Published By : 26 Apr 2016 | Published By : QYRESEARCH
Rising lease-based equipment lending practices has led to a rise in the global construction equipment market and thus, the market is poised to be worth US$ 192.3 bn by 2017, after being valued at US$ 134.1 bn in 2011, expanding at a CAGR of 6.0% between 2012 and 2017, suggests a report published by a market intelligent company, Transparency Market Research. The rising investments in infrastructure by government has played a huge role in expanding the construction industry, which is subsequently benefitting the construction equipment market. Increase in the construction projects is one of the factors boosting the growth of the construction equipment market. The need to replace outdated construction equipment is also facilitating the growth of the construction equipment market.
Earth-moving Equipment Segment held the Largest Share of the Global Construction Equipment Market
The global construction equipment market is segmented on the basis of type into material handling equipment, earth-moving equipment, and concrete and road construction equipment. Out of these, the earth-moving equipment segment dominated the global construction equipment market in 2012, accounting for 43% of the total revenue in the market. The material handling equipment segment is expected to expand at a CAGR of 6.6% from 2012 to 2017.
Uncertainty in Economic Conditions to Hamper the Global Construction Equipment Market
The uncertainty in economic conditions is one of the major restraints of the construction equipment market faces. Unpredictability in the pricing of raw materials hampers the market. Furthermore, the enforcement of emission-control related regulations is expected to challenge the construction of new infrastructure, which in turn will have an adverse effect on the global construction equipment market. However, the immigration of population from rural to urban areas for employment has made it necessary to construct residential buildings, thus aiding the growth of construction equipment market.