Dublin, March 12, 2024 (GLOBE NEWSWIRE) -- The "France Construction Equipment - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029" report has been added to ResearchAndMarkets.com's offering.
The French construction equipment market is valued at USD 12.69 billion and is anticipated to surpass a net valuation of USD 17.18 billion, registering a CAGR growth of 6.25% during the forecast period.
Increasing government spending on construction and infrastructure activities, rising foreign direct investments in the construction sector, and developments in road transportation infrastructure owing to the surge in population and urbanization serve as the major determinants for the growth of the construction market in France, which, in turn, positively contributes to the surging demand for construction equipment across the country.
France boasts of one of the highest urbanization rates in the European region, with 82% of its overall population residing in urban areas as of 2022. The high urbanization rate leads to consumers availing various private and public transportation mediums for their commutes, which leads to higher congestion in these cities.
Therefore, road infrastructure development has become a major focus area for the French government. Coupled with that, developments in cross-border road connectivity are another deterministic area for enhancing the trade ecosystem of a nation. Hence, with increasing the government's focus on developing its road infrastructure network, there exists a massive demand for construction equipment in the country.
For instance, in May 2023, the government of France announced an investment of Euro 2 billion (USD 2.15 billion) over the next four years to develop the infrastructure for cycling, as well as encourage citizens to increase bicycle use, as part of the 2023-2027 cycling and mobility plan.
One of the major challenges faced by the construction equipment industry in France is the high cost of replacement and maintenance of the equipment, which becomes a financial burden for construction companies and equipment rental companies. Since this equipment operates for a longer duration and needs to sustain heavy loads at all times, there is constant wear and tear of the equipment, which needs frequent maintenance checks and, in extreme cases, complete replacement of the equipment.
Thus, construction companies and equipment rental companies owning these machineries need to spend hefty sums to make sure that this equipment is operating efficiently at all times, which increases their cost of operation.
Coupled with that, falling production of raw materials such as steel owing to declining prices negatively impacts the demand for construction equipment in the French market. For instance, in May 2023, steel enterprises of France reduced steel production by 14.1% compared to April 2023 - to 805 thousand tons.
The declining production hampers the country's real estate industry due to the unavailability of raw materials, thereby making it difficult for construction companies to meet the stipulated deadline for completion of a real estate project, which, in turn, hampers the growth prospect for construction equipment.
The government's pragmatic initiatives for infrastructural development across France are anticipated to contribute to the surging demand for construction equipment in the coming years. For instance, in February 2023, France's Ministry of Transport announced an investment of Euro 100 billion (USD 107 billion) in railway infrastructure by 2040 under the New Rail Deal in collaboration with SNCF. The investment aims to revive the country's aging railway sector to deliver more reliable and frequent services. With increasing investment to enhance the infrastructural capability of France, there will exist a massive demand for construction equipment during the forecast period.
France Construction Equipment Market Trends
- Increasing Government Spending on Construction and Infrastructure Development
- Electric Drive Segment of the Market to Gain Traction during the Forecast Period
The construction equipment market in France exhibits moderate fragmentation and fierce competition, featuring a diverse array of international companies. These companies either operate through dealership networks or have established manufacturing facilities within the country.
Among the prominent players in this sector are Caterpillar, Komatsu, Liebherr, Volvo Construction Equipment, Kobelco, XCMG, JCB, Hitachi Construction Machinery, Kubota, and Hyundai Construction Equipment, among others. These industry leaders engage in competitive strategies, vying for supremacy based on a range of criteria, including equipment quality, pricing, dealership network reach, geographic coverage, post-sales services, product diversification, and value-added offerings such as Equipment as a Service (EaaS).
Many of these companies are actively investing substantial resources in research and development activities to bolster their brand presence and develop innovative construction equipment products tailored for the French market. Here are a few notable examples:
Key Topics Covered:
1 INTRODUCTION
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Increasing Government Spending on Construction and Infrastructure Development
4.2 Market Restraints
4.2.1 High Cost of Replacement and Maintenance
4.3 Industry Attractiveness - Porter's Five Forces Analysis
5 MARKET SEGMENTATION (Market Size in Value - USD)
5.1 By Equipment Type
5.1.1 Earthmoving Equipment
5.1.1.1 Excavators
5.1.1.2 Backhoe Loaders
5.1.1.3 Motor Graders
5.1.1.4 Other Earthmoving Equipment (Bull Dozers, etc.)
5.1.2 Road Construction Equipment
5.1.2.1 Road Rollers
5.1.2.2 Asphalt Pavers
5.1.3 Material Handling Equipment
5.1.3.1 Cranes
5.1.3.2 Forklift & Telescopic Handlers
5.1.3.3 Other Material Handling Equipment
5.1.4 Other Construction Equipment
5.2 By Drive Type
5.2.1 Hydraulic
5.2.2 Electric/Hybrid
6 COMPETITIVE LANDSCAPE
- Caterpillar
- Komatsu
- Xuzhou Construction Machinery Group (XCMG)
- Liebherr
- Volvo Construction Equipment
- Hitachi Construction Machinery
- JCB
- Kobelco
- Hyundai Construction Equipment
- Kubota
- Takeuchi
- Yanmar
- Toyota Material Handling
- Manitou Group
- Konecranes
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Adoption of Electric/Hybrid Machinery Compared to Traditional Hydraulic Machinery
For more information about this report visit https://www.researchandmarkets.com/r/s9brk7
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