Global Construction Machinery Industry Overview

Global construction machinery demand is expected to grow at a yearly rate of 6.5% through 2015 to reach a value in excess of $170 billion. As EU and North America equipment sales are forecast to rise after an unprofitable period from 2008 to 2010. While other regions such as Asia-Pacific and Africa-Mideast is expected to slow their growth through 2015 in tandem with construction and mining activity.
     
The construction equipment and machinery industry has been hit by slow economic growth following the global economic downturn, which had a toll on the global construction market. Global demand for constructing equipment and machinery also suffered a huge falling off after the 2008 financial crises. Demand dropped for 3 years running as construction industry had fewer investment. Specifically, a drop in US domestic housing construction slowed heavy equipment sales.

 

The global production of construction and mining machinery and equipment is expected to reach more than 820,000 units by 2015, reported by Global Industry Analysts. Those emerging markets such as Latin America and Asia-Pacific will lead demand with construction of commercial housing, infrastructure, power plants and oil refineries. China’s machinery sector is now in the lead by wheeled loaders, accounting for 65% of overall market share in 2010.

Developed nations are expected to lead demand for construction equipment; North America is expected to show close to 7% yearly growth in the five-year period by 2015, reported by Freedonia. The US market is mainly driven by residential construction spending, as the construction segment rebounds after downturn from 2007 to 2010. The demand in Mexico is also expected to increase in the same period.

The largest share of new demand for construction equipment in the five-year period ending 2015 is expected to come from Asia-Pacific. Construction machinery sales are expected to increase almost 7% a year till 2015, boosted by a higher level of mining output and construction spending gains. China is forecast to represent almost 40% of new construction machinery demand through 2015, and growth will also speed up in Indonesia and Malaysia.

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