The Global Construction Equipment Aftermarket is expected to reach US$ 30.5 Billion by 2028 from US$ 20.9  Billion in 2020 growing at a substantial growth rate of 5.1% between 2021 and 2028.

The construction sector is a flourishing business all around the world. This industry has experienced substantial expansion, particularly in emerging countries, as the economy in these areas improves. Over the next few years, the continuance of the development process, particularly in emerging countries, will result in significant growth in this business. The sale of aftermarket parts for the construction sector has increased in tandem with the growth of this business. These components are used in a variety of applications, from fuel systems to engine components. The growing use of road-building and large earthmoving equipment has created enormous aftermarket growth potential for construction equipment. The use of construction equipment such as loaders and excavators is increasing as building and infrastructure operations such as trenching and foundations, as well as forestry work, become more common. However, frequent use of such equipment causes more wear and tear on essential elements, which can affect the machines' practical workability or permanently destroy them, necessitating the usage of efficient and cost-effective equipment parts.

Market Dynamics

Increasing construction activities in the residential sector fuel the demand for construction equipment aftermarket. The construction of residential buildings is on a rise especially in emerging economies due to the growing population, rising living standards, and increasing disposable income. Residential sales are likely to beat pre-pandemic quarterly sales in 2022, and given their quick rise, they may even correspond with pre-demonetization quarterly sales in the second half of 2022, according to an industry report. Owning a home is no longer a matter of investing preference, but rather a need, given the boost that a luxury abode has received in the broader context of work-life options. Large-scale dwellings have appeared as a popular choice in residential community constructions, and this trend will continue in the next years. The real estate industry is predicted to enjoy a banner year in the future, thanks to strong demand, shifting patterns, and new emerging markets. Following the epidemic, the luxury house market has renewed traction; buyers are enthusiastic about residential acquisition across segments, and selling prices have recently corrected, making real-estate investment lucrative, particularly in the premium sector.

Growing public knowledge of construction equipment's performance and efficiency is expected to propel the sector forward. Construction equipment reduces labor expenses and allows workers to work more efficiently throughout the day, saving time and money. Construction equipment performs well, which speeds up the completion of projects. This equipment promotes output and increases income by avoiding fines for lateness. As a result of improvements and innovation in the industry, construction equipment has evolved to perform a variety of jobs in order to save time. They can also perform tasks that are too tough or delicate for human muscles to handle. Construction equipment can maintain a predicted rate of output where there is a shortage of skilled or non-skilled labor.

Market Insights

Equipment type, sales channel, application, and geography are all used to segment the worldwide construction equipment aftermarket. The equipment type segment is split into earthmoving and road building equipment, material handling and cranes, and concrete equipment. The earthmoving and road building equipment type conquered the largest market share in 2020 owing to the increasing demand for better infrastructure amenities. Online and offline are the bifurcation of the sales channel segment. The online sales channel is expected to grow with the fastest CAGR due to the closure of offline stores since the COVID-19 pandemic. By application segment, the market includes infrastructure, residential, and commercial. The residential segment is likely to achieve a substantial growth rate in the coming years due to the rising urbanization in the world.

Worldwide Construction Equipment Aftermarket Industry Regional Rivalry

North America, Asia-Pacific, Europe, the Middle East & Africa, and Latin America are the regions in which the worldwide construction equipment aftermarket is divided. The Asia-Pacific region held the biggest market share of all regions in 2020. The Asia-Pacific market is fueled by increased construction activity in projects such as airports, dams, and hydropower projects. Due to the existence of large and small market participants who manufacture aftermarket equipment in huge quantities, China dominates the APAC area. After the Asia Pacific, the Middle East, and Africa is expected to be the developing markets, owing to increased Chinese investments in infrastructure development in the region. North America, on the other hand, is expected to increase steadily over the next few years.

Global Construction Equipment Aftermarket Industry Segment Analysis

Market By Equipment Type

·         Earthmoving and Road building Equipment

·         Material Handling and Cranes

·         Concrete Equipment

Market By Sales Channel

·         Online

·         Offline

Market By Application

·         Residential

·         Commercial

·         Infrastructure

Construction Equipment Aftermarket Major Companies

This division of the report classifies the market's leading companies. Caterpillar Inc., Kobelco Construction Machinery Co., Ltd., Hitachi Construction Machinery Co., Ltd., John Deere, Palfinger AG, Tadano Limited, Liebherr Group, Terex Corporation, Sany Global, Volvo Construction Equipment, The Manitowoc Company, Inc., and Zoomlion Heavy Industry Science and Technology Co., Ltd. are the major players mentioned in the report.

North America

·         U.S.

·         Canada

Europe

·         U.K.

·         Germany

·         France

·         Spain

·         Rest of Europe

Latin America

·         Brazil

·         Mexico

·         Rest of Latin America

Asia-Pacific

·         China

·         Japan

·         India

·         Australia

·         South Korea

·         Rest of Asia-Pacific

Middle East & Africa

·         GCC

·         South Africa

·         Rest of Middle East & Africa