The need for infrastructural development, backed by the increasing road connectivity projects, expected to give a potential market growth for the Asphalt Finishers.
With the increase in the governments’ efforts in developing the infrastructure, the increasing population that have given rise to the increase in the demand for more housing units, and the need for more commercial buildings due to globalizations have made the construction equipment market bloom over the past and continue in the coming future too. According to the report published by Bonafide Research named “Global Construction Equipment Market Outlook, 2025” the market that was witnessed at USD 110.67 Billion in the year 2014 grew gradually over years and attained a market of more than USD 130 Billion by 2018. The rental and leasing trends, involvement of private firms in the sustainable infrastructural development and the accelerating government expenditure towards the infrastructure market are to support the market of construction equipment in the coming future. The global construction equipment market is very much likely to be affected by the Covid-19 outbreak that made the construction industry come to a halt for months. The market is to face a down fall in the year 2020 reaching less than USD 140 Billion. Even though, the investments towards the construction industry are likely to decrease due to the economic constrains, the construction equipment market is likely to survive on the pre planned projects. The earth moving machineries that lead the market share is expected to show a less CAGR than the road construction equipment, which is to grow with an anticipated CAGR of more than 7%.
Understanding the fact that an efficient road transport system is a pre-requisite for sustained economic development, the governments have taken in to consideration about mending the poor quality roads, giving more scope for the segment equipments to grow. The regions of Asia and Africa are expected to be most profitable, being the cluster of developing and under developing economies. Both these regional market are expected to be much in favour of concrete and road construction equipment due to the poor road conditions.
On the other hand, the vertical expansion in constructions is to let the material handling machinery segment cover a market of more than 20%. In terms of share, Asia has been the undefeated lead, with more than 35% of the market share. Historically, North America held the second position, which is likely to show a decrease in the share up to an extent of creating possibility of Europe taking over the position post the forecasted period. The smaller regions of Latin America and Middle East & African countries are likely to show an increase in the market share.