Global Compaction Equipment Market 2017-2021

Overview of the global compaction equipment market

Technavio’s market research analyst predicts the global compaction equipment market to grow steadily at a CAGR of around 5% by 2021. One of the primary drivers for this market is the rise in construction of smart cities. The smart city concept is gaining popularity owing to the rapid urbanization and scarcer resources coupled with the need for sustainable development. Governments of various countries like Saudi Arabia, India, and Qatar are investing heavily in the development of smart cities. Smart cities provide better transportation facilities and smart grids, improved healthcare facilities, advanced technologies, and enhanced traffic management systems. The primary advantage of smart cities is that it contributes significantly to the saving of electricity. For instance, commercial and residential buildings in London are undergoing retrofitting to reduce the carbon emission levels in the city. Moreover, the ability of smart cities to allocate resources such as water through smart sensors, thereby reducing water wastage is also expected to propel growth in the global compaction equipment market during the forecast period.

One of the latest trends gaining traction in this market is the rising popularity of equipment rental businesses. Construction equipment such as compaction equipment are very expensive and require a large down payment. Consequently, small and medium enterprises (SMEs) tend to opt for rented equipment. Also, contractors are often concerned with issues such as maintenance and storage space for such equipment, as these overhead costs increase as new equipment is bought. With renting, such overhead costs can be avoided. This rise in the construction equipment rental market is expected to augment growth in the global compaction equipment market in the coming years.

Competitive landscape and key vendors