South America Excavator Market Outlook, 2027

South America Excavator Market Outlook, 2027

The growth of the South American construction equipment market is being driven by the introduction of low-emission and energy-efficient models. The fluctuation in oil prices, increased carbon footprints, and the weak economic conditions in South America are some of the challenging factors for the growth of the excavator market. The improving expansion of the industry will be driven by the arrival of critical development and growth in several large markets, such as Brazil and Colombia, as well as the continued strong growth of other markets, including Chile and Peru.

The report, titled South America Excavator Market Outlook, 2027 by Bonafide Research, highlights how the market has grown over the years and the forecasted results for the market. According to the report, the South American market was recorded to be growing at a CAGR of more than 3.5% and is estimated to reach a market of USD 4 Billion by the end of the forecast period. Brazil leads the excavator market in South America. Brazil has been displaying an increasing market share over the years and is expected to continue the same. Argentina has contributed immensely to the South American market, which is in a declining stage of its share of the market.

In Brazil, the crawler excavator market is expected to generate solid revenue in the coming years due to the considerable expansion of the construction, mining, and oil & gas industries. The concession model, in which firms and investors compete to invest in and run long-term projects, has become popular in Brazil's infrastructure development. According to Brazil's infrastructure minister, a US$50 Billion investment in concession projects would result in a construction boom, developing the country's airways, roads, and railways by the end of 2022. Investors have spent over $10 Billion on several projects, including a rail line connecting Brazil's east coast to the country's western agricultural interior, multiple road projects, five ports, and 22 airports. On August 1, 2010, this entry was published.

The use of construction equipment on a rental basis is also driving the market growth. This helps small and medium-sized businesses by allowing them to buy equipment on a trial basis, which is one of the key factors driving the need for excavators in Brazil. The government's ambitious economic strategy involves increasing infrastructure spending to over USD 65 Billion per year by 2022, which will fuel the demand for the Brazilian construction equipment industry. Over the next few years, Brazil is anticipated to see steady development in green buildings. This prediction is based on the rapid growth of green certifications, which has resulted in a reasonably mature industry.

South America has experienced significant growth in recent years, but this growth has not been uniform across the continent in terms of GDP and the infrastructure market. The major market drivers in the South American region are the recovery in the construction industry, the surge in private-public partnerships, and the rapid urbanization of the region. The end-users for excavators in South America range from manufacturing, oil & gas, forestry, mining, construction, and infrastructure. The marketers are now focusing on designing compact, high-performing models with more fuel efficiency. The prominent players have introduced advanced heavy construction equipment, which adheres to the government norms and caters to the demand from these end-users.

COVID-19 impacts
In March 2020, the World Health Organization (WHO) declared COVID-19 as a global pandemic, resulting in the governments of several countries imposing lockdowns. There is a high probability that the COVID-19 outbreak will have long-term effects on consumers’ lifestyles and behavior. In South America, the lockdowns have impacted construction activities, which have consequently affected the demand for excavators. However, the slowdown in industrial manufacturing is also likely to hamper market growth. The pandemic has impacted several industries, either directly or indirectly, disrupting vendor operations, supply chains, and product commercialization, among other economic activities. However, the halt in mining activities across the region has also hindered the wheeled excavator market. The industry is facing challenges such as price fluctuations, halted production, and disrupted supply chains due to the corona-virus pandemic.

Major Companies Present In the Market
Caterpillar Private Limited, CNH Industrial, Doosan Infracore, Epiroc Construction Machinery Co. Ltd, Hitachi Construction Machinery Co. Ltd, J C Bamford Excavators Ltd, John Deere Ltd, Kobe Steel Ltd, Komatsu Ltd., Kubota Corporation, Liebherr Group, Metso Corporation, Sandvik Mining And Rock Technology, Sany Group, Terex Corporation, Volvo Construction Equipments, XCMG Ltd., Zoomlion Co. Ltd

Considered In the Report
• Geography: South America
• Historical year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecasted year: 2027

Countries covered:
• Brazil
• Argentina
• Columbia
• Rest of South America

Aspects Covered In the Report
• Market Size By Value for the historic time period (2016-2021)
• Market Size By Value for the forecast time period (2022-2027)
• Market Share by Application (Construction, Mining, utility & agriculture)
• Market Share by Machine Type (Mini Excavator, Crawler, Wheeled, Others)
• Market Share by Country (2016, 2021 & 2027F)

The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the construction machinery and excavator industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.