EARTH MOVING EQUIPMENT MARKET ANALYSIS

Market Challenges And Opportunities

Market Dynamics- Restraints

1. Strict regulatory policies regarding emission are expected to restrain growth of the global earth moving equipment market during the forecast period

Strict regulatory emissions related to construction & mining equipment are major factors restraining demand for earth moving equipment. Government agencies such as Environmental Protection Agency (EPA) impose heavy penalties on manufacturers who are unable to comply with standard norms. This is due to the fact that construction industry utilizes more diesel engines than other sectors. However, these norms vary from territory to territory and region to region.

2. Major concerns on safety & security are expected to hinder the global earth moving equipment market growth over the forecast period

Majority of equipment used on construction, mining, forestry, farming, and other industries are difficult to operate and should be handled with extreme care. Since this equipment is heavy and bulky, if they are not properly handled it could lead to injury or even death. This, in turn, is expected to hinder the global earth moving equipment market growth in the near future. According to the International Labor Organization (ILO), around 2.3 million people die every year, owing to accidents at workstations and occupational ailments.

Market Opportunities

1. Increase in government investment can present lucrative growth opportunities

In each country, construction & mining sectors contribute to the growth of the country’s GDP. Furthermore, the governments are announcing new construction projects in next 10 years, which in turn, is expected to present excellent growth opportunities for market players in the near future. Some of the ongoing projects, which will be completed in next few years are Eight City (South Korea), Sabine pass LNG Terminal Expansion (Louisiana), Khazar Islands (Azerbaijan), SmartCity, Kochi (India), and Abdali Project (Jordan).

2. Rising private-public partnership (PPP) to offer major business opportunities

Public and private sectors are making major investments in infrastructure combined with commercial and residential construction projects. The public-private partnership helps private investors with better guarantees and better institutional legal frameworks to accelerate country’s infrastructure construction. Some of the PPP projects include NH45 between Madurai and Chennai and Trichy (India), the port of Wilmington PPP project (U.S.), etc.

Figure 2: Global Earth Moving Equipment Market Value (US$ Mn), 2017 - 2027