Global Construction to Reach Billions in 2020
With the fast pace in construction industry and the market increasing annually, there are a lot of predictions that exist on how the industry would be in the next 5 years.
According to a review by Allied Market Research, the global construction equipment market is expected to reach $240.97 billion by 2020, registering a CAGR of 8.9 percent during 2015-2020. Companies involved in this field are expected to double their income with the increase in demand. Companies which sell and rent capital equipments such as Axis Capital Group which is based in Singapore and has eventually expanded to Jakarta, Indonesia are expected to continue expanding and reaching out to developing nations as machines and equipment continue to evolve and get distributed easier across countries.
The construction equipment market includes heavy machinery such as loaders, cranes, forklifts, excavators, and dozers, used for earthmoving, material handling, excavation and other applications across different industry verticals. Big names in manufacturers compete to distribute to hundreds of construction projects nowadays. Companies profiled in the report include Caterpillar, Volvo, Hitachi, JCB and Komatsu.
Among the different types of construction equipment, loader and cranes would continue to remain the most preferred type, due to their numerous applications in construction, mining and public works.
Loader segment would drive the market significantly by 2020, contributing more than 44 percent of the total market revenue, due to increased application in earth moving operations. Crane market is growing at a steady rate owing to the growing demand for lifting and material handling from different industries.
According to reports, the following are expected to happen in the next 5 years:
Lifting & material handling application would grow at a relatively faster CAGR of 12.4 percent during 2015-2020, in comparison to all the other applications;
Public work activities would continue to drive the global construction equipment market over the analysis period;
Special systems and security measures would be invented to prevent fraudulent acts in t