Europe Construction Material Handling Machinery Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Europe Construction Material Handling Machinery Market Trends & Growth Drivers

Modular and Offsite Construction Is a Key Trend

• One of the emerging construction industry trends is offsite construction, which allows building elements to be designed, manufactured, and fabricated in a factory.
• In terms of sustainability, worker safety, and quality, it has revolutionized the construction lifecycle. According to a survey, in 2021, around 42% of the home builders in the U.K. had invested in manufacturing facilities or intended to do so in the near future.
• The demand for prefabricated housing is expanding across Europe as consumers seek turnkey solutions that meet all their modern needs. Manufacturing enterprises' acceptance, as well as the ease of planning, is projected to stimulate the demand for prefabricated infrastructure components even more.
• Additionally, due to population expansion and housing shortage, modular buildings are gaining popularity throughout Europe as a viable method of constructing inexpensive houses.
• For instance, Sweden displays a high penetration of prefabricated buildings. Sweden is the world leader in using panelized building systems, with roughly 80% of its housing sector relying on structures and materials prefabricated in factories.
• In Sweden, offsite manufacturing is employed to construct at least 45% of the new residences and 30% of the new multi-residence buildings. According to a study, in Sweden, around 7 out of 10 detached houses are constructed using prefabricated technology.

Increase in Infrastructure Investments Drives the Market

• 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.
• The European Commission has planned to invest about $340 billion by 2027 in infrastructure, digital, and climate projects.
• Thus, the increasing infrastructure investments are driving the demand for construction and material-handling machinery in the region.

Rising Material Cost Is a Challenge

• Following a progressive reopening across Europe in response to the declining infection rates and successful vaccine rollouts, the manufacturing and construction industries have seen increased activity.
• However, with the reopening, a spike in the cost of materials has also been seen. For instance, according to the Federation of European Construction Industry (FIEC), after the lockdown bitumen prices rose by 15% in three months, cement prices were up by 10% and wood prices were up over 20% in one month.
• Additionally, the shortage of many basic materials for construction is larger in Italy than in the Rest of Europe.
• Due to the tremendous increase in the prices, many firms have delayed in construction of sites due to the unavailability of materials and their high prices.
• Moreover, in 2021, according to a study, in Germany, around 44% of construction companies reported problems in procuring materials on time due to their increased prices.
• Further, in some cases, the cost of the whole construction project went up by a quarter of the original, particularly due to the rise in the cost of materials such as steel, cement, and polystyrene.
• This is attributed to the price rise of the raw materials needed for their production, including aluminum, iron, plastics, and oil. This may hamper the market growth.

Europe Construction Material Handling Machinery Market Analysis

Type Insights

• The earthmoving machinery category leads the market, with an estimated revenue share of above 40% in 2024, and it is also expected to witness the same trend in the coming years.
• The demand for earthmoving equipment, such as excavators and loaders, is increasing, as these products are used for multipurpose tasks and minimizing the total cost of a project.
• In addition, large investments in urban infrastructure development surge the need for earthmoving machinery in Europe.
• Regulatory bodies in European Union member states (EU-27) promote ownership and acquisition of homes. For instance, the Luxembourgish government has enforced a “super-reduced” VAT rate of 3%, instead of the standard 17% on construction and renovation of dwellings.

Types covered in the report include:

•  Earthmoving Machinery (Largest and Fastest-Growing Category)
• Material Handling Machinery
• Concrete and Road Construction Machinery
• Tunneling Machinery
• Others

End Use Insights

• The residential housing sector dominates the market, and it is also expected to witness the fastest growth in the coming years. This is because 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.

The following end uses are included in the report:

• Residential Housing (Largest and Fastest-Growing Category)
• Transport, Energy, and Water Infrastructure
• Institutional and Commercial Buildings
• Industrial Sites

Customer Insights

• The demand for construction and material handling equipment from rental companies is expected to observe a higher CAGR of over 5% 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.

Customers covered in the report are:

• Rental Companies (Larger and Faster-Growing Category)
• Contractors

Propulsion Type Insights

• The demand for electric-based construction and material handling equipment is projected to record a higher growth rate during the forecast period.
• This is because original equipment manufacturers and operators invest heavily in the electrification of heavy equipment.
• Moreover, the low total cost of ownership, reduction in battery prices, high performance of newer battery technologies, enhancement in charging infrastructure, and stricter emission control regulations encourage customers to adopt electric construction and material handling equipment.
• 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.

Propulsion types covered in the report are:

• Electric (Faster-Growing Category)
• ICE (Larger Category)

Geographical Analysis

• Germany leads the European construction material handling machinery market, with an estimated revenue share of above 20% in 2024, and the country market is also expected to witness the highest growth rate in the coming years.
• This is because it has many manufacturing industries, such as food and beverage, automobile, electronics, and manufacturing, which require large-scale material handling equipment for smooth operation and speeding up their processes, which have a positive impact on the market growth.
• This is also due to the government's focus on improving connectivity through the development of its rail and road transport infrastructure, coupled with efforts to boost energy production.
• A number of important transport infrastructure projects in Germany are carried out as public–private partnerships (PPPs).
• For instance, the renovation and expansion of the A7 motorway, which is a key component of the trans-European road network (TEN-T), has been initiated through a PPP between the government and a private contractor, for a total cost of $708 million.

Further, countries analyzed for this report include:

• Germany (Largest and Fastest-Growing Country Market)
• U.K.
• France
• Italy
• Spain
• Russia
• Switzerland
• Poland
• Netherlands
• Belgium and Luxembourg
• Rest of Europe

Europe Construction Material Handling Machinery Market Share

The European construction & material handling machinery market is highly fragmented in nature, due to the presence of a large number of local and international players, which are offering a wide range of product portfolios with minimal differentiation. These players have been involved in several development strategies, such as product launches, mergers and acquisitions, partnerships and collaborations, and facility expansions, to gain a competitive edge.

Europe Construction Material Handling Machinery Market News

• In May 2024, Hamm introduced the HC 200i C VA and HC 250i C VA compactors, compliant with EU Stage V / EPA Tier 4f standards, designed for automatic compaction to specified target values.
• In May 2024, Kleemann introduced the MOBISCREEN MSS 502(i) EVO, a versatile and compact mobile scalping screen designed for lower feed capacities of up to 350 tons/hour.
• In May 2024, Magni introduced the TH 3.6, designed for logistics, construction, and soon agriculture, the most compact fixed telescopic handler in its TH range, with a 3-ton capacity and a 5.8-m lifting height.
• In May 2024, Engcon showcased its third-generation tiltrotator, highlighting its benefits to the construction industry, at the INTERMAT 2024 trade show in Paris.
• In January 2022, Kalmar partnered with Coast Autonomous Inc., to develop and launch robotic solutions across the mobile equipment segment. This partnership would lead to the development of intelligent, flexible, and autonomous mobile equipment solutions designed for high safety, and productivity of cargo and material handling in terminals and ports, heavy logistics, and distribution centers.