According to World Construction Machinery, a study conducted by The Freedonia Group, world demand for construction machinery is forecast to advance 3.9 percent per year through 2019 to $218 billion. The Asia/Pacific region, Central and South America, and the Africa/Mideast region are expected to register above average gains moving forward as construction spending continues to increase in developing countries, says the study. More than two-thirds of all addition construction equipment demand generated between 2014 and 2019 will be coming from China.
The study also reports that continued growth in construction activity and significant investment in large surface mining projects will help Central and South America recover from the sales declines registered between 2009 and 2014.
“Demand in the region had dropped largely due to declining sales in Brazil, which purchased a significant amount of new construction equipment in the intervening years in preparation for the 2014 FIFA World Cup and the 2016 Summer Olympics,” says analyst Lee Steinbock.
In addition, construction machinery demand in the Africa/Mideast region will advanced with increased surface mining activity and rising construction projects.
Finally, due to rising construction and surface mining activity, the study expects demand for excavators and loaders to advance at the fastest pace of any major type of construction machinery through 2019. It reports that increased infrastructure spending will also help support the demand for other construction machinery, including graders, mixers, pavers, rollers and other equipment.
World Construction Machinery, published June 2015, is available for $6,500 from The Freedonia Group. It presents historical demand data and forecasts for 2019 and 2024 in six world regions and 33 countries.
