Macro economic & regional heavy equipment developments

Introduction

As a global supplier of earthmoving and construction machinery it is important to keep track of and act on macro-economical and local developments.

In this article we’ll briefly discuss the current developments and our view on the future of the African, Eastern European and South-American heavy equipment markets.

Africa

Africa is developing at a rapid pace. The growing construction sector across Africa has led to an increased demand for used earthmoving and construction machinery.

One of the known challenges in Africa that needs improvement in order to realize the projected economic growth is the physical infrastructure. The government, development authorities and other organizations across the region have started investing in infrastructure development projects, irrigation and mining projects to take the continent’s economy to the next level.

Due to increased real estate and other construction projects in African countries, the demand for concrete mixers, bar-bending and cutting machines, excavators, backhoes and earth rammers has significantly increased. In the upcoming years, additional key growing construction equipment types are cranes, material handling and road construction equipment.

Most popular brands in Africa: Caterpillar, Komatsu, Hitachi and Liebherr. 

Our top pics for Africa:

Eastern Europe

New infrastructure projects attract major original quarrying equipment manufacturers.

According to industry analysts, Central and Eastern Europe are booming with a great number of construction & infrastructure projects including highways, bridges and tunnels. With many projects in the pipeline, the region is expected to be highly active with plans for infrastructure development.

Although the construction industry saw a slight contraction in 2020 and Q1 2021 due to the Covid-19 pandemic, the industry is expected to grow in 2021 due to a positive outlook on a rapid Covid-19 vaccine rollout throughout the year. 

The non-residential sector will be forecasted as the fastest growing sector. The material handling equipment segment is expected to expand as the fastest-growing equipment segment in the next couple of years.

Most popular brands in Eastern Europe: Caterpillar, Volvo, Hitachi, Komatsu and JCB. 

Our top pics for Eastern Europe:

South America

The development of infrastructure and the construction of new roadways are expected to drive the heavy construction market, along with rapid urbanization and the surge in private-public partnerships.

The development of energy efficient and low-emission equipment both provide opportunities to the heavy construction equipment market growth. However, factors that currently restrain the heavy construction equipment market growth are high consumption- and the fluctuation in the prices of oil, carbon emissions and weak economic conditions.

In terms of equipment, you can clearly see that the earthmoving equipment currently dominates the South American market. However, it is expected to decline in market share towards other segments.

As a result of increased infrastructural development projects, it is expected that the demand for heavy lifting construction equipment, concrete and road equipment in particular will significantly increase within the region for the next couple of years.

Most popular brands in South America: Caterpillar, Volvo, Komatsu, Doosan, Hitachi, JCB and Liebherr. 

Our top pics for South America: