Market Trends of Europe Used Construction Machinery Industry
This section covers the major market trends shaping the Europe Used Construction Machinery Market according to our research experts:
Used Cranes to Drive the Construction Machinery Market Growth
There has been several factors driving the demand for used cranes in Europe. New cranes are typically higher priced than used cranes. Thus, makes crane operators to opt for used cranes option. In addition, the lead time of crane availability has been seen of the key deciding factor. New cranes purchase can take several months as it takes months to built the required design and specifications, whereas used cranes are already in stock and usually delivered immediately to the clients. Widespread application areas of cranes in construction industry and availability of several used crane providers are supporting the growth of the market segment.
Due to the rising cost of purchasing equipment, increasing economic uncertainty, lack of capital, technology upgradation, unpredictable construction and infrastructure growth, depreciation woes, costly breakdowns, and limited space availability market is seeing a demand for second-hand equipment
Although, for other construction equipment such as earthmoving and road equipment, only 70% of manufacturers anticipate a positive growth and, component manufacturers in 80% of the major companies are also planning a higher increase. However, concrete equipment producers expect to see a far lesser growth. Nevertheless, the construction industry is getting smarter with improved digitalization, connectivity, and automation, and the future remains bright.
In addition, with growing advanecment in the used crane landscape, OEM are offering connected technology to integrate the cranes with cloud to keep monitoring the equipment from away. For instnace, In July 2022, Manitowoc which is one of the largest used, rental crane company launched CONNECT platform in order to improve the crane monitoring. The CONNECT is a app which is configured with the crane to enable crane's GPS.
Considering these developments and factors, demand for used cranes are expted to witness high growth rate during the forecast period.
Germany to Remain the Growth Enabler
Germany is Europe's leading construction market, and it is the home to the continent's largest building and Infrastructure development hub. The country is witnessing immense growth in terms of investment this is largely expected to continue in the foreseeable future.
The country is witnessing high growth in terms of road, ports, infrastructure, and housing projects to exhibit high potential for the adoption of used construction machinery. For instance:
- In September 2022, German company Deutsche ReGas has announced the start of LNG terminal construction of 'Deutsche Ostsee', in Lubmin which is the northeast of country. In addition, the industrial port will undergo several upgrades to receive larger ships which would require large scale construction machinery for the developments.
- In September 2022, Denmark and Germany joined hands to jointly develop the longest immersed tunnel under the Baltic seas. This tunnel will connect Denmark and Germany as the new travel line which is expected to be completed by 2029. The length of the tunnel is 18 kilometres which are considered as one of the largest infrastructure projects in Germany.
- In March 2022, VINCI Highways announced that start of road development projects which is a part of contract. The B247 road would connect between Mühlhausen and Bad Langensalza in Germany. The project was initially developed by German federal road under a PPP scheme with an investment of around EUR 500 million.
Considering the pipeline construction proejcts in Germany, demand for used construction equipment is expted to remian high during the forecast period owing to its economical cost and benifts over new.
