A Closer Look: The Market for Machines That Drive Infrastructure Development
COVID-19 cost the construction equipment industry two years’ worth of growth.
But between now and 2026, forecasters project that the industry will be worth $160 billion. This a CAGR of 4%.
But between now and later, how will the industry get there?
Here’s everything you need to know about the growth and challenges of construction machines.
Construction Machines Market Growth
Increased road and public infrastructure projects will drive construction equipment industry growth. Earthmoving and roadbuilding equipment like the kind sold by www.vistaequipment.com will be in especially high demand. As there’s a push for quality and sustainability in construction.
COVID-19 accelerated the changes we’ve foreseen coming to the way our cities look, how we work, and the way we live. These changes will spur investment in infrastructure development across the globe.
This will lead to increased investment in advanced technology in machinery and further production of custom machined parts for industries such as Renewable Energy, Infrastructure, and Hydropower. New energy programs, increased global mining operations, and a more urbanized residential industry will lead to the growth of the excavators market. This market will grow by 5% by 2026.
The Challenges for Construction Vehicles
The new economy will be ripe with innovation. But innovative solutions will not come cheap. High-tech machines are very expensive. Affordability is the primary challenge the construction equipment industry faces.
Due to costs, smaller construction projects won’t likely use futuristic construction machines. The implementation of most new construction technology will be for larger infrastructure projects.
Manufacturers will look to sensor technologies to supplement the increased costs for maintenance and management. They will also benefit from decreased downtime, more autonomous, and safer machines.
High costs will also cause equipment rentals to become more popular. There will be more businesses that offer to take the “hassle” out of owning, operating, and maintaining expensive equipment. These types of businesses will become so popular that they will shift the global market.
A shortage of skilled workers and equipment operators will also be a continuing challenge for the industry. Much of the existing labor force will retire over the next five years.
Even though most machines are being designed to make-up for this shortage. Skilled workers will be needed to operate the machines.
The Future Is Now
The current construction equipment market may feel sluggish. But think of 2020 as the calm before the boom. The construction equipment industry is not alone. The pandemic, shutdowns, and restrictions have caused 2020 to be a setback year for many.
The good news is that the long-term effects of the disruption point to a growing need for construction machines. When the world finally settles into its new-normal delayed projects will restart.
Dozens of new projects will also appear to build cities that are resilient to climate change. Even more, projects will aim to create new spaces for shifting lifestyles and values.
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