According to a new report from Timetric, the Asia-Pacific region overtakes Europe and North America when it comes to heavy construction machinery and earthmoving equipment. With a 57.8% market share the Asia-Pacific market is now the largest market in the world, followed by Europe with 22.0% and North America with only a 12.4% market share.
Due to the economic uncertainty in Europe and sluggish growth in the US these numbers are expected to be reduced even further. The report finds that by 2016 the European market share will decline to 18.2% whereas the market share in North America will fall to only 9.8%.
Growing economies in Asia-Pacific, in particular China and India, has resulted in an increasing demand for construction equipment. This growth is set to continue as the Asia-Pacific market is estimated to increase its share to 64.5% by 2016.
Today the global earthmoving market is worth US$78.7 billion Between 2007 and 2011 the global compound annual growth rate was as little as 2.50%. The reason for this low growth rate is set to be the 23.9% decline in annual growth recorded in 2009. This was the worst year in the global economic crisis, which resulted in a declining demand for construction work and heavy machinery. Positive news is that the compound annual growth rate is expected to increase to 7.98% over the forecast period 2012-2016, following an anticipation of the future growth of the global construction industry.