South America Excavator Market Outlook, 2029

The excavator market in South America is characterized by a complex interplay of growing infrastructure needs and evolving market trends, reflecting both regional development priorities and broader global influences. The fluctuation in oil prices, increased carbon footprints, and the weak economic conditions in South America are some of the challenging factors for the growth of the excavator market. The improving expansion of the industry will be driven by the arrival of critical development and growth in several large markets, such as Brazil and Colombia, as well as the continued strong growth of other markets, including Chile and Peru. The government's ambitious economic strategy involves increasing infrastructure spending to over USD 65 Billion per year by 2023, which will fuel the demand for the Brazilian construction equipment industry. Over the next few years, Brazil is anticipated to see steady development in green buildings. This prediction is based on the rapid growth of green certifications, which has resulted in a reasonably mature industry. The adoption of advanced excavator technologies, such as GPS and telematics, is becoming more prevalent, enhancing operational efficiency and providing real-time data for better management and maintenance. These technologies are particularly valuable in large-scale projects where precision and coordination are crucial. According to the research report "South America excavator Market Overview, 2029," published by Bonafide Research, the South America excavator market is expected to reach a market size of more than USD 6 Billion by 2029. The demand for excavators in South America is primarily driven by the region's substantial infrastructure projects, including the construction of roads, bridges, ports, and urban developments. Countries like Brazil, Argentina, and Chile are particularly active in these areas, with large-scale initiatives aimed at improving transportation networks and stimulating economic growth. Brazil's ambitious infrastructure plans, such as the expansion of its road network and the development of new urban areas, drive significant demand for excavators capable of handling extensive excavation and material handling tasks. Similarly, Argentina and Chile are investing heavily in mining and energy projects, which further increases the need for specialized excavators tailored to these industries. The South American excavator market is witnessing trends influenced by technological advancements and sustainability concerns. Furthermore, there is a growing emphasis on environmental sustainability, leading to increased demand for excavators with eco-friendly features, such as lower emissions and better fuel efficiency. This shift aligns with global trends toward reducing the environmental impact of construction and mining activities. Economic downturns and political uncertainties can lead to delays in project implementation and affect the overall demand for construction equipment. However, the long-term outlook remains positive, as continued urbanization, resource development, and infrastructure investment are expected to drive sustained demand for excavators across the continent.

The construction industry is the largest consumer of excavators in South America, particularly in countries like Brazil and Colombia. The demand for excavators in construction is expected to grow due to several factors, such as increased infrastructure investments, expansion of the construction industry, and rising urbanization. Brazil plans to invest $50 Billion in concession projects by 2023, which will drive a construction boom in the country's airways, roads, and railways. The crawler excavator market in Brazil is expected to generate solid revenue due to the considerable expansion of the construction industry, while increased urbanization is driving the demand for hydraulic excavators across South America. The mining industry is another significant consumer of excavators in South America, especially in countries like Chile and Peru. The demand for excavators in mining is driven by the growth of the mining industry and the adoption of advanced technologies. In July 2020, Hitachi Construction Machinery started verification tests for the development of autonomous ultra-large hydraulic excavators to improve mining site safety and productivity. While the construction and mining industries are the primary drivers of the excavator market in South America, there is also potential for growth in the utility and agriculture sectors. Hydraulic excavators are used in waste management applications, which is one of the key segments driving the global market. In Brazil, the crawler excavator market is expected to generate solid revenue in the coming years due to the considerable expansion of the construction, mining, and oil & gas industries. The concession model, in which firms and investors compete to invest in and run long-term projects, has become popular in Brazil's infrastructure development. According to Brazil's infrastructure minister, a US$50 Billion investment in concession projects would result in a construction boom, developing the country's airways, roads, and railways by the end of 2023. Investors have spent over $10 Billion on several projects, including a rail line connecting Brazil's east coast to the country's western agricultural interior, multiple road projects, five ports, and 22 airports. On August 1, 2010, this entry was published. The use of construction equipment on a rental basis is also driving the market growth. This helps small and medium-sized businesses by allowing them to buy equipment on a trial basis, which is one of the key factors driving the need for excavators in Brazil. South America has experienced significant growth in recent years, but this growth has not been uniform across the continent in terms of GDP and the infrastructure market. The major market drivers in the South American region are the recovery in the construction industry, the surge in private-public partnerships, and the rapid urbanization of the region. The end-users for excavators in South America range from manufacturing, oil & gas, forestry, mining, construction, and infrastructure. The marketers are now focusing on designing compact, high-performing models with more fuel efficiency. The prominent players have introduced advanced heavy construction equipment, which adheres to the government norms and caters to the demand from these end-users.

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Manmayi Raval

Research Consultant

COVID-19 impacts In March 2020, the World Health Organization (WHO) declared COVID-19 as a global pandemic, resulting in the governments of several countries imposing lockdowns. There is a high probability that the COVID-19 outbreak will have long-term effects on consumers’ lifestyles and behavior. In South America, the lockdowns have impacted construction activities, which have consequently affected the demand for excavators. However, the slowdown in industrial manufacturing is also likely to hamper market growth. The pandemic has impacted several industries, either directly or indirectly, disrupting vendor operations, supply chains, and product commercialization, among other economic activities. However, the halt in mining activities across the region has also hindered the wheeled excavator market. The industry is facing challenges such as price fluctuations, halted production, and disrupted supply chains due to the corona-virus pandemic. Major Companies Present In the Market Caterpillar Private Limited, CNH Industrial, Doosan Infracore, Epiroc Construction Machinery Co. Ltd, Hitachi Construction Machinery Co. Ltd, J C Bamford Excavators Ltd, John Deere Ltd, Kobe Steel Ltd, Komatsu Ltd., Kubota Corporation, Liebherr Group, Metso Corporation, Sandvik Mining And Rock Technology, Sany Group, Terex Corporation, Volvo Construction Equipments, XCMG Ltd. , Zoomlion Co. Ltd Considered In the Report • Geography: South America • Historical year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecasted year: 2029

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Countries covered: • Brazil • Argentina • Columbia • Rest of South America Aspects Covered In the Report • Market Size By Value for the historic time period (2018-2023) • Market Size By Value for the forecast time period (2024-2029) • Market Share by Application (Construction, Mining, utility & agriculture) • Market Share by Machine Type (Mini Excavator, Crawler, Wheeled, Others) • Market Share by Country (2018, 2023 & 2029F) The approach of the report: We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free. Intended Audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the construction machinery and excavator industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.