According to a new market report published by Transparency Market Research, “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, growing at a CAGR of 6 percent from 2012 to 2017. The earth-moving equipment segment is in a commanding position contributing about 43 percent to the total construction equipment market revenue in 2012. China accounted for majority of the global construction equipment consumption, with Europe at a distant second.
The construction equipment market is driven by growth in construction activities, emergence of lease-based equipment and increasing government investment in infrastructure development especially in developing nations. In addition, demand by companies in infrastructure and real estate is also supporting the growth of the construction equipment market.
Despite the encouragement by governments across the globe, there are certain factors inhibiting the growth of the construction equipment market, such as uncertain economic conditions and strict emission regulations. The increasing price of raw materials such as steel is also a major challenge for the construction equipment market.
The earth-moving equipment segment holds majority market share of the total construction equipment market and is estimated to be worth $61.7 billion in 2012. Material handling equipment is the fastest growing segment and is expected to grow at a CAGR of 6.6 percent from 2012 to 2017. The construction vehicles segment is expected to exhibit healthy growth during the forecast period (2012-17) and will attain a market size of $22.9 billion in 2017.
Asia is considered the most promising market for construction equipment worldwide due to relatively good performance of construction and mining industries, in countries like India and China. Europe holds the second largest share of the construction equipment market. China is the major contributor to the global construction equipment market and accounts for about 41.2 percent of the overall global sales of construction equipment. The construction equipment market in China in 2012 is estimated at $59.2 billion and is expected to reach $95.6 billion in 2017 at CAGR of 10.1 percent from 2012 to 2017. In addition, China also holds about 17 percent market share of the global agriculture equipment industry.