Global Compaction Machines Market: Drivers
Increasing infrastructure development is expected to drive growth of the global compaction machines market during the forecast period. Compaction machines play a crucial role in infrastructure development activities. According to Coherent Market Insights’ analysis, global roadway infrastructure grew by over 35% in the past decade, wherein India and China accounted for more than half of paved roads. Moreover, China increased its paved roadways network around three times since 2000. According to the International Energy Agency (IEA), China will surpass the U.S. in annual road vehicle kilometers by 2025 and is expected to continue to build and maintain new roadways at a significant rate. Moreover, according to CMI’s analysis, the investments in infrastructure are expected to reach around US$ 57 trillion or 3.5% of global GDP, of which US$ 16.5 trillion will be invested in new road construction and maintenance.
Rising number of paved roads is expected to propel the global compaction machines market growth over the forecast period. The perpetual requirement to develop good quality roads is the factor driving growth of sustainable development and economy across the globe. According to Coherent Market Insights’ analysis, by 2025, expenditure on road pavements is expected to triple from today’s level and would occupy 80% of the present road network. According to the same source, since 2010, global roadways network length increased by approximately 12 Mn lane Km. China and India accounted for more than 50% of paved lane Km additions during that period. Moreover, paved lane Km accounted for 53% of the total global road lane Km in 2000, whereas by 2010 only about 60% of total road lane km were paved.
Global Compaction Machines Market: Opportunities
Many financial institutions are providing financing solutions to procure heavy compaction machines. According to CMI’s analysis, the ECE financing industry is expected to exhibit a CAGR of 22% during the forecast period. Majority of financing solutions are available in the forms of loans, with leasing as a distant second option. Around 80% of ECE users that opt for finance such as ventures are small and medium-sized enterprises. Major financial institutes involved are HDFC and Kotak Mahindra, non-banking financial companies (NBFCs) such as Magma Fincorp, leasing companies such as ORYX India and Srei BNP Paribas, external commercial lenders, and cross borders leasing firms.
Intelligent compaction is the compaction of road materials such as aggregate base, soil or asphalt pavement materials using compaction Rollers equipped with global positioning systems (GPS), which is based on mapping sensors and optional feedback controls. It is one of the crucial developments made in roadway construction and has been widely adopted in Europe and China.
Compaction Machines Market Report Snapshots
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