Global excavator demand will exceed $50 billion in 2021, according to a new market report by the US-based consultancy Freedonia. Its latest report says that demand for excavators is expected to grow 9.9%/year through 2021, reaching a total value of $50.6 billion, approximating the average market pace. Growth in the segment will be supported by advances in global building and non-building construction spending; increasing mining and forestry sector production, bolstered by rising commodity prices; expanding natural gas output and minor gains in crude oil production.
These and other trends are presented in Global Construction Machinery, 6th Edition, a new study from The Freedonia Group, a Cleveland-based industry research firm.
The development of more sophisticated excavators will contribute to segment gains. As more fuel-efficient machines are developed, their cost will rise. In response, construction, surface mining, and energy companies will replace outdated excavators with better-performing machines that use less fuel, offer greater mobility, are easier to maintain, and are compatible with a larger number of attachments. More fuel-efficient and hybrid models will also be introduced to reduce operating costs.
Global demand for all types of construction machinery is projected to increase 9.6%/year through 2021 to $250 billion, a major improvement over the losses posted during the 2011-2016 period.