Factors Driving the Construction Equipment Market

The global construction equipment market previously faced slowdowns due to sluggish economic conditions and sluggish growth of the construction industry. The market is expected to grow with the fastest growth rate in near future.

Increasing residential, industrial, and commercial construction activities, economic growth worldwide, and growing public-private partnerships are expected to boost the market. Government regulations regarding carbon emissions and the high cost associated with heavy construction equipment is likely to restrain the market growth. Increasing government investment for the infrastructure development is estimated to provide good opportunities for the market. An increasing real estate market is also driving factor for growth.

With all this in mind, the global heavy construction equipment market is expected to grow approximately 7.7 percent during the next five years.

Geographically, Asia Pacific (APAC) is leading in the heavy construction equipment market, in terms of revenue due to rising population, which leads the demand for a large number of construction expenditure. Increasing industrialization in the region and various major companies are interested to increase their presence in APAC countries such as China and India, which, as a result, leads the demand for heavy construction equipment. As construction rises, the need for heavy construction equipment will continue.

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