The global earthmoving equipment market size was estimated at USD 98.43 billion in 2014. Increasing urban population demanding better infrastructure facilities is expected to positively impact demand over the forecast period. The emergence of advanced products with eco-friendly features and low maintenance are expected to replace traditional machinery over the next seven years. Varied technological advancements leading to the facilitation of real-time monitoring and detecting failure is anticipated to propel demand.
China earthmoving equipment market by product, 2012 – 2022 (USD Billion)
Various government initiatives undertaken for the development of infrastructure coupled with increasing investments in the construction industry are projected to drive consumption. For instance, Saudi Arabia government has planned to develop six mega-economic cities and close to 800 new factories, generating employment and accommodation, which is estimated to fuel earthmoving equipment market growth in this region.
Increasing globalization is estimated to create a favorable environment for foreign direct investment which is estimated to augment growth. The Higher spending power of consumers in the emerging economies is anticipated to offer key growth opportunities. Need for better connectivity and enhanced transport facilities are also anticipated to drive the industry over the forecast period. However, the uncertainty of economic conditions coupled with enforcement of emission-control norms may challenge expansion. Various interdictions and regulations on mining activities across the globe along with host cost can act as a restraint to demand.
The earthmoving equipment market can be classified on the basis of product into excavators, loaders, and others. Other products include trenchers, motor scrappers, backhoe, motor graders and bulldozers.
Excavators are used to discharging, elevate, or excavate materials. These are self-propelled machines which run using wheels or crawlers and are used for various applications such as above and below ground level operations, which include well sinking, trench digging and land travelling. Excavator industry is expected to grow at a CAGR of over 8.0% from 2015 to 2022.
Loaders accounted for over 45% of the demand in 2014. The segment includes wheeled, skid-steer loaders, etc. Backhoe loaders are primarily used in various construction projects due to their small size and versatility. These are often used for wide variety of tasks such as small demolitions, construction, excavation, digging, light transportation of building materials and paving roads. Other machineries such as bulldozers and motor graders are used in construction work including ditching, snow-removing, and grading.
The application segment includes construction and other applications. Construction equipment market includes products for concrete & road construction, material handling, etc. The segment accounted for over 60% of the overall demand in 2014 and is expected to decline over the next few years.
Mining application consists of products for surface and underground mining purposes such as crushing, screening & pulverizing, and mineral processing. Various large scale construction projects and initiatives in the developing economies including Middle East are projected to trigger growth.
Asia Pacific earthmoving equipment market is expected to witness high gains, at an expected CAGR of over 8% over the forecast period. Heavy investments in the rural and urban infrastructure including the building of residential areas, ports, roads and IT parks in India is expected to positively elevate regional demand.
In China, large scale infrastructural investments have been made across various sectors including transportation, energy, utilities, healthcare and education which is expected to boost sales volume in the near future. Sluggish growth and continuing economic uncertainty may hamper growth in the U.S. and Europe earthmoving equipment market.
Key players accounting for majority of earthmoving machinery market share include Caterpillar, Komatsu, Hitachi Construction Machinery, Volvo, John Deere, Liebherr, and CNH Industrial. Companies are undertaking mergers & acquisitions activities to accommodate the changing technological trends in the industry. Further strategic expansions, heavy investments in R&D along with new product development have been adopted to bridge the existing gap in the geographical constraints, end-use requirements and product offerings.
The companies offer a products on rent and lease basis on short and long term basis to the customers which are expected to boost industry growth. Earthmoving equipment manufacturers are focusing on reducing the global footprint and CO2 emissions and elevate energy efficiency. For instance, Caterpillar’s CAT Connect makes smart use of technology and applications for improving job site efficiency. Komatsu entered into a collaboration with GE Mining for developing next-generation machinery that delivers innovative solutions to customers.
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