The global road making and earth moving market is poised to witness remarkable growth over the forecast period owing to rapid urbanization and infrastructural activities. Growth in the mining industry and the civil construction market has spurred the demand in the market. The earth moving and road making segments form a major portion of the entire construction sector. Any rise or decline in the two segments has a direct impact on the construction sector. Roadmaking & earthmoving market is directly tied to government spending. The rise in government spending can bolster the employment opportunities in this sector, subsequently leading to market augmentation. Moreover, the need for better connectivity and transport facilities globally is expected to drive the market, especially in the road making segment. The rapid escalation in global automobiles and freight movement has created the need for superior road networks in order to carry the traffic efficiently and effectively. This has incited growth in the market.
The road making and earth moving industry is estimated to experience a significant rise over the forecast period. It can be attributed to the accelerated demand in the excavation of land, laying foundations, landscape areas, and moving large tracts of land for archeological purposes. Well-documented governmental support for infrastructural activities and robust levels of population growth are expected to drive the growth of the road making and earth moving market. Recovery from poor financial conditions such as the global recession has created significant opportunities for market growth. Market vendors as well as new entrants have accentuated on capitalizing these opportunities. The presence of domestic and international players in the market has created a competitive setting, thereby escalating market expansion. The road making segment is poised to gain traction in developing economies as they possess better opportunities for infrastructural growth. Increasing globalization has created a better environment for foreign direct investment that is expected to reinforce market augmentation.
The earth moving segment finds application in several industrial verticals. It comprises applications in mining activities, archeological activities, agricultural sector, and infrastructural activities such as foundation laying and excavating land for building roads and railways. Earth moving equipment comprises excavators, loaders, and construction tractors. The road making segment comprises three phases rough grading, and fine grading and surfacing. Compaction forms a major element in the construction of roads and highways. In the past, tough macroeconomic conditions such as the global recession have severely impacted the construction sector. This consequently resulted in a decline in the global road making & earth moving market. Moreover, the continuous global economic uncertainties and slow growth have taken a toll on the market. Low investments from the government have largely hampered market growth. High initial set-up and development costs are expected to restrict the entry of new entrants in the market. With new technologies surfacing in the construction market, the need for trained professionals and staff has intensified. Lack of skilled and trained personnel may hamper the market augmentation.
With increasing regulations and interdictions on mining activities across the globe, the earth moving segment is expected to endure heavy losses. Furthermore, environmental concerns and subsequent initiatives for environmental protection are poised to hamper the market augmentation. Road making activities involve deforestation, thus resulting in ecological imbalance. Such activities face high criticisms, subsequently discouraging investors from investing in such projects. Several countries have focused on improving and expanding the railway infrastructure. This has adversely impacted the road making activities. Moreover, problems regarding land acquisition have prevented the expansion of road making and earth moving markets.
The global road making and earth moving market is anticipated to gain prominence in the Asia Pacific region owing to the presence of developing countries. Emerging economies such as India and China possess great potential for infrastructural development. Moreover, the mining industry in these countries has flourished extensively over the years due to the increasing needs for minerals and metal ores from the earth. Favorable government initiatives have further propelled growth in the Asia Pacific region. Major market players dominating the global road making and earth moving market are Caterpillar Inc., Hitachi Construction Machinery, JCB Excavators Ltd., John Deere Corporation, Komatsu Ltd., Liebherr Group, Terex Corporation, and Volvo Group.
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The automotive & transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. We are continuously monitoring the COVID-19 pandemic, and assessing its impact on the growth of the automotive & transportation industry. The report will account for Covid19 as a key market contributor.
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