Market Trends of Off Highway Hybrid Vehicles Industry
This section covers the major market trends shaping the Off-Highway Hybrid Vehicles Market according to our research experts:
Growing Construction And Mining Activities
The global construction industry is expected to witness significant growth in the coming years, with the good opportunities in infrastructure, residential, and non-residential sectors.
Increasing number of mineral exploration sites and the subsequent demand for advanced processing machinery have contributed to the growth in the off-highway vehicle market. In China, Shanxi province has provided relaxation on stringent government policies and plans to add nearly 11 million tons of coke producing capacities to meet growing demand. In India, coal production grew by 5.17% between 2014 and 2019. Only 20% Indian reserves have been mined and this provide a big opportunity for miners. Canada alone had 22% of the active mineral exploration sites across the world, followed by Australia with 20% and Africa with 12%.
Some of the major factors driving the market are increasing construction of multi-family houses (with the growing trend of nuclear families); and increasing investments in construction of roads, highways, smart cities, metros, bridges, and expressways due to growing population and urbanization.
In China, the demand for cranes are increasing owing to the ongoing One Belt One Road initiative. The initiative which will aid in infrastructural development such as railways, buildings, and energy projects (China, North-East Asia, Southeast Asia, South Asia, Central Asia, and West Asia) stretching from China’s western regions to Europe. The US government is also expected to increase its infrastructure spending by over USD 1 trillion in the next 10 years, with an aim to create more jobs in the country.
Asia Pacific will exhibit the highest growth rate
Asia-Pacific region is expected to be a major market propelling the global construction industry, with augmenting construction activities in countries such as India and ASEAN countries (including Thailand, Singapore, Vietnam, and others).
For instance, in India, the construction sector is one of the booming industries. The construction sector in the country is expected to grow twice as fast as China’s till 2030, with the country’s populations. The infrastructure sector is an important pillar for the growth of the Indian economy. The government is taking various initiatives to ensure time-bound creation of excellent infrastructure in the country.
At 157.35 million hectares, India holds the second-largest agricultural land in the world. The agricultural sector, which is the backbone of the Indian economy, contributes majorly to the country’s GDP and nearly half of India’s population earns income through agriculture. As of February 2018, it was estimated that over 58% of rural Indians depends on agriculture. The consistent growth of the agricultural sector is driving the agricultural machinery market in the country.
Ongoing mega projects in China needs a lot of machinery and materials to be displaced from one part of the country to the other. Projects like Tianhuangping hydroelectric project, South North water transfer project and Beijing airport are some of the many projects that will deploy a large number of construction equipment.
