CE market to reach over USD 250 bn by 2026 at 3.8% annual growth rate: Report


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The 100-200HP segment is projected to be the largest market during the forecast period, the report said.


The 100-200HP segment is projected to be the largest market during the forecast period, the report said.

New Delhi: With increasing infrastructure investment after the COVID-19 pandemic and increasing mining activities across the world, the global construction equipment (CE) market is projected to grow from USD 208.3 billion in 2021 to USD 250.4 billion by 2026, at a CAGR of 3.8%, a recent report by MarketsandMarkets has projected.

According to the report, there is significant demand for projects such as hospitals and other medical facilities, laboratories, and shipping and logistics infrastructure. Some countries have also begun reopening activities across sectors, including the construction industry.

“For instance, China has begun industrial and commercial construction projects. Industrial output increased in April since January as the country began introducing new projects, and demand for construction equipment such as excavators increased significantly,” the report said.

By equipment type, the report added, the wheeled-loader above 80 HP segment is estimated to have dominated the CE market in 2021. This equipment is used primarily to load/unload and move bulk materials in construction, quarry, and crushers.

“They are widely used in large-scale infrastructure projects such as roads and highways, railways, dams, ports, and airports. An increase in roadways and residential buildings in China and India is driving the demand for this equipment. Government initiatives in infrastructure development have further accelerated the demand for wheeled loaders,” the report said.

The 100-200HP segment is projected to be the largest market during the forecast period as these equipment allows manufacturers to improve machine capability and downsize the engine to one of lower displacement. This also reduces maintenance costs and improves fuel economy and improves component layout. Construction equipment with a power output range between 100-200 HP is primarily suitable for road, airport construction projects, and commercial projects.

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Source: MarketsandMarkets


Source: MarketsandMarkets

Region-wise, the report expects Asia Pacific to have the largest market share in terms of value and volume. The CE market has seen growth in the number of projects such as dams, airports, and hydroelectric projects, because of which many international companies have started their manufacturing plants in this region, the report said.”Some of the man-made marvels and remarkable construction projects such as the Beijing New International Airport (China) and South to North Water Transfer Project (China) are set up in the region. The region is estimated to be the most populated in the world, which creates an immense opportunity for the Construction Equipment Market to grow,” it added.

Decreasing deal value

In the findings, MarketsandMarkets highlighted that the COVID-19 pandemic has significantly impacted the construction and infrastructure sectors. They offer a wide range of challenges to the construction industry, and are expected to hinder the on-going projects and decrease new infrastructure investments globally. “Uncertainty of recovery from the pandemic has hampered the confidence of investors, and affected the sales of construction equipment,” the research report said.
It also pointed out that some construction projects have been delayed or cancelled as a result of COVID-19. “For instance, according to Associated General Contractors of America (ACG), small construction firms are not expected to experience cancellations of upcoming projects, and 56% of firms with revenues of USD 50 million or less reported that their projects had been postponed or cancelled, compared with 71% of mid-sized firms (with revenues between USD 50.1 million and USD 500 million), and 69% of large firms (with revenues of more than USD 500 million),” MarketsandMarkets added.

Furthermore, possible disruptions in the supply chain of construction equipment, including structural materials, are expected to lead to project delays in the currently funded projects or reduced spending on future projects.

However, the firm also mentioned that governments of various countries are planning to invest significantly in the sector, but this is not expected to lead to market growth in the short term. Thus, the market for construction equipment is expected to witness sluggish growth. Therefore, the demand for construction equipment is expected to be affected owing to the low growth in infrastructure investments.


  • Updated On Aug 1, 2022 at 08:21 AM IST
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  • Published On Jul 31, 2022 at 03:28 PM IST
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  • 3 min read
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