Europe Construction & Material Handling Machinery Market Research Report: By Type (Earthmoving Machinery, Material Handling Machinery, Concrete and Road Construction Machinery, Tunneling Machinery), End Use (Residential Housing, Transport, Energy, and Water Infrastructure, Institutional and Commercial Buildings, Industrial Sites), Customer (Rental Companies, Contractors), Propulsion Type (Electric, ICE) - Industry Size and Growth Forecast to 2030

Market Overview

Europe Construction equipment and material handling machinery market size was $48,411.6 million in 2021, and it is expected to advance at a CAGR of 5.1% during 2021–2030. Some of the major factors driving the industry include the increasing labor cost in the construction sector, rising demand for modular and offsite buildings, surging investments in infrastructure, and rapid development of smart cities. So, it is expected that the construction equipment industry outlook will grow in Europe during the forecast period.

The effects of COVID-19 were wide and varied on the market in the pandemic time. This was due to the shortage of workforce, disruption of supply chains of materials and machinery, legal disputes regarding late payment, and delay and rescheduling of projects, across the world.

Earthmoving Machinery Is Highest Revenue Generator in the Market

In the European construction & material handling machinery market, earthmoving machinery held around 45% market share in 2021. Growing infrastructure projects, such as railways, dams, highways, bridges, and roads, in developing countries, are propelling the demand for earthmoving equipment, such as excavators and loaders.

Major Opportunity Areas

• The market growth rate is expected to surge in the coming years, as construction of the residential facilities will remain buoyant, due to low-interest rates on home loans and subsidies provided by governments. This will drive the sales of construction and material handling equipment in the region.
• Governing bodies of several countries across Europe have been investing in the development of road infrastructure, railways infrastructure, and commercial places. For instance, in December 2020, the European Union announced the Sustainable and Smart Mobility Strategy that aims at a two-fold increase in the high-speed rail traffic by 2030 and a three-fold increase by 2050.

Demand for Construction and Material Handling Equipment from Rental Companies To Record Faster Growth

The demand for construction and material handling equipment from rental companies is expected to observe a higher CAGR of 5.0% during the forecast period. This is because customers have a better understanding of the advantages of using rental equipment. They can save money by using rental services and have access to modern and technologically advanced equipment. It also provides flexibility and implies less capital expenditure. A key trend in the construction & material handling machinery market is that OEMs rent out construction equipment or invest in rental companies. For instance, excavators and wheel loaders of Hitachi Construction Machinery are now available for rent in Europe via its dealer network, under the Hitachi Premium Rental initiative.

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Machinery Used in Building Residential Housing Held Largest Share in 2021

The residential housing sector held over 40% market share in 2021. The demand for affordable housing in Europe is continuously rising and governing bodies are increasingly implementing measures to address the citizen’s needs. The reduction of the VAT rate for the purchase or construction of a new dwelling is commonly implemented in European Union member states. For instance, as per the U.K. government’s First Homes Scheme, first-time buyers will be able to purchase a new-build home in their community at a discount of 30% on the market price.

Total Cost of Ownership of Electric Equipment Used in Construction Sector Is about 20% Less than Conventional Type

The demand for electric construction equipment is growing at a higher pace in the European construction & material handling machinery market. For instance, the French Ministry of Ecological and Inclusive Transition stated that the construction industry accounts for around 44% of the energy consumption in France and about 25% of the country’s CO2 emissions.

Increase in Infrastructure Investments Drives the Market Growth

• In November 2021, the five largest hospital construction projects were commenced in Europe: (i) Hospitacite Hospital Complex Redevelopment, located in Belgium on 10 hectares of land and is worth $493 million. (ii) Lörrach Central Hospital Campus Development, located in Germany, covers a gross floor area of 47,000 m2 and is worth $418 million. (iii) Galliera Hospital Project, which involves the construction of a 73,400 m2, 400-bed hospital in Italy for $185 million. (iv) Albacete University Hospital Complex in Spain has a total gross floor area of 76,000 m2 and is worth $170 million. (v) Grunwald Central Integrated Clinical Hospital in Poland, which has an area of 45000 m2 and is worth $158 million.
• he European Commission has planned to invest about $340 billion by 2027 in infrastructure, digital, and climate projects.

To Increase Market Share, Companies Involving in Mergers and Acquisitions and Facility Expansions

• In July 2021, a subsidiary of SANY Heavy Industry Co. Ltd., SANY UK Ltd. opened a new branch in Scotland, which offers construction machinery.
• In October 2021, Manitowoc Company Inc. acquired the crane business of H&E Equipment Services Inc., a rental equipment company in the U.S., for approximately $130 million. Manitowoc has also expanded its capacity to deliver new equipment sales, used equipment sales, aftermarket parts, servicing, and crane financing to a broader range of clients.
• In October 2021, a subsidiary of Toyota Industries, Cascade Corporation acquired Lift Technologies Inc. (U.S.) and Lift-Tek Elecar S.p.A. (Italy), commonly referred to as Lift-Tek, which manufactures and sells forklift masts. Forklifts are used for various material handling operations in factories and distribution warehouses.

Key Players in Europe Construction & Material Handling Machinery Industry Are:

• LIEBHERR-International Deutschland GmbH
• Caterpillar Inc.
• AB Volvo
• Sany Heavy Equipment International Holdings Company Limited
• Komatsu Ltd.
• Hitachi Ltd.
• J.C. Bamford Excavators Limited
• Xuzhou Construction Machinery Group Co. Ltd.
• The Manitowoc Company Inc.
• KION Group AG
• CNH Industrial N.V.

Market Size Breakdown by Segments

The European construction & material handling machinery market report offers comprehensive market segmentation analysis along with market estimation for the period 2017–2030.

Based on Type

• Earthmoving Machinery
  • Excavators
  • Loaders
  • Dump trucks/tippers
• Material Handling Machinery
  • Forklifts
  • Fixed cranes
  • Mobile cranes
  • Conveyors
• Concrete and Road Construction Machinery
  • Mixing plants
  • Mixer trucks
  • Pumps
  • Pavers
• Tunneling Machinery

Based on End Use

• Residential Housing
• Transport, Energy, and Water Infrastructure
• Institutional and Commercial Buildings
• Industrial Sites

Based on Customer

• Rental Companies
• Contractors 

Based on Propulsion Type

• Electric
• ICE

Geographical Analysis

• Germany
• France
• U.K.
• Italy
• Spain
• Russia
• Switzerland
• Poland
• Netherlands
• Belgium and Luxembourg