Excavator Industry Performance During The First Half of 2021
The excavator market from a global perspective grew at a rate of CAGR 5% between 2014 and 2019 and this trend is expected to continue until 2025
The excavator market from a global perspective grew at a rate of CAGR 5% between 2014 and 2019 and according to the latest market reports assessing the COVID – 19 pandemic situations the market remains robust. Looking forward from 2019 and contrasting against the current global excavator market, it is quite evident that the entire industry is still poised for moderate growth over the next few years. Despite the economic downturn due to the pandemic, the excavator market has dwindled and as a matter of fact has managed to sustain against the pressures of the market.
Based on feedback from industry players heavy construction equipment utilized for digging, trenching and other construction-based purpose are still as rife as ever. For instance, according to Hitachi on other reports the excavator manufacturing faculty of Japan is poised for growth even as the COVID-19 pandemic rages on, with a demand increase also seen within the excavator hire industry. According to Report Linker, the entire industry is expected to grow by $700 Million by 2025 within Japan. The segmentation of the market by excavator type (crawlers, compact and wheeled) and industry application (construction, mining and utilities) within Japan has grown due to the raising demand for automated excavators.
The Economic Times (Indian Times) released a report based on the feedback from the Indian Construction Equipment Manufacturers Association that the construction equipment industry in India is also poised for growth due to the correlation of the industry with the overall level of infrastructure development of the country. The report indicated that construction activity in India especially within the scope of earthmoving and construction equipment (ECE) has continuously enjoyed strong growth attributed to the rapid economic development. The same growth tangent was also observed in the Middle East Excavators Market and this expected growth is directly attributed to the increasing investments seen in the region in the construction and mining sector.
The entire region is riddled with large scale projects related to infrastructure mining, oil & gas, not to mention road construction, and port construction which have been the main reason behind the rise in demand for excavators in the region. However, the market has been impacted by the novel coronavirus which has caused a slowdown of these projects or activities directly related to these projects. The primary market restraints within the Middle East owing to the delays and shut downs of some of these projects include the high maintenance costs, the requirement for technical support, and over the last decade enhanced emission norms. Nevertheless, as reported by 6Wresearch, the Middle Eastern market excavator’s size is still expected to show growth throughout 2020-26 and the report also made it present and clear that the Middle Eastern excavator market is indeed one of the fastest growing markets.
The growth is directly attributed to the region’s residential, industrial, and construction sectors which are linked to the Dubai Plan 2021 and Abu Dhabi Vision 2030 in one way or another. Such factors according to most market analysts are critical towards the heavy machinery industry segment as investments for infrastructure development keeps moving on an upward trend.