Summary
Economic slowdowns can result in the delay or cancellation of many construction projects, leading to a decline in demand for machinery and industrial equipment.
As markets regain confidence and projects re-initiate, demand for equipment rises again and organizations need to plan and adapt their processes accordingly.
Technological innovations, particularly advanced health and safety technologies, are increasing the cost of machinery across the industry, leading many construction companies to favour equipment rental over purchase. As a result, many machinery and industrial equipment manufacturers are increasingly offering rental services due to the high profit margins and wide range of opportunities this business model offers.
The rapid urbanization of key geographies such as India and China is also driving the growth of the equipment industry worldwide, as infrastructure requirements rise to meet these demands.
Owing to technological advancements and growth in demand, the global construction equipment industry is projected to grow at a CAGR of ~4.3% through 2027, reaching an estimated USD 129bn in revenue by the end of that period.
