A new study says the market for heavy construction equipment market is gaining momentum due to factors such as geographical expansion and adoption of heavy construction equipment in emerging markets.
The study by Research and Markets said the heavy construction equipment market will grow from $129.11 billion in 2016 to $180.66 billion by 2021, at an estimated CAGR (compound annual growth rate) of 7.0 percent. The heavy construction equipment market is expected to witness high growth as a result of the rise in urbanization, large-scale investment in the infrastructure and industrial sectors, and an increase in construction activities in emerging economies.
On the basis of end-use industry, the construction and manufacturing sector is projected to grow at the highest CAGR during the forecast period, due to the rise in public and private investments in the infrastructure sector in the emerging economies of Asia-Pacific, the Middle East and Latin America.
By application, the excavation & demolition segment is estimated to dominate the heavy construction equipment market and is projected to be the fastest-growing segment during the forecast period.
Asia-Pacific is projected to register the highest growth from 2016 to 2021. India is projected to be fastest-growing country-level market in the region for the heavy construction equipment market. The Middle East & Africa region will grow at the second-highest CAGR between 2016 and 2021, with South Africa registering the highest growth rate in the region.
The European market is set to grow at a lower rate than other regions because of weak construction demand in the region.