New Delhi, March 20, 2024 (GLOBE NEWSWIRE) -- According to the latest research by Astute Analytica, the Europe construction equipment market is projected to surpass US$ 72.14 billion by 2032, up from US$ 47.59 billion in 2023, at a CAGR of 4.73% during the forecast period 2024–2032.
The construction industry is of paramount importance to Europe’s economy - with a turnover of EUR 1.7 trillion and employing about 2.62 million workers in the building construction sector alone. It makes up a fair share of European country’s GDPs as well, for example, Germany's construction sector accounts for roughly 6% of its total GDP. The value and turnover differ amid countries due to the diverse economic landscapes across Europe. Infrastructure expansion and urbanization are key factors that drive the market. To tackle issues such as traffic congestion and aging transportation infrastructure, developing economies within Europe are heavily investing in infrastructure development. Around 35k infrastructure projects started in Europe this year alone!
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Also, there is an increasing demand for cost-effective and eco-friendly machines and equipment from contractors which forced manufacturers to focus on electric or hybrid vehicles instead. Digitalization, connectivity, and automation have had significant impacts on projects too in the Europe construction equipment market. For instance, The European Union has mandated that carbon emission from construction equipment be reduced by at least 20% by 2025. Germany has been predicted to play a major role in the market with a notable share and value CAGR of about 6.3%. Other countries like France, Italy, Spain have high growth rates too! And lastly Eastern European countries such as Poland and Russia are set to increase their construction spending over the next few years.
Key Findings in Europe Construction Equipment Market
| Market Forecast (2032) | US$ 72.14 billion |
| CAGR | 4.73% |
| By Type | Earth Moving Equipment (35.1%) |
| By Application | Commercial (39.5%) |
| By Distribution Channel | Offline (88.5%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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Uptick in the Demand for Electric Machineries in Europe Construction Equipment Market
There’s quite a surge in demand for electric construction equipment. A mix of different factors is causing this. At the helm of it all is the growing need to meet sustainability regulations. The European Union, for example, has given till 2025 for construction equipment manufacturers to reduce carbon emissions by at least 20%. Additionally, while diesel-powered machines still reign supreme in terms of power, their more cost-effective electric counterparts are becoming too hard to ignore. Operating costs nearly 50% cheaper than diesel-powered machines and people can’t help but start looking at other options. For the following category below, there’s been an undeniable uptick on the European market.
Electric Excavators
- JCB 19C-1 E-Tec Mini-Excavator
- Volvo Electric Excavator Prototype
- Hitachi ZE85
- Kubota KX038-4e
- Volvo ECR25 Electric Compact Excavator
Electric Mini Excavators
- Komatsu PC33E-6
- Yanmar SV17e
Other Electric Construction Equipment
- Yanmar V8e (compact wheel loader)
- Electric Dump Trucks
Technological advancements are impacting electric construction equipment market in Europe. As the tech improves, so do the machines’ efficiency and versatility. Battery, autonomous operation, and telematics innovations have lent themselves to these improvements. Governments have also shown support in subsidizing costs and incentivizing large-scale adoption of electric construction equipment. There is even talk of policies being put in place to force companies to electrify their fleets, creating further demand for this innovation worldwide.
In terms of challenges, the lack of charging stations poses a problem. Before anything can happen, infrastructure needs to be developed to keep these machines running. In addition to that, though the price gap is closing, electric construction equipment still costs significantly more upfront than its diesel-powered counterparts. The market itself is heavily concentrated with 10 companies owning almost 80% of it’s share. It’s a tough market but it hasn’t stopped some from getting creative with their products or operations. For example, Volvo Construction Equipment has created remote-controlled equipment as part of its innovation initiative.
The Rent-and-Reuse Revolution: Europe's Construction Equipment Market Gets a Makeover
The European construction equipment market is starting to shift gears. Companies are beginning to put renting above buying, sparking a massive surge in demand for rental services throughout the whole continent. Two countries that have seen this trend flourish are the UK and Scandinavia, with other countries previously focused on ownership quickly hopping on board. In the Nordic countries alone, a construction equipment rental market worth over EUR 3.6 billion can be found. With short-term rentals dominating the region’s industry, new safety regulations are pushing customers towards them even more so they can better comply with standards. The COVID-19 pandemic caused heavy disruption in the industry at first, but as businesses look for ways to cut spending, the rental market is making an impressive recovery. So much so that it’s predicted that by 2029, we’ll see a USD 43.19 billion industry — up from USD 33.60 billion in 2024.
Companies aren’t just choosing to rent rather than buy their machinery; if they don’t go down that road entirely, many are seeking pre-owned machines instead of brand-new ones — and it’s working well for them financially. Between now and 2032, it’s projected that Europe’s used machinery market will grow at a CAGR of 5.3%. But there are downsides to going down this route: reliability and compatibility issues continue to plague pre-owned equipment suppliers.
Earth Moving Equipment to Generate More than 35% Revenue
The European construction equipment market for earthmoving equipment is a big piece of the construction equipment industry. In 2023, it was one of the few bright spots in an otherwise rough year. Although overall sales of construction equipment fell by 10%, sales of earthmoving gear grew by 1%. With huge amounts of uncertainty in the economy and a slew of geopolitical threats, business leaders are crossing their fingers that this growth can be sustained into next year. The outlook for 2024 remains cautiously optimistic despite economic uncertainty and geopolitical threats. Over 192,500 units of construction machinery were sold in the regional market in 2023 alone, with Volvo Construction Equipment ending the year on a high note by posting full-year net sales of SEK 34,228 M in Europe. Germany is expected to be the fastest-growing region in Europe, followed by Spain, Ireland, UK, France and others; however, these regions will experience decline in their growth rate until 2032. Poland and Russia are expected to see positive waves as they will spend significant funds on construction.
With more than a 40% global market share by revenue in 2023, excavators are one of the most popular types of construction equipment; they are expected to witness substantial growth from 2023 to 2032.
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Commercial Application Segment is Leading Revenue Contributor to Europe Construction Equipment Market
Developing markets in Europe are busy investing in infrastructure to combat issues such as population growth, traffic congestion, and aging transport infrastructure. The European Union’s construction industry is so robust that it contributes over 9% of the EU GDP. At a record pace, these nations are building their transport infrastructure. Europe’s commercial sector leans heavily on construction equipment, with about 39.5% of the market share in 2022 and counting. This number is expected to reach over 40% by the year 2031.
As urban areas get larger and more spacious, we can expect growth in the construction equipment market, especially for the commercial sector to increase even further. It will continue growing as a result of increased infrastructure development activities and buildings being modernized for energy efficiency. Until now or until recently, some big projects were launched or initiated in Europe and some of them include Evora Public Central Hospital, Edge East Side Tower, Baltic Offshore Pipeline, Flamanville 3, Crossrail etc. Another example is Paks II Nuclear Power Plant Expansion which shows how focused Europe is on energy and infrastructure. Inflation continues to rise. The European Union saw its construction output go up by 0.20 percent in August compared to last year’s same month figure. Additionally, although France has been experiencing a continuous decline in its commercial construction undertakings, hotel and data center initiatives were expected to keep this sector alive in Europe.
Europe Construction Equipment Market Key Players
- AB Volvo
- Action Construction Equipment Ltd.
- Caterpillar Inc.
- CNH Industrial N.V.
- Deere & Company.
- Doosan Corporation
- Escorts Limited
- Hitachi Construction Machinery Co., Ltd.
- Hyundai Construction Equipment Co., Ltd.
- J C Bamford Excavators Ltd.
- Komatsu
- Liebherr Group
- Sandvik
- Sany Heavy Industry Co., Ltd.
- Xuzhou Construction Machinery Group (XCMG)
- Zoomlion
- Other Prominent Players
Key Segmentation:
By Type
- Tractors
- Earth Moving Equipment
- Material Handling
- Concreting Equipment
- Road Building Equipment
- Others
By Application
- Residential
- Commercial
- Industrial
By Distribution Channel
- Online
- Offline
By Country
- Western Europe
- Norway
- Sweden
- Denmark
- Finland
- Ireland
- Iceland
- The UK
- Germany
- France
- Italy
- Spain
- Rest of Western Europe
- Eastern Europe
- Poland
- Russia
- Lithuania
- Latvia
- Estonia
- Rest of Eastern Europe
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