A new study named World Construction Equipment, has been conducted by industry research firm, Freedonia Group Inc. Its findings estimate the world demand for construction machinery to advance 3.9 % annually until 2019, reaching an approximate sum of US$218 billion. This as a deceleration from the fast pace of growth between 2009 and 2014.
The majority of the demand will come from developing countries, and predominantly, China.
Due to increased construction in developing countries, Freedonia predicts that the Asia/Pacific region, Central and South America, and the Africa/Mideast region are expected to register above average gains. Infrastructure projects are a primary reason for this.
Moreover, the research suggests that China will be accountable for over two-thirds of the total additional construction equipment demand between 2014 and 2019.
Continued growth in construction activity and significant investment in large surface mining projects will help Central and South America recover from sales declines between 2009 and 2014.
In contrast, due to strong sales in 2014 alongside recovery from the global financial crisis, industrialised locations, such as North America and Western Europe will underperform.
According to analyst, Lee Steinbock: “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.”
Excavators and loaders are construction machinery products which are predicted to be in highest demand. Increased infrastructure spending will help to support advances for graders, mixers, pavers, rollers, and related equipment, whilst residential building construction spending, will help drive new crane sales.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/the-americas/29062015/demand-freedonia-group-construction-machinery-asia-china/