Intensified growth of international trade nurtured a multitude of economies across the world. The expansion of international trade relations was followed by economic development especially in countries where exports increased significantly. The construction industry is heavily dependent on the global economy. Demand for products is often a result of new construction projects. As urbanization is taking off, investments from public and private sectors into infrastructure projects will drive the construction equipment market growth. Important regions for this industry are North America, Western Europe, and East Asia. These regions are home to some prominent construction equipment manufacturers who must compete in a highly competitive field. In 2020, the global construction equipment market is estimated to be sized at around 140 billion U.S. dollars. In that same year, the North American market was estimated to be the second biggest market for construction equipment. Besides, emerging economies, such as India and China, are market hotspots for global manufacturing of construction equipment due to their growing firm-dynamics and economic capacities.
Firms in the international construction equipment market
Firms dynamically analyze shifts and new potentials in markets to track down profitable projects. The promising growth potential of the construction equipment market attracts the attention of a multitude of multinational corporations, with strategic business plans. Some of the main approaches include innovation strategies to expand the product varieties and benefit from short-term monopoly rents. Along with crawler dozers, crawler excavators, and aerial work platforms, wheel loaders ranked among the most important product categories that are emerging in this market. Caterpillar, Komatsu, John Deere, and XCMG were the leading firms in construction equipment manufacturing. As the Chinese economy starts to approach towards the technological frontiers, more and more firms based in China gain increasing shares of the global market for construction equipment manufacturing. For example, three out of the twelve largest construction machinery manufacturers globally are Chinese firms.
Outlook of the global construction market in the future
The construction industry reached an annual spending value of 12 trillion U.S. dollars before the coronavirus (COVID-19) pandemic and is expected to grow by three percent. Given the immense economic and social shock of COVID-19, there may be a periodic slowdown in this market. It is expected that the market size in this industry will more than double in only two decades, reaching over 19 trillion U.S. dollars by 2035. Future projects in the construction industry include building projects in real estate - either residential or commercial - but also in infrastructure or industrial structures that will shape the way people live. Similarly, the global construction equipment market size is forecasted to grow continuously as well. The market size will grow by 25 percent in only five years.
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In the following 3 chapters, you will quickly find the 22 most important statistics relating to "Construction equipment industry worldwide".