With the increasing urbanisation and industrialisation, majorly in the developing countries, boosting the economic growth and creating employment opportunities, the global heavy construction equipment market is anticipated to generate a revenue of $ 257.2 billion by 2028.
According to the recent report by Research Dive - Heavy Construction Equipment Market by type, end-use industry, and region - Global Opportunity Analysis and Industry Forecast, 2021–2028, the global heavy construction equipment market is expected to grow at a CAGR of 4.8% between 2021 and 2028.
Moreover, the factors like high digging strength, dump heights, ground clearance are some significant factors further expected to bolster the growth of the heavy construction equipment market throughout the forecast period.
Rentals
The equipment rentals option for the individual businesses and the heavy construction equipment manufacturers are further predicted to fortify the market's growth during the forecast period. However, the requirement of skilled labour and high heavy construction equipment may impede the market's growth over the analysis period, the report said.
COVID-19 Impact
The rise of the COVID-19 pandemic has hurt the heavy construction equipment market, similar to several other industries all across the globe. Because of the stringent lock-down imposed by the government of many countries worldwide, many manufacturing companies have shut down their operations. It is significant because of the drastic decline in the demand, unavailability of raw materials due to disrupted supply chain, and the shortage of labourers. These factors have caused a decline in the growth of the heavy construction equipment market during the crisis, the research firm said.
Market Segments
According to the report, the earth moving sub-type is expected to be most lucrative and is projected to generate $ 138.6 billion during the forecast timeframe. In addition, the increasing rate of manufacturing various earth moving equipment for several construction and mining works is further expected to fortify the growth of the heavy construction equipment market's sub-segment during the forecast period.
The construction sub-segment is anticipated to be most profitable by end-user and is expected to garner a revenue of $ 128.6 billion throughout the forecast period. The rapid evolving of infrastructure and construction projects and huge ongoing construction projects are vital factors expected to amplify the growth of the market's sub-segment during the forecast period.
According to Research Dive, the Asia-Pacific region is expected to rise at a CAGR of 5.6% and is predicted to hold the maximum market share during the forecast period. The economic development of many countries in this region is the primary reason. In addition, leading manufacturers of heavy construction equipment and innovative initiatives to adopt the latest technology are further expected to augment the regional growth of the heavy construction equipment market throughout the forecast timeframe.
Some of the leading players in the market include SANY, Volvo Construction Equipment, John Deere, Hitachi Construction Machinery, Komatsu, Liebherr, Caterpillar, Hyundai Doosan Infracore and JCB.
These players are majorly working on the development of new business tactics and strategies to acquire leading positions in the global industry, the report said.
Besides, the report also summarises the other vital aspects such as the financial performance of the key players, latest strategic developments, product portfolio, and SWOT analysis.
Courtesy: Research Dive. NB: Photo is representational; courtesy: Komatsu.