According to a report on the Construction Equipment Attachment Market by Fact.MR, the global market for attachments is poised to expand at a value CAGR of 2.4%, and is expected to create an absolute dollar opportunity of US $1.4 billion over the forecast duration of 2020-2030. Under the impact of COVID-19, it is expected to reach a market valuation of US $5.8 billion by the end of 2020. It is anticipated to maintain a growth trajectory and surpass a valuation of US $6.7 billion by the end of 2030.
“The COVID-19 pandemic has hit the construction equipment attachment market hard on the demand side, causing a decline in sales,” according to a report analyst. “A post-pandemic increase in government spending on new projects coupled with increasing spending in construction activities is predicted to open new growth avenues for players in the construction equipment attachment market.”
Demand for construction equipment will increase over the coming years as government spending on infrastructure development projects in developed and developing countries rises. Government initiatives to build bridges, dams, railways and highways as part of the creation of smart cities in areas of energy, mobility and government will further increase demand for whole good machines. This in turn is expected to drive growth of the global construction equipment attachment market.
The skid-steer loader buckets segment is expected to grow 1.5 times by 2030. On the other hand, attachments for telescopic handlers will account for a 21% market share of all attachments during the forecast period. Attachments for telescopic handlers are projected to create an absolute dollar opportunity of US $430 million from 2020 to 2030.
By sales channel, aftermarket sales are estimated to account for 42% of the total sales in 2020, and are anticipated to create an absolute dollar opportunity of more than US $1 billion during the forecast period.
Key players in the construction equipment attachment market include Caterpillar Inc., Komatsu Ltd., Doosan Corporation, Volvo Construction Equipment, Kubota Corporation, CNH Industrial N.V, Hitachi Construction Machinery, Wacker Neuson SE, Paladin Attachments and others. Prominent manufacturers are focusing on acquisitions and partnerships in order to broaden their customer base and gain a competitive edge over other players.
For example, in 2018, John Deere and Wacker Neuson joined forces in a bid to increase excavator sales in the Asia Pacific region. The agreement was to boost sales of mini- and compact excavators in key growth markets, particularly China, Australia and other countries in Southeast Asia. This is foreseen to reinforce the demand for construction equipment attachments in the regions.
Asia is expected to emerge as the most lucrative region in the global construction equipment attachment market. It is projected to surpass a market valuation of US $2.3 billion by the end of 2030.
Information provided by Fact.MR and edited for content and clarity by Becky Schultz.