period (2022-2028).
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Industrialization and Rapid Urbanization Fuel Market Expansion
Rapid urbanization and industrialization, particularly in developing nations, promote economic growth, job opportunities, and national development. Designing energy-efficient structures for a sustainable future also bring about socioeconomic and environmental transformations. For instance, the Sardar Patel National Urban Housing Mission, the Atal Mission for Rejuvenation and Urban Transformation, the Clean India Mission, the National Urban Information System, and the National Heritage City Development and Augmentation Yojana are all driving forces behind urbanization in India. Due to the modern technical technology used for fuel injection and engine cooling, the usage of heavy construction equipment is essential to the urbanization and industrialization of society. High digging strength, dump heights, dump depths, engine horsepower, ground clearance, and other variables are also crucial when choosing heavy construction machinery. This results in offering lucrative opportunities for the Global Construction Equipment Market during the forecast period (2022-2028).
Challenge: Regulations and Rules Governing International Trade
Construction equipment manufacturing, import, and export laws and regulations vary by nation. Different import taxes are levied by nations to prevent unfair trade practices and benefit domestic producers. Governments typically sign bilateral trade agreements to lower tariffs and obstacles to a free trade zone or single market. Although this can be advantageous, it might also result in more foreign competition. The impact of foreign affairs on trade is greater. Commerce agreements may be stopped in the event of conflicts with other nations, or the worst-case scenario, restrictions may be imposed, limiting trade entirely. Consequently, the effects of international trade policies and restrictions result in variables that prevent sales.
Global Construction Equipment Market – By Application
Based on application, the Global Construction Equipment Market is segmented into Commercial, Residential, and Infrastructure. Due to growing industrialization and foreign direct investments (FDI) for various global manufacturing facilities in developing countries, the industrial application segment is predicted to experience steady expansion shortly. Commercial infrastructure development in both developed and emerging nations is probably going to show a sizable global market. The market is anticipated to increase steadily for applications in the residential sector due to the rapid population growth in Asian and African nations. All these factors boost the growth of the Global Construction Equipment Market during the forecast period (2022-2028).
Impact of COVID-19 on Global Construction Equipment Market
The COVID-19 outbreak had a significant impact on construction activity in 2020. Construction activity quickly decreased as a result of the brief lockout brought on by the COVID-19 virus’s quick proliferation. The OEMs observed problems in the supply chain and brief dealer store closures that precluded new sales. However, demand for construction equipment dramatically increased in 2021 as construction for both ongoing and new projects resumed. Lower housing costs contributed to rising residential area demand, which raised equipment demand. The market is also unstable because of increased COVID-19 infections brought on by the new variety of Omicron, high steel and aluminum prices, and a lack of semiconductors.
The leading market players in the Global Construction Equipment Market are Caterpillar, CNH Industrial N.V., Doosan Corporation, Escorts Limited, Hitachi Construction Machinery Co., Ltd., Hyundai Construction Equipment Co., Ltd., J C Bamford Excavators Ltd., Deere & Company., Kobelco Construction Machinery Co., Ltd., Komatsu Ltd., Liebherr-International AG, Manitou BF, Hidromek, Sany Heavy Industry Co., Ltd., Sumitomo Heavy Industries, Ltd., Terex Corporation, Volvo AB, Zoomlion Heavy Industry Science and Technology Co., Ltd, and other prominent players.
The Global Construction Equipment Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.
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