Heavy Construction Equipment Industry Overview:
The global heavy construction equipment market is expected to reach $193 billion by 2022 growing at a CAGR of 7.6% from 2016-2022.
Heavy construction equipment are vehicle used for construction tasks such as mining, lifting, material handling and excavation. The heavy construction equipment market is mainly driven by residential, commercial and industrial development, increasing public-private partnership and global economic growth. There are various types of heavy construction equipment available in the market, however choosing the right type of construction equipment is imperative. While selecting heavy construction equipment, industries focus on parameters such as the complexity of the project, material, cost, quality, time, and safety.
Improved involvement in private sector, tremendous growth in real estate sector, improved economic conditions, and residential & commercial infrastructure set-up in emerging economies are the key factors driving the market growth. According to the World Urbanization Prospect, about 54% of global population belonged to urban areas in 2014, and is expected to increase to 66% by 2050, thereby boosting the market growth. Increase in government initiatives toward infrastructure development and growth in public‐private partnerships for the construction of public infrastructure systems in countries such as India and China supplements the growth of the market. The Indian Government has heavily invested in the development of roads, railway tracks, airports, and overall infrastructure development, which involves the use of excavators, loaders, and other such heavy machinery. The key market players design and develop smart, internet-enabled, fuel- & energy-efficient machinery, thus accelerating the market growth.
Global heavy construction equipment market is segmented based on equipment type, application, end user industry, and geography. On the basis of equipment type, the market is divided into earthmoving equipment, material handling, heavy construction vehicles, and others. By application, it is categorized into excavation & demolition, heavy lifting, tunneling, material handling, and recycling & waste management. Geographically, the market is divided into North America, Europe, Asia-Pacific, and LAMEA.
Earthmoving equipment accounted for nearly half of the market share in 2014, and is anticipated to consolidate its position from 2016 to 2022, owing to lower operating costs and advent of smart and internet-enabled intelligent excavators. In addition, excavation and demolition segment is expected to dominate the market, as these excavators are equipped with new technology that ensures improved output, cost-effectiveness, high performance, and efficiency. Among industries, infrastructure sector is expected to witness the highest growth due to increased renting & leasing of heavy construction equipment in developed and developing nations.
Top Winning Strategies
The top winning strategies were analyzed by performing a throughout study of leading players in the heavy construction equipment market. The Analysis of the recent developments and growth curve of various companies was performed to understand the growth strategies and their effects on the market. Leading players in the market have been evaluated based on annual reports, SEC filings, and press releases. The key strategies traced from the analysis of recent developments of the key players include:
The new and innovative products in the market have improved fuel efficiency and performance. For instance, Caterpillar introduced Cat L-Series of medium wheel loaders, the 950L and 962L which are equipped with the drivetrain and hydraulic system refinement, Z-bar linkage, Cat Connect telematics, and an automatic traction control option.
Agreement & partnership:
Numerous industry players have entered partnerships with regional distributors to increase their geographical outreach and boost their finances. Hyundai Heavy Industries and CNH Industrial N.V. entered into an agreement for Mini Excavator Business to expand the production capability of the organization for its mini excavator business to cater to the region’s increasing construction needs.
The established market players acquire one or more companies operating in the market to widen their product portfolio. For example, Hitachi Construction Machinery Ltd. acquired Kawasaki Construction Machinery, a manufacturer of wheel loaders, expanding the product portfolio and strengthening its presence in North America.
In the year 2015, Komatsu Ltd. opened a new factory in India for its hydraulic excavators with the aim of building a more flexible global production unit. The new site is to deliver high-quality products to customers not only in India, but also to the customers in Middle East and Africa in future.
Key players such as AB Volvo, Caterpillar Inc., Komatsu Ltd., Doosan Infracore Co. Ltd., Hitachi Construction Machinery Co. Ltd., JC Bamford Excavators Ltd. (JCB), Liebherr Group, CNH Industrial N.V., Hyundai Heavy Industries Co. Ltd., and Terex Corporation have adopted product launch as their key strategy. They are developing high-quality and innovative products to cater to the needs of the market.
HEAVY CONSTRUCTION EQUIPMENT MARKET KEY BENEFITS
- The study provides an in-depth analysis of the heavy construction equipment market, with current trends and future estimations to elucidate on the imminent investment pockets.
- The current trends and future forecasts for the period of 2014‐2022 help to estimate the financial competency, determine the overall market potential, and single out profitable trends.
- It provides a detailed impact analysis and information on key drivers, restraints, and opportunities.
- Porter’s Five Forces Model illustrates the market scenario by analyzing various parameters such asthreat of new entrants, threat of substitutes, strength of the buyers, and strength of the suppliers.
- Value chain analysis signifies the key intermediaries involved and elaborates their roles and value additions at every stage.
HEAVY CONSTRUCTION EQUIPMENT MARKET KEY SEGMENTATION
By Machinery Type
- Earthmoving Equipment
- Material Handling Equipment
- Heavy Construction Vehicles
- Excavation & Demolition
- Heavy Lifting
- Material Handling
- Recycling & Waste Management
By End User Industry
- Oil & Gas
- Others (Forestry & Agriculture)
- North America
- Rest of Europe
- Rest of Asia-Pacific
- Latin America
- Middle East
- AB Volvo
- Caterpillar, Inc.
- Komatsu Ltd.
- Doosan Infracore Co. Ltd.
- Hitachi Construction Machinery Co. Ltd.
- J C Bamford Excavators Ltd. (JCB)
- Liebherr Group
- CNH Industrial N.V.
- Hyundai Heavy Industries Co. Ltd.
- Terex Corporation
Other companies mentioned in the report:
- Sany Heavy Industries Co. Ltd
- Xuzhou Construction Machinery Group Co. Ltd
- Deere & Company
- Joy Global Inc.
- American Crane
- Kobe Steel Ltd.
- Liugong Machinery Co. Ltd.
- Shandong Heavy Industry Group Co., Ltd