GIA announces the release of a comprehensive global report on Construction Equipment markets. The global market for Construction Equipment is forecast to reach 1.76 million units by the year 2018, driven by continuous urbanization caused by population movement from the rural areas to urban areas, particularly in the emerging markets. Additionally, huge spending on the infrastructure front combined with development in the industrial as well as the mining sector is expected to generate large scale demand for Construction Equipment from the BRIC economies of Brazil, Russia, India and China.


The construction equipment industry is a noteworthy segment for most of the global economies and includes diverse range of equipment, which finds usage across various industries such as building construction, infrastructure projects and surface mining. Demand for construction equipment is directly proportional to the need for construction and building activity. Therefore, being a part of the global construction industry, the global construction equipment industry often follows the trend patterns of the former, which is quite often impacted by several macro economic factors. This scenario has been witnessed in the recent past when the global construction industry came under the shadow of the global economic slowdown. During this period, widespread pessimism and flagging business confidence negatively impacted spending in the construction industry, thereby impacting the demand for construction equipment as well.

As economic growth is slowly picking up after the downturn, the period ranging from 2011-2018 is expected to witness an increased demand for the construction equipment including excavators, cranes and loaders. The renewed interest in the urban development activities such as construction works spanning across industrial as well as residential and commercial sectors is expected to heighten demand for construction equipment in the coming years. However, the crucial pull for growth is expected to emanate from emerging markets such as Latin America as well as Asia-Pacific with large scale construction activity in the infrastructure, oil refinery, ship building and power plant fronts. In the Asia-Pacific region China, India, South Korea and Indonesia are key regions for the construction equipment industry, with China leading the bandwagon and cornering a major portion of the global demand for construction equipment. Japan, which witnessed one of the worst natural disasters in recent history, is in reconstruction mode, and the market is expected to witness high growth in the near future.

The uncertainty created by Europe’s debt crisis is also impacting growth. Construction industry in Italy and Spain has especially been hit harder than other EU economies, given the higher vulnerability of these economies to slip into recession. Germany, the hitherto resilient European economy, is also forecast to witness lower demand for construction equipment in the upcoming year. The continued uncertainty in Europe caused by the periodic flaring up of the region’s debt crisis and the economic drag exerted by the deleveraging process underway in the region’s private, public and financial sector is overshadowing the outlook for the industry in the region. The downward spiral of the Euro crisis has triggered volatility in the housing and construction markets in the region, primarily because of the high public debt held by most regional governments and the implementation of austerity measures that limit public expenditure and financing for infrastructure projects. Investments in the construction sector in Europe have declined by over 8.0% beginning from the year 2008. Currently in Europe, new residential construction has shrunk by over 30% from the peak witnessed in 2006, while non-residential building contracted by 18% during the same comparable period. However, the relatively lesser declines in residential and non-residential renovations provide a ray of hope for the construction equipment industry.

Segment-wise, pavers, mixers, and other associated products are forecast to register significant gains, benefiting from infrastructure development activities in various regions across the world. The relatively low price of certain equipment such as the small-sized towable concrete mixers, are also likely to record significant gains in future. Loaders demand is also expected to increase over the next few years. The excellent versatility of loaders would drive sales as spending on construction activities continues to increase, particularly in rapidly growing developing nations. The market is also expected to remain strong for various other kinds of construction machinery including cranes, graders, excavators, draglines, rollers, off highway tractors and trucks and individually sold attachments and parts.

As stated by the new market research report on, Construction Equipment, China represents the largest regional market. Key factors driving industry growth include robust demand generated by the construction industry and the ongoing construction of new infrastructure projects by the Chinese government including gas pipelines, expressways and railways. However, of late steps taken by the Chinese government to effectively address growing inflation and bubble in the country’s real estate market coupled with government’s decision to discontinue infrastructure-oriented stimulus package, slowed down building activities in the region during 2011, which in turn restrained growth in the construction equipment industry as well. Going forward, despite the unfavorable regulatory framework in 2011, the country’s construction equipment sector is expected to thrive due to government’s increasing focus on improvising country’s railway infrastructure and other related infrastructure projects. On the hand in the US, after the turbulent period of 2009, the construction equipment industry managed to make a turnaround in 2010, all thanks to the surge in exports. Going forward boom in the mining sectors both domestically and internationally along with the gradual recovery of the housing sectors is expected propel demand for construction equipment in the US.

The global market for Construction Equipment is relatively consolidated with global players accounting for significant shares in key markets. The Chinese market is highly competitive with small and medium players targeting the low cost equipment market, while major Chinese players and international players target the market for technologically advanced products, which command a premium. Major players in the global marketplace include AB Volvo, Caterpillar Inc., CNH Global, Dingsheng Tiangong Construction Machinery, Doosan Infracore, Deere & Co., Hitachi Construction Machinery, Hanta Machinery Co. Ltd., JCB Ltd., Komatsu Ltd., Kubota Europe, Mitsubishi Heavy Industries, Shandong Shantui Construction Machinery Imp. & Exp. Co. Ltd., Sumitomo Heavy Industries, TCM Corp., Terex Corp., and Xuzhou Construction Machinery Group Co., Ltd.

The research report titled "Construction Equipment: A Global Strategic Business Report" announced by Global Industry Analysts Inc., provides a comprehensive review of the construction machinery industry, current market trends, key growth drivers, product introductions, recent industry activity, and profiles of major/niche global as well as regional market participants. Geographic markets analyzed include the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, and Rest of Europe), China, India, Brazil, and Rest of World.

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Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world’s largest and reputed market research firms.