The market for the heavy equipment industry is poised for growth. The global construction equipment market is expected to be worth US$192.3 billion by the end of 2017 . This is due to increasing demand for better technology and improved decision-making in the building and construction industry overall.
Based on application, the heavy construction equipment market is segmented into:
- Excavation & demolition
- Heavy lifting
- Material handling
- Recycling & waste management
The excavation & demolition segment accounted for the largest market share in 2015. This segment provides the construction industry with earthmoving equipment for jobs such as digging foundations and landscaping. (Earthmoving equipment is also known as heavy trucks, heavy machines, construction equipment, engineering equipment, heavy vehicles and heavy hydraulics.)
Challenges and trends
The Global Earth Moving Equipment Market Research Report discusses the present economic situation as well as the growth prospects of the global earthmoving equipment industry for 2016-2020. Here are some of the challenges and trends reported:
Earthmoving equipment market challenges
- Fluctuating prices of raw materials
- Competition from equipment manufacturers in emerging markets
- Changing customer demands and expectations
Earthmoving equipment market trends
- Rise in demand for energy-efficient equipment
- Fluctuating oil revenue
- Provision of attractive financing options
Key players in the market
Opportunities for growth
The demand for construction heavy equipment, such as construction vehicles for mining and infrastructural activities, is on the rise. The market is predicted to reach a size of $22.9 billion in 2017!
The material handling market segment is projected to grow rapidly, registering a compound annual growth rate (CAGR) of 8.4% during the forecast period. This is due to an increased usage of material handling equipment, such as cranes and telehandlers, in large building construction, and due to mining operations.
Construction equipment need top-quality attachments that work with the machine, not against it. Attachments that are built with advanced engineering methods will save the user money and increase productivity. In Australia, there are key players who are known for their focus on technology to engineer superior products and stay ahead of the curve. These manufacturers will make the most out of the forecasted growth in demand.
The infrastructure industry is expected to be the fastest growing global industry. This is due to proactive government initiatives related to infrastructure development projects in the Asia-Pacific region. These projects include dams, railway ballast, airports, expressways and national highways.
The Asia-Pacific region accounted for the maximum market share in 2015. It is expected to maintain its lead throughout the forecast period. This is attributed to increased usage of earthmoving equipment in construction application.
A report on the heavy equipment construction industry had some exciting figures to share:
- In 2015, the earthmoving segment accounted for the maximum market revenue, and is projected to grow at a CAGR of 6.9% during the forecast period
- The infrastructure industry segment is expected to grow at a significant CAGR of 9.1%, owing to upsurge in government initiatives
- The material handling segment is anticipated to be the fastest growing segment during the period of 2016-2022
Overall, there’s much to look forward to in terms of growth and development within the heavy equipment industry. We can only anticipate the enormous changes that the industry will see and predict that the need for high-quality equipment and high productivity excavator attachments will only grow.