Plant Machinery & Vehicles - Excavators

Excavators Make Great Strides

in the Global Market

January 2018

Plant Machinery & Vehicles - Excavators

Excavators Make Great Strides

in the Global Market

January 2018
The global excavators market is expected to grow in future due to increasing urbanization, rising construction expenditure and increased global GDP. Key trends of this market include high demand in fuel efficient excavator, launch of new products, rising demand in high efficient hydraulic fluid. However, there are some factors which can hinder the market growth including stringent emission norms and high maintenance of hydraulic excavators according to Marketers Media.

Based on geography, the global tracked excavators market is segmented into the Americas, EMEA, and APAC. APAC accounted for the largest share of the global tracked excavators market in 2016, accounting for 38.5 percent the construction equipment industry in Asia fared better than the Americas and EMEA during 2012-2015. This can be attributed to various undergoing infrastructure projects, which kept the demand for construction equipment steady, thus keeping a healthy market environment for excavators. Technavio analysts highlight the following three factors that are contributing to the growth of the global tracked excavators market: the increased government spending on infrastructure, International events in first time hosting countries, and stability in crude oil prices. Infrastructure development is of prime importance in any country as it is directly proportional to the economic growth of a nation. Rapid economic growth provides jobs and delivers important services, such as energy, housing, and clean water supply. A country's strong infrastructure attracts high investments from MNCs to set up their establishments. Gaurav Mohindru, a construction research analyst at Technavio, says, "Asia witnessed a significant growth in infrastructure spending in 2010-2016. Asian countries are expected to invest further in infrastructure development to match up with the European and American countries. Infrastructure development projects in Asia are mostly done by public sector bodies and respective government agencies." The period of 2015-2025 is expected to witness various international sporting events in countries which have never hosted similar events in the past. This will pose an opportunity for the growth of the real estate and construction activities in these regions. As these regions will host such events for the first time, every infrastructure requirement, including stadiums, tracks, training facilities, and games village (residential areas), must be setup from scratch. "Such sporting events are a huge business opportunity for various sectors, with the construction industry being the major beneficiary. The growth of the construction industry is directly proportional to the growth of tracked excavators. These new projects will require a minimum of 4-6 years of completion," adds Gaurav. Due to the fall in the prices of crude oil to as low as USD53/barrel in 2015, oil producing nations, except Saudi Arabia, extracted less quantity of oil than their maximum capacity. This resulted in the decline in oil production activities in these countries. This, in turn, decreased the demand for construction equipment. This stability in oil prices will drive the global economy and lead to the resumption of pending infrastructure projects. In addition, new developmental projects will be sanctioned, thus increasing the demand for construction equipment and ultimately increasing the need for tracked excavators. According to Marketers Media, The hydraulic excavator is most commonly used for digging rocks and soil, but with its many attachments it can also be used for cutting steel, breaking concrete, drilling holes in the earth, laying gravel onto the road prior to paving, crushing rocks, steel, and concrete, and mowing landscapes. Excavators are used in moving and digging large and heavy objects. A huge range of excavators is available in the market with different sizes and functions. Excavators are generally categorized into two types; crawler excavator and wheeler excavator. Crawler excavator runs on two infinite tracks and used in hilly areas whereas, wheeler excavator runs on wheels and used on plain grounds. The demand for hydraulic excavators is likely to increase in the coming years as a result of rising construction in commercial as well as residential sectors globally. Construction equipment include all equipment required in any construction work. Global construction equipment market outlook remained negative in the past few years resulting from the lower demand in North America and Europe regions. However, the market is expected to grow in future supported by increased infrastructure investments in North America & Asia regions.

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