A new report by RnR Market Research predicts the global heavy construction equipment market to grow at a compound annual growth rate (CAGR) of 7% to reach $180.66 billion by 2021.
Since 2016, the market is said to be gaining momentum thanks to the expansion of emerging markets; the adoption of heavy construction equipment, which is offering lucrative opportunities; and other significant factors.
The RnR Market Research report states:
“The excavation & demolition segment, by application, is estimated to dominate the heavy construction equipment market and is projected to be the fastest-growing segment during the forecast period. The CAGR for this segment is projected to grow at a higher rate over the next five years, owing to the increase in mining activities of precious minerals and metals across the globe and increase in natural calamities where excavators are used in rescue operations.”
In terms of overall growth, the Asia-Pacific region is said to experience the fastest rate, followed by the Middle-East and Africa. But on a country level, India would have the fastest growth. Meanwhile, Europe is predicted to grow at a comparatively lower rate than other regions due to a weak demand in heavy equipment and sub-performing economic conditions.
Other factors that will drive the heavy construction equipment market are rapid urbanization and increasing investments in the construction and manufacturing industries.