Market Trends of Used Construction Equipment Industry
This section covers the major market trends shaping the Used Construction Equipment Market according to our research experts:
High Cost of New Construction Equipment is driving the growth of the market
The high 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 used equipment.
Due to the high purchasing cost associated with motor graders, many smaller companies prefer used motor graders. Excavators are highly versatile and come with multiple attachments and provide better productivity, becoming the primary reason it's the growth. Third-party e-commerce websites offer low-quality machines at a minimum price which attracts consumers to buy the products. This low-quality equipment may face difficulty in a very short duration, which in turn is likely to increase the demand for used construction equipment.
Moreover, many companies in the market are providing buying and selling services for construction equipment and also renting them, such as Atlas Crane Service. It is a full-service crane rental company that serves over 250 customers. It has a diverse fleet of cranes, including all-terrain, crawler, hydraulic, and tele-crawler cranes. These kinds of services are also expected to boost the growth of the used construction equipment market by selling used machines to such companies.
Major developed countries are focusing on port extension, railway tunnels, and underwater tunnels and are seeing more significant demand for cranes, thus driving the used construction equipment market.
Europe and Asia-Pacific Dominating the Market
Europe's construction industry in industry output has increased in recent years. The civil Engineering sector has generated Euro 267.1 billion (around USD 284 Billion), the most significant income by any in the construction industry. The ongoing recovery of Europe's construction industry and favorable economic policies such as low-interest rates have further improved the growth of the used construction equipment market across the region. The German government has initiated several measures to develop the country's housing market. It has allocated EUR 5.0 billion under its housing policies towards the construction of 100,000 rental units in the next four years.
Moreover, increasing investment by the government in public transportation and infrastructure upgrades in preparation for the upcoming Olympic Games in Europe in 2024 is also expected to drive demand for used construction equipment. Government Infrastructure Investment supports the Used Construction Equipment Market.
Followed by Europe, Asia-Pacific is also witnessing major growth in terms of revenue during the forecast period. The increasing demand for rapid mass transit to reduce traffic congestion and journey times is likely to drive the growth of the high-speed rail market. The extended high-speed train network in China and Japan and the increased adoption of high-speed lines in South Korea and Turkey have placed the Asia-Pacific region as a market leader.
The Chinese government invested USD 8,870 million in the Shanghai Chip Manufacturing Plant. In Shanghai, China, a 12-inch wafer manufacturing plant is being built as part of the project. Construction began in the first quarter of 2022 and is expected to be completed in the third quarter of 2024. The project aims to increase the 12-inch wafer production capacity to meet rising demand.
Thus, the above-mentioned factors may drive the used construction equipment market in Europe and Asia-Pacific region.
