The Europe Used Construction Machinery Market is anticipated to register a CAGR of about 3.98% during the forecast period (2020 - 2025).
Key Highlights
- The construction industry is vastly different from the one in the past. Today we find remarkable changes and advancements not only in terms of structures built around us but, more importantly, the techniques and methods to create the very same structures which would have required much higher labor cost, time for construction, and extraction of raw materials.
- Renting and leasing of construction machinery is on the rise. Although there is a significant growth for re-selling of construction equipment owing to huge profits for equipment owners, owing to sales of used construction equipment.
- Germany, in particular, along with Northern and Western Europe, are seeing record levels with used construction equipment market. Moreover, the recovery of poorly performing Southern Europe, Central, and Eastern European countries will now see improved forecasted sales in their respective regions.
- However, factors such as free trade crisis and ongoing political and economic uncertainties, such as Brexit could hinder the growth on the. In 2018, machine delivery times also became one of the limiting factors in the drop in expected sales.
Key Market Trends
High Cost of New Construction Machinery is Driving Growth
Due to rising cost of purchasing equipment, increasing economic uncertainty, lack of capital, technology upgradation, unpredictable construction and infrastructure growth, depreciation woes, costly breakdowns, and limited space availability market is seeing a demand for second-hand equipment
The motor grader market is expected to grow by 20% by 2020. Due to the high purchasing cost associated with the motor graders, many of the smaller companies prefer used motor grader. In 2018, backhoe loaders accounted for over 68.23% of total sales and also, second-hand excavator market is expected to bounce back by 2020. Excavators are extremely versatile and come with multiple attachments and provide better productivity, becoming the primary reasons it's the growth
Also, with massively scaled projects such as port extension, railway tunnels, and underwater tunnel connecting major European countries are seeing more significant demand for cranes, thus driving the entire crane market. This increase in net crane count indicates the prospering growth of the construction market, and it is to grow until 2030.
Although, for other construction equipment such as earthmoving and road equipment, only 70% of manufacturers anticipate a positive growth and, component manufacturers in 80% of the major companies are also planning a higher increase. However, concrete equipment producers expect to see a far lesser growth. Nevertheless, the construction industry is getting smarter with improved digitalization, connectivity, and automation, and the future remains bright.
Germany Remains the Largest Market
In recent years, Europe's construction industry in industry output has increased and crossed 1.64 trillion euros in 2016. The civil Engineering sector has generated 267.1 billion euros, the most significant income by any in the construction industry. With the ongoing recovery of Europe's construction industry and favorable economic policies such as low-interest rates have further improved the growth of used construction equipment.
In 2016, The European Commission received a request for over 50 million euros in funding for undertaking over 550 projects across the EU. Poland is the largest requesting country seeing a rise in construction by 20%. The majority of projects were related to road infrastructure and energy sectors.
However, with capable machinery and advanced equipment's employment in the civil sector in 2016, has decreased from 1.68 million to 1.87 million in 2009. Nevertheless, developed nations in Europe are also investing in newer technologies to cope up with a growing demand to replace older techniques to adopt sophisticated construction equipment.
Competitive Landscape
Europe Used Construction Machinery Market is consolidated with existing players such as Caterpillar, Kobelco Construction Machinery, Deere & Company, Komatsu Ltd, Volvo Group, Doosan Infracore, and XCMG, captured about 40% of the market share in 2019. Apart from the above top players, domestic and local businesses contribute towards the 60% of the market.
Since the construction machinery market is characterized by the presence of numerous international and regional players, construction manufacturers are trying to have the edge over its competitors by making joint-ventures, partnerships, launching new products with advanced technology.
In 2017, France based Vinci SA was the largest construction company in terms of market capitalization. It accounted for projects worth 40.25 billion euros, since then, Vinci's revenues have grown by 10 billion euros in the annual year.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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