China to join India with renewed growth as Europe and North America also set for expansion, says Off-Highway Research forecast
Global sales of construction equipment are expected to rise by more than 16% this year, exceeding 810,000 units worldwide for a total value of more than $80bn, according to projections by Off-Highway Research.
The increase in demand comes after around two years of a depressed global construction machinery sector and is being led by continued growth in the Indian market along with a return to growth for the Chinese market this year after a period of flatness, said a report from the specialist consultancy. Most major regional equipment markets are also expected to see growth this year, the report added.
While excavator sales in China have more than doubled in the first half of 2017 compared to the same period last year, the Indian market is expected to remain strong with more than 10% growth this year following the 36% surge it saw last year. In terms of volume, India is projected to best its record high of 54,065 machine sold in 2011, making this year the best so far in the number of machines sold.
In Europe, sales of construction equipment in are expected to grow 2% this year to almost 145,000 units. This moderate rise follows an 11% surge in 2016, which was driven by booming demand from the German residential construction sector.
The North American market is also projected to reach 170,000 units, an expansion of 8% that would take it back to levels seen in 2014 and 2015.
Meanwhile, Japan was forecast by Off-Highway to post a 4% rise in equipment sales this year as it comes out of its slump of 2016, which the research firm termed a correction after three years of unusually high sales in response to government stimulus policies and the demand for equipment for reconstruction after the 2011 earthquake and Tsunami.
From a long-term perspective, Off-Highway Research said it expects global construction equipment sales to rise to close to 900,000 units by 2021, valued at more than $90bn in today’s terms.