Heavy equipment is heavy-duty vehicles that are used for executing construction tasks and various earthwork operations. Heavy construction equipment generally comprises several equipment systems including structure, traction, power train, implement, control and information. These vehicles are directly used in capital intensive projects. Infrastructural developments across the world are contributing to the steady growth of the global heavy construction equipment market. Rapidly developing economies around the world are also creating business prospects in the industry. As a result of all this, the industry is poised to witness significant growth during the coming few years.
Overview of Heavy Construction Equipment Market
Growth in the global heavy construction equipment market is directly associated with the changing infrastructural scenario in terms of development and other activities in the world. Continuous construction activities across developed as well as developing countries are expected to contribute to the growth of the industry. Emerging markets on the other hand are growing at a rapid rate, which is helpful for their construction industry. Increasing infrastructure development activities in emerging markets come across as one of the strongest factors for the overall growth of the global industry for heavy equipment.
Heavy construction equipment market is segmented on the basis of applications in construction as well as mining activities. Apart from that, the industry is also segmented based on the types of equipment, applications and regional demand. Road rollers, compactors and pavers are some of the most essential equipments in the industry. Applications of heavy equipment range from non-residential buildings, infrastructure and residential buildings. Geographically, the industry is categorized into North America, Latin America, Europe, Asia Pacific and rest of the world.
High investments in global construction sector, rapid developments in emerging markets and innovative technologies are major drivers for heavy construction equipment market. Increasing investments in BRICS countries for commercial as well as residential purpose are estimated to create better prospects for the industry. Market research reports for the industry suggest that the heavy equipment market is expected to grow at a CAGR of 8.5% from 2013 to 2018. During the forecasting period, the market is expected to reach $195.0 billion by the end of 2018. The industry was worth $131.1 billion in 2013.
During the forecasting period, emerging markets like BRICS countries and other regions from Asia Pacific, Middle East, Africa and Latin America are expected to come out as the strongest geographic regions. Growth in the development of dams, roads, airports, hydroelectric projects and other activities in the region are anticipated to be a significant driver for the industry.