Dublin, Oct. 13, 2023 (GLOBE NEWSWIRE) -- The "UK Compact Construction Equipment Market - Strategic Assessment & Forecast 2023-2029" report has been added to ResearchAndMarkets.com's offering.
The U.K. compact construction equipment market is expected to account for 48,505 units by 2029 from 36,143 units in 2022, growing at a CAGR of 4.29% from 2022-2028
Compact excavators dominated the U.K. compact construction equipment market in 2022, holding the largest market share. Additionally, the material handling segment, particularly in the context of compact construction equipment applications, claimed the largest share in the same year. This dominance is attributed to increasing investments in various sectors such as housing, warehouse expansion, and public infrastructure projects, which are driving demand for excavators within the U.K. compact construction equipment market.
The e-commerce and logistics industries in the U.K. have been experiencing significant growth, which, in turn, has increased the demand for warehouses. In 2022, the government's investment in warehouse expansion doubled to USD 7.9 billion, focusing on regions like the Northwest, East Midlands, and West Midlands. This growth in the logistics and e-commerce sectors is expected to have a positive impact on the demand for compact forklifts within the U.K. compact construction equipment market.
In February 2023, construction began on the new Weyburn General Hospital, which is set to bring significant developments. The new hospital will feature an Emergency Medical Services garage and an adjacent heliport, aiming to enhance patient transport safety and efficiency. Replacing the existing Weyburn General Hospital, the new facility will encompass 35 beds and have an approximate building area of 9,730 square meters.
Leading players in the U.K. compact construction equipment market include Caterpillar, Volvo CE, Komatsu, JCB, Takeuchi, and Kubota. These companies hold prominent market shares and offer a wide range of compact equipment solutions. Caterpillar, Komatsu, Volvo CE, and JCB are among the top revenue generators in the U.K. compact construction equipment market.
MARKET TRENDS & DRIVERS
A Surge in Investment in the Residential Sector to Support the U.K. Compact Construction Equipment Market Growth
The government introduced an affordable housing delivery plan for 2022-2025 in Bristol City in 2021. By 2024, the project aims to build 1,000 new affordable housing units in one year. This project is an updated version of the previous housing delivery plan for 2017-2020. In addition, the government planned to invest USD 4.8 billion over five years for affordable homes in London in 2021-2026.
According to the recent data published by the government, the Bank of England expects a slight increase in the mortgage rates in the UK, which will force housing prices to decline as borrowing will become costlier and eventually fall.
Investment in National Healthcare Plan to Prompt the Demand for Compact Excavators
In 2021, the U.K. government introduced the Health Infrastructure Plan (HIP), a five-year Programme for investment in health infrastructure, including capital to build new hospitals. In 2022, the government plans to invest more than USD 2 billion in healthcare in the next four years.
The HIP project will aim to modernize the existing ones & construct new hospitals. The government has allocated USD 542.9 million to upgrade accident and emergency departments, USD 482.6 million for improving mental health facilities, and USD 723.9 million to upgrade and refurbish National Health Service hospitals.
Investment in Renewable Energy to Reach Net Zero Emissions Is Expected to Boost the U.K. Compact Construction Equipment Market
BP has planned an investment of USD 112.34 million to develop new ports, harbors, and shipyards, including constructing four ships to aid the offshore wind projects across the UK. BP has claimed to build two large-scale hydrogen production facilities (H2 Teesside & HyGreen Teesside), expected to produce 1.5GW of hydrogen by 2030.
The UK government funded USD 9 million for 24 projects under the Longer Duration Energy Storage (LODES) competition. This funding is projected to support the development of new energy storage technologies and help the U.K. transition to renewable energy sources.
INDUSTRY RESTRAINTS
Increasing Construction Costs Will Harm the Sales of Compact Construction Equipment
According to the Building Materials and Components Statistics, construction costs to create new houses increased by 4.5% from May 2022 to May 2023, and the renovation and repair costs increased by 1.2% during the same period. Further, the price of insulating materials increased by 28.8%, ready-mixed concrete by 18.7%, and fabricated structured steel by 24.2%. Other input materials such as timber, cement, plywood, and roof tiles witnessed high prices due to their limited supply.
Shortage of Warehouse Spacing Is Expected to Impact the Demand for Material Handling Equipment
The U.K. is expected to run out of warehouse spacing after the boom of eCommerce post-pandemic. The available warehouse spacing in the country has decreased below 50 million square feet. Telford is one of the worst affected areas in the U.K. by the warehouse space shortage, with 33,293 square feet for the 6,105 registered businesses in the area. This chronic shortage of warehouse space has seen rents rise 61%, more than twice the inflation rate.
Skilled Labour Shortage in the Country to Hamper the Pace of Construction Projects
In August 2022, ONS surveyed 13.3% of the businesses witnessing labor shortage. The industries with the highest percentage of businesses experiencing worker shortages in Nov 2022 were Accommodation and food services (35.5%) and Construction (20.7%).
Between September and November 2022, there were 1.19 million vacancies across the UK.
The aging population and early retirements are other threatening causes of labor shortage in the country. In 2022, the ONS surveyed adults aged between 50 and 70 who had left the workforce since the beginning of the pandemic.
KEY QUESTIONS ANSWERED:
- How big is the U.K. compact construction equipment market?
- What is the growth rate of the U.K. compact construction equipment market?
- Who are the key players in the U.K. compact construction equipment market?
- What are the trends in the U.K. compact construction equipment market?
- Which are the major distributor companies in the U.K. compact construction equipment market?
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 177 |
| Forecast Period | 2022 - 2029 |
| Estimated Market Value in 2022 | 36143 Units |
| Forecasted Market Value by 2029 | 48505 Units |
| Compound Annual Growth Rate | 4.2% |
| Regions Covered | United Kingdom |
VENDOR LANDSCAPE
Prominent Vendors
- Caterpillar
- Komatsu
- Liebherr
- Volvo Construction Equipment
- Hitachi Construction Machinery
- JCB
- Takeuchi Manufacturing
- Kubota
- Hyundai Construction Equipment
- CNH Industrial
Other Prominent Vendors
- Kobelco
- LiuGong
- Manitou
- Yanmar
- Mecalac
- Hydrema
Distributor Profiles
- Gordon Construction Equipment
- Molson Equipment
- Dennis Barnfield Ltd
- Warwick Ward
- Ernest Doe & Sons Ltd
- SMT GB
SEGMENTATION ANALYSIS
Segmentation by Type
- Excavators
- Backhoe Loaders
- Wheel Loaders
- Track Loaders
- Skid Steer Loaders
- Telehandlers
- Forklifts
- Aerial Platforms
- Others
Segmentation by Application
- Material Handling
- Maintenance & Utility Works
- Waste Management
- Others
Segmentation by End Users
- Construction
- Mining
- Warehouse & Logistics
- Others (Power Generation, Utilities Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation Plants)
For more information about this report visit https://www.researchandmarkets.com/r/n7h9ap
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