Diesel Engines of the Future

Construction equipment is becoming more connected and efficient—and now there are a few trends that are shifting the equipment into a new category.

One trend in market is the rise of hybrids. Many hybrids promise up to 25% cost savings, according to ResearchandMarkets. A driver in the market is an increasing requirement for fuel-efficient construction equipment. The increasing concern over environmental degradation is catching wind in the equipment sector also.

The rise in interest in the smart use of equipment is gaining prominence in the market as well. Construction involves many exothermic operations where the temperature around the site remains high. This has taken a major toll on the industry, as environmentalists are arguing over the rising construction activity and the consequent rising temperature.

One challenge in the market is a rise in manufacturing costs. Fluctuations in prices of raw materials such as stainless steel, iron ore, aluminum, bronze, and other metal alloys have increased production costs. This has led to a demand-supply gap. Components used to manufacture construction equipment, such as diesel tanks, air ducts, and hydraulic cylinders, are relatively expensive.

A high initial investment is required, which affects the cost of ownership of equipment, thereby, reducing profit margins of manufacturers. The global steel production is expected to contract in 2017, and the slump is expected to continue for the next year, due to poor investments in the steel industry.

As this sector grows, the rest of the industry will benefit from the sustainable solutions coming out in the future.

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