France Construction Equipment Market Size (2024 - 2029)

France Construction Equipment Market Analysis

The France Construction Equipment Market size is estimated at USD 12.69 billion in 2024, and is expected to reach USD 17.18 billion by 2029, growing at a CAGR of 6.25% during the forecast period (2024-2029).

• The France construction equipment market is valued at USD 12.69 billion and is anticipated to surpass a net valuation of USD 17.18 billion, registering a CAGR growth of 6.25% during the forecast period.
• Increasing government spending on construction and infrastructure activities, rising foreign direct investments in the construction sector, and developments in road transportation infrastructure owing to the surge in population and urbanization serve as the major determinants for the growth of the construction market in France, which, in turn, positively contributes to the surging demand for construction equipment across the country.
• France boasts of one of the highest urbanization rates in the European region, with 82% of its overall population residing in urban areas as of 2022. The high urbanization rate leads to consumers availing various private and public transportation mediums for their commutes, which leads to higher congestion in these cities.
• Therefore, road infrastructure development has become a major focus area for the French government. Coupled with that, developments in cross-border road connectivity are another deterministic area for enhancing the trade ecosystem of a nation. Hence, with increasing the government's focus on developing its road infrastructure network, there exists a massive demand for construction equipment in the country.
• For instance, in May 2023, the government of France announced an investment of Euro 2 billion (USD 2.15 billion) over the next four years to develop the infrastructure for cycling, as well as encourage citizens to increase bicycle use, as part of the 2023-2027 cycling and mobility plan.
• One of the major challenges faced by the construction equipment industry in France is the high cost of replacement and maintenance of the equipment, which becomes a financial burden for construction companies and equipment rental companies. Since this equipment operates for a longer duration and needs to sustain heavy loads at all times, there is constant wear and tear of the equipment, which needs frequent maintenance checks and, in extreme cases, complete replacement of the equipment.
• Thus, construction companies and equipment rental companies owning these machineries need to spend hefty sums to make sure that this equipment is operating efficiently at all times, which increases their cost of operation.
• Coupled with that, falling production of raw materials such as steel owing to declining prices negatively impacts the demand for construction equipment in the French market. For instance, in May 2023, steel enterprises of France reduced steel production by 14.1% compared to April 2023 - to 805 thousand tons.
• The declining production hampers the country's real estate industry due to the unavailability of raw materials, thereby making it difficult for construction companies to meet the stipulated deadline for completion of a real estate project, which, in turn, hampers the growth prospect for construction equipment.
• The government's pragmatic initiatives for infrastructural development across France are anticipated to contribute to the surging demand for construction equipment in the coming years. For instance, in February 2023, France's Ministry of Transport announced an investment of Euro 100 billion (USD 107 billion) in railway infrastructure by 2040 under the New Rail Deal in collaboration with SNCF. The investment aims to revive the country's aging railway sector to deliver more reliable and frequent services. With increasing investment to enhance the infrastructural capability of France, there will exist a massive demand for construction equipment during the forecast period.

France Construction Equipment Industry Segmentation

Construction equipment refers to machines or devices drawn as trailers designed and used for construction, tree trimming, and allied construction activities. The construction equipment market consists of a wide range of companies involved in the designing, manufacturing, and selling of construction equipment such as cranes, excavators, backhoe loaders, and motor graders, among others, to its end users.

The France construction equipment market is segmented by equipment type and drive type. By equipment type, the market is segmented into earthmoving equipment (excavators, backhoe loaders, motor graders, and other equipment type), road construction equipment (road rollers and asphalt pavers), material handling equipment (cranes, forklift & telescopic handlers, and other material handling equipment), and other construction equipment (concrete pump trucks, dumpers, tippers, etc.). By drive type, the market is segmented into hydraulic and electric/hybrid.

The report offers market size and forecast value (USD) for all the above segments.