Used construction machinery market 2023-2027
According to Technavio, the global used
construction machinery market size is estimated to grow by USD 27.33 billion
from 2022 to 2027. The market is expected to grow at a CAGR of 5.3% during the
forecast period. Moreover, the growth momentum will accelerate. APAC will
account for 56% of the growth of the global market during the forecast period.
Segment overview
Technavio has segmented the market based on
product (crane, excavator, material handling equipment, and others) and application
(commercial, residential, and infrastructure).
The crane segment will grow at a
significant rate during the forecast period. This growth is attributed to
factors such as the rising demand for cranes for construction and industrial
applications. Cranes are used in the construction of chemical, energy, power
distribution, utilities, and other industrial plants. In the construction
sector, the rising number of high-rise buildings for residential and commercial
purposes is expected to increase the demand for used cranes.
Geography overview
Based on geography, the global used
construction machinery market is segmented into APAC, North America, Europe,
South America, and Middle East and Africa. The report provides actionable
insights and estimates the contribution of all regions to the growth of the
global used construction machinery market.
APAC is estimated to account for 56% of the
growth of the global market during the forecast period. This growth is
attributed to factors such as the growing construction activities in emerging
Asian economies. The steady growth of the market in the region will generate a
demand for new infrastructure to provide residential and commercial spaces for
the growing urban population.
Key factor driving market growth
The growing secondhand machine market is
driving the market growth.
Manufacturing and mining industries in
countries such as Romania and Germany have closed due to high labor costs and
strict pollution laws, which has increased the availability of used machines.
Many industries have moved to APAC to
leverage low-cost manufacturing, which has increased the demand for used
machines from the US and Europe in emerging economies such as China and India.
Used machines enable businesses to manage
their capital investment, as they are available at affordable prices.
Such factors are expected to increase the
demand for used construction machinery, which, in turn, will propel the growth
of the market during the forecast period.
Leading trends influencing the market
The growing trend of used construction
equipment rentals is a key trend in the market.
Used construction equipment such as crawler
excavators are highly expensive and require a significant initial investment,
which makes it difficult for mining companies to buy the equipment for
small-scale or short-term projects.
Hence, mining and construction companies
prefer to rent their machines for a fixed period based on the requirements of
their projects.
Renting used construction machinery is
common in Europe, MEA, and North America and this trend is rapidly gaining
momentum in developing countries.
Major challenges hindering market growth
Stringent emission regulations will hamper
the market during the forecast period.
The focus on combating climate change and
making production and construction processes more environmentally friendly has
compelled organizations to enforce strict emission regulations.
Environmental governing bodies have set
strict emission standards for factories, vehicles, production facilities, and
waste management machinery and equipment.
The need to comply with new and strict
emission regulations has declined the profit margins of various manufacturers
of used construction machinery, as designing and manufacturing machines as per
new standards increases costs.
As a result, the rise in price will
increase the price of such machines, which is expected to curb the growth of
the market during the forecast period.
