Used Construction Equipment Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Used Construction Equipment Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The used Construction Equipment Market was valued at USD 109 billion in 2021 and is expected to reach USD 152 billion by 2027, growing at a CAGR of about 5.8% during the forecast period 2022-2027.

Amid COVID-19, the market is witnessing steady growth owing to an increase in financial insecurities across the globe which encourages to use of used construction equipment. The pandemic adversely affected the real estate company owing to a decrease in consumer spending. The growing investment by the government in healthcare facilities instead of large public infrastructure projects.

The rise in investment in private and government sectors for the development of new infrastructure projects is anticipated to witness major growth in the market. The construction industry is vastly different from the one in the past. Today we find remarkable changes and advancements not only in terms of structures built around us but, more importantly, the techniques and methods to create the very same structures, which would have required much higher labor cost, time for construction, and extraction of raw materials.

The growing adoption of bulk material handling equipment in heavy construction projects is likely to enhance the demand for used construction equipment. Renting and leasing of construction machinery is on the rise. However, there is a significant growth for re-selling of construction equipment owing to huge profits for equipment owners, owing to sales of used construction equipment.

High cost of purchasing equipment, increasing economic uncertainty, lack of capital, technology upgradation, unpredictable construction and infrastructure growth, depreciation woes, costly breakdowns, and limited space availability market is seeing a demand for used equipment.

Owing to the high purchasing cost associated with the motor graders, many of the smaller companies prefer used motor graders. Excavators are extremely versatile and come with multiple attachments and provide better productivity, becoming the primary reason it's the growth. Third-party e-commerce websites offer low-quality machines at a minimum price which attracts consumers to buy the products. This low-quality equipment may face difficulty in a very short duration, which in turn is likely to increase the demand for used construction equipment.

Major developed countries are focusing on port extension, railway tunnels, and underwater tunnels and are seeing more significant demand for cranes, thus driving the used construction equipment market.

Europe's construction industry in industry output has increased in recent years. The civil Engineering sector has generated 267.1 billion euros, the most significant income by any in the construction industry. The ongoing recovery of Europe's construction industry and favorable economic policies such as low-interest rates have further improved the growth of the used construction equipment market across the region. The German government has initiated several measures aimed at the development of the country's housing market. It has allocated EUR 5.0 billion under its housing policies towards the construction of 100,000 rental units in the next four years.

Followed by Europe, Asia-Pacific is also witnessing major growth in terms of revenue during the forecast period. The increasing demand for rapid mass transit to reduce traffic congestion and journey times is likely to drive the growth of the high-speed rail market. The long high-speed train network in China and Japan and the increased adoption of high-speed lines in South Korea and Turkey have placed the Asia-Pacific region as a market leader.

The Used Construction Equipment Market is dominating, with the existing players such as Caterpillar, Kobelco Construction Machinery, Deere & Company, Komatsu Ltd, Volvo Group, Doosan Infracore, and XCMG.

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