$189 billion demand for machinery by 2017
Global demand for construction machinery set to rise by 6% per year
Global demand for construction machinery is expected to rise 6% per annum to $189bn in 2017, according to an extensive report published by research company The Freedonia Group.
The Africa and Middle East region is expected to see the second-biggest growth among the global regions the report covers. At a predicted 5.5%, it is beaten only by the Asia-Pacific region, with its estimated 8.3% growth.
The report cites oversupply issues in the wealthier nations of the Africa/Mideast region as the reason growth was slow over the 2007-2012 period. It has taken several years since the financial crash for these equipment surpluses to be fully utilised. However the pace of growth is expected to quicken in the years leading up to 2017.
According to figures in World Construction Machinery this expansion will be fueled by growth in the Asia/Pacific region, particularly China, where the market is expected to climb at a double-digit annual rate. China’s growth forces the Asia/Pacific region to the top of the expansion list, as well as pushing up the global average above the levels most regions will achieve.
Although construction equipment sales in Western Europe were weak in 2012, Freedonia expects the market to rebound through 2017. This will be driven by operators replacing outdated machinery with more advanced units.
In contrast, strong sales in North America in 2012 are expected to result in slower average demand gains through 2017.
Other notable points from the report include the fact that excavators and loaders are likely to record the fastest sales growth through 2017, as both construction spending and investment in mining projects climb.
While suppliers of dozers and off-highway trucks will also benefit somewhat from an increase in mining investment, demand for these products is expected to expand at a pace below the overall market average.
This is due to their generally large size and hefty price, which makes it more financially difficult for operators, especially in developing areas, to purchase these machines.