The onset and spread of COVID-19 resulted in the delay or cancellation of many construction projects, leading to a decline in demand for machinery and industrial equipment.
As the market and industry slowly regain confidence and projects re-initiate once more, demand for equipment is expected to rise once more and organizations will 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 set to grow at a CAGR of ~4.3% in the 2020-2027 period, reaching an estimated USD 129bn in revenue at the end of the period.