Construction Equipment Market to Reach $208.36 Billion by 2020: Grand View Research
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The global construction equipment market size is projected to reach USD 208.36 billion by 2020, growing at a CAGR of over 5% from 2014 to 2020. Rapid infrastructural growth along with urbanization is expected to drive industry growth over the forecast period. Further, increasing investments from government in the infrastructural sector and growing application of the advanced technology in operations including material handling, excavation, and earth moving are expected to drive demand. Growing impetus for developing infrastructure has triggered the demand for rental products combined with cost-competitive OEMs in developing markets of Asia Pacific is estimated to offer prominent opportunities for industry growth over the forecast period. However, unstable economic conditions and high initial costs are expected to hinder revenue by 2020.
The concrete and road construction equipment market can be sub-segmented into construction pumps, concrete mixers and pavers, etc. These machineries have their application in bridges, power plants, residential, and industrial structures. Growing number of highway construction projects combined with increasing demand from mining industry are anticipated to further augment industry demand.
Notable players in the construction equipment market are Komatsu, Volvo, Hitachi, Doosan, Caterpillar, and John Deere. Various vendors in Europe and North America are increasing investment in R&D activities for lowering production costs along with meeting regulation emission for strengthening their global presence. Mergers & acquisitions and strategic expansions for bridging the gap in product offerings and end-market requirements, remain to be the notable growth strategy for players to excel in the industry.