The global Construction Equipment Aftermarket accounted for US$ 20.9 Bn in 2020 with a considerable CAGR of 5.1% during the forecast period of 2021 to 2028.
Construction equipment aftermarket is growing at a significant rate owing to the rising construction activities across the globe. Rapid urbanization and industrialization that have led to increased demand for construction activities drive the global construction equipment aftermarket. Rising construction activities lead to continuous usage of light-heavy construction equipment, which at some point works out of order. Thus, aftermarket companies replace defective/non-performing equipment with new ones, which considerably saves the cost of replacement and equipment.
Growing construction activities across the world drives the growth of market
The future of the construction industry looks good with high opportunities in industrial, residential, as well as non-residential sectors. This is attributed to the increasing housing construction and rising infrastructure due to the growing population. The scale of global construction is constantly expanding. The key potential region where construction activities are carried out hugely is Asia-Pacific. China and India dominated the construction equipment aftermarket in the APAC region, with China expected to become the largest construction industry in the coming future. However, developed regions such as North America and Europe are also likely to gain significant impetus owing to the factors such as the rising trend of affordable housing and increasing demand from green construction to reduce carbon footprints. Therefore, these trends of construction activities across the world are contributing towards the global construction equipment aftermarket.
Growing awareness for construction equipment due to its performance and efficiency
Construction equipment saves time, labor costing, and works efficiently throughout the day. Construction equipment performs timely, which helps for the completion of projects. This equipment increases productivity and offers higher profitability with the avoidance of delay penalties. Advancement and innovation in the construction equipment industry have led equipment to perform multiple tasks to save time. In addition, they can perform tasks that are too heavy or too delicate for human muscles. Construction equipment can maintain a planned rate of production where there is a shortage of skilled or non-skilled labors.
|Market||Construction Equipment Aftermarket|
|Analysis Period||2017 - 2028|
|Forecast Data||2021 - 2028|
|Segments Covered||By Equipment Type, By Application, By Sales Channel, and By Geography|
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||
Caterpillar Inc., Hitachi Construction Machinery Co., Ltd., John Deere, Kobelco Construction Machinery Co., Ltd., Liebherr Group, Palfinger AG, Tadano Limited, Terex Corporation, The Manitowoc Company, Inc., Sany Global, Volvo Construction Equipment, and Zoomlion Heavy Industry Science and Technology Co., Ltd. among others.
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
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Construction equipment aftermarket is segmented based on equipment type, application, and sales channel. Based on equipment type, the market is segregated into earthmoving and road-building equipment, material handling and cranes, and concrete equipment. Based on application, the segment is categorized as infrastructure, commercial, and residential. Further, the sales channel segment is bifurcated into online and offline.
Among equipment types, earthmoving equipment is expected to conquer the largest market share due to the increasing urban population and demand for better infrastructure amenities. However, the concrete equipment segment is likely to witness significant demand, owing to the ongoing road building and infrastructure activities in the APAC region. Additionally, based on application, the infrastructure segment recorded the maximum share for the projection period of 2021 to 2028 due to the rising industrialization across the world. The residential, as well as commercial segments, are also flourishing with a substantial rate in the emerging economies due to robust urbanization in the regions. Furthermore, by sales channel, the online channel is likely to grow with positive CAGR during the forecast period of 2021 to 2028. The shutdown of offline stores due to the COVID-19 outbreak has surged the demand for online sales channels.
Asia-Pacific region is expected to lead global construction equipment aftermarket during the projected period of 2021 to 2028
Asia-Pacific region holds the dominating share of the construction equipment aftermarket and is expected to continue its trend throughout the forecast period. Growing construction activities in projects such as airports, dams, and hydroelectric projects fuel the APAC market. In addition, growing government investments in infrastructure development and a surge in residential projects in countries such as China and India further drives the regional market growth.
China holds supremacy in the APAC region owing to the presence of large and small market players that are manufacturing aftermarket equipment in bulk. China has the world’s best construction equipment supply chain, with all parts of the supply chain being in China. On the other hand, India accounted for the second position in the region, owing to the rising government investment in infrastructure development. For instance, the Government of India invested US$ 1.4 trillion in the infrastructure sector through National Infrastructure Pipeline (NIP) program till 2020 with key segments such as airports, railways, highways, and urban infrastructure.
Europe has seen significant growth in recent decades owing to the positive growth in online sales channels. In addition, the construction industry in this region has been rapidly expanding over the years. This is expected to be a major driver of the construction equipment aftermarket in the coming years.
Furthermore, the construction equipment aftermarket market in the Middle East & Africa is experiencing moderate growth, owing to upcoming infrastructure projects and government initiatives such as UAE Vision 2021, Saudi Vision 2021, and Turkey Vision 2023.
The prominent players of the global Construction Equipment Aftermarket involve Caterpillar Inc., Hitachi Construction Machinery Co., Ltd., John Deere, Kobelco Construction Machinery Co., Ltd., Liebherr Group, Palfinger AG, Tadano Limited, Terex Corporation, The Manitowoc Company, Inc., Sany Global, Volvo Construction Equipment, and Zoomlion Heavy Industry Science and Technology Co., Ltd. among others.
Market By Equipment Type
Market By Application
Market By Sales Channel
Market By Geography
The estimated value of global Construction Equipment Aftermarket in 2020 was accounted to be US$ 20.9 Bn
The projected CAGR of construction equipment aftermarket during the analysis period of 2021 to 2028 is 5.1%
Asia pacific region exhibited fastest growing CAGR for Construction Equipment Aftermarket during the analysis period of 2021 to 2028