The ongoing demand for construction of smart cities across geographies and various mega construction particularly in developing countries will rise demand for the cranes, observed by Future Market Insights. Increasing investments made by governments as well as private sector companies in infrastructure development projects is the major factor driving growth of the global crane market. Within these infrastructure projects the key demand drivers going forward are road construction, urban infrastructure, irrigation and mining operations.
Investments in infrastructure can be classified into investments for roads, ports, airports, railways, pipelines, irrigation, waterways and urban infrastructure. Further, increasing demand for high capacity lifting is boosting the demand for some specialized products such as mobile cranes. The global construction industry is anticipated to witness an annual growth rate, ranging between 5-10 percent in this year. The construction industry is a major end user of cranes, thus its performance has a notable impact on the growth of crane market. Although, the existing uncertainty in the global construction market could affect the demand for cranes in construction application, the robust growth of automotive industry and steady revenue increment from mining are expected to fuel the growth of the global crane market.
Technavio’s market research analyst confirms the global mobile crane market will grow steadily at a CAGR of around 4 percent by 2021. One of the primary drivers observed for this market is the rapid growth in the power distribution sector across the globe. The increasing demand for energy is leading to the expansion and upgradation of power grids and distribution networks. The rising investments in the energy transmission and distribution (T&D) networks will increase the demand for mobile cranes in the sector. The application of smart grid solutions for power transmission and expansion is also boosting the industry to upgrade existing systems. This rising demand from the power sector is expected to propel growth in the global mobile crane market during the forecast period.
Mordor adds that the large construction projects, across the world, are expected to drive the crane and construction machinery market in the near future. Germany, France and Italy have witnessed the highest growth rates, owing to the construction projects happening in the region. The projects in the region include port extension, underwater tunnel connecting major European countries, railway tunnels, among others, which include use of many types of cranes, thus driving the entire crane market. Furthermore, the Russian construction machinery and crane industries are also in state of revival, which adds to the fast-paced growth of the global market growth.
The growing number of wind energy farms across the world is a major opportunity to the on-shore as well as the off-shore crane market. Though the wind energy market is growing at a very fast pace, most of the growth is concentrated in the Western region, especially Europe. Only the large economies, such as China, the United States and India account for a significant wind power generation than Europe. With the vast expanse of the Asian countries and the environmental concerns in major economies of China and India haunting the governments, the transformation from the fossil fuel generated energy to wind energy will undergo faster than expected. This is a significant opportunity for both the on-shore and off-shore crane markets.