Construction Machinery Attachment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Construction Machinery Attachment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Construction Machinery Attachments Market was valued at USD 5.76 billion in 2021 and is expected to surpass a net valuation of USD 7.58 billion by 2027 end, registering a solid CAGR growth of 4.68% over the forecast period.

The driving factors of the construction machinery attachment market are an increase in construction projects like malls, multiplexes, and hotels and the government spending on projects to enhance the infrastructure in the country like the construction of flyovers, airports, construction of highways, and industrial zones for increasing economic activities in the region.

Due to the COVID-19 pandemic, many industries across the globe, including construction witnessed a slump in investment in 2020. This came after government strict measures prevailed to restrain the spread of infection. In addition, with lockdown measures across the globe, the construction industry witnessed a decline in its overall throughput which ultimately affected the demand for construction machinery attachments.

Moreover, post-COVID-19, 2021 was marked as a year of transition, and growth is expected during 2022 attributed to the increasing investments and multiple construction projects including road, infrastructure and housing etc.

Increase in number of smart city projects is enhancing the demand for the market. A smart city has amenities like roads, metro rails, hotels, hospitals etc. With the increase in urbanization rate all around the world. in November 2021, the United States Congress passed a USD 1 trillion infrastructure spending bill. The infrastructure legislation proposes USD 550 million in new federal expenditure over the next eight years in the United States for the upgrade of roads and bridges, highways and to modernize the city transit systems and passenger rail networks.

Asia-Pacific is expected to remain the epicentre for ongoing demand of the construction machinery attachments. This is attributed to large scale construction, housing and infrastructure development projects which are under the pipeline in the region. In addition, major players in the region have increased their R&D expenditure exponentially, to integrate innovation with excellence in performance.

Key Market TrendsOEM to Gain Traction During Forecast Period.

Over the year, original equipment manufacturers including Caterpillar, Komatsu, Volvo CE, and others are pre-fitting the required construction attachments over their machinery as per customer/fleet operators' requirements.

The construction equipment requires high capital investments and the technology advancement in the segment is at a very rapid pace. Also, the equipment is work specific i.e. equipment is designated to perform a specific job that is already fitted suiting the application requirements. Major players in the segment are spending on providing solutions for the end users so that they can obtain maximum productivity from their equipment.

Players are offering better and more reliable offerings to gain a better competitive edge in the market. For instance:

• In September 2022, SANY showcased its new line of products at the Bombay Convention & Exhibition Centre in Gurgaon. The company launched an exciting range of mini, small and medium range of excavators with interesting attachments designed to keep Indian customer demands.
• In September 2022, Von der Wehl Group prime dealer of the Doosan group showcased its wide range of products at Northern Europe's largest compact construction trade fair. In addition, Doosan’s wide range of products including construction machinery including truck equipment with a range of attachments, and customized solutions were presented for sale.

Considering these ongoing developments by OEM and frequent launches, segment is expected to portray higher potential during the forecast period.

Asia-Pacific is expected to be the largest market during the forecast period

The region consists of two major developing nations in the world i.e. China and India, there are changing socio-economic factors in these countries. Also, these countries alone make 36% of the world’s population and the region makes it around 60% of the world’s population. These factors gave rise need for the development of big airports, malls, energy projects and many other big construction projects.

The Government of India’s primary area of attention now is the infrastructure sector. India intends to invest USD 1.4 trillion in infrastructure between 2019 and 2023 in order to have sustainable national growth. In order to complete significant infrastructure projects for the region, India and Japan have joined forces to enhance the region’s infrastructure in the north-eastern states of India.

Construction industries in India, and China are witnessing immense growth which seems to portray positive impacts on the construction machinery attachment market. For instance:

• In Union Budget 2021, the government of India allocated INR 13,750 crore which is USD 1.89 billion to AMRUT (Atal Mission for Rejuvenation and Urban Transportation) and Smart Cities Mission in order to support initiatives including housing for all and smart cities mission.
• China is also one of the major countries in the Asia-Pacific, with ample construction activities being supported by its growing economy. The country’s growth rate is high but is gradually moving toward moderate (as the population ages and economy rebalances from investment to consumption, from manufacturing to services, and from external to internal demand). In April 2022, Chinese government under its geopolitical favours planned to extend its reach in Bangladesh by extending belt and road initiatives. Beijing has proposed road development project worth RMB 7.26 million for these projects to enter Bangladeshi roadways.

Moreover, during the forecast period, it is expected that these developments will continue in the region and will drive the growth for construction machinery attachments market.

Competitive Landscape

The Construction Machinery Attachments market is fragmented, with many players accounting for significant amounts of shares in the market. Some of the prominent companies in the Construction Machinery Attachments market are Caterpillar Inc, Case Constructions, Komatsu, Hyundai Construction Equipment, Sany Group and others. Companies are investing heavily in research and development for the innovation of new and advanced products and technologies that may help for new technology.

OEM in the market is integrating digital solutions to witness elevated sales bars. Companies believe automation technology will push the productivity of the machinery. For instance,

• In April 2022, Caterpillar Inc. revamped its product line including skid steers, mini excavators, and other compact construction equipment and respective attachments for their digital makeover. The company announced its plans to offer better and advanced computerized attachments and automated control refinements in its product line.

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• The market estimate (ME) sheet in Excel format
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