Global Excavator Demand to Exceed $50 Billion in 2021

Global demand for all types of construction machinery is projected to increase 9.6% per year through 2021

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Sep 05, 2017, 11:17 ET

CLEVELAND, Sept. 5, 2017 /PRNewswire/ -- 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:

advances in global building and nonbuilding construction spending
increasing mining and forestry sector production, bolstered by rising commodity prices
expanding natural gas output and minor gains in crude oil production

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 In response, construction, surface mining, and energy companies will replace outdated excavators with better-performing machines that utilize less fuel, offer greater mobility, are easier to maintain, and are compatible with a larger number of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by a recovery in commodity, natural gas, and crude oil prices following a period of decline; the replacement of outdated construction machinery by companies that delayed purchases in recent years because of weak economic conditions; and rising sales of more expensive, better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.

More information about the study is available at https://www.freedoniagroup.com/industry-study/global-construction-machinery-market-by-product-6th-edition-3539.htm

Related studies include:

#3519 Global Power Tools Market, 9th Edition (May 2017)
#3509 Global Bus Market, 6th Edition (May 2017)

About The Freedonia Group, a division of MarketResearch.com – The Freedonia Group is a leading international industrial research company publishing more than 100 studies annually. Since 1985, we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Additional Machinery & Equipment studies can be purchased at www.freedoniagroup.com, www.marketresearch.com and www.profound.com.

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SOURCE The Freedonia Group