A December 2021 report from Research and Markets, Dublin, anticipates solid growth in the construction equipment market over the next five years.
According to the report, “Construction Equipment Market—Growth, Trends, COVID-19 Impact, and Forecasts (2021–2026),” the global market for construction equipment was valued at $161 billion in 2020 and is project to reach $228 billion by 2026. This represents a compound annual growth rate (CAGR) of 6% during the 2021–2026 forecast period.
This report increases the projection made by Research and Markets in a May 2021 report, which estimated a 4% CAGR from 2021–2027.
The market is, of course, being affected by the COVID-19 pandemic. However, there is an increasing focus on building infrastructure and developing automation for construction and manufacturing processes that is pushing market growth.
The construction equipment market can be broken into three segments based on machinery type: earthmoving equipment (e.g., cranes, loaders and backhoes, telescopic handlers, excavators, motor graders and trenchers); material handling equipment (e.g., hoists, conveyors, forklifts and industrial trucks); and other construction equipment (e.g., concrete mixers, road rollers, stone crushers, dumpers, tippers and trailers and slurry seal machines).
Cranes are expected to be the largest segment of the market, which is supported by the current number of cranes in use for construction. In North America, for example, most cranes are involved either in residential (40%) or mixed-use development (25%), with Toronto leading the way with more than 70 cranes in operation just for high-rise cooperative projects. Earthmoving equipment in general is also under heavy demand in the United States due to several government-sponsored infrastructure projects.
One interesting feature of the market is its technological development. Ongoing demand for machinery that is cost-effective, and regulatory pressures for lower emissions, are putting pressure on construction equipment manufacturers to develop electric and hybrid equipment more than traditional hydraulic and mechanical ones.
Looking specifically at the United States, another December 2021 report from Research and Markets indicates the U.S. construction equipment market will reach an estimated value of $32.68 billion with a volume of 191,836 units by 2027, with a CAGR of 6.23% by volume between 2021 and 2027.
This growth in the U.S. market will be driven by factors such as post-pandemic reopening of manufacturing plants and construction of new manufacturing plants as well as an expected double-digit boom from 2022–2023 in private and public construction. The federal government’s strong support for technologically advanced equipment in numerous industries, including hybrid vehicles and the energy sector, will also boost this market.