Construction Equipment Aftermarket Size By Product (Earth Moving & Road Building Equipment, Material Handling & Cranes, Concrete Equipment [Hydraulic Systems, Engine Parts, Axle & Transmission Parts]), By Sales Channel & Forecast, 2023 - 2032

Construction Equipment Aftermarket Size

Construction Equipment Aftermarket size surpassed USD 25 billion in 2022 and is expected to record 4% CAGR from 2023 to 2032.  The rising number of construction activities and the surge in government investments for infrastructure development will positively influence the industry outlook.
 

Rapid urbanization and the increasing population worldwide have led to large-scale mining and excavation activities, propelling the demand for construction equipment. Several mining companies are foraying into strategic deals with equipment providers to boost production, leading to robust sales of equipment spare parts.
 

The influx of very stringent regulations imposed by several governments across North America and Europe to curb emissions associated with construction equipment will also play an ideal role in the construction equipment aftermarket expansion. The growing emphasis on climate change is encouraging equipment owners to focus on maintenance and replace engine components as well as filtration systems after regular intervals of time.
 

For instance, in November 2022, the California Air Resources Board (CARB) rolled out an ambitious climate plan to reduce air pollution and greenhouse gas emissions by 71% and 85% respectively by 2045. Such aggressive carbon emission reduction goals and sustainability targets will pave the way for improved industry development.

Ease of availability of low-cost alternatives may hamper product demand

The widespread availability of low-cost construction spare parts and accessories could negatively impact the industry dynamics by 2032. The rising number of third-party suppliers and the higher consumer preference for outsourcing construction spare parts has introduced new challenges for the OEMs, such as Liebherr Group, Caterpillar Inc., and SANY Group. However, the upgradation of vehicles and modernization of engine technologies is expected to add impetus to the market expansion while consolidating the space of aftermarket for construction equipment users as well as suppliers.
 

Construction Equipment Aftermarket Analysis

Construction equipment aftermarket valuation from material handling & cranes reached over USD 5 billion in 2022. A strategic rise in modern infrastructure projects and urban development activities has fuelled the adoption of cranes and material handling systems, accelerating the demand for spare parts such as valves, slewing motors, role wires, and hydraulic cylinders. Recent technological breakthroughs and advancements have made way for superior mobile crane models featuring improved loading capacity and multi-activity capabilities. For example, in January 2022, Liebherr extended the portfolio of its all-terrain cranes with the new LTM 1300-6.3 mobile crane featuring a 90-meter telescopic boom.
 

Europe is estimated to account for nearly 25% aftermarket share of the construction equipment by 2032. Increasing focus on climate change, pollution, and greenhouse gas emissions has led to the deployment of strict regulations on emissions for mobile machinery. Several regional players are scaling up efforts to introduce advanced construction equipment and spare parts to ensure the fuel efficiency of diesel engines and compliance with government guidelines. Moreover, the advent of electric construction equipment across the continent will augment the market progression.
 

The industry size from the offline sales channel segment is attain 4% gains between 2023 and 2032. The significant boom in the offline sales of aftermarket products can be attributed to the growing efforts of major market participants to expand their warehouse facilities and enhance production output. With thriving construction activities, the need for robust supply has encouraged manufacturers and distributors to ramp up their operations.
 

Construction Equipment Aftermarket Share

Some of the leading companies in the global industry scenario include

• Volvo Construction Equipment
• Komatsu Ltd.
• Caterpillar, Inc.
• SANY Group
• Zoomlion Heavy Industry Science and Technology Co., Ltd.
• XCMG Group
• The Manitowoc Company Inc.
• Terex Corporation, Tadano Ltd
• Liebherr Group

These leaders are implementing strategic initiatives to expand production capabilities and business footprint worldwide.
 

Impact of the COVID-19 pandemic

The COVID-19 crisis had a negative impact on the construction equipment aftermarket position as it caused significant supply chain disruptions on a global scale and hampered industrial activities worldwide. Due to the stringent lockdown restrictions imposed by several countries, construction and infrastructure projects worldwide were forced to cease, dropping the demand for construction equipment. Massive disruptions in the construction sector caused by a pandemic-driven shortage of raw materials, and labor led to vulnerabilities in the space of aftermarket. However, easing lockdown norms and post-pandemic recovery will represent lucrative scope for the industry.
 

This research report on construction equipment aftermarket includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments:

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Market, By Component

• Earthmoving & roadbuilding equipment
  • Hydraulic systems
  • Engine parts
  • Axle & transmission parts
  • Others
• Material handling & cranes
  • Hydraulic systems
  • Engine parts
  • Axle & transmission parts
  • Others
• Concrete equipment
  • Hydraulic systems
  • Engine parts
  • Axle & transmission parts
  • Others

Market, By Sales Channel

• Online
• Offline

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa