Dublin, Dec. 20, 2023 (GLOBE NEWSWIRE) -- The "France Compact Construction Equipment Market - Strategic Assessment & Forecast 2023-2029" report has been added to ResearchAndMarkets.com's offering.
The French compact construction equipment market is expected to grow at a CAGR of 5.31% from 2022 to 2029.
The French government has increased its focus on social housing projects and aims to build 120,000 housing units by 2024. Several housing repair and renovation projects are under progress in Paris, which are expected to positively impact the France compact construction equipment market.
Caterpillar, Volvo CE, Komatsu, Kobelco, SANY, and Hitachi Construction Machinery are front runners in the France compact construction equipment market. These companies have substantial market share and offer diverse sets of compact equipment. For instance, Caterpillar, Komatsu, and Volvo CE account for the highest revenue in the France compact construction equipment market.
Manitou, Merlo Spa, Toyota Material Handling, Bobcat, Yanmar, and Mecalac are niche players in the France compact construction equipment market. These companies offer low product diversification and have a strong presence in the French market.
KEY HIGHLIGHTS
- Compact excavators accounted for the largest market share of the France compact construction equipment market in 2022. Application of compact construction equipment in the material handling segment accounted for the largest share in 2022. Rising investment in housing, warehouse expansion, and public infrastructure projects is expected to drive the demand for compact excavators in the France compact construction equipment market.
- In 2022, Rhenus (logistics company) leased two new warehouses, each of 18,000 m2, in Paris and Lyon. The warehouse in Paris consists of 6,000 m2 of cells, designed to increase the capacity of the warehouse in response to the rising number of new clients. In 2022, Akzo Nobel (a Dutch multinational company) announced an investment of USD 21.3 billion to expand its production and upgrade its two production sites in France.
- In 2022, the French government approved a bypass project in Rouen. This bypass is designed to connect with the A28 and A13 Autoroutes on the city's eastern side. The construction is expected to commence in 2027 or 2028. The bypass length would be 25.786 miles, with an approximate investment of USD 950.1 million. The government will grant USD 262.7 million, while the region will invest USD 219.8 million in the project.
MARKET TRENDS & DRIVERS
Government Investments in Renewable Energy Resources Will Encourage the Demand for Compact Construction Equipment
Two new bottom-fixed offshore wind farms with a combined capacity of 2.5 GW are being constructed. The first wind farm, with a capacity of approximately 1 GW, will be located 35 km off Oleron island in the Atlantic. The second wind farm, with a capacity of about 1.5 GW, will be situated 38 km off the coast of Normandy. The projects are expected to be awarded by the end of 2023 or early 2024.
Increased Investments in Public Infrastructure Projects Across the Country to Propel the Sales of Compact Construction Equipment
In 2022, the French government increased investments to upgrade transit facilities nationwide. The government planned to invest USD 7 billion for the next ten years to develop 5,592.3 miles of small railway lines. In addition, USD 4.8 billion was allocated to maintain and modernize public transportation, such as metros and trams.
Also, France plans to invest USD 170 million annually till 2024 to double the transportation of goods by upgrading railways. USD 4.7 billion was laid out in 2021 to improve railway networks and redevelop railway tracks. The government also planned to invest USD 290 million to develop 80.7 miles of separate pathways for bicycles in Paris. Such infrastructure projects are projected to support the growth of the France compact construction equipment market.
Increased Thermal Renovation of Residential Buildings Across the Country
In old residential buildings, oil-based heating & fossil fuels were used to maintain the temperature during winter. However, the government is promoting heat pumps and renewable energy resources for thermal insulation in buildings. Therefore, the government planned to invest USD 4.8 billion in renovating thermal insulation in residential and public sector buildings across the country in 2022. Further, in July 2023, the country's government announced an additional investment of USD 7.5 billion focused on energy renovations and transition from 2024.
Integration of AI & Robotics in the France Compact Construction Equipment Market
Caterpillar's new D series skid steer loaders are integrated with the Cat Intelligent LevelingT (ILEV) system. which provides several industry-smart features, including dual self-leveling, electronic snubbing, return-to-dig, and work tool positioning. Moreover, this new series of models is equipped with the necessary emission control standards provided by the government. Further, the digitization of construction equipment through advanced sensors, communication technology, and data analytics has revolutionized construction equipment. Real-time data collection enables predictive maintenance, minimizing downtime and extending equipment lifespan. AI-integrated equipment improves efficiency, delivers quality, enhances supply chain management, and reduces risks.
INDUSTRY RESTRAINTS
Skilled Labor Shortage to Hamper Construction Activities in the Region
The French economy is less affected by a labor shortage than by recruitment difficulties, concentrated in five sectors: health (230,000 vacant jobs), tourism (140,000), industry (100,000), construction (100,000), and transport (80,000). Surprisingly, Ile-de-France, the most populated region, accounted for the most vacancies (160,000) as of 2021. In line, Auvergne Rhone-Alpes was the second-largest region with vacant jobs (145,000). In Q1 2023, the unemployment rate in Hauts-de-France was 8.7%, the highest in France.
Strict Environmental Regulations to Hamper the Construction Sector
The construction industry in France accounts for approximately 43% of yearly energy consumption and 23% of greenhouse gas emissions, per the Ministry of Ecological Transition. The Extended Producer Responsibility (EPR) policy mandates manufacturers, importers, and distributors to consider all costs of products that disrupt the environment. According to the French Building Federation (FFB), the RE2020 environmental regulation, which came into effect in Jan 2022, also led to an additional 5% increase in the construction cost of new apartments.
Surge in Mortgage Rates to Restrict Demand for Residential Units
- According to FIEC, for 2023, housing starts may drop by 8,6% due to a fall in permits. This decrease should result from the collapse of sales in 2022 because of a less favorable financial environment (higher interest rates and stricter banking regulations).
- In 2022, the French government introduced a new policy that restricted the new mortgage loan limit to a maximum of 25 years, less than in 2021. The total amount borrowed would be covered at 35% of the borrower's income.
- In Q3 2022, the housing prices increased by 6.4% over 12 months. Consequently, housing sales also witnessed a continuous decline.
- Prices of five-year-old houses rose by an average of 8.2% over 12 months until Q3 2022. The prices of houses in non-urban areas increased by 8.6% during the same period. The average housing price is above USD 428,728 in Nice, Paris, Toulon, Lyon, Montpellier, and Rennes.
Prominent Vendors
- Caterpillar
- Komatsu
- Volvo Construction Equipment
- Hitachi Construction Machinery
- JCB
- SANY
- Takeuchi Manufacturing
- Kubota
- Kobelco
- Hyundai Construction Equipment
- Xuzhou Construction Machinery Group Co. Ltd. (XCMG)
Other Prominent Vendors
- Bobcat
- Liebherr
- Manitou
- Wacker Neuson
- Yanmar
- MERLO S.p.A.
- Magni TH
- Mecalac
- Toyota Material Handling
- Develon
- SENNEBOGEN
Distributor Profiles
- M3
- Aprolis
- Avlo Group
- COBEMAT
- Mini BTP
- Ludimat
- Sodineg
- Blanchard BTP
- Bouchard Manutention
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 191 |
| Forecast Period | 2022 - 2029 |
| Estimated Market Value in 2022 | 39922 Units |
| Forecasted Market Value by 2029 | 57342 Units |
| Compound Annual Growth Rate | 5.3% |
| Regions Covered | France |
For more information about this report visit https://www.researchandmarkets.com/r/kzrlav
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