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.

Construction Equipment Market to Grow by 20%

NOIDA: With several global original equipment manufacturers (OEMs) foraying into Indian construction space through joint ventures, the Indian construction equipment market is expected to witness a Compound Annual Growth Rate (CAGR) of 20% year-on-year during 2011-2015.

RNCOS, a market research consulting Services Company, in its latest research report “Booming Construction Equipment Market in India” said due to the impact of joint ventures and collaborations by global construction equipment manufacturers in India, the industry is poised for big growth in the years to come. “The industry is expected to witness a CAGR of 20% during FY 2011-2015,” said the report.

The construction equipment industry in India witnessed a consistent growth in the past few years despite the global economic crisis. Supported by the government's favorable policies, the infrastructure and construction projects in the country are increasing, the study noted.

The report, spread over 45 pages, provides a comprehensive research and rational analysis of the current status and expected position of the construction equipment market in India. It meticulously examines the prominent emerging trends and drivers, which are fueling growth in the industry. Highlighting major segments, such as earth moving, and material handling, the report also facilitates the future outlook for rental and equipment financing in India.

Some of the key findings of the report are: India’s earth moving sector to register an impressive growth over the next few years; Construction equipment rental business in India is all set to enter a crucial growth phase; Market for after sale services to capture the untapped space in India and Construction equipment financing market has huge potential.

About RNCOS

RNCOS specialises in Industry intelligence and creative solutions for contemporary business segments. ur professionals analyze the industry and its various components, with a comprehensive study of the changing market behavior. Our accuracy and data precision proves beneficial in terms of pricing and time management that assist the intending consultants in meeting their objectives in a cost-effective and timely manner.

Two-fold growth for Indian construction equipment market by 2015

Mumbai: The rapid boom in Indian infrastructure industry, along with the more moderate growth of the manufacturing sector, has stabilised the demand for hydraulic components in India whose annual growth rate would reach Rs 50 billion by 2017, according to a survey.

New analysis from Frost & Sullivan titled ‘Indian Hydraulic Components Market’, finds that the market was valued above Rs 18 billion during 2010 and is likely to grow at a compound annual growth rate of more than 14 percent from 2011-17 to cross Rs 50 billion. India’s planned investment of Rs 45 trillion in infrastructure in the 12th five year plan (2012-2017) will be a major boost to construction equipment and thereby, hydraulic components.

Mirroring the twofold increase of sales in the construction equipment market by 2015, the market for hydraulic components in construction and bulk material handling will also double during that period, the report says, further adding, the increased investments and expansions in core sectors such as infrastructure, steel, cement, mining, as well as oil and gas is driving the market for ancillary products such as hydraulic components.

Emphasis on the Indian power sector is also expected to give a leg up to the hydraulic component market, says the Frost & Sullivan analysis. With rapid capacity additions and expansions, the market is anticipated to grow by more than 15 percent over the next five years.

However, despite the projected double-digit growth rate, the absence of reliable tube suppliers for hydraulic cylinders, low availability of raw materials, and competition from the unorganised sector restrains further growth of the hydraulic components market.

Raw materials account for almost 50 percent of the total cost of the hydraulic component. Consequently, escalating input costs directly affects the margins of component manufacturers. The scarcity of raw materials results in higher costs, compounding the challenge for component manufacturers.

The trend to source from low-cost countries has gained momentum, and India, with its rich experience in manufacturing, large pool of skilled manpower, and ever increasing domestic volumes, has made the most of this environment to become a manufacturing hub for the global market. This new status will result in many multinationals clamoring to set up manufacturing facilities in India.

The initial challenge of delivery lead times is reducing as global hydraulic component manufacturers are setting up manufacturing or assembling units in India, notes Frost & Sullivan survey. With the rising prevalence of multinational companies in the country, the competition from the price-sensitive unorganised sector will reduce.

The elimination of these hurdles will clear the way for uninhibited growth of the hydraulic component market.

Indian Hydraulic components market is part of the Industrial Automation & Process Control Growth Partnership Services program, which also includes research in the following markets: Strategic Analysis of the Indian Pumps Market and Strategic Analysis of the Indian Gearboxes and Geared Motors Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

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