Construction Equipment Market to Rise at 2.8% CAGR till 2027; Growing Popularity of Equipment Rental Services in Construction Sector to Boost the Market: Fortune Business Insights™
August 24, 2020 at 07:49 AM EDT
Pune, Aug. 24, 2020 (GLOBE NEWSWIRE) -- The global construction equipment market size is projected to reach USD 160.84 billion by 2027, exhibiting a CAGR of 2.8% during the forecast period. Surging demand for construction activities will be one of the primary growth drivers for this market, finds Fortune Business Insights™ in its recent report, titled “Construction Equipment Market Size, Share and COVID-19 Impact Analysis, By Equipment Type (Earthmoving Equipment, Material Handling Equipment & Cranes, Concrete Equipment, Road Building Equipment, Civil Engineering Equipment, Crushing and Screening Equipment and Other Equipment), By Application (Residential, Commercial & Industrial) and Regional Forecast, 2020-2027”.
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An Overview of the Impact of COVID-19 on this Market:
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The rising construction activities across the globe have created a massive demand for construction equipment. They are products used in infrastructure and building construction. The shift from conventional products to automated equipment has created several opportunities for companies operating in the market. The rising efforts put in to improve the overall product efficacy in construction activities and minimize wastage will create a massive demand for advanced products with optimum efficacies. Technological integration has played a huge role in the growth of the overall construction equipment market in recent years. The increasing number of mergers and collaborations among construction companies and tech companies will bode well for the growth of the market in the foreseeable future.
High Pollution Levels Caused by Construction Activities to Impede Market Growth
Concerns stemming from pollution levels caused by the construction sector are likely to stall the adoption of traditional construction equipment. The World Green Building Council estimates that the bricks produced in kilns for constructing buildings account for roughly 20% of the global black carbon emissions. Moreover, an additional 11% of the total carbon emissions can be attributed to construction operations. According to UN Environment, global emissions from building & construction sector rose by 2% in 2018 from 2017 levels. Utilization of obsolete and energy-inefficient construction equipment is the most prominent reason for surging pollution levels in this sector, especially in developing countries where investment in construction is inadequate. In response, governments are implementing stringent regulations in energy-heavy industries to curb emissions, which may hinder growth of this market.
Increasing Governmental Focus on Capital Investments to Propel Market in Asia Pacific
Asia Pacific, with a market size of USD 51.60 billion in 2019, is expected to command the construction equipment market share during the forecast period, since governments in the region are strategically raising capital investments in their countries. These investments are aimed at providing the necessary thrust to infrastructural development, prompted by rapid urbanization, industrialization, and population growth.
In Europe, the market growth is anticipated to be primarily determined by the soaring demand for new housing areas and technological advancements in construction machineries. On the other hand, the market in North America will be mainly characterized by the massive investments made to augment the move towards smart cities in the region.
Diversification of Operations to be the Key Feature of Market Competition
The market competition is dominated by the presence of a limited number of veterans in the construction industry such as Caterpillar and Komatsu. These well-established players are focused on diversifying their operational portfolio to expand their business horizons and secure their long-term prospects in the market.
List of Key Companies Profiled in Construction Equipment Market Report:
Detailed Table of Content
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