Size of the global construction equipment market
Caterpillar, Komatsu and Hitachi are among the world’s leading manufacturers of construction equipment, which includes excavators, wheel loaders, pavers and concrete mixers. Construction machinery manufacturers sell their equipment to customers in the private as well as the public segment, the latter one being highly dependent on investment efforts undertaken by political decision makers. During the 2008 financial crisis, many politicians delayed the continued renewal of their countries’ infrastructure, resulting in a stark decline in market volume particularly in mature economies such as Japan.
The global market for construction equipment is expected to grow at a compound annual growth rate (CAGR) of 6.2 percent from around 161 billion U.S. dollars in 2014 to about 192 billion U.S. dollars in 2017. While manufacturers are hoping for stabilization in the Chinese market, India is expected to hold the largest potential for growth: India’s construction machinery market reached 6.5 billion U.S. dollars in 2014.