The Future of Excavators

Equipment is becoming connected—offering new ways to improve business processes at the jobsite. Now, one analyst is predicting growth in the excavator market, due to anticipated recovery of the infrastructure sector, among other factors.

TechSci Research recently released a new report focusing on the global excavator market. In particular, the research points to an uptick in the market, due to anticipated stabilization in crude oil prices and a revival in construction and mining. The consulting firm predicts the excavator market will reach $28 billion by 2021.

The past five years have seen declines in the sales of excavators due to falling crude oil prices and slowdown in construction and mining. Looking specifically at Saudi Arabia, Qatar, UAE, Bahrain, and North Africa, the drop in global crude oil prices from $104 a barrel in 2011 to $50 a barrel in 2015 resulted in a slowdown in the economies and translated into widening of fiscal deficits and contraction of construction budgets of these countries. This ultimately results in a slowdown in construction, which impacted demand for excavators.

During the last five years, prevalence of micro and macroeconomic factors such as inflation, exchange rate fluctuations, interest rates, and liquidity conditions also impacted the global excavators market.

Today, stabilization in oil prices and growth in global construction will result in new equipment purchases.

This growth also comes at a time when equipment is becoming more connected. Data can be sent from a piece of equipment to fleet owners/managers so a real time decision can be made. As the market picks back up, there are opportunities to leverage equipment in new ways.

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