Global construction equipment market to reach USD 192 bn by 2017

 The global construction equipment market is expected to reach USD 192.3 billion by 2017 from USD 143.6 billion in 2012, growing at a CAGR of 6 % from 2012 to 2017, with India and China holding the lion's share, according to a report.

The new market report published by Transparency Market Research "Construction Equipment Market - Global and China Forecast, Market Share, Size, Growth and Industry Analysis, 2011 - 2017," found that earth-moving equipment segment alone has contributed about 43% to the total construction equipment market revenue in 2012.

Asia is the most promising market for construction equipment worldwide due to relatively good performance of construction and mining industries, in countries like India and China. Europe holds the second largest share of the construction equipment market, the report pointed out.

The construction equipment market is driven by factors such as growth in construction activities, emergence of lease-based equipment, and increasing government investment in infrastructure development especially in developing nations. In addition, demand by companies in infrastructure and real estate is also supporting the growth of the construction equipment market.

Despite the encouragement by governments across the globe, there are certain factors inhibiting the growth of the construction equipment market such as uncertain economic conditions, and strict emission regulations. The increasing price of raw materials such as steel is also a major challenge for the construction equipment market.

 

The earth-moving equipment segment holds majority market share of the total construction equipment market and is estimated to be worth USD 61.7 billion in 2012. Material handling equipment is the fastest growing segment and is expected to grow at a CAGR of 6.6 % from 2012 to 2017.

The construction vehicles segment is expected to exhibit healthy growth during the forecast period (2012 - 2017) and will attain a market size of USD 22.9 billion in2017, the report said.

China is the major contributor to the global construction equipment market and accounts for about 41.2% of the overall global sales of construction equipment. The construction equipment market in China in 2012 is estimated at USD 59.2 billion and is expected to reach USD 95.6 billion in 2017 at CAGR of 10.1% from 2012 to 2017. In addition, China also holds about 17% market share of the global agriculture equipment industry.

Some of the key players dominating the construction equipment market are Caterpillar (U.S.), Komatsu (Japan), Volvo (Sweden), Hitachi (Japan), Liebherr (Switzerland), Sany (China), Zoomlion (China), Terex (U.S.), Doosan (South Korea) and John Deere (U.S.). Caterpillar is the leading player in the global construction equipment industry. Some of the Chinese construction equipment market players dominating the global market are: Sany, Zoomlion, XCMG, Guangxi Liugong, Lonking and others.