Construction Equipment Market Thrives on Urban Population Boom
[edit] Market growth and trend
The market growth in construction equipment between 2021 and 2030 is likely to be driven by rapid urbanisation around the world. The acceleration of urbanisation increases the demand for housing and propels further infrastructure investment. In recent years, the surging use of electric and fully autonomous equipment has become a key market trend. In addition, autonomous equipment increases the productivity of the construction sector, and offers greater site safety as well as addressing issues around skilled labour shortages.
The World Bank Group states that around 55% of the global population currently lives in cities. It is also estimated that the global urban population grew from 4.28 billion in 2019 to 4.358 billion in 2020. They also forecast that nearly 7 out of 10 people in the world will reside in urban areas, by 2050. The population growth in urban localities will result in the wide-scale construction of housing, as well as industrial, and commercial structures, increasing construction equipment demand.
[edit]
According to P&S Intelligence, within the product segment, the earth-moving machinery category is expected to account for the largest share in the construction equipment industry throughout this decade. The dominance of this category can be attributed to the improved grip offered by this construction equipment in poor conditions. The surging use of this machinery in the construction sector is also credited to its wide application bases, such as trench digging, demolition of structures, soil grading, laying foundations, and removing rocks and earth.
At present, the construction equipment industry is consolidated in nature, due to the presence of a few key players, such as Deere & Company, Volvo Construction Equipment, Caterpillar Inc., Doosan Infracore, Hitachi Construction Machinery, Sany Heavy Industry Co. Ltd., Liebherr AG, Joseph Cyril Bamford Excavators Ltd., Terex Corporation, and Liebherr AG.
Currently, these players are actively introducing new products to gain a competitive edge. For example, in April 2019, Volvo Construction Equipment announced its plan to introduce compact excavators (EC15 to EC27), and an electrically driven range of wheel loaders (L20 to L28). Likewise, in March 2020, Komatsu launched a new electric mini excavator, namely PC30E-5, in Japan to target the rental sector. This product delivers similar excavation performance compared to internal combustion models with similar power output while reducing vehicle noise and emitting no exhaust. Major players are focusing on launching autonomous equipment. For instance, D61i-24 and D51i-24 dozers of Komatsu Ltd. can record terrain data while manoeuvring through the site. This data helps make calculated decisions about materials used.
[edit] Concluding
Geographically, the APAC construction equipment market will generate the highest revenue in the foreseeable future. As construction projects are the backbone of economic development, a boom in the construction sector is a key contributor to the market growth in the region. Moreover, the growth of the sector in APAC is driven by mounting investments being made by governments in construction activities. Additionally, the rapid urbanisation in China, South Korea, India, and Japan will also drive the demand for construction equipment in these countries.
Featured articles and news
Specifying rendered external wall insulation for fire safety
How to interrogate the evidence provided to the specifier.
The benefits of writing articles for your organisation
How to create a profile for your organisation and publish for free.
No Falls Week. The importance of safe working at height
What to expect and what is on offer to avoid accidents.
Scottish Government action to reach net-zero targets
Retrofit expert group highlight critical actions needed.
A forward thinking, inclusive global community of members.
From engineered product life-spans, to their extension.
Circular economy in the built environment
A brief description from 2021. Where are we now?
Mental Health Awareness Week with ABS
Architects Benevolent Society programme of activity.
CLC publishes domestic retrofit competency framework
Roadmap of Skills for net zero.
May 13-19: Moving more for our mental health.
Understanding is key to conservation.
Open industry engagement survey seeks responses
Institutions and the importance of engagement.
National Retrofit Hub unveils new guide
Digital Building Logbooks and Retrofit: An Introduction.
Enhancing construction site reporting efficiency
Through digitisation and the digital revolution.