Global demand for excavators is forecast to advance 9.9 percent per year through 2021 to $50.6 billion, approximating the average market pace, according to recent data from The Freedonia Group. Growth in the segment will be supported by:
These and other trends are presented in Global Construction Machinery, 6th Edition, a new study from The Freedonia Group, a Cleveland-based industry research firm.
The development of more sophisticated excavators will contribute to segment gains in dollar terms. As advanced technologies (e.g., more fuel-efficient engines) are incorporated into new models, their cost will rise. In response, construction, surface mining, and energy companies will replace outdated excavators with better-performing machines that utilize less fuel, offer greater mobility, are easier to maintain, and are compatible with a larger number of attachments. More fuel-efficient and hybrid models will also be introduced to reduce operating costs.
Global demand for all types of construction machinery is projected to increase 9.6 percent per year through 2021 to $250 billion, a major improvement over the losses posted during the 2011 to 2016 period. Multiple factors will drive global market gains in dollar terms, including increases in residential, nonresidential, and nonbuilding construction activity; expansion of the global mining, forestry, and energy sectors, bolstered by a recovery in commodity, natural gas, and crude oil prices following a period of decline; the replacement of outdated construction machinery by companies that delayed purchases in recent years because of weak economic conditions; and rising sales of more expensive, better performing equipment.
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