Global Construction Material Handling Machinery Market Outlook, 2027

The rising need for global production companies to automate operations and foster the flow of goods in an efficient manner is the key force driving the market at present. Growth in the market is also driven by improving investment in the construction and industrial sectors, growing consumer spending on non-durable as well as durable products, improvement in fixed investment spending, and a rise in mining activities worldwide. Growth in the material handling equipment industry is further underpinned by the replacement of antiquated machinery with new automated systems and robotics amid the increasing production shift towards artificial intelligence and Industry 4.0. A notable trend in the industry is the increasing switch to cleaner battery-powered electric materials handling systems. Demand for automated guided vehicles and automated conveyors is expected to particularly register strong gains through the forthcoming years. Mature industrialized countries in Europe and the US contribute to the bulk of revenues, fueled by healthy replacement demand and the move towards automation and modernization of production processes in key end-use sectors. According to the report titled "Global Construction Material Handling Market Outlook, 2027" by Bonafide Research, the right combinations of tools in the material handling equipment have attracted construction companies and contractors, bringing in huge investments in the industry, marking a market value of USD 30 billion in the year 2021. The growth can be attributed to the advantageous involvement of these machines on the construction site, which leads to a reduction in the time involved and a reduction in the lead-time. Owing to the need for optimum utilization of resources, the demand for material handling equipment in construction has increased. The material handling machines are further classified into four categories based on their purpose of use on the construction site. The dump truck machine is powered by its hydraulics feature, which allows the operator to lift and dump the load single-handedly. The dumpers, or dump trucks, are one of the oldest pieces of machinery in the market and are expected to start losing their share due to the introduction of more compact models and hold more than 40% by 2027. Cranes are commonly known as machinery, and they are preferred due to their easy assembly, flexibility, and ability to access high areas.

Asia-Pacific is the highest contributor in the market, holding a share of more than 30% in the year 2021. The economically developing regions of the Middle East & Africa and Latin America are also to have an increase in their contribution to the material handling market. As many countries in the region are in their developing stages, the need for infrastructural development is at its peak, which is to drive the material handling machinery market in the forecasted period. The major regions like North America and Europe follow Asia-Pacific in market share. Unlike the trends in Asia Pacific, these regions are likely to have a decrease in their market contribution during the end of the forecasted period. Nevertheless, the need to develop the infrastructure and the demand for more housing units are expected to drive the construction market in the forecasted period, which would support the growth of the material handling machinery market. North America represents a key market and growth is anticipated to gain from rising awareness regarding worker safety, the need to efficiently manage bulk materials and the emergence of Industry 4.0 with increasing penetration of IoT. In addition, the requirement to minimize downtime along with a strong focus on making the supply chain more efficient is expected to further drive the adoption of material handling equipment like electric lift trucks. Growth in the European market is attributed to increasing use of automation solutions and significant investments by governments to foster adoption of advanced platforms. The region is also witnessing the increasing launch of sophisticated solutions to ensure seamless and efficient operations. Factors such as the promising outlook of the manufacturing sector, the ongoing transition towards automation and increasing labor costs are anticipated to compel manufacturers in the Asia-Pacific region to embrace material handling equipment to increase process throughput. As online shopping is rising more rapidly than ever before, customization is at an all-time high, according to industry experts. Customized systems and mining equipment are going to be on the rise, and this will help push the industry to grow. Even though the demand for industrial use cases saw a marginal setback in 2020, explosive growth in the e-commerce space has helped maintain the growth of the material handling equipment industry amidst the pandemic. Healthy demand for delivery and distribution of grocery products during the nationwide lockdown has set high hopes for material handling equipment manufacturers.

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Manmayi Raval

Research Consultant

Several government organizations are focusing on the advancement of the industry through favorable initiatives. Those initiatives will fuel the adoption of high-performance material handling equipment across industrial facilities. The material handling equipment industry will gain traction with increasing awareness of replacing old manual techniques with new machines to maximize throughput. E-commerce players are focusing on stepping up their distribution networks and warehouses to assure timely delivery of MHE equipment. High demand for material handling equipment will further enable the efficient storage and transfer of goods in a system. For example, the U.S. government has recently proposed a $3.0 trillion package to uplift the economy, which also includes investments for the improvement of manufacturing and high-technology industries. Growing modernization of industrial facilities and infrastructure to uplift their production capabilities is expected to boost material handling equipment industry growth in the coming years. The growing demand for technologically advanced equipment, growth in emerging nations, and increasing usage of automation in all product segments are the major market drivers for the growth of the material handling equipment market. However, the high cost of equipment and the lack of skilled labor obstruct market growth. Moreover, challenges such as high diesel consumption and increasing oil prices are also hindering the growth of the market. However, the market has growth opportunities like significant government investment in infrastructure development and growth in the e-commerce industry. Rising demand for maintaining an effective flow of materials across industrial facilities; the inclination of players across industry verticals to upgrade their current machinery range; and constantly increasing demand for infrastructural activities are some of the most important drivers for growth in the global material handling equipment market. Furthermore, rising usage of these machines across end-use industries as well as the emergence and fast-paced development of several new age technologies, including the internet of things (IOT), warehouse management systems (WMS), hands-free communications systems, and artificial intelligence (AI), are also likely to propel the expansion of the global material handling equipment market in coming years. Usage of these new technologies and associated tools may aid end users in increasing their overall productivity through the reduction of operational errors as well as by ensuring a smooth flow of materials and supplies. This trend is also anticipated to generate new momentum in the global material handling equipment market in coming years.

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COVID-19 Impacts: In 2020, the corona-virus (COVID-19) pandemic negatively impacted the material handling equipment market's growth. Several government organizations have imposed stringent lockdowns to stop the spread of the virus. This hampered the global supply chains, halted production facilities, and business expansion plans of large manufacturers. However, with the resumption of industrial activities following the relaxation of lockdown measures, the market will regain traction in 2021. The industry is expected to showcase growth with increasing demand from the e-commerce market during the ongoing pandemic. A rise in the number of people preferring online shopping will encourage e-commerce providers to modernize their warehouses, supporting the market outlook. Major Companies Present In the Market Caterpillar Private Limited, Doosan Infracore, Epiroc Construction Machinery Co. Ltd, Hitachi Construction Machinery Co. Ltd, J C Bamford Excavators Ltd, Kobe Steel Ltd, Komatsu Ltd., Liebherr Group, Sany Group, Terex Corporation, Volvo Construction Equipments, XCMG Ltd., Zoomlion Co. Ltd Considered In the Report • Geography: Global • Base year: 2021 • Historical year: 2016 • Estimated year: 2022 • Forecasted year: 2027 Regions covered: • North America (USA, Canada, Mexico) • Europe (UK, Germany, Russia, France, Spain, Italy) • Asia Pacific (Japan, India, China, Australia) • South America (Brazil, Argentina, Columbia) • Middle East & Africa (Saudi Arabia, UAE, Qatar, South Africa) Aspects Covered In the Report • Market Size By Value for the historic time period (2016-2021) • Market Size By Value for the forecast time period (2021-2027) • Market Share by Application (2016, 2021 & 2027F) • Market Share by Equipments (2016, 2021 & 2027F) • Market Share by Region (2016, 2021 & 2027F) • Market Share by Country (2016, 2021 & 2027F) • Market Share by Company (2021) Segments covered in the Report By Application • Earth Moving Machinery • Material Handling Machinery • Concrete and road construction Machinery • Other Machinery By Material Handling Machinery • Dumper /Dump Truck/ Tippers • Cranes (Tower Crane, Mobile Crane) • Telescopic Handlers • Forklift 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.