Market Trends of Mobile Crane Industry
This section covers the major market trends shaping the Mobile Crane Market according to our research experts:
Increase in Construction and Renovation Activities Globally to Drive Demand in the Market
The construction and mining industry is highly dynamic, and numerous factors, such as the overall economy, budgets, and global economic scenario, are influencing the market's growth. With the prospects of large infrastructure projects and shifting labor dynamics, the demand for construction equipment is expected to witness growth during the forecast period.
Moreover, several countries are witnessing significant foreign direct investment (FDI) across the construction sector. For instance, In 2020, there was approximately AUD 2.2 billion in foreign direct investment into the construction sector in Australia.
Infrastructure spending by governments worldwide and players operating in this sector are witnessing a notable rise over the past few years, thereby pushing the demand for machinery and equipment in the construction sector. In addition, the investments in infrastructure, both public and private, such as the Indonesian National Medium-term Development Plan (USD 460 billion), Vietnam Socio-Economic Development Plan (USD 61.5 billion), and the Philippine Development Plan 'Build, Build, and Build' (USD 71.8 billion), are expected to increase the demand for construction machinery demand in these regions.
Government initiatives in several other countries are also driving factors in the construction machinery market. This, in turn, will help the construction industry grow in the upcoming years. For instance,
- In March 2020, the United Kingdom government announced its plan to spend a total of EUR 640 billion (USD 825 billion) between 2020 and 2025. Around EUR 10.9 billion of this spending will be allocated for the construction of new homes, with the aim of building one million new homes by 2025.
- In July 2021, Canada announced over USD 33 billion investment into Canada's infrastructure projects and over USD 180 billion in the next 12 years for the development of the country's infrastructure. In 2020, 97 cities across the United States announced 304 infrastructure projects valued at USD 25.6 billion. In July 2021, USD 550 billion worth of projects were announced by the federal government for roads and bridges, water infrastructure, and others.
North America Expected to Occupy Significant Share in the Market
The construction sector across North America is expected to experience solid growth, backed by strong economic fundamentals, the government's focus on creating infrastructure, and the tightening of monetary policy, which is expected to result in strong capital inflows from the external markets as well as domestic markets.
Though construction activities halted and demand declined over past years due to the pandemic, it is expected that it will gain traction over the forecast period in the wake of ongoing projects and announcements of favorable policies by the government. For instance,
- In November 2021, the US Congress passed a USD 1 trillion infrastructure spending bill. The infrastructure legislation proposes USD 550 million in new federal expenditure over the next eight years in the United States for the upgrade of roads, bridges, and highways and to modernize the city transit systems and passenger rail networks.
- While the new infrastructure spending bill falls short of the original USD 2.3 trillion proposals, the publisher expects 1 trillion spending on various United States infrastructure sectors to keep supporting the growth of the construction industry over the next four to eight quarters in the country.
With the increase in demand for cargo and maritime trade at the United States ports, manufacturers and port owners are seeing investing cash in procuring ports and harboring mobile cranes to felicitate the goods transportation. For instance:
- SeaPortManatee, along with terminal operator Logistec USA Inc. has demanded the addition of two mobile harbor cranes which has been arrived on 22 April. Both of the cranes are capable of lifting 125 metric tons of goods load at the port and together can be able to lift 200 metric tons load. Furthermore, these mobile cranes shall be able to increase cargo handling capabilities at SeaPort Manatee.
- In April 2022, Allison Transmission, a leading designer and manufacturer of conventional and electrified vehicle propulsion solutions, came under a constructive alliance with Bell Equipment Group Services (BELL) to evaluate and integrate Allison's proven 4000 Series™. The TerraTran is a multi-purpose vehicle built for applications such as articulated dump trucks, mobile cranes, and wide-body mining dump trucks.
The Canadian and Mexico markets are also likely to experience demand from the residential sector as the country is rebuilding its infrastructure damaged by wildfires. The rise in prices of oil and the melting of ice caps in the Arctic is expected to open new trade routes and lead to new exploration activities, which are expected to increase the demand for marine and offshore cranes during the forecast period.
