GLOBAL CONSTRUCTION EQUIPMENT ENGINE MARKET

INTRODUCTION

With the increasing building activities, the global construction equipment market is projected to reach USD 160.84 billion by 2026, at a CAGR of XX%.

Backhoe loaders and excavators are indispensable for any construction. Their demand is very high in developing countries where urbanization is happening at a fast pace. Bright prospects of the construction industry will, therefore, broaden the outlook of this market in the forthcoming period.

It’s a somewhat different tale being told in the US. With exports down, American hopes are being increasingly pinned on rising domestic plant demand. Contrasting the US, China, the nation with the world’s biggest demand for construction equipment, has seen domestic sales dip, with many firms now looking to up their percentage of exports against total machine sales.

However, the Asia-Pacific region, with China at the forefront, is still the key region for aggregate demand due to its huge government-led investment in new transport and other vital infrastructure. In fact, leading independent research tips the region’s share of overall global aggregates demand to grow over the next two years. Such a big demand for aggregates tends to go hand in hand with big demand for construction equipment.

US CONSTRUCTION EQUIPMENT ENGINE MARKET

• Many OEM’s have their engines to meet U.S. EPA Tier 4 emissions and EU Stage IV emission standards with an aftertreatment system.
• Most of the engines have displacement of 4.4L with power output of 75HP-120HP and torque of 400Nm – 600Nm in construction machines.
• Engines in U.S are designed to withstand cold temperatures and harsh environments in order to maintain smooth operations, OEM’s are more concentrated on innovating HVAC systems.
• Engine suppliers have R&D centers to develop engine technologies with sustainable environment and promoting green emission machines.
• Diesel has unmatched and unique combination of power, performance, reliability, fuel efficiency and now low emissions, it is the technology of choice and the workhorse of the nation’s construction sector, powering more than three-fourths of all heavy construction equipment.

EUROPE CONSTRUCTION EQUIPMENT ENGINE MARKET

• Engine and construction equipment manufacturers are facing their toughest emissions challenge yet with the release of new EU Stage V emissions legislation. OEM’s will be delivering maximum power and performance with new engine technology that is one further step towards a more sustainable tomorrow.
• Stage V introduces particulate number (PN) limits for all manufacturers of engines between 19 kW and 560 kW, requiring diesel particulate filters (DPF) to be part of the EATS (Exhaust gas after treatment system) on the engine installation in the machines. In addition, there will be an increased focus on emissions during the machine’s usage.
• The new emission norm will have improved, system for a charge air cooler, which cools the inlet air for better efficiency, and either a variable geometry turbo (VGT), designed to optimize the air-fuel ratio in the turbo to be altered as conditions change, or a fixed geometry turbo with waste gate (WG). A DPF has been designed to remove diesel particulate matter or soot from the exhaust gas of a diesel engine, while a diesel oxidation catalyst (DOC) serves to oxidize hydrocarbons and carbon monoxide into carbon dioxide and water.
• Highly sold construction equipment engines have 4.0-4.5L displacement and power of 74-150HP.
• Turbochargers plays vital role in power delivery in heavy machinery by providing boosting hydraulic power instantaneously when required.
• Most of the parts in Europe are Cold temperature regions. So, Cold starting the engines increases the emissions, when it is integrated with direct injection process.

INDIAN CONSTRUCTION EQUIPMENT ENGINE MARKET

• Most of the OEM’s have created joint venture in order to supply their engines. As, Indian manufacturers do not have R&D centers domestically. So, companies buy the engines by suppliers.
• Kirloskar and Cummins are major engine suppliers in India.
• Coming to new emission norms, Manufacturers are integrating exhaust after treatment technology and solutions. These solutions are designed to meet the highest emissions standards worldwide offering not only performance and reliability, but fuel economy and significant cost savings as well.
• Mostly sold engines have displacement of 3.5L-4L with power output of 50-90HP

COMPANY PROFILES

• L&T
• BEML Ltd
• Mahindra Construction Equipment
• Tata Hitachi Construction Machinery
• Escorts Group
• ACE Ltd
• Liebherr Group
• Volvo CE
• CNH Industrial NV
• Wirtgen Group
• Metso Oyj
• Atlas Copco Group
• Manitou Group
• Wacker Neuson SE
• Fayat Group
• Sandvik Group
• Pon Equipment AB
• Hyundai Construction Equipment Co., Ltd.
• Caterpillar Inc
• Komatsu Ltd.
• Doosan Infracore Co. Ltd.
• Hitachi Construction Machinery Co., Ltd.
• J.C. Bamford Excavators Ltd. 
• John Deere
• Yanmar
• Deutz
• FPT Industrial
• Kirloskar
• Ashok Leyland