The global construction equipment market is anticipated to reach USD 199.18 billion by 2025. One of the well-known factors augmenting the demand for construction equipment is the rise in demand for smart city projects along with increasing investments in infrastructure. Other factor contributing to the demand for construction equipment is the fact that governments across the globe are investing remarkably in sports infrastructure development and facilities.
One of the largest markets predicted to dominate the construction industry is the Asia pacific market and its growth is attributed to the improving socio-economic factors in the developing economies.
Numerous countries in the Europe and Asia Pacific region have witnessed the development of smart cities, specifically the European countries are deploying smart solutions in huge numbers in the areas of energy, mobility, and government. The Asia Pacific region has high growth opportunities, owing to the various Smart city projects going on that include the development
of residential buildings, commercial buildings, and transportation and the high-end and big-size projects, which not only need intense labor force but also require heavy construction equipment.
Construction equipment is a critical requirement of the construction business and it is vital for key infrastructural activities. Therefore, its regular maintenance is very important. Furthermore, the renting of the construction equipment is increasing the overall demand for the equipment. Autonomous construction equipment is predicted to bring changes in the construction industry. As it is required to conduct several infrastructural activities. To revolutionize this product, the self-driving or autonomous equipment concept is gaining traction in recent years.
According to CMIE data, new projects that were announced in the month of December last year and in the month of March 2020 quarters stood at Rs 5.24 trillion and Rs 3.49 trillion respectively. This decreased to Rs 0.59 trillion during the June quarter. This indicates a sharp decline in the investments done in the infrastructure projects in the period because of the Covid-19 pandemic.
“With the COVID-19 pandemic and nationwide lockdown significantly reducing new capital expenditure projects by the public and private sector, the demand for machines used in the construction sector is seen two years away from its peak in CY2018. The demand for construction machines had grown 40 percent y-o-y in CY2018 on the back of the robust government spending on infrastructure projects. In CY2019, the volumes declined 15 percent and HICY20 has seen a 37 percent YoY drop in demand for these machines,” said Subir Chowdhury, Managing Director and Chief Executive Officer at JCB India Ltd.
With construction industry limping back to normalcy, the demand for construction equipment is gradually picking up and is expected to keep growing in the near future.