Construction Equipment Aftermarket Trends: A Look into the Future
The construction equipment aftermarket is experiencing robust growth thanks to a surge in the adoption of road building and heavy earthmoving equipment. As construction and infrastructure projects continue to rise, the demand for loaders, excavators, and other construction equipment has never been higher. However, the increased usage of these machines also results in greater wear and tear on critical components, necessitating efficient and cost-effective replacement parts.
Key Players Bolstering the Aftermarket
Leading industry players like Liebherr Group, Terex Corporation, and JCB are proactively addressing this demand by upgrading their construction equipment parts networks. For instance, in December 2020, JCB established a state-of-the-art construction equipment parts center in India, covering 150,000 sq. ft., to fulfill up to 40% of the demand for JCB equipment parts in the country.
Residential Sector Fuels Growth
The growth of the construction equipment aftermarket is further bolstered by the flourishing residential sector, which has seen a surge in housing projects worldwide. The demand for construction equipment and spare parts for these machines has risen significantly. In 2020, housing completions in the United States increased by 4.3% in June compared to May, according to the US Census Bureau and the Department of Housing and Urban Development. Additionally, the commercial sector’s expansion plans are contributing to the aftermarket’s growth. For instance, in 2020, Anderson Healthcare announced the construction of a 50,000 sq. ft., 2-story building in Goshen Campus, Edwardsville.
Online Channels Drive Sales
The adoption of online channels for the sale of construction equipment spare parts is on the rise, driven by convenience and prompt delivery. The COVID-19 pandemic’s lockdowns led to the temporary closure of many offline construction equipment spare part stores worldwide, prompting Original Equipment Manufacturers (OEMs) like HIAB AB and Liebherr Group to utilize online platforms for interactions with suppliers, dealers, and customers. This shift has resulted in increased sales through online portals like Kickparts, Heavy Equipment Spare Parts, Chicago Pneumatic, Blumaq, and Exkavator.ru, offering a wide range of construction equipment spare parts.
Asia Pacific Offers Lucrative Opportunities
The Asia Pacific region, with its emerging economies, presents significant growth potential for the construction equipment aftermarket. Increasing construction activities, government initiatives for enhanced transport connectivity, and rising residential and commercial construction projects are driving growth in this region. For example, South Korea’s residential housing index increased to 104.1 units in August 2020, as reported by KB Kookmink Bank. India and China have also improved their supply chains for construction equipment, bolstering the aftermarket. Government investments in infrastructure development, such as India’s US$1.4 trillion investment through the National Infrastructure Pipeline in 2020, further boost the construction equipment aftermarket.
Competitive Landscape
Industry players are expanding regionally and internationally through strategies like mergers and acquisitions (M&A). In 2021, Alta Equipment Group acquired Gibson Machinery, aiming to expand its footprint in the United States and provide construction equipment spare parts and replacement services in Ohio. Manufacturers are also enhancing their corporate relationships by offering care plans for new machinery components. For instance, in April 2021, Marshall Group ordered 108 loader cranes from HIAB AB, which will also provide its ProCare service for maintenance and spare part replacement for eight years without extra charge.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/construction-equipment-aftermarket
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