The overall construction equipment market is going to contract by 10-15% in terms of shipment in 2021 and will start recovering in third quarter in the projected year.
Lewes, DE -- (ReleaseWire) -- 09/09/2020 --Due to the significant, negative effects of the Covid-19 pandemic on dealers and retail customers, the equipment manufacturers have provided short-term payment relief to dealers and retail customers on financing receivables, which includes retail notes, wholesale notes, revolving charge accounts, and sales-type and direct financing leases.
The overall equipment market will depend on government spending. Countries like India, Sri Lanka, Vietnam, and countries where construction and mining projects have been resumed will improve the demand for certain equipment. Stimulus spending in China would improve the overall market but cumulatively on a global scale, the final CAGR growth for the industry will remain negative.
1.Construction Equipment Market
Prior to the outbreak of the coronavirus (COVID-19), it had been predicted that there would be an acceleration in the pace of growth in the global construction industry, to 3.1% from 2.6% in 2019. However, given the severe disruption in China and other leading economies worldwide following the outbreak, the forecast for growth in 2020 has now been revised down to 0.5%. On the same line, the global construction equipment market size was predicted to grow with a CAGR of 2.2% in the forecast period of 2020 to 2025.
2.Heavy Equipment Segment
All major heavy equipment manufacturers were working at almost 30-50% capacity until the third quarter of 2020, but the last quarter of the year could bring some hope for the industry. COVID has completely changed the way of doing business. Social distancing, safety gears, sanitization, and limited factory work hours have now become the new standards of the manufacturing industry. This entire situation can take almost a year to normalize. As per our pre-COVID survey, the global heavy equipment market was about to grow with a CAGR of 3.5% during 2021-2026.
The effect of COVID-19 on the construction industry is gradually diminishing. However, it would take about a year to reach the pre-COVID landscape. Once the situation returns to normal, the earthmoving segment will be benefited from projects such as smart cities, housing for all, and infrastructure upgradation. Earthmoving equipment holds approximately 40-45% of construction machines sales and more than 60% of the market revenue. As per last survey the global earthmoving equipment market was expected to grow with a CAGR of 1.9% from 2020 to 2025.
4.Mining Equipment Segment
Leading companies in the mining equipment segment are withdrawing 2020 financial guidance with an intent not to issuing revised guidance due to the economic uncertainties resulting from the COVID-19 pandemic. However, before COVID mining equipment market was expected to grow with a CAGR of 5.46% till 2024.
5.Crane Market Segment
Demand for cranes in global market remains sluggish after nationwide shutdowns due to the COVID-19 pandemic. The industry experienced a slight decrease primarily due to a decline in construction and oil and gas activity resulting from the pandemic. The industry expert expects to rebound to pre-COVID-19 levels as early as the end of 2020 and a return to a trend of slight, but steady, annual growth through 2025. The last survey found out that the global Mobile Crane market size was expected to gain market growth in the forecast period of 2020 to 2025, with a CAGR of 0.9% and would expect to reach USD 9689.2 million by 2025, from USD 9362.5 million in 2019.
6.Agriculture Equipment Market
U.S. Farm Machinery and Equipment Supplies Shipments through May were down 5.3% from 1 year ago. Rising U.S. Wholesale Trade of Farm Product Raw Materials suggest near-term upside potential for Shipments. U.S. Construction Machinery New Orders were also down in May from 1 year ago. As per our estimation, the global Agricultural Equipment market size is expected to gain market growth in the forecast period of 2020 to 2025, with a CAGR of 3.1% in the forecast period of 2020 to 2025 and will expect to reach USD 129430 million by 2025, from USD 114580 million in 2019.
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