A compaction machine is a type of mechanical equipment typically used to reduce and compact the size of soil or gravel used in the construction of dams and airports. Road rollers or compactors are the most common example of compaction machines that use the weight of the vehicle to compact the surface being rolled. Moreover, some machines use their mechanical advantage through vibration by getting ample power from their engines. The weight of compaction can be increased by filling sand or water ballast in the hollow cylinder. Different machines and equipment are used in compaction including rammers, smooth wheeled rollers, pneumatic tiered rollers, sheepsfoot roller, pad foot rollers, etc. These machines are used for compaction of broken stones, sand, soil, etc.
Market Statistics:
The global compaction machines market is expected to surpass US$ 8,525.0 Mn in terms of value by the end of 2030.
Global Compaction Machines Market: Driver
Rapid urbanization across the globe is expected to drive growth of the global compaction machines market during the forecast period. Urbanization across the globe has been increasing rapidly, especially in emerging economies such as India and China. According to the United Nations (UN), by 2050, 68% of the world population is expected to live in urban areas. According to the same source, the urban population of the world increased from 751 million in 1951 to 4.2 billion in 2018. Moreover, North America is the most urbanized region in the world, accounting for 82% of its population living in urban areas in 2018.
Global Compaction Machines Market: Opportunity
Rising penetration of rental business and secondary sales market. Globally the number of organized players with large rental fleets is limited since these players lack the capacity to expand their operations. Moreover, organized players encounter stiff pricing competition from the unorganized sector, where players are involved in off the book cash transactions and can, therefore, offer much lower rates. Existing spares secondary trades are based on non-standardized transaction prices.
Global Compaction machines Market: Recent Developments
- Key companies in the market are focused on mergers and acquisitions, in order to enhance market presence. For instance, in January 2017, Fayat Group acquired the road construction equipment division of Atlas Copco.
- Major players in the market are involved in product launches, in order to expand the product portfolio. For instance, in September 2019, BOMAG GmbH introduced its road construction machines including 58kg tamper to a 58-ton refuse compactor.
- In February 2021, Dynapac Inc. a manufacturer pavers, mobile feeders, rollers and planers launched its CA385D soil compactor product in the Indian market. Which features a static linear load of 39 kg/cm and a drum shell thickness of 35 mm to fulfill high compaction requirements.
- In April 2019, Sany Heavy Industry India Pvt Ltd. (Sany India) a wholly owned subsidiary of Sany Heavy Industry Co Ltd. Launched new product line of Truck Crawler and all terrain Cranes, Road Equipment’s Mining Equipment in Excon 2019 held at Karnataka, India.
- In March 2021, Wacker Neuson a manufacturer of construction equipment and compact machines launched DPU6555 Hech Reversible Plate Compactor in India. This Plate Compactor can be used for all types of soil compaction on roads, railways (rail beds), pathways,
Global Compaction Machines Market: Restraint
High costs of installation and delay in approvals for infrastructural projects are expected to hamper the global compaction machines market growth over the forecast period. New road construction costs for projects collected range from roughly US$ 100,000 to US$ 2.7 Mn per lane Km, depending upon the type of roadway (expressway, motorways and access roads), and the project’s location (urban or rural roads). In India, private investments fell short of investment targets by a third during the 11th Five Year Plan, owing to funding constraints for road projects and delays caused by land acquisition issues.
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Global Compaction Machines Market - Impact of Coronavirus (Covid-19) Pandemic
The global compaction machines market experienced major decline due to the outbreak of COVID-19. Business owners had to partially shut down or halt their routine operations, in order to curb the spread of virus. With many countries adopting nationwide lockdown policies, it became highly challenging for market players to maintain operational activities. Besides, the market witnessed major negative impact due to the disruption in the global supply chain industry with transportation system being hindered due to regulations on physical distancing. Regardless, the market players are optimistic about the future development with many countries alleviating the regulations, in order to aid the economic activities.
Key Takeaways:
- The global compaction machines market was valued at US$ 4,955.1 Mn in 2021 and is forecast to reach a value of US$ 8,525.0 Mn by 2030 at a CAGR of 6.5% between 2021 and 2030.
- The Light Compaction Machines segment was valued US$ 1,343.6 Mn in 2021 and is expected to witness a CAGR of 3% over the forecast period.
Market Trends
Intelligent compaction is one of the most significant technological developments for the road construction sector at present. European manufacturers are concentrating on developing intelligent compaction to further improve their market share in the global market. In Western Europe, Germany is the key market for light compaction machines and accounts for a 97% share of its overall sales. The heavy compaction machinery segment exhibits substantial potential in Western Europe Market
In terms of volume, China & India together currently account for 63% share of the overall Asia Pacific market, and these countries are expected to dominate the market, expanding at high growth rates, during the forecast period as well. The major vendors in the aforementioned countries are offering compaction machines at 10-30% low prices as compared to European market manufacturers and, thereby, making the market more price-sensitive and challenging for the European manufacturers.
Competitive Section
Key players operating in the global compaction machines market are Wacker Neuson SE, Sany Heavy Industry Co. Ltd, Volvo Construction Equipment, Wirtgen Group, Caterpillar Inc., Atlas Copco, Terex Corporation, Zoomlion Heavy Industries Science & Technology Co Ltd, Fayat Group, BOMAG GmbH, and XCMG Co. Ltd.
