by Corinne Gangloff
September 7, 2017
Global demand for excavators is forecast to advance 9.9% per year through 2021 to $50.6 billion, approximating the average market pace. Growth in the segment will be supported by:
These and other trends are presented in Global Construction Machinery, 6th Edition, a new study from The Freedonia Group, a Cleveland-based industry research firm.
The development of more sophisticated excavators will contribute to segment gains in dollar terms. As advanced technologies (e.g., more fuel-efficient engines) are incorporated into new models, their cost will rise. In response, construction, surface mining, and energy companies will replace outdated excavators with better-performing machines that utilize less fuel, offer greater mobility, are easier to maintain, and are compatible with a larger number of attachments. More fuel-efficient and hybrid models will also be introduced to reduce operating costs.
Global demand for all types of construction machinery is projected to increase 9.6% per year through 2021 to $250 billion, a major improvement over the losses posted during the 2011-2016 period. Multiple factors will drive global market gains in dollar terms, including increases in residential, nonresidential, and nonbuilding construction activity; expansion of the global mining, forestry, and energy sectors, bolstered by a recovery in commodity, natural gas, and crude oil prices following a period of decline; the replacement of outdated construction machinery by companies that delayed purchases in recent years because of weak economic conditions; and rising sales of more expensive, better performing equipment.
Global Construction Machinery, 6th Edition (published 08/2017, 409 pages) is available for $6500 from The Freedonia Group. For further details or to arrange an interview with the analyst, please contact Corinne Gangloff by phone 440.684.9600 or email [email protected].
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