Over the last few years, construction equipment market has emerged as one of the leading revenue generating business verticals owing to the surging involvement of myriad geographies in infrastructural developments. As of now, most of the countries have been investing in massive construction projects to fulfill the requirement of housing, commercial establishments, and enhance the nation’s GDP in general. In accordance, the requirement of automated and advanced machinery support has observed an upsurge, gradually propelling construction equipment industry share.
China Construction Equipment Market, By Product, 2017 & 2024 (USD Billion)
This business space is massively influenced by some of the ongoing infrastructural development projects across numerous geographies, a gist of which has been outlined below:
United States
Over the last few years, major giants in construction equipment market have been expanding their product manufacturing facilities across U.S., owing to the increasing investment in the development of renewable energy plants, transportation projects, and commercial buildings.
At present, the high-speed rail project between San Francisco and Los Angeles is one of the trending infrastructure development plans that the U.S. government has in its pipeline. Slated to be completed by 2030, this rail line would be extending to 1300 km. The Federal government has funded more than USD 70 billion for this project and aims to invest capital in many more such initiatives, making the U.S. a highly pivotal growth avenue for the North America construction equipment market share.
China
Over the last 50 years, the Chinese government has been proactively involved in infrastructural development. In addition to undertaking projects within the nation, the country has also been investing quite some capital across other geographies. As on today, it has poured in billions of dollars in road constructions, bridge development projects, and renewable energy facilities.
Saudi Arabia
Driven by surging exploration and excavation activities across the oil and gas industry, Saudi Arabia has become the most profitable ground for construction equipment industry players to pour in their capital. More than four and a half decades ago, for instance, in 1970, one of the largest industrial urbane locales, called the Jubail Industrial City, had been built in Saudi Arabia. Currently though, the city is growing at a rapid pace, and has witnessed an investment for its expansion to 6200 hectares.
Back in 2016, the construction of Jubail II had been planned by Saudi, in a bid to make Jubail a multi-billion dollar industrial city that would generate several social benefits and strengthen the domestic petrochemical industry. Currently in development, this project is likely to upscale its demand for heavy, efficient building equipment, thereby augmenting the commercialization potential of the regional construction equipment market.
Apart from Jubail II, Saudi Arabia is likely to witness a slew of road construction and building development projects, increasing the demand for material handling facilities, that would eventually stimulate MEA construction equipment market share over the years ahead. The Saudi Arabia government is also looking forward to adding 50,000 residential units to Jubail by the end of 2026.
It is rather vivid that the growing investment in infrastructural developments across the globe for gaining economic profitability and social benefits will favorably promote construction equipment market over the years ahead. In addition, the rapid investments in commercial and industrial building developments will also fuel the demand for construction equipment. Driven by the surging demand for building components, construction equipment industry will surpass revenue collection of USD 170 billion by the end of 2024.