Chemical and Power Industry Trends

How Is Rapid Urbanization Facilitating Construction Equipment Sales?

The World Bank states that the global urban population increased from 4.274 billion in 2019 to 4.352 billion in 2020. It also forecasts that by 2050, around 7 out of 10 people across the world will reside in cities. The increasing influx of people from rural areas to urban areas, especially in developing countries, such as China, Brazil, and India, in search of employment and a better lifestyle, is resulting in the construction of numerous housing units. 

Thus, the booming urban population will contribute to the construction equipment market growth during the forecast period (2021–2030). According to P&S Intelligence, the market revenue stood at ~$180 billion in 2020. The accelerating urbanization rate is also encouraging several governments to heavily invest in the modernization of public infrastructure. Additionally, the increasing number of manufacturing units, owing to the burgeoning demand for consumer goods from the urban population, will also drive the demand for construction equipment in the forecast years.

Currently, construction equipment manufacturers are widening their product portfolio to reach out to a greater number of construction companies. For instance, in March 2019, Komatsu Ltd. launched the PC30E-5, a new electric mini excavator, in Japan to target the rental industry. Other companies engaging in product launches include Volvo Construction Equipment, Deere & Company, Caterpillar Inc., Sany Heavy Industry Co. Ltd., Liebherr AG, Doosan Infracore, Terex Corporation, Joseph Cyril Bamford Excavators Ltd., and Hitachi Construction Machinery. 

Globally, the Asia-Pacific region is expected to hold the largest share in the construction equipment market during the forecast period, due to the mounting investments being made by governments in construction activities in the region. Moreover, the surging public demand for residential infrastructure in South Korea, China, Japan, and India, owing to the booming urban population in these countries, will also catalyze the market growth in the region. For instance, the World Bank found that the urban population in India grew from 471,031,529 in 2019 to 481,980,332 in 2020.

Thus, the rising urban population and soaring number of production units will augment the usage of construction equipment worldwide.

Read More: https://www.psmarketresearch.com/market-analysis/construction-equipment-market

Share:

No comments:

Post a Comment

Total Pageviews

Popular Posts

Labels

Recent Posts

Label Cloud