Market Trends of Construction Equipment Industry
Crane is Expected to be the Largest Segment
The large construction projects worldwide are expected to drive the crane and construction machinery market shortly. Europe is planning on various construction projects. Germany, France, and Italy witnessed the highest growth rates due to the region's construction projects. The projects include the port extension, underwater tunnel connecting major European countries, and railway tunnels, including the use of many types of cranes, driving the entire crane market.
For instance, in March 2021, Rothmund GmbH Kran und Montage purchased its second LTM 1230-5.1 from Liebherr after buying the first six months ago. In the same month, Schussmann Kranservice GmbH also received the new LTM 1230-5.1.
Africa and Latin America are expected to emerge as good markets post 2021, improving the economy, and overseas investments are expected to encourage more infrastructural development and construction activity.
The North American crane count reached a new peak. Approximately 40% of the total crane count in North America is working for the residential market. Toronto is leading this market, with 70 cranes dedicated to high-rise cooperative projects. Mixed-use development is the second-largest market, making up nearly 25% of all cranes in North America.
The increase in net crane count indicates that the construction market is holding steady and prospering. This growth will continue as many cities in North America continue to add to their roster of proposed developments.
Asia-Pacific is Expected to Dominate the Global Market
Asia-Pacific ranks first in the construction equipment market, with a major market share held by China, India, and Japan. The progress of the South-North water transfer plant project in China, anticipated to complete by 2050, will deploy various construction machinery either by leasing or owning the machinery, thereby increasing the demand for construction machinery over the next three decades.
The increasing number of dam construction, real-estate business, commercial and residential complexes, and expansion of rail and road infrastructure in the APAC region are a few drivers for the construction machinery market.
Companies are introducing dedicated products for the region. For instance, in December 2020, Komatsu announced that it would roll out affordable excavators in Southeast Asia. A midsize, 20-ton-class excavator for residential land development and road construction will be marketed in Thailand and Indonesia starting in April 2021.
Manufacturers of construction equipment are trying to reduce their dependence on gasoline and diesel, as regulators in Asia set ambitious goals to become carbon neutral by 2040. For instance, in January 2021, Komatsu announced partnering with Proterra to use battery packs in Komatsu's electric hydraulic excavators. The company will use Proterra's battery systems to develop a proof-of-concept electric excavator by the end of 2021.
