Demand for Earthmoving and Material Handling Equipment in Germany is Set to Increase
According to Arizton's latest research
report, Germany construction equipment market will grow at a CAGR of 4.02%
during 2021-2028. The country's new government under the 'Federal Ministry for
Housing, Urban Development and Building in 2022 has aimed to expand housing
construction. It has planned to build 400,000 apartments every year. Under the
Housebuilding subsector, investments grew by 39% in 2021, where the number of
new flats and houses coming to the market doubled to more than 300,000 units.
Such initiatives by the government give a significant boost to the Germany
construction equipment market.
Market Size and Forecast is projected in:
Value ($ Billion)- USD 5.94 Billion
Volume (Units)- 101,807 Units
The Germany Rail (Deutsche Bahn) and the
federal government have targeted to spend USD 13.56 billion in 2022, which is a
6.3% increase compared to 2021. This investment by the government majorly
focuses on renewing and modernizing Germany's rail infrastructure. The country
has planned to mend bridges on much of the country's Autobahn network. A budget
of USD 529.17 million has been set by the German Government's Road firm,
Autobahn, in 2022.
In addition, the German government allotted
USD 372.42 million for road construction projects in 2022 in the Brandenburg
region, which is approximately USD 5 million higher than in 2021, which will
significantly contribute to the Germany construction equipment market growth.
The Earthmoving Segment Accounted for the
Largest Share
In 2021, the earthmoving segment accounted
for a share of 56.5% of the Germany construction equipment market. Excavators
accounted for the largest market share of 54.3% of the earthmoving segment.
Germany's National Development Plan 2030
has increased the number of civil engineering and housing projects in 2021,
which, in turn, is expected to support the demand for excavators in Germany.
High Demand for Excavators Due to Mining,
Construction, and Smart City Projects
Regardless of the Covid-19 impact,
investment opportunities in the construction industry have attracted foreign
investors who have aided the construction equipment market in 2021. The
government's aid in the residential projects, rise in infrastructure
construction, increase in FDI and surge in the rental investment of
construction equipment is expected to lead the Germany construction equipment
market.
The growing demand for excavators is
attributable to the improvements in the mining and construction sectors and a
few government projects like the smart city project. The smart city project is
supported by the government's investment of USD 751.42 million. The mining
industry consumes a large part of the excavator industry in Germany. Hard coal
and lignite make up most of the mineral resources extracted in the country.
Investment in Green Infrastructure Strategy
The country has targeted investing USD 220
billion by 2026 to support the industrial transformation, including climate
protection, hydrogen technology, and electric vehicle charging station
expansion. The construction machinery and building experienced a 22% increase
from the previous year (2020) due to the infrastructure push with highways,
dams, and green cities, which require tons of heavy machinery; such activities
are contributing to the Germany construction equipment market.
