Chile’s equipment market worth US$1 billion

Construction equipment sales doubled in Chile last year, as the country bounced back from the Covid pandemic to take demand to more than 4,300 machines, according to a new report from Off-Highway Research.

Sales in the country had a total value of almost US$1 billion. This high figure is due to booming sales of high value surface mining equipment, which were driven by sharply rising global commodity prices.

Chile is second only to Brazil as one of the largest construction equipment markets in South America. The three main buyer groups in Chile are equipment rental, contractors and the mining industry, each accounting for some 23% of sales. However, the mining segment is comfortably the most valuable customer group.

The highest volume machines sold in Chile are backhoe loaders, crawler excavators, skid-steer loaders and wheeled loaders. Dump trucks are also important and, while they sell in smaller numbers, the preference in Chile is for 300 tonne and above machines, making them one of the most valuable segments. The use of large dozers in mining also elevates their importance in value terms.

The outlook for the Chilean market includes some uncertainty, due in part to an expected change in policy direction following the election of Gabriel Boric as president in March, succeeding Sebastián Piñera.

“Although the political context may be complex, in general terms, dealers are confident that the machinery market will continue to advance, not at the levels developed in 2021, but in ranges close to those experienced between 2017 and 2020,” said the report.

Off-highway Research’s Special Report on the Construction Equipment Industry in Chile is now available to buy online here. The brochure, with full details of equipment coverage and contents is available here.