Insights on the Construction Material Global Market to 2027: Rising Need for Global Production Companies to Automate Operations and Foster the Flow of Goods Drives Growth
The rising need for global production companies to automate operations and foster the flow of goods in an efficient manner is the key force driving the market at present.
Growth in the market is also driven by improving investment in the construction and industrial sectors, growing consumer spending on non-durable as well as durable products, improvement in fixed investment spending, and a rise in mining activities worldwide.
Growth in the material handling equipment industry is further underpinned by the replacement of antiquated machinery with new automated systems and robotics amid the increasing production shift towards artificial intelligence and Industry 4.0. A notable trend in the industry is the increasing switch to cleaner battery-powered electric materials handling systems.
Demand for automated guided vehicles and automated conveyors is expected to particularly register strong gains through the forthcoming years. Mature industrialized countries in Europe and the US contribute to the bulk of revenues, fueled by healthy replacement demand and the move towards automation and modernization of production processes in key end-use sectors.
According to the report titled Global Construction Material Handling Market Outlook, 2027 the right combinations of tools in the material handling equipment have attracted construction companies and contractors, bringing in huge investments in the industry, marking a market value of USD 30 billion in the year 2021.
The growth can be attributed to the advantageous involvement of these machines on the construction site, which leads to a reduction in the time involved and a reduction in the lead-time. Owing to the need for optimum utilization of resources, the demand for material handling equipment in construction has increased.
The material handling machines are further classified into four categories based on their purpose of use on the construction site. The dump truck machine is powered by its hydraulics feature, which allows the operator to lift and dump the load single-handedly.
The dumpers, or dump trucks, are one of the oldest pieces of machinery in the market and are expected to start losing their share due to the introduction of more compact models and hold more than 40% by 2027. Cranes are commonly known as machinery, and they are preferred due to their easy assembly, flexibility, and ability to access high areas.
Asia-Pacific is the highest contributor in the market, holding a share of more than 30% in the year 2021. The economically developing regions of the Middle East & Africa and Latin America are also to have an increase in their contribution to the material handling market. As many countries in the region are in their developing stages, the need for infrastructural development is at its peak, which is to drive the material handling machinery market in the forecasted period.
The major regions like North America and Europe follow Asia-Pacific in market share. Unlike the trends in Asia Pacific, these regions are likely to have a decrease in their market contribution during the end of the forecasted period. Nevertheless, the need to develop the infrastructure and the demand for more housing units are expected to drive the construction market in the forecasted period, which would support the growth of the material handling machinery market.
North America represents a key market and growth is anticipated to gain from rising awareness regarding worker safety, the need to efficiently manage bulk materials and the emergence of Industry 4.0 with increasing penetration of IoT.
In addition, the requirement to minimize downtime along with a strong focus on making the supply chain more efficient is expected to further drive the adoption of material handling equipment like electric lift trucks. Growth in the European market is attributed to increasing use of automation solutions and significant investments by governments to foster adoption of advanced platforms.
The region is also witnessing the increasing launch of sophisticated solutions to ensure seamless and efficient operations. Factors such as the promising outlook of the manufacturing sector, the ongoing transition towards automation and increasing labor costs are anticipated to compel manufacturers in the Asia-Pacific region to embrace material handling equipment to increase process throughput.
As online shopping is rising more rapidly than ever before, customization is at an all-time high, according to industry experts. Customized systems and mining equipment are going to be on the rise, and this will help push the industry to grow.
Even though the demand for industrial use cases saw a marginal setback in 2020, explosive growth in the e-commerce space has helped maintain the growth of the material handling equipment industry amidst the pandemic. Healthy demand for delivery and distribution of grocery products during the nationwide lockdown has set high hopes for material handling equipment manufacturers.
COVID-19 Impacts:
In 2020, the corona-virus (COVID-19) pandemic negatively impacted the material handling equipment market's growth. Several government organizations have imposed stringent lockdowns to stop the spread of the virus. This hampered the global supply chains, halted production facilities, and business expansion plans of large manufacturers.
However, with the resumption of industrial activities following the relaxation of lockdown measures, the market will regain traction in 2021. The industry is expected to showcase growth with increasing demand from the e-commerce market during the ongoing pandemic. A rise in the number of people preferring online shopping will encourage e-commerce providers to modernize their warehouses, supporting the market outlook.
Major companies present in the market
Caterpillar Private Limited, Doosan Infracore, Epiroc Construction Machinery Co. Ltd, Hitachi Construction Machinery Co. Ltd, J C Bamford Excavators Ltd, Kobe Steel Ltd, Komatsu Ltd., Liebherr Group, Sany Group, Terex Corporation, Volvo Construction Equipments, XCMG Ltd., Zoomlion Co. Ltd
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