Trade intensification fostered the development of a variety of economies around the world.
Trade relations with other countries expanded alongside wider economic growth, particularly in countries where exports increased dramatically. Globalization heavily influences the construction industry.
Building new construction projects drives the need for products. The construction equipment market will grow in the coming years due to public and private sector investments in infrastructure projects.
This industry has its strongest presence in North America, Western Europe, and East Asia.
Many prominent construction equipment manufacturers are located in these regions, requiring them to compete in extremely competitive markets.
The global construction equipment market was estimated at 140 billion U.S. dollars in 2020. At the end of that same year, the North American market was expected to be the second-largest market in the world for construction equipment.
As a result of their growing firm dynamics and economic capabilities, emerging economies, such as India and China, are hot spots on the global market for construction equipment manufacturing.
From 2015 to 2025, the global demand for construction machinery is expected to increase by an average of 4.1% per year to reach $250 billion.
Increasing construction activity, supported by factors such as population growth and rising industrial output, as well as an increase in infrastructure spending, has contributed to this increase.
In the global economy, we are witnessing a recovery in commodity prices and a growth in mining and forestry activity supported by a recovery in energy production from 2020 lows.
Global construction equipment sales are expanding after many operators delayed their machinery purchases in 2020 due to the economic environment.
A new generation of construction machinery will be introduced in the construction sector. As the amount of equipment in use worldwide increases, the sales of replacement equipment, parts and attachments are also rising.
Outside of China, the annual growth rate was slower than 1.3% between 2015 and 2020 (excluding the elevated level of China’s product sales) and will be noticeably faster through 2025 (5.3%).
The strong performance of the Chinese construction machinery market in 2020 will impact the global construction machinery forecast.
As a result of the COVID-19 pandemic in 2020, construction machinery sales decreased significantly in most countries as the economy weakened, international trade decreased, and many currencies depreciated against the United States dollar.
In 2020, these countries are projected to experience 5 to 20% losses, erasing many of the gains documented since 2015.
China, however, has remained an exception to this trend.
Due to a surge in government stimulus spending and the country’s early mitigation of the most significant effects of the pandemic, construction equipment demand increased by double digits during the year, preventing even greater global damage. The second reason Chinese operators invested heavily in new equipment in 2020 was the replacement of aging machines.
Despite this, China is expected to underperform most other major markets by 2025 and will largely limit the global average growth rate due to its strong 2020 performance.
Growth will occur from a high 2020 base before 2025.
Construction machinery demand is expected to rebound strongly in most other national markets through 2025, with strong gains expected during the first half-year of this forecast period.
The world’s leading service providers are developing the next generation of construction equipment, focusing on alternative fuel trucks, semi-autonomous excavators, and other technologies that will increase productivity, efficiency, and environmental impact.
New models will feature several innovative technologies, including powerful electric engines, advanced sensors, and sophisticated data collection capabilities.
For example, excavators, articulated haulers and wheel loaders from Volvo can calculate real-time payload estimates, so trucks are less likely to be overloaded or underloaded.
Among the functions available on Komatsu’s dozers are auto tilt steering control, auto-fill spreading, and auto tilt steering.
New models incorporating new technologies will help increase sales of new and replacement equipment and raise the initial investment cost of average construction equipment while increasing productivity and reducing long-term and variable costs associated with each project.
Construction spending grew to almost 12 trillion dollars in spending value before the Coronavirus outbreak and is expected to grow by three percent a year after that.
In addition to residential and commercial building projects, this category also includes infrastructure and industrial structure building. The construction spending data includes labour and material costs and architectural and engineering work.
In the United States, the value of new construction has grown significantly since the global recession, making the industry one of the largest in the world.
In Buenos Aires, construction costs increased by one of the largest amounts between 2019 and 2020. Global construction output reached its highest level in the Asia Pacific in 2021.
As global trade intensified, numerous economies around the world flourished. Economic development followed the expansion of international trade relations, particularly in countries with significant export increases.
The construction industry relies heavily on globalization.
Investments in infrastructure projects by the public and private sectors will drive the market for construction equipment.
According to estimates, the global construction equipment market was worth about 140 billion U.S. dollars in 2020. North American construction equipment markets were estimated to be the second biggest in the same year.
Emerging economies, such as India and China, are market hotspots for global construction equipment manufacturing due to their growing firm dynamics and economic capacities.
Before the coronavirus (COVID-19) pandemic, construction industry spending was 12 trillion dollars annually. There may be a periodic slowdown in market activity due to the huge economic and social shock caused by COVID-19.
This industry is expected to reach over 19 trillion U.S. dollars in 2035, doubling over the next two decades.
Future construction projects will involve residential and commercial real estate, infrastructure, and industrial buildings. The global market size for construction equipment is predicted to grow by 25% within five years.