Global Construction Equipment Market to Touch $225.1 Billion by 2028 | China's Real Estate Crisis to Severally Impact Demand for Equipment

Global construction equipment market size was valued at USD 185.21 billion in 2021, and it is expected to reach a value of USD 225.1 billion by 2028, at a CAGR of 4.2% over the forecast period (2022–2028).

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Westford, USA, Nov. 18, 2022 (GLOBE NEWSWIRE) -- SkyQuest has released a report that estimates the global infrastructure investment needs over the next decade at $2 trillion. The report, titled "Infrastructure Outlook 2022," finds that the world's population is expected to grow by more than 2 billion people by 2040, and that GDP will grow by only 5.5% annually if current trends continue in the global construction equipment market. In order to accommodate this growth, the report says that an additional $2 trillion will be needed in infrastructure spending between now and 2025. On the other hand, the government of India has planned to invest over $1 trillion over 5 years and 50% of it would come from private sector.

According to the report, much of this spending will be needed in developing countries, which are already struggling with inadequate transportation and telecommunication networks. Our analysts say that they expect public-private partnerships (PPPs) to play a leading role in financing these projects, as well as in directing finance towards faster completion times and lower risk profiles in the global construction equipment market. In addition, the report notes that new revenue streams—such as tolls or charges for using public transport—are also likely to become increasingly important sources of financing for infrastructure projects.

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As the world becomes increasingly complex, construction projects become ever more ambitious. This means that construction equipment is required to handle larger and heavier loads, faster and with greater accuracy. This growing demand has seen manufacturers in the global construction equipment market of invest in new facilities and hire more employees. This has led to an increase in the price of these machines, which in turn has translated into increased profits for those manufacturing them. In addition to this, there is also a growing demand for construction equipment overseas as countries continue to build infrastructure and improve their economies. This has led to an increase in the number of companies who are exporting their construction machines internationally.

  • Report Scenario

Asia-Pacific will continue to account for the majority of global construction equipment sales over the next five years, with China and India being the top two markets in this region. However, Europe is also predicted to witness strong growth over this period, especially due to its growing population and growing infrastructure needs.

In terms of types in the construction equipment market, excavation and backhoes are still the most popular type globally. However, crane and monorail system sales are also forecast to grow significantly in the coming years. This is due to the increasing demand for high-rise construction projects and other such innovative measures that require better coordination between different organizations.

The growing demand for construction equipment market has led to an increased competition among manufacturers to sell their products. Manufacturers are trying to find new ways to differentiate their products from other brands, which will make it easier for them to sell their products. One way that manufacturers are distinguishing their products is by offering more options regarding customization and configuration of each product. This allows customers to configure each machine exactly how they need it customized, which makes it easier for customers to use.

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China's Real Estate Crisis to Severally Impact Global Construction Equipment Market

China's real estate crisis is set to have a significant impact on the demand for construction equipment. According to a report by SkyQuest, developers and construction companies are expecting sales of construction equipment to decline by as much as 20% in the next three years. This will be largely due to stricter lending criteria and Beijing's efforts to cool the property market. Construction firms are also having difficulty obtaining financing due to the unstable economy and high levels of debt. This has led to a drastic reduction in their purchasing power, and has created an inflated demand for used equipment.

In 2020, China spent over 5.8% of its GDP on infrastructure development project, which has started declining as most of the real estate business has slipped to the lowest.

This deterioration in the construction industry is likely to further dampen global demand for heavy equipment, particularly engines and bulldozers in China construction equipment market. The sector is already facing major challenges due to weak economic growth across most regions of the world. This could seriously impede efforts by manufacturers to increase production capacity, which would ultimately detrimentally affect suppliers and end users alike.

On the other hand, strict covid lockdown has further slowed the construction and related activities. As a result, the market is witnessing a muted demand in the country.

manufacturers are Investing Heavily to Electrify Major Construction Equipment

Major manufacturers in the global construction equipment market are investing heavily to electrify their equipment in order to reduce environmental impact and improve safety. The biggest beneficiaries of this trend will likely be the operators of these machines, as they will be able to work longer hours with less fatigue and lower risk of injury.

One such manufacturer is Caterpillar, which has announced plans to spend $1 billion on electric technology over the next five years. This investment will cover a wide range of products, from construction and mining equipment to lawn mowers and tractors. The company plans to make all of its heavy-duty engines electrified by 2030 in the global construction equipment market. This would include engines for construction equipment, mining gear, and trucks. Other manufacturers planning to invest in electric technology include John Deere and Kubota. Both companies have plans to develop entire lines of electric trucks. Nissan is also planning an investment in electric vehicles and batteries.

The benefits of electric construction equipment are clear. Not only do they emit less pollution, but they also require far less maintenance than traditional machines. In addition, they are much more efficient when it comes to working with materials, making them a major boon for the environment and the economy alike.

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Top Players in Global Construction Equipment Market

  • AB Volvo (Sweden)
  • Caterpillar Inc. (US)
  • Komatsu Ltd. (Japan)
  • Doosan Infracore Co. Ltd. (South Korea)
  • Hitachi Construction Machinery Co., Ltd. (Japan)
  • J.C. Bamford Excavators Ltd. (UK)
  • Liebherr Group (Switzerland)
  • CNH Industrial N.V. (UK)
  • Hyundai Construction Equipment Co., Ltd. (South Korea)
  • SANY Group (China)

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