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Global construction equipment market set to boom in China

Industry Sector



7 December 2012


Matt Bodimeade

Type of News


The global construction equipment market has been forecast to reach 1.76 million units by the year 2018, driven by continuous urbanisation caused by population movement from the rural areas to urban areas, particularly in the emerging markets.

Demand for construction equipment is directly proportional to the need for construction and building activity. Therefore, being a part of the global construction industry, the global construction equipment industry often follows the trend patterns of the former, which is quite often impacted by several macro economic factors.

The construction equipment industry worldwide experienced a steep decline in its market size after 2008 as a result of global economic downturn. The declining trend in the global markets for these equipments continued to prevail in 2009 and 2010 even.

However now this market has slowly started to reshape its size and is getting aligned to its expected growth rate, with the construction industry on boom especially in the Asia-Pacific region the market for the equipments offers a huge potential to be unleashed.Construction equipment

The continued uncertainty in Europe caused by the periodic flaring up of the region's debt crisis and the economic drag exerted by the deleveraging process underway in the region's private, public and financial sector is overshadowing the outlook for the industry in the region.

The downward spiral of the Euro crisis has triggered volatility in the housing and construction markets in the region, primarily because of the high public debt held by most regional governments and the implementation of austerity measures that limit public expenditure and financing for infrastructure projects.

nvestments in the construction sector in Europe have declined by over 8% beginning from the year 2008. Currently in Europe, new residential construction has shrunk by over 30% from the peak witnessed in 2006, while non-residential building contracted by 18% during the same comparable period.

Segment-wise, pavers, mixers, and other associated products are forecast to register significant gains through to 2018, benefiting from infrastructure development activities in various regions across the world. The relatively low price of certain equipment such as the small-sized towable concrete mixers, are also likely to record significant gains in the future.

Going forward, despite the unfavourable regulatory framework in 2011, the construction equipment sector is expected to thrive due to government's increasing focus on improvising country's railway infrastructure and other related infrastructure projects.

For more information on the global construction equipment market, see the latest research: Global Construction Equipment Market

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