Europe Construction Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Europe Construction Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The construction equipment market in Europe is expected to exhibit a growth rate of over 6% during the forecast period 2020-2025.

Key Highlights

• To fight major problems like traffic congestion, population explosion, high manufacturing costs and ageing transportation infrastructure, developing economies are now investing heavily in infrastructure development. Developed economies are focusing on improving their current infrastructure by investing in technologies such as earthquake proof buildings, hyperloop, etc. These factors are boosting the sales of construction machinery market across the globe.
• The demand for machines that are cost-effective, along with regulatory pressures for lower emissions, is pressurizing construction-equipment manufacturers to opt for electric and hybrid vehicles over the traditional hydraulic and mechanical ones.
• The construction industry is getting smarter. Digitalization, connectivity, and automation are driving the development forward, leaving a substantial impact on construction projects. Tech company Iotic, construction company BAM Nutall of UK and researchers from Cranfield University have developed an AI based twin technology system that gives live updates of the progress at construction site. This technology increases on site productivity and operational efficiency.

Key Market TrendsElectrification of Construction Equipment

Increase in construction activities across the globe has resulted in increased consumption of diesel. Although diesel has high energy content compared to gasoline but its combustion releases dangerous exhausts into the environment. Governments and pollution regulatory bodies across Europe has established norms and regulations that requires diesel engines to produce almost negligible NOx and SOx emissions. This has opened the doors for OEMs to switch to hybrid and complete electric vehicles in the future. Electric construction equipments are not only zero emission machines but also produces very less heat, noise and vibrations.

Electric construction equipments use fewer parts compared to diesel equipments and use of electricity brings down the total cost of operations both for rental company and customer.

Many key construction equipment manufacturers across the globe have launched their electric construction equipments.

In 2020, Dutch company BAM infra built world's first electric road roller that is capable of saving more than 70 liters of fuel per day and cutting 236 kilograms of carbon dioxide per day. The roller is currently deployed at Almere municipality and it is helping BAM infra to achieve its sustainability goals.

Infrastructure development on the rise

Construction industry contributes more than 9% to European Union's current GDP. Europe is witnessing a major growth in construction owing to the rapid development in transport infrastructure. Projects such as London Crossrail (worth more than EUR 17 billon) and Germany and Denmark's Fehmarn Belt Fixed Link which is 18 kilometers long world's longest immersed road and rail tunnel are driving the growth of market. Europe ranks top in the usage of wheeled excavators, when compared to the United States. As most of the work done in Europe takes place in urbanized areas, while in the United States, work projects included majorly clearing land and digging. In Europe, demand for construction equipment grew in almost every country after the economic slowdown during 2008-10. This can be credited to the factors such as residential construction activities in Germany and France and low interest rates and infrastructure development in South European nations. The big city plan will increase the size of Birmingham city of England by 25%. With an estimated cost of USD 17 billion, this plan aims at constructing 5000 new houses and revamping of New Street Station at an estimated cost of 600 million euros.

Competitive Landscape

The European construction equipment market is a consolidated one with players such as Liebherr, Volvo Equipment etc. dominating the market.

In 2019, Volvo Construction Equipment announced in a official statement that it will start producing compact electric excavators and wheel loaders. EC 15 to EC 27 electric excavators and L20 to L28 electric wheel loaders will be in production from mid 2020.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Liebherr Group
JCB Limited
Volvo CE
CNH Industrial NV
Wirtgen Group
Metso Oyj
Wirtgen Group
Atlas Copco Group
Manitou Group
Wacker Neuson SE
Fayat Group
Sandvik Group
Pon Equipment AB

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