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

The global compaction equipment market is dominated by major international players. Technological innovations play a significant role in driving market growth. Vendors in the market are focusing on providing smart solutions, by connecting the compaction equipment and site details using the latest technology such as the internet of things (IoT) and single processing servers.

Leading vendors in the market are –

• Caterpillar
• Atlas Copco
• Hitachi Construction Machinery
• JC Bamford Excavators
• Volvo

Other prominent vendors in the compaction equipment market include Ammann Group, Belle Group, BOMAG, CASE Construction, Chicago Pneumatic, Deere & Company, Doosan Portable Power, Escorts Group, everdigm, Guidetti, Sakai America, SANY Group, Simex, STANLEY Infrastructure, Terex, and Zoomlion Heavy Industry Science & Technology.

Segmentation by application and analysis of the compaction equipment market

• Agriculture
• Construction

During 2016, the construction segment dominated the compaction equipment market and accounted for a major part of the overall market share. The dominance of the construction sector in the global market can be attributed to the increased investment in transport infrastructure development, such as roads and railways, and the construction of new housing units.

Geographical segmentation and analysis of the compaction equipment market

• Americas
• APAC
• EMEA

In this market study, analysts have estimated APAC to dominate the compaction equipment market during the forecast period. Factors such as high focus on infrastructure development and the rise in the popularity of smart cities are the key to the dominance of the compaction equipment market in this region.

Key questions answered in the report include

• What will the market size and the growth rate be in 2021?
• What are the key factors driving the global compaction equipment market?
• What are the key market trends impacting the growth of the global compaction equipment market?
• What are the challenges to market growth?
• Who are the key vendors in the global compaction equipment market?
• What are the market opportunities and threats faced by the vendors in the global compaction equipment market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global compaction equipment market? 

Technavio also offers customization on reports based on specific client requirement.