Asia Pacific key to construction machinery recovery
By Helen Wright30 August 2011
Global demand for construction machinery is forecast to increase +6.5% per year through to 2015, when the market will be worth US$ 171 billion, according to US research company Freedonia.
The strongest growth will be seen in the Asia Pacific region, where China alone will account for 39% of all new equipment demand through to 2015.
However, the pace of the growth in demand for construction equipment in the Asia Pacific is forecast to moderate. Demand grew at an average rate of +16.8% per year between 2005 and 2010, and is forecast to grow +6.8% per year between 2010 and 2015.
Freedonia estimates that the market in this region will be worth US$ 89.9 billion in 2015, compared to US$ 30 billion in 2005 - representing over half of all additional construction equipment demand generated in the five years to 2015.
Meanwhile, following steep falls between 2008 and 2010, Freedonia said equipment sales are set to rebound sharply in North America, Western Europe and Eastern Europe.
Construction machinery demand in North America is forecast to grow +6.7% annually between 2010 and 2015, compared to an average fall of -3% per year between 2005 and 2010. This market is expected to be worth US$ 35.4 million by 2015, compared to US$ 29.9 million in 2005.
Similarly in Western Europe, a decline in demand of -1.6% per year from 2005 to 2010 is forecast to reverse into growth of +5.5% per year between 2010 and 2015.
In Eastern Europe, Freedonia predicted that demand would average +7.1% per year up to 2015, compared to an average +4.5% annual growth in the five years to 2010. The value of both markets is forecast to reach US$ 29.6 billion by 2015, compared to US$ 22.8 billion in 2005.
Construction machinery markets in the rest of the world are forecast to be worth US$ 16.4 billion by 2015, compared to US$ 8.3 billion in 2005. Strong growth is expected between 2010 and 2015, but the pace will be slower than between 2005 and 2010 reflecting more restrained increases in mining and construction activity, according to Freedonia.