Brazil Construction Equipment Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.25 Billion |
| Market Size (2029) | USD 3.28 Billion |
| CAGR (2024 - 2029) | 6.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Brazil Construction Equipment Market Analysis
The Brazil Construction Equipment Market size is estimated at USD 2.25 billion in 2024, and is expected to reach USD 3.28 billion by 2029, growing at a CAGR of 6.5% during the forecast period (2024-2029).
Over the long term, factors such as rapid urbanization and industrialization, followed by rising government investments in the development of infrastructure and expansion and growth activities of the real estate and construction companies across regions, are expected to enhance demand in the market.
Government initiatives encouraging infrastructure activities and the rising adoption of technologically advanced machinery, both electrified and autonomous, tend to offer new opportunities for players operating in the market. The construction industry is getting smarter. Digitalization, connectivity, and automation are driving the development forward, leaving a substantial impact on construction projects, which in turn is likely to witness major growth for the market during the forecast period.
These construction equipment manufacturers operating across various are constantly engaged in securing the supply chains to improve efficiency that will increase the productivity of the construction industry. The road construction machinery market witnessed significant growth in the recent past, owing to the increased road development programs undertaken by governments across the country. This is anticipated to witness significant demand in the coming years.
Brazil Construction Equipment Market Trends
Rise in Construction Development Across the Country
- The rise in construction development across the country is likely to enhance the demand for construction equipment across the country. The rapid expansion of infrastructure development, such as residential buildings and commercial buildings across the country, is likely to witness major growth for the market during the forecast period. For instance,
- In August 2023, The President of Brazil announced an investment of USD 200 Billion for the development of infrastructure across the country. Through this investment, the government aims to develop infrastructure, energy, and transportation sectors across the country.
- The Brazilian government's efforts to mobilize privatization, being considered as a means to stimulate economic growth, has been a major opportunity, following which it introduced Projeto Crescer (Project Growth). The Chinese government is also assured to invest in infrastructure, energy, manufacturing, and mining projects. In addition, as a part of the new energy plan PDE 2024, the Ministry of Mines and Energy revised the country's solar energy targets compared to the target planned for 2023.
- In Brazil, the government introduced an infrastructure concessions program to develop the country's port, road, railway, power transmission lines, and sanitation infrastructure. Under this plan, the government aims to invest BRL 45.0 billion (USD 14.1 billion) through the public-private partnership (PPP) model. Furthermore, government programs such as Minha Casa Minha Vida (MCMV), Plano Decenal de Expansao de Energia 2026, and the National Education Plan are expected to support industry growth over the forecast period.
- Low-interest rates and the government's housing programs such as "Casa Verde e Amarela." Despite Brazil's high budget deficit and weak economic conditions due to the political crisis in the country, the authorities released an infrastructure development program. This is likely to create lucrative opportunities for construction equipment manufacturers in the coming years.
- With the above-mentioned development across the country, the demand for construction equipment will be high during the forecast period.
Introduction to Advanced Technology in Construction Equipment
- The growing need for vehicle security and tracking systems mainly drives the demand for advanced construction equipment across the country. Moreover, several fleets are using basic fleet management tools, which restricts their ability to monitor the overall fleet performance. This has increased the demand to a large extent.
- The alarming rise in theft incidents has led to an increase in demand for insurance telematics solutions. These developments are further adopted rapidly by users in the wake of necessity, i.e., as demand from construction sectors positively influences the growth of the construction equipment market.
- The government implemented flagship programs like 'My House, My Life,' the Logistics Investment Program, and the National Education Plan 2014-2024. As the Brazilian economy is in its initial phases of growth, the contractors prefer to categorize their activities through fleet management technology. etc., on construction equipment rather than deploying manpower at sites.
- So, players in the market are actively focused on designing growth strategies like expansion, product innovations, etc. For instance, As part of this strategy, Tadano announced in 2021 that it is bringing greater efficiencies to the entire value chain by improving business activities in North, Central, and South America, including Brazil.
- There is a rising demand for automated loaders as they are integrated with automated machine functions and intelligent machine parts such as optional GPS, program IQN, and many more. Rising demand for automated loaders in construction sectors owing to shortages of labor is likely to witness major growth for the market during the forecast period.
- Moreover, the integration of such features reduces manpower handling and helps to record the performance and efficiency of construction equipment. Thus, to cater to growing concerns about safety and improved productivity by consumers, companies are focusing on offering automated loaders to capture emerging market share. For instance, Deere & Company introduced the JDLink telematics system as an optional solution for skid steer loaders. The system provides information about the system utilization and allows rapid diagnosis of problems to reduce downtime on the job.
- With the above-mentioned development across the country, the market is witnessing major growth during the forecast period.
Brazil Construction Equipment Industry Overview
The construction equipment market in Brazil is currently dominated by several key players, including industry giants such as Komatsu Ltd., Liebherr Group, Caterpillar Inc., and others. These key players are actively involved in strategic initiatives like mergers and acquisitions, as well as the introduction of innovative products to solidify their market positions and stay ahead in this competitive landscape.
For instance, in February 2023, Volvo Construction Equipment took a significant step towards sustainability by unveiling a solution to convert the L120 wheel loader into an electric version. This development caters to the growing demand for more environmentally friendly options in the mid-size equipment range. The 20-ton L120H Electric Conversion is slated to be commercially available to selected customers in Europe throughout 2023.
In July 2022, XCMG Construction Equipment Co. Ltd. made substantial advancements in Brazil by signing a notable agreement worth USD 200 million. This agreement was centered around the development of new energy equipment, specifically the introduction of XE27U and XE35U hydraulic excavators in the Brazilian market. These initiatives underline the industry's commitment to innovation and its eagerness to provide cutting-edge solutions to meet the evolving needs of construction projects in Brazil.
Brazil Construction Equipment Market Leaders
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Caterpillar Inc.
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Liebherr Group
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J C Bamford Excavators Ltd
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Komatsu Ltd.
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AB Volvo
*Disclaimer: Major Players sorted in no particular order
Brazil Construction Equipment Market News
- July 2023: XCMG Construction Machinery Co. Ltd. unveiled its latest electric construction machinery lineup in Brazil. This exciting launch included two remarkable electric loaders: the XC918-EV, tailored for efficient operations in compact spaces, and the XC968-EV, engineered to excel in heavy lifting applications.
- May 2023: Volvo Construction Equipment made a significant breakthrough by introducing a groundbreaking lifting mode for its multi-demolition boom. The company innovatively designed and engineered a solution to enhance the lifting capabilities of multi-use demolition machines.
Brazil Construction Equipment Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Growing Infrastructure Activities Across the Country
4.2 Market Restraints
4.2.1 Rapid Expansion of Construction Equipment Rental Industry
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD)
5.1 By Machinery Type
5.1.1 Cranes
5.1.2 Telescopic Handlers
5.1.3 Excavators
5.1.4 Loaders and Backhoes
5.1.5 Motor Graders
5.1.6 Other Material Types
5.2 By Propulsion
5.2.1 Internal Combustion Engine
5.2.2 Electric and Hybrid
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Caterpillar Inc.
6.2.2 AB Volvo
6.2.3 Komatsu Ltd
6.2.4 Xuzhou Construction Machinery Group Co., Ltd. (XCMG)
6.2.5 Hitachi Construction Equipment Ltd
6.2.6 SANY Group
6.2.7 Deere & Company
6.2.8 Liebherr Group
6.2.9 CNH Industrial N.V.
6.2.10 JC Bamford Excavators Ltd (JCB)
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Brazil Construction Equipment Industry Segmentation
Construction equipment is defined as any type of equipment used for the execution, completion, erection, operation, or maintenance of any construction project or work. Construction equipment is also used in earthmoving works during the construction of roads, bridges, and dams. Some types of construction equipment, like excavators and wheel loaders, are also used in mining.
Brazil's construction equipment market is segmented by machinery type and drive type. By machinery type, the market is segmented into cranes, telescopic handlers, excavators, loaders and backhoes, motor graders, and other machinery types. By drive type, the market is segmented into internal combustion engines and electric and hybrid.
For each segment, the market sizing and forecast have been done based on the value (USD).
| By Machinery Type | |
| Cranes | |
| Telescopic Handlers | |
| Excavators | |
| Loaders and Backhoes | |
| Motor Graders | |
| Other Material Types |
| By Propulsion | |
| Internal Combustion Engine | |
| Electric and Hybrid |
Brazil Construction Equipment Market Research Faqs
How big is the Brazil Construction Equipment Market?
The Brazil Construction Equipment Market size is expected to reach USD 2.25 billion in 2024 and grow at a CAGR of 6.5% to reach USD 3.28 billion by 2029.
What is the current Brazil Construction Equipment Market size?
In 2024, the Brazil Construction Equipment Market size is expected to reach USD 2.25 billion.
Who are the key players in Brazil Construction Equipment Market?
Caterpillar Inc., Liebherr Group, J C Bamford Excavators Ltd, Komatsu Ltd. and AB Volvo are the major companies operating in the Brazil Construction Equipment Market.
What years does this Brazil Construction Equipment Market cover, and what was the market size in 2023?
In 2023, the Brazil Construction Equipment Market size was estimated at USD 2.10 billion. The report covers the Brazil Construction Equipment Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Brazil Construction Equipment Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Brazil Construction Equipment Industry Report
Statistics for the 2024 Brazil Construction Equipment market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Brazil Construction Equipment analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Brazil Construction Equipment Market Report Snapshots
