Mobility Foresights

EUROPE CONSTRUCTION EQUIPMENT MARKET

 

KEY FINDINGS

  • Regulations Stage V emissions from non-road mobile machinery (NRMM) was published on the Official Journal of the European Union that this amendment to the Stage V Regulation, extended the deadlines due to pandemic for the production and placing on the market of NRMM and tractors fitted with transition engines <56kW and ≥130kW. But the NRMM and tractors fitted with transition engines between 56kW and 130kW are not affected by this extension and retain the applicable 2021 deadlines.
  • The construction sector is a fundamental component of Europe’s economic growth and a major source of employment. It generates about 9% of gross domestic product (GDP) in the EU and provides almost 13 million direct jobs.
  • European Investment Bank (EIB) estimates that economic infrastructure investment needs for energy, transport, water and sanitation, and telecoms are as much as €688 billion per year.
  • New Technologies and Machinery Legislation, the European Commission mentioned its intention to propose an 18-months transition period for the implementation of the new Machinery legislation. There are approximately 800 standards harmonised to the current Machinery Directive.

 

INTRODUCTION

Total investment in Europe on construction was about € 1,324 Billion in 2019.

UK construction outputs in 2019 were 20% lower than pre-crisis levels in 2007. Spain and Italy in particular, but also Ireland and Portugal, dragged down Europe overall. These countries had not fully recovered from the most severe downturns and were then hardest hit by the pandemic.

This industry relies heavily on use of equipment and vehicles especially in construction sites and mining sites to cut down labour cost and time for the project.

Brexit will be challenging for Construction equipment manufacturers as EU countries are exporting 41% of construction equipment sold in UK and trade between the UK and EU is more difficult and expensive from January 2021

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EUROPE CONSTRUCTION EQUIPMENT MARKET DYNAMICS

The first of 2020 came up with much better construction data than expected, but COVID-19 hit and led to a strong downturn, with a total construction decline of 9%, which is less than the overall economic decline of 12%. The downturn hit the service sector stronger than any prior crisis. The construction industry was affected by the pandemic twice. Construction sites had to be closed for around one week in Germany and nearly eight weeks in France and the UK.

In recent history there have never been lockdowns. From August 2020 there is an 11.5% decline in total construction output.

Spanish construction output fell sharply in 2020, recording a contraction of 18.2% in Q4 2020. The lockdown measures imposed by the government in November and the subsequent weakening in economic conditions severely hampered output in the country’s construction industry in 2020. However, it is expected a strong recovery in 2021.

For 2021, the forecast amounts to a growth of 4.1%. Until 2023 total construction output in the Europe is likely to reach € 1.73 trillion and to exceed the pre-corona level of 2019 by € 28 billion or 1.7%.

Europe’s largest construction project, London’s Crossrail is expected to cost over £17.6 billion. The project – “Elizabeth Line” is a 73 mile underground and overground railway line connecting 41 stations across the capital.

Connecting the French and Italian high-speed rail networks, the 270-kilometre Lyon-Turin High-Speed Railway is one of Europe’s most ambitious infrastructure schemes with a price tag of €25BN. Work has begun in 2019 and is expected to take 10 years to complete.

Brexit has made trade more expensive and difficult as additional costs and longer lead times are expected. Higher costs may result from tariffs. Because tariffs on construction machines are generally low, the concern relates to tariffs on intermediate products of the supply chains, which are difficult to quantify.

The EU and the UK committed to zero tariffs on industrial goods but High costs will also originate from the reintroduction of customs formalities, as custom declarations will be needed for every consignment.

 

 

EUROPE CONSTRUCTION EQUIPMENT MARKET SEGMENTATION

Construction equipment market in Europe is segmented as below-

 

Equipment Category

  • Earthmovers
  • Road equipment
  • Concrete equipment
  • Cranes

 

Power Output

  • <100 Hp
  • 101–200 Hp
  • 201–400 Hp
  • >400 Hp

 

Drive Type

  • IC Engine
  • Electric and Hybrid

 

Geographic Landscape

  • Germany
  • France
  • The UK
  • Italy
  • Spain
  • East Europe
  • Rest of Europe

 

 

EUROPE CONSTRUCTION EQUIPMENT MARKET SIZE AND FORECAST

In Europe, Germany accounted for the largest construction equipment market share in Europe during 2019 and is expected to be the fastest- growing market during the next five years.

Europe’s construction market has shrunk by 7.8% in 2020 and will not recover fully until 2023, with estimated growth of 4.1% in 2021, 3.4% in 2022 and 2.4% in 2023.

Europe Construction equipment market is estimated at €40 Billion, growing at XX% CAGR till 2025 along with €26 Billion Exports.

 

POWERTRAN TRENDS IN EUROPEAN CONSTRUCTION EQUIPMENT MARKET

OEM 

 

 

Vehicle Type  No of Models  Engine Supplier  Engine Capacity  Power 
Liebherr Wheeled Excavators  5 FPT, Liebherr & Deutz  3.6 – 4.5L  116 – 175HP 
 Crawler Excavators  8 Deutz & Liebherr  3.6 – 16.16L  122 – 571HP 
Articulated Dump Trucks  1 Liebherr  12L  360HP 
Wheeled Loaders  8 Yanmar & Liebherr  4.5 – 10.5L  63 – 354HP 

 

COMPETITIVE LANDSCAPE

The European companies are interested in R&D department, which they regularly develop new products, adopt expansion strategies, and establish collaborations and partnerships to gain traction in the global construction equipment market.

Xerotech launched a modular battery platform, which could potentially be used across an entire range of electrically-powered construction equipment Combining seven variants of modules with a choice of battery cell chemistry, the Hibernium system can range in power from 15kWh up to 300kWh.

Volvo CE launched a totally electric machine. It is the 3rd prototype of this type from the manufacturer, after the HX2 mini dumper and the EX2 mini excavator, that shows the interest in this technology. The LX2 compact loader is equipped with a lithium-ion new generation battery.

JCB Power Systems has launched a new range of EU Stage 5-compliant engines to power OEM equipment. Designed for off-highway applications in both mobile and stationary industrial equipment and generators.

Oracle has launched a range of solutions for the construction industry, using artificial intelligence (AI) to analyse project data. The suite of solutions is designed to help users detect risks and make more informed project decisions and the first application within the range, Oracle Construction Intelligence Cloud Service.

Juniper Systems enhances customization for ultra-rugged devices such as GPS and sub-meter DGPS, digital camera, Bluetooth, Wi-Fi and cell modem connectivity, as well as devices with full alphanumeric keyboards, designed for applications in utilities, meter reading, GIS mapping, landscape management, public safety, and several other public services for Construction equipment.

Caterpillar Mining has partnered with Thorough Tec Simulation in an effort to provide the latest-generation, simulator-based equipment training to its customers. The goals of the partnership are to boost productivity, increase machine availability and create more sustainable mining operations.

 

COMPANIES PROFILED

 

 

Sl no Topic
1 Market Segmentation
2 Scope of the report
3 Abbreviations
4 Research Methodology
5 Executive Summary
6 Introduction
7 Insights from Industry stakeholders
8 Cost breakdown of Product by sub-components and average profit margin
9 Disruptive innovation in the Industry
10 Technology trends in the Industry
11 Consumer trends in the industry
12 Recent Production Milestones
13 Component Manufacturing in US, EU and China
14 COVID-19 impact on overall market
15 COVID-19 impact on Production of components
16 COVID-19 impact on Point of sale
17 Market Segmentation, Dynamics and Forecast by Geography, 2020-2025
18 Market Segmentation, Dynamics and Forecast by Product Type, 2020-2025
19 Market Segmentation, Dynamics and Forecast by Application, 2020-2025
20 Market Segmentation, Dynamics and Forecast by End use, 2020-2025
21 Product installation rate by OEM, 2020
22 Incline/Decline in Average B-2-B selling price in past 5 years
23 Competition from substitute products
24 Gross margin and average profitability of suppliers
25 New product development in past 12 months
26 M&A in past 12 months
27 Growth strategy of leading players
28 Market share of vendors, 2020
29 Company Profiles
30 Unmet needs and opportunity for new suppliers
31 Conclusion
32 Appendix

 

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