Construction Machinery Manufacturing Market to Grow 6.2% by 2020
JAN 4, 2018 - 6:52 am
Rising disposable income, increasing government investments in infrastructure projects and growing demand for residential construction are all driving hefty growth in the construction equipment manufacturing markets. In a new report, BCC Research estimates that the global construction equipment manufacturing market will reach $181.6 billion and $230.9 billion in 2016 and 2020, respectively, indicating a compound annual growth rate (CAGR) of 6.2%.
The pressure to reduce costs, improve quality and satisfy customers is transforming the market from a provider-driven model to a consumer-driven model. Simultaneously, developing economies, rapid urbanization and public and private investments are driving the demand for construction equipment. These factors are, in turn, generating demand for construction equipment manufacturing to meet high expectations.
A few key players mentioned in the report include Caterpillar, Komatsu, Liebherr Group and Volvo Group, among others. Earthmoving accounted for the largest share of the market for construction equipment manufacturing with 58.6% (2016). The highest growth is projected to come from material handling, which is forecast to grow at a 6.5% CAGR.
Asia Pacific, the largest market, accounts for about 51% of the total global market.
Demand for machine rentals, leasing and a reduction in free trade will restrain growth.
China, the largest market in value terms, is expected to grow at 6.2% CAGR.
“Steady economic growth in developed and developing countries we expect will benefit the construction market,” said Gordon Nameni, BCC Research senior editor. “Emerging markets will see high growth than the developed markets during the forecast. However, global economic growth should inject more investments in global infrastructure—construction, retail, manufacturing, mining and oil and gas industries—all of which rely on construction equipment to some degree.”
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