According to a report published by Transparency Market Research entitled "Construction Equipment Market - Global and China Forecast, Market Share, Size, Growth and Industry Analysis, 2011 - 2017," the global construction equipment market is expected to reach $192.3 billion by 2017 from $143.6 billion in 2012, rising at a CAGR of 6.0% from 2012 to 2017.
As a result of global economic meltdown, this market experienced a steep decline after 2008, and continued to prevail in 2009 and 2010. However, until lately, the market gradually started to reshape its size, now offering huge potential to be unleashed from several sectors and geographic regions.
The estimates and forecasts of construction equipment market are made based on the analysis of macro and micro economic factors affecting the market trends. Some of the commendable factors driving the growth of this market are increasing government investments in the infrastructure development across the world, emergence of lease-based devices, and growth in construction activities, especially in emerging nations. Also, demand from real estate sectors and companies seeking for infrastructure development are vital aspects supporting the growth of the market.
Considering the market by equipment type, the earth-moving equipment segment has the majority of the market share which is further predicted to reach a value worth $61.7 billion in 2012. Presently, the earth-moving equipment segment is in a leading position contributing about 43% to the total market revenue in 2012. Similarly, material handling equipment segment is another fastest growing market expected to rise at a CAGR of 6.6% from 2012 to 2017.
Furthermore, demand for construction equipment such as construction vehicles for mining and infrastructural activities are likely to give impetus to the global, as well as regional markets. Under the concrete and road construction equipment segment, the construction vehicles market is predicted to exhibit strong growth during the forecast period (2012 to 2017). The market will reach a market size of $22.9 billion in 2017.
Nevertheless, despite high encouragement by several governments, certain factors such as strict emission regulations and uncertain economic conditions continue to inhibit this market. In addition, the rising prices of raw materials including steel pose as a major challenge for the market.
This report provides analyses of the construction equipment market, industry trends, market structure and overall growth rate. It discusses the historical data and forecasts along with the market size, production forecasts and other key factors driving and restraining the market. The report also contains in-depth geographic, as well as trend analysis of this market.
As by geography, China was the largest consumer of the construction equipment market in 2012, with Europe at a distant second. China is the major contributor accounting for about 41.2% of the overall global sales. This region is estimated at $59.2 billion and is expected to reach $95.6 billion in 2017, growing at a CAGR of 10.1% from 2012 to 2017. It also holds about 17% market share in the global agriculture equipment industry.
Europe is the second upcoming region having the second largest share in the overall market. Moreover, owing to good performance of mining and construction industries, several regions in Asia like China and India are the most promising markets for construction equipment across the world.
In terms of key market players, some of the most dominating players are Volvo (Sweden), Hitachi (Japan), Caterpillar (U.S.), Doosan (South Korea), Liebherr (Switzerland), Komatsu (Japan), Terex (U.S.), Sany (China), Zoomlion (China), and John Deere (U.S.). Caterpillar among them is the leading player in the global industry.