Market Challenges And Opportunities

Development of regulations to restrict the greenhouse gas (GHG) emissions are expected to drive the innovation in the heavy load vehicles

EU and U.S. among few other regions are taking substantial leaps to reduce the emission of pollutants and their impacts on the environment, in conjunction with the increased fuel economies. For instance, the Environmental protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) in the U.S have introduced the requirement of reduction in emissions over the next few for heavy vehicle manufacturers. Similarly, the European Council (EC) has set certain fuel economy-related expectations to be met in the coming years. Such initiatives are expected to propel the innovation and developments in the construction dumper market through the forecast period.

Construction dumper accounts for the largest number of accidents in the infrastructure segments

Several causes of dumper accidents include overturning, collisions at the blind spots, and incompetence of the drivers among few others. According to our research, around 35% of the overall accounted incidents in the infrastructure segment reported, were related to these heavy load vehicles. The requirement to reduce accidents is expected to be a prominent challenge for industry participants. Moreover, the high total cost of ownership (TCO) is expected to remain the primary challenge for the new equipment sales. Thus, the rental segment is expected to present considerable growth prospects for the industry participants, which will lead to a significant decline in the new product sales.

The industry is highly consolidated owing to the presence of international players providing an extensive portfolio for infrastructural development. However, industry is expected to remain moderately competitive owing to the presence of regional dealers and contractors intervening in the businesses in some regions.