Cleveland OH, January 26, 2022 – A new Freedonia Group analysis predicts above average growth for the mature North American construction machinery market through 2025, as local economies (i.e., the US, Canada, and Mexico) continue to recover from economic losses incurred in 2020 due to the COVID-19 pandemic:
- The amount of older equipment in use in North America increased significantly during the pandemic, and many of these machines will need to be replaced by 2025.
- Advances in construction activity in Canada and Mexico will also be a key driver of market gains, while construction activity in the US is projected to climb at a more restrained pace.
Among the other trends that will contribute to regional market growth are:
- a rebound in both new and replacement construction equipment sales
- rapidly improving market conditions in all major end-use markets
- recovery in commodity prices
- the growing use of advanced technologies in the US and Canada
- rising construction and mining sector mechanization rates in Mexico
North American Market Overview
In 2020, North America accounted for 20% of global demand for construction machinery, making it the second largest market for construction equipment after the Asia/Pacific region:
- Both the US and Canada are among the six largest construction machinery markets globally in 2020 because of their high levels of construction activity and widespread use of machinery-intensive construction, mining, and forestry techniques that involve higher value equipment, among other factors.
- Although Mexico also features a sizable market, the country is a considerably less intensive user of construction machinery (compared to construction activity) than either Canada or the US because of its lower construction and mining sector mechanization rates, as well as high levels of demand for used equipment from the US.
Want to Learn More?
Global Construction Machinery, now available from The Freedonia Group, provides historical data for 2010, 2015, and 2020, and forecasts for 2025 and 2030 for global construction machinery demand by product type, total production, and net exports on a country-by-country basis in millions of current US dollars, including inflation. Also provided at the world level is construction machinery demand by product type in thousands of units.