Fact.MR has published a study which predicts that the excavator market will witness modest 3.2% volume growth y/y. The study finds that owing to the positive growth of the construction industry, especially in developing countries, the excavator market is expected to witness steadily increasing growth in the future.
Construction Industry accounts for over 70% volume share in excavator market
Excavators are commonly used in a wide range of sectors including construction, mining, agriculture and forestry. However, according to the Fact MR report, the construction industry is expected to hold the largest volume share – approximately 72% -- by the end of the year.
Manufacturers in the excavator market are focusing on introducing performance features that will suit the requirements of end-users from the construction industry to capitalise on the increasing demand for excavators as a construction equipment.
Excavators are also used in the mining industry and agriculture industry, which have been contributing greatly to growth of the excavator market.
Environmental regulations create challenges for manufacturers
Despite steady demand from the construction industry, stringent environmental regulation and high standards for conventional excavators continue to create manufacturing challenges for market players.
Conventional excavators are subject to guidelines that regulate the use and operation of heavy equipment. Manufacturers in the excavator market need to conform to these stringent regulatory requirements, which may add to the production cost and ultimately restrict manufacturers from maintaining competitive prices.
Emerging nations hold opportunities for excavator market players
The fortunes of excavator manufacturers are closely linked to broader macroeconomic policies, most notably investment in infrastructural development. Asia Pacific is home to two of the fastest growing economies in the world.
Moreover, many small economies in the region are ramping up their network of roads and highways, creating demand for heavy construction equipment. Excavator manufacturers are likely to benefit from these broader developments in developing countries of Asia Pacific.
The study finds that the APEJ region accounted for over 47% volume share in the excavator market in 2018, and projects that the region will continue to create lucrative sales opportunities for excavator market players in the coming years.
The report provides information about recent developments in the excavator market. It features a comprehensive list of leading stakeholders, as well as new entrants in the excavators market.
For more information about the report, click here.
Read the article online at: https://www.globalminingreview.com/mining/10012020/global-excavator-market-to-grow-32-through-2026/