Market Is Estimated To Witness High Growth Owing To Infrastructural Development & Urbanization
The Compaction Machines Market is estimated to be valued at US$ 4,955.1 Mn in 2022 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Compaction machines are essential construction equipment used to compact or condense soil, sand, gravel, rock, concrete, and asphalt. They are widely utilized in various infrastructure projects like roads, highways, airports, railways, bridges, and buildings. Various types of compaction machines available in the market include rammers, compactors, rollers, and trench rollers. Ramming equipment are mostly used for compacting backfills around foundations and trenches, while rollers are majorly applied for compacting asphalt and loose materials during road construction activities.Market Dynamics:
The growth of the compaction machines market is majorly driven by the rising infrastructural development activities and urbanization across both developed and developing economies. As per the United Nations, around 68% of the global population is projected to live in urban areas by 2050. This has prompted governments worldwide to focus on expansion and upgradation of transport and building infrastructure. Furthermore, growing industrialization and increasing spend on public infrastructure like roads, railways, bridges, and dams is also fueling the demand for compaction equipment. The compactors find widespread usage in preparing subsurface and ensuring required compaction levels. However, the availability of alternatives including trenchless construction methods may restrict the market growth to some extent over the forecast period.
SWOT Analysis
Strength: Compaction machines have high durability and efficiency which reduces construction time and associated costs. Their pneumatic tires allows smooth compaction on any terrain and reduces impact on roads. Growing construction industry is increasing demand for compaction machines.
Weakness: High initial investment and maintenance costs of compaction machines. Skilled operators are required to operate heavy machinery which increases operational costs.
Opportunity: Infrastructure development programs in emerging economies provide major growth opportunities. Technological advancements in machine design help improve compaction efficiency. Growing demand for urban infrastructure will drive sales.
Threats: Fluctuations in raw material prices increase production costs. Slowdown in construction activities during economic downturns can reduce demand. Stringent emission norms require upgrades and add to costs.
Key Takeaways
The Global Compaction Machines Market Size is expected to witness high growth, exhibiting CAGR of 6.5% over the forecast period, due to increasing infrastructure development activities globally. Rapid urbanization is driving demand for roads, highways, and buildings which require compaction machines for construction.
Regional analysis
Asia Pacific dominated the compaction machines market in 2021, accounting for over 35% of global sales. Rising infrastructural investments in countries such as China and India to support economic growth are driving demand. North America and Europe are other major regions owing to ongoing projects for bridge and road repair works.
Key players
Key players operating in the compaction machines market are Wacker Neuson SE, Sany Heavy Industry Co. Ltd, Volvo Construction Equipment, Wirtgen Group, Caterpillar Inc., Atlas Copco, Terex Corporation, Zoomlion Heavy Industries Science & Technology Co Ltd, Fayat Group, BOMAG GmbH, and XCMG Co. Ltd. Innovation and technological advancements and global expansion are key strategies adopted by leading manufacturers.
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