The global construction equipment market is projected to reach USD 250.4 Billion by 2026 from USD 208.3 billion in 2021, at a CAGR of 3.8% during the forecast period.
The growth of this market is fuelled by increase in infrastructure investments post-COVID-19 pandemic is likely to fuel the demand for construction equipment and increasing investments in urban infrastructure are expected to drive the construction sector, and thereby is expected to boost the construction equipment market during the forecast period.
The CNG/LNG/RNG market in construction equipment market to be the fastest-growing market
Natural gas is more environment-friendly than diesel and gasoline. It produces 25% less sulfur, nitrogen, and carbon pollutants. Natural gas has methane as its primary component, with traces of ethane, propane, butane, and nitrogen. Natural gas engines burn cleaner than other engines and have minor differences from their diesel counterparts. Natural gas engines also produce less noise and vibrations, thereby increasing operator comfort.
Liquefied natural gas (LNG) is mostly methane that has been cooled down to convert it into liquid form. Renewable natural gas (RNG) is a natural gas produced from organic waste materials such as food waste, garden and lawn waste, and animal and plant waste. It is also produced from degraded carbon wastes such as paper, carboard, and wool. Biogas is produced from organic wastes, and it is cleaned and conditioned to remove non-methane elements.
According to California Resource Board, RNG from landfill-diverted food and green waste can reduce greenhouse gas emissions by 125%, and RNG from dairy manure can result in a 400% reduction in greenhouse gas emissions on replacing traditional vehicle fuels. It produces 70% lesser greenhouse gases than diesel or gasoline, making it the most environment-friendly fuel. It is also economical compared with diesel and gasoline. Natural gas is the most promising alternative fuel for construction equipment. Construction companies that offer CNG powered construction equipment are Caterpillar and JCB.
Asia Pacific market plays very important role in construction equipment’s market growth
Asia Pacific is expected to have the largest market share in terms of value and volume. The construction equipment market has experienced growth in terms of the number of projects such as dams, airports, and hydroelectric projects, because of which many international companies have started their manufacturing plants in this region. Some of the man-made marvels and remarkable construction projects such as the Beijing New International Airport (China) and South to North Water Transfer Project (China) are set up in the region. The region is estimated to be the most populated in the world, which creates immense opportunity for the construction equipment market to grow.