To begin with – the market for Construction Equipment & Heavy Equipment is estimated to grow at 4.02% CAGR from 2018 to 2026, and to reach USD 196.4 billion by 2026.
Due to rising construction activities and an increase in government investment the infrastructure sector demonstrates a growing demand for construction and heavy equipment. Some of the driving factors in the market are rising demand in the residential segment and urbanization, and economic growth in developing countries.
It’s a large market, and we will try to segment it in a way that everyone can find where their business/company should land to:
- By machinery type – earthmoving equipment (33% of machinery, the highest CAGR 5.15%), material handling, heavy construction vehicles, and others.
- By application – excavation & demolition (highest CAGR 4.83%), heavy lifting, tunnelling, material handling, and recycling & waste management.
- By industry verticals – construction, oil & gas, mining, infrastructure (highest CAGR – 4.9%), manufacturing, others (forestry & agriculture).
Currently, there are two huge trends related to original equipment manufacturers (OEM) and 3rd party hardware or/and software:
- Use of telematics (fleet management) – telematics uses GPS technology, internet or cellular network, and sensors to perform construction equipment diagnosis. It assists equipment management personnel in capturing several data points, including fuel efficiency, idle time or utilization rate, and maintenance alerts.
- Predictive maintenance (field service management) – uses direct integrations with OEMs or with 3rd party hardware to catch errors or other interferences of warranty services or other maintenance.
Frost & Sullivan’s key findings show that farm equipment manufacturers (OEM like John Deere) will continue to dominate the global telematics market throughout the forecast period.
Tier I suppliers and non-traditional participants are expected to enter the market, which will intensify the competition. With the increasing number of farm equipment leasing companies/rental companies, they will look for onboard telematics through partnerships.
Mergers and acquisitions will be key competitive developments in the market throughout the forecast period. Many OEMs are expected to enhance their technological up-gradation by acquiring smaller companies and making partnerships with Tier I suppliers.
With the effective use of data and monitoring devices, farmers can easily overcome productivity challenges. Optimum efficiency can be achieved by installing telematics systems in farm equipment such as tractors and harvesters.