World Demand for Construction Machinery to Reach $140 Billion in 2013

World demand for construction machinery is projected to increase 5.3 percent per year through 2013 to $140 billion.  This represents a moderation from the 2003-2008 pace, reflecting a slowdown in worldwide economic and construction expenditure growth.  Nonetheless, gains in the global construction equipment market will still be quite healthy.  These and other trends, including market share and product segmentation, are presented in World Construction Machinery, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

The developing Asia construction equipment market, including India, China, Indonesia and South Korea, will experience the fastest growth through 2013.  China alone will account for one-third of all new global product demand between 2008 and 2013.  North America is projected to be the second fastest growing market.  In the US (where demand will advance from a weak 2008 base), sales of construction equipment will be fueled by a surge in residential construction activity.  Mexico and Canada will also make substantial contributions to advances in regional demand.  Eastern Europe, the Africa/Mideast region, Latin America and Western Europe will see below-average growth, as construction expenditures in these areas grow at a much slower pace than between 2003 and 2008.

 The leading manufacturers of construction machinery are the US, China and Japan, each with 2008 industry shipments of more than $15 billion -- followed by Germany, the UK, Italy, South Korea and France, each with  shipments of more than $3 billion.  Countries in Asia will post the biggest gains in output through 2013. 

Mixers, pavers and related equipment is expected to be the fastest growing product segment through 2013.   Ongoing industrialization efforts in many developing countries will continue to sustain high levels of road and infrastructure-related construction, boosting sales of these types of products.  Additionally, as global construction spending slows, contractors will be more likely to purchase some of the low-cost machines in this segment while opting to rent or lease more expensive product types.  Loaders, which are extremely versatile, will also post above-average gains as global nonbuilding construction and mining activity expands.  

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.