Europe Excavator and Loaders Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)
Currently, European excavator and loaders market was valued at USD 16.64 billion , and it is expected to register a CAGR of 6.98% over the next five years.
Manufacturing shutdowns, lockdowns, and trade restrictions during the COVID-19 pandemic negatively affected the European construction equipment industry. Furthermore, the fall in construction activity and lack of labor significantly impacted the market. As construction companies have resumed operations to complete their works in countries with a limited number of COVID-19 cases, the market is likely to recover during the forecast market. Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry. For instance
Key HighlightsOver the next five years the market is anticipated to register robust growth due to big spending on infrastructure projects by the EU countries and the introduction of electric and hydrogen powered excavators. For instance
Key HighlightsHowever, the demand for rental and used construction machinery is also a concerning factor for the market studied. This is because several customers for new equipment have also been considering the option to either rent or purchase used machinery as several options are available. The end customer and major OEMs have also stepped into the used and rental equipment market, looking at the rising demand.
Germany and United Kingdom are anticipated to witness optimistic growth during the forecast period due to government initiatives and the rising adoption of environmentally sustainable products in the market.
Thus the aforementioned factors are projected to induce significant growth in the European excavator and wheel loader market.
Key Market TrendsTechnological Advancements and Product Innovations to Drive the MarketDigitalization and technological advancements have become indispensable parts of the construction industry. Various market participants have already adopted many advancements, and others follow the trend. For instance,
With the evolving demand by the government to move toward greener vehicles, excavators and loaders manufacturers are turning their conventional vehicles to electric and hybrid to adopt the changes. Most automakers are introducing new electric excavators and loaders models. For instance,
Companies have been focusing on developing new models of excavators and loaders with enhanced performance characteristics and eco-friendly features to gain momentum in the market studied. This is expected to attract customers during the forecast period.
Germany Anticipated to Hold Significant Market ShareGermany is expected to witness the fastest growth and is likely to hold a significant market share during the forecast period. The country is an early adopter of the latest technology, and the construction companies in the country are investing heavily in procuring the latest equipment to reduce carbon footprints. For instance,
Factors influencing the growth in the market are increasing public infrastructure spending and extremely low-interest rates. In 2021 Germany spent EUR 23.67 Billion ( USD 24.38 billion) to upgrade and expand its transport infrastructure. According to VDMA (German Construction Equipment Manufacturers Association) this led to rise of 18% to EUR 12.4 Billion ( USD12.77 Billion) in equipment sales in Germany compared to 2020. This also created a healthy demand for excavators and wheel loadres in the country. Companies are launching new products and are entering collaborations to strengthen their positions in the market. For instance,
With the aforementioned trends and developments, the market is expected to have optimistic growth during the forecast period.
Competitive LandscapeThe European excavator and loaders market is moderately consolidated due to the presence of global and some local players holding significant shares in the market. Some of the prominent companies in the market are Caterpillar Inc., Liebherr-International, Komatsu Ltd, JCB and Volvo. These companies are focusing on product innovations to gain a competitive edge in the market over other players. For instance,
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