The heavy construction equipment market has been forecast to increase at a compound annual growth rate (CAGR) of 8.3% over the next five years, increasing from a valuation of $131.1 billion at the beginning of 2013, to reach an industry value of $195 billion by 2018.
The construction equipment and machinery industry has been hit by slow economic growth following the global financial crisis, which took a particular toll on global construction activity.
Worldwide demand for construction equipment and machinery suffered a huge falling off after the 2008 economic downturn. Demand fell for three years running as investment in construction slowed. In particular, a fall in US domestic housing construction slowed heavy equipment sales.
After the market slump of 2009, governments of various nations have started investing to develop better infrastructure. The infrastructure construction activities will be dominant in developing markets such as China, India and Brazil. The reconstruction activities in Japan after the devastating earthquake have also contributed to the infrastructure construction market.
Developed nations are expected to lead demand for equipment, with North America expected to show close to 7% yearly growth in the five-year period ending 2015. The US market will be driven by residential construction spending gains, as the construction sector rebounds following the 2007 to 2010 downturn.
According to a recent report, 'Heavy Construction Equipment Market: Global Trends & Forecast to 2018,' Asia-Pacific has experienced a boom in construction and infrastructural activities as the emphasis on developing infrastructure for the sustainable economy is growing. The global population rise and migration to major cities since the last decade has further increased the demand for residential buildings.
Asia-Pacific has seen growth in a number of airports, dams, hydro-electric projects, etc., to sustain high level industrial activities and growing energy demand. As a result, many international players have invested and started their manufacturing facilities and distribution centres in the region.
Key players currently dominating the heavy construction equipment market include Caterpillar (U.S.), Komatsu (Japan), JCB (U.K.), Hitachi Construction Machinery Co. Ltd (Japan), Volvo Construction Equipment (Sweden) and John Deere & Co. (U.S.).
For more information on the heavy construction equipment market, see the latest research: Construction Equipment Market Research
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