Global sales of construction equipment expected to increase 7 per cent this year
08 Mar 2017
3 Min Read
CW Staff
Global sales of construction equipment are expected to increase 7 per cent this year, according to updated forecasts from specialist market intelligence company Off-Highway Research. The number of machines sold in 2017 is expected to reach 695,142 units worldwide, compared to the 650,133 pieces of equipment sold in 2016, which represented the bottom of the industry鈥檚 economic cycle.
David Phillips, Managing Director of Off-Highway Research, said, 鈥淪ales of construction equipment last year were affected by weak economic growth worldwide and low global prices for many commodities. These factors had a knock-on effect for the demand for most types of machinery, particularly equipment used in mining and other extractive industries. However, with commodity prices rising as 2016 went on, sales picked up in a number of key markets.鈥�
Of particular significance this year, is the expected return to growth for the Chinese market, which bottomed-out in 2016 after five years of steeply falling sales. However, even with the 13 per cent rise in sales forecast for 2017, demand in China will still only be some 30 per cent of what it was in the boom years of 2010 and 2011.
Meanwhile, the robust Indian market is forecast to go from strength to strength. Equipment sales grew a remarkable 40 per cent last year thanks to increased investment and a pick-up in project implementation in the country鈥檚 infrastructure market. This is expected to drive consistent and steady growth in Indian construction equipment sales for the next five years, and as the industry matures India could emerge as a significant regional manufacturing hub.
Meanwhile, the mature markets of Europe, Japan and North America suffered a 3 per cent fall in sales last year, with factors such as uncertainty in the run up to the US presidential elections and the UK鈥檚 Brexit referendum harming business confidence. Growth is expected to return this year, particularly in Japan and North America, while the outlook in Europe is for a flatter market.
The long-term outlook for the global construction equipment market is for a period of moderate growth, which should see sales rise from the low point of 650,133 units in 2016 to around 810,000 machines being sold in 2020 and 2021 鈥� a 25 per cent increase in total.
In value terms, the market is expected to rise 28 per cent over the same period, with sales increasing from US$ 69.8 billion in 2016 to US$ 89.3 billion in 2020. This reflects an expected resurgence in some higher value types of equipment over the coming years, most notably crawler excavators and rigid dump trucks.
Global sales of construction equipment are expected to increase 7 per cent this year, according to updated forecasts from specialist market intelligence company Off-Highway Research. The number of machines sold in 2017 is expected to reach 695,142 units worldwide, compared to the 650,133 pieces of equipment sold in 2016, which represented the bottom of the industry鈥檚 economic cycle.
David Phillips, Managing Director of Off-Highway Research, said, 鈥淪ales of construction equipment last year were affected by weak economic growth worldwide and low global prices for many commodities. These factors had a knock-on effect for the demand for most types of machinery, particularly equipment used in mining and other extractive industries. However, with commodity prices rising as 2016 went on, sales picked up in a number of key markets.鈥�
Of particular significance this year, is the expected return to growth for the Chinese market, which bottomed-out in 2016 after five years of steeply falling sales. However, even with the 13 per cent rise in sales forecast for 2017, demand in China will still only be some 30 per cent of what it was in the boom years of 2010 and 2011.
Meanwhile, the robust Indian market is forecast to go from strength to strength. Equipment sales grew a remarkable 40 per cent last year thanks to increased investment and a pick-up in project implementation in the country鈥檚 infrastructure market. This is expected to drive consistent and steady growth in Indian construction equipment sales for the next five years, and as the industry matures India could emerge as a significant regional manufacturing hub.
Meanwhile, the mature markets of Europe, Japan and North America suffered a 3 per cent fall in sales last year, with factors such as uncertainty in the run up to the US presidential elections and the UK鈥檚 Brexit referendum harming business confidence. Growth is expected to return this year, particularly in Japan and North America, while the outlook in Europe is for a flatter market.
The long-term outlook for the global construction equipment market is for a period of moderate growth, which should see sales rise from the low point of 650,133 units in 2016 to around 810,000 machines being sold in 2020 and 2021 鈥� a 25 per cent increase in total.
In value terms, the market is expected to rise 28 per cent over the same period, with sales increasing from US$ 69.8 billion in 2016 to US$ 89.3 billion in 2020. This reflects an expected resurgence in some higher value types of equipment over the coming years, most notably crawler excavators and rigid dump trucks.
Next Story
Reliance, Diehl Advance Pact for Precision-Guided Munitions
Diehl Defence CEO Helmut Rauch and Reliance Group鈥檚 Founder Chairman Anil D. Ambani have held discussions to advance their ongoing strategic partnership focused on Guided and Terminally Guided Munitions (TGM), under a cooperation agreement originally signed in 2019.This collaboration underscores Diehl Defence鈥檚 long-term commitment to the Indian market and its support for the Indian Government鈥檚 Make in India initiative. The partnership鈥檚 current emphasis is on the urgent supply of the Vulcano 155mm Precision Guided Munition system to the Indian Armed Forces.Simultaneously, the 鈥淰ulc..
Next Story
Modis Navnirman to Migrate to Main Board, Merge Subsidiary
Modis Navnirman Limited has announced that its Board of Directors has approved a key strategic initiative involving migration from the BSE SME platform to the Main Board of both BSE and NSE, alongside a merger with its wholly owned subsidiary, Shree Modis Navnirman Private Limited.The move to the main boards marks a major milestone in the company鈥檚 growth trajectory, reflecting its consistent financial performance, robust corporate governance, and long-term commitment to value creation. This transition will grant the company access to a broader investor base, improve market participation, en..
Next Story
Global Capital Flows Remain Subdued, EMEA Leads in Q1 2025
The Bharat InvITs Association鈥檚 industry update for Q1 2025 shows subdued global capital flows, with investment volumes remaining at the lower end of the five-year range despite a late 2024 recovery. According to data from Colliers and MSCI Real Capital Analytics, activity in North America declined slightly, while EMEA maintained steady levels and emerged as the top region for investment in standing assets.The EMEA region now hosts seven of the top ten cross-border capital destinations for standing assets, pushing the United States鈥� share of global activity below 15 per cent. Meanwhile, in..