Re­newed de­mand to boost growth

Project Monitor - - FRONT PAGE - PM NEWS BUREAU

The global con­struc­tion equip­ment mar­ket is likely to in­crease from $143.6 bil­lion in 2012 to $192.3 bil­lion by 2017, grow­ing at a CAGR of 6 per cent from 2012 to 2017. The earth­mov­ing equip­ment seg­ment is in a com­mand­ing po­si­tion hav­ing con­trib­uted about 43 per cent to the to­tal con­struc­tion equip­ment mar­ket rev­enue in 2012. Th­ese were the key find­ings of a new mar­ket re­port pub­lished by Trans­parency Mar­ket Re­search ti­tled ‘Con­struc­tion Equip­ment Mar­ket – Global and China Fore­cast, Mar­ket Share, Size, Growth and In­dus­try Anal­y­sis, 2011-2017.’

The earth­mov­ing and con­struc­tion equip­ment mar­ket is driven by fac­tors such as growth in con­struc­tion and min­ing ac­tiv­i­ties, emer­gence of lease­based equip­ment and in­creas­ing gov­ern­ment in­vest­ment in in­fra­struc­ture de­vel­op­ment, es­pe­cially in de­vel­op­ing coun­tries like China, In­dia and Brazil. In ad­di­tion, de­mand by com­pa­nies in in­fra­struc­ture and real es­tate is also sup­port­ing the growth of the con­struc­tion equip­ment mar­ket.

As A.M. Mu­ralid­ha­ran, Pres­i­dent, Volvo Con­struc­tion Equip­ment In­dia, noted: “Some fac­tors that are cur­rently driv­ing the de­mand for con­struc­tion equip­ment in In­dia in­clude heavy in­vest­ment in var­i­ous in­fras­truc­tural projects by pub­lic and pri­vate en­ter­prises in ar­eas like road con­struc­tion and main­te­nance, ports, power plants, telecom­mu­ni­ca­tion sec­tor, ur­ban in­fras­truc­tural de­vel­op­ments etc.” (See pages 10-11)

Ac­cord­ing to the re­port, the con­struc­tion equip­ment in­dus­try world­wide ex­pe­ri­enced a steep de­cline in its mar­ket size after 2008 as a re­sult of global eco­nomic down­turn. The de­clin­ing trend in the global mar­kets for this equip­ment con­tin­ued to pre­vail in 2009 and 2010 even. “How­ever, now this mar­ket has slowly started to re­shape its size and is get­ting aligned to its ex­pected growth rate, with the con­struc­tion in­dus­try on boom, es­pe­cially in the Asia-Pa­cific re­gion where the mar­ket for the equip­ment of­fers a huge po­ten­tial to be un­leashed,” the re­port noted.

In US, the growth of the con­struc­tion equip­ment mar­ket is pri­mar­ily driven by in­creas­ing num­bers of res­i­den­tial con­struc­tion projects and non-res­i­den­tial works such as re­pair and new con­struc­tion of high­ways, bridges and other pub­lic works. In fact, China is emerg­ing as the largest mar­ket for new equip­ment glob­ally fol­lowed by North Amer­ica.

Glob­ally, the ECE com­pa­nies are again in an in­vest­ment mode with sev­eral prod­uct launches. Apart from the con­ven­tion prod­uct-based strate­gies fol­lowed by man­u­fac­tur­ers, R&D has now started to ac­count for a sig­nif­i­cant share of in­vest­ments by a company. With the ad­vance­ment of the tech­nol­ogy lead­ing to the in­tro­duc­tion of highly ef­fi­cient ma­chines, the com­pe­ti­tion in this mar­ket has reached al­to­gether a dif­fer­ent mode and level. To cope with this par­a­digm shift in the mar­ket dy­nam­ics glob­ally, the in­dus­try is seen to be mov­ing to­wards a fur­ther de­gree of con­sol­i­da­tion through a num­ber of merg­ers and ac­qui­si­tions, the re­port stated.



Newspapers in English

Newspapers from India

© PressReader. All rights reserved.