Heavy Construction Equipment Market to Reach $240.49 Bn, Globally, by 2027 at 4.2% CAGR

Allied Market Research

Increase in investment in the construction sector, surge in focus on public-private partnerships, and rapid expansion of the mining sector have boosted the growth of the global heavy construction equipment market

PORTLAND, Oregon, April 20, 2020 /PRNewswire/ -- Allied Market Research recently published a report, "Heavy Construction Equipment Market by Equipment Type (Earthmoving, Material Handling, Heavy construction vehicles, and Others), Application (Excavation & Demolition, Heavy Lifting, Tunneling, Material Handling, and Recycling & Waste management), and End User (Infrastructure, Construction, Mining, Oil & Gas, Manufacturing, and Others): Global Opportunity Analysis and Industry Forecast, 2020–2027". According to the report, the global heavy construction equipment industry was pegged at $171.66 billion in 2019, and is projected to reach $240.49 billion by 2027, growing at a CAGR of 4.2% from 2020 to 2027.

Chief drivers of the market growth

Increase in investment in the construction sector, surge in focus on public-private partnerships, and rapid expansion of the mining sector have boosted the growth of the global heavy construction equipment market. However, increase in carbon footprint and fluctuating oil prices and weak economic conditions in Latin America hamper the market growth. On the contrary, technical advancement and development of low emission & fuel-efficiency equipment are expected to create lucrative opportunities for the market players in the next years.

The earthmoving segment dominated the market

Based on type, the earthmoving segment held the largest share in 2019, accounting for more than half of the global heavy construction equipment market. The new technology excavator with improved output, cost-effectiveness, higher performance, and flexibility plays a crucial role in increasing the demand for earthmoving equipment. However, the material handling segment is projected to manifest the highest CAGR of 6.2% during the forecast period, due to rise in focus on workplace safety and employee safety, recovery in the construction industry, and increase in mining activities.