Europe Construction & Material Handling Machinery Market To Generate Revenue Worth $75,436.3 Million by 2030
- Published: March 2022
The European construction & material handling machinery market revenue stood at $48,411.6 million in 2021, and the market size will advance at a CAGR of 5.1% during the forecast period, to reach $75,436.3 million by 2030. This can be ascribed to the advancements in technologies of equipment, surge in infrastructure investments, and rapid development of smart cities. For instance, technologically advanced machinery increases productivity and minimizes the cost of a construction project. Other major factors that drive the industry include the increase in labor cost and surge in demand for modular and offsite buildings.
The construction sector represents about 14% of the world’s GDP. The demand for construction equipment depends highly on GDP growth and economic activities. However, the world’s GDP decreased sharply in the second quarter of 2020, owing to the COVID-19 outbreak. Thus, equipment manufacturing companies in Europe reported huge losses, due to a higher decrease in sales of their products in the pandemic time.
Earthmoving Machinery Dominates the Market
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. 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.
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 for the adoption of electric construction and material handling equipment.
Collaborations and Partnerships Are Most-Effective Strategic Measures
Players in the European construction & material handling machinery market have been involved in collaborations and partnerships to remain competitive in the industry. For instance:
- 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.
- In October 2021, Proterra Inc. and Komatsu Ltd. announced a new collaboration to electrify next-generation underground mining machines using Proterra’s battery technology. Under this collaboration, Proterra would supply its H Series battery system technology to Komatsu for the development of battery-electric LHDs, drills, and bolters for underground hard rock mining.
Some of the major players operating in the European construction & material handling machinery market 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, and CNH Industrial N.V.