Dublin, Jan. 16, 2024 (GLOBE NEWSWIRE) -- The "Heavy Construction Equipment Market by Machinery Type (Earthmoving equipment, Material Handling Equipment, Heavy Construction Vehicles), Propulsion Type (Diesel, CNG/LNG/RNG, Electric), Engine Capacity, End-Use Industry & Region-Global Forecast to 2028" report has been added to ResearchAndMarkets.com's offering.
The global heavy construction equipment market is estimated to grow from USD 190.3 billion in 2022 to reach USD 252.4 billion by 2028, at a CAGR of 4.8%. The increasing demand for heavy construction equipment in mining and construction industry is one of the most significant factors projected to drive the growth of the heavy construction equipment market.
The report will help the market leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall heavy construction equipment market and the subsegments. This report will help stakeholders understand the competitive landscape and gain more insights to position their businesses better and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
Asia Pacific led the heavy construction equipment market, in terms of value, in 2022 and is projected to register a CAGR of 4.9% between 2023 and 2028. This high market penetration is attributed to the increasing mining and infrastructural developments happening in the region especially in China and India.
The governments in these countries are promoting development of infrastructure to attract new foreign investments and improve their economy. With the rising demand for raw materials across the globe and to secure their energy interest, the governments of these two countries are actively looking for finding suitable lithium mines in and outside of the country for battery manufacturing. These will promote the increased usage of heavy construction equipment in this region.
Prominent companies include Caterpillar (US), Liebherr AG (Germany), Terex Corporation (US), Volvo Group (Sweden), Komatsu (Japan), Hitachi Construction Machinery Co., Ltd. (Japan), SANY Heavy Industry Co., Ltd. (China), HD Hyundai (South Korea), XCMG Group (China), CNH Industrial N.V. (UK), and J C Bamford Excavators Ltd (UK), among others.
Increasing investments in construction and infrastructure sectors to drive the heavy construction equipment market
Demand for heavy construction equipment is fueled by the increasing investments in construction activities. For instance, Beijing, China is making 6.8 trillion yuan (about approximately USD 1 trillion) of government funds available for construction projects.
More than 800 billion yuan (USD 115.96 million) were set to be invested in the construction of canals, dams, and reservoirs in 2022. And urban infrastructure building including urban roads, gas and water pipe networks, and parks - is the most popular choice for spending by local governments, which account for the bulk of China's infrastructure spending. Further, China also planned to build 70,000 km of high-speed rail by 2035.
As per the declaration in June 2022, the European Union announced an investment of nearly USD 5.4 billion for the development of transport infrastructure development. The European Union has selected around 135 infrastructure projects to disburse development funds. According to the UK Construction Leadership Council, planned investments include 700 projects and over USD 645.7 billion in the National Infrastructure Pipeline. Such planned investments and growing construction activities for infrastructure development would are expected to drive the demand for construction equipment during the forecast period.
Stringent government regulations to restrain for heavy construction equipment market.
One of the major obstacles faced by heavy construction equipment players is region-specific government regulations. For a company to start heavy construction, it needs to undergo a lengthy and rigorous process of obtaining a permit after various required checks.
For instance, since the construction industry uses more diesel engines than any other industry, in order to meet EU emissions regulations, proper baseline data is collected to adequately characterize the environmental condition of the area. Surveys are carried out related to the cultural and historical resources, soil, vegetation, wildlife, surface & groundwater hydrology, climatology, and wetlands. After the permit is prepared and submitted to the regulatory agency, it goes through completeness and technical reviews.
Digitization of services to provide an opportunity for the heavy construction equipment market.
There are enormous possibilities for implementing digitization, innovative technologies, and new construction techniques in the construction equipment industry. New technologies like connected equipment and tools, telematics, smart applications, and autonomous heavy equipment can be delayed deployed and used on worksites globally.
Construction equipment manufacturers use data to make better decisions, increase efficiency, improve job site safety, and lower risks. Artificial Intelligence (AI) and machine learning systems are used to develop predictive analytics tools in the construction equipment for monitoring machine health. In January 2022, Hitachi Construction Machinery Co., Ltd. launched the ConSite Mine to the global market, a solution that provides machine analytics to help resolve issues at mining sites by using IoT to monitor mining machinery 24 hours a day remotely.
Development of alternative solutions to be a major challenge for heavy construction equipment market.
Battery and motor are the two most fundamental elements of electric heavy construction equipment. The motor provides the force, and the battery stores and supplies the energy. Controlling the speed and torque of the motor across a wide range of speed and load conditions is one of the challenges for heavy construction equipment manufacturers. With the finite amount of stored energy available in a battery, the capacity is required to be used as efficiently as possible. An increase in the battery size would help increase the battery's capacity, but this directly increases the weight and the cost of the heavy construction equipment directly.
Battery charging is one of the major challenges as batteries in electric-powered heavy-duty construction equipment take a long time to recharge. This increases downtime and delays the return on investment. Apart from this, battery thermal management systems face leaks, corrosion, clogging, climate, and aging. Heavy construction equipment manufacturers and technology experts are developing advanced battery thermal management systems to resolve this challenge.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 339 |
| Forecast Period | 2023 - 2028 |
| Estimated Market Value (USD) in 2023 | $190.3 Billion |
| Forecasted Market Value (USD) by 2028 | $252.4 Billion |
| Compound Annual Growth Rate | 4.8% |
| Regions Covered | Global |
Premium Insights
- Infrastructure Segment to Drive Market
- Earthmoving Equipment Segment Accounted for Largest Share in 2022
- Material Handling Was Largest Segment in 2022
- Diesel Propulsion Segment Dominated Market in 2022
- 101-200 Hp Segment Led Market in 2022
- <5 L Segment Dominated Market in 2022
- Mining Segment Led Market in 2022
- India to Register Highest CAGR During Forecast Period
Market Dynamics
Drivers
- Increasing Investments in Construction and Infrastructure Sectors
- Rapid Urbanization
- Rising Demand in Emerging Countries
- Technological Advancements and Upgrades
- Demand for Sustainable Solutions
Restraints
- Stringent Government Regulations
- Socio-Economic Effects of Heavy Construction Activities
Opportunities
- Renting or Leasing Equipment
- Digitization of Services
- Demand for Autonomous Heavy Construction Equipment
Challenges
- High Cost of Equipment
- Lack of Skilled Labor Force and Maintenance & Repair-Related Issues
- Development of Alternative Optimized Solutions
Technology Analysis
- Autonomous Heavy Construction Equipment
- Connected Technologies
- Grade Control System
Company Profiles
Key Companies
- Caterpillar
- Volvo Group
- Komatsu
- Hitachi Construction Machinery Co. Ltd.
- Terex Corporation
- Liebherr AG
- Sany Heavy Industry Co. Ltd.
- Hd Hyundai
- Xcmg Group
- Cnh Industrial N.V.
Other Players
- J C Bamford Excavators Ltd.
- Wacker Neuson Se
- Manitou Group
- Escorts Kubota Limited
- Deere & Company
- Zoomlion Heavy Industry Science & Technology Co. Ltd.
- Kobelco Construction Machinery Co. Ltd.
- Sumitomo Heavy Industries, Ltd.
- Hiab
- Hidromek
For more information about this report visit https://www.researchandmarkets.com/r/e6qeze
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