U.S. Heavy Duty Equipment Industry Growth Rate (2020–2030)
The U.S. Heavy Duty Construction Equipment Market has experienced significant growth in recent years, with a market valuation of US$ 69.84 million in 2020. According to new research from Coherent Market Insights’ study, ” U.S. Heavy Duty Construction Equipment, the industry’s growth is expected to continue, with the market projected to surpass US$ 113.7 million by 2030. This article provides an in-depth analysis of the factors driving this growth, the impact of COVID-19 on the industry, and the future outlook for the market.
Market Drivers
One of the primary drivers of the U.S. Heavy Duty Construction Equipment Market is the increasing investment in public infrastructure projects such as smart cities, airports, and railways. The U.S. government has been significantly investing in the construction industry to promote growth and development. For instance, in February 2018, the president of the U.S. announced a US$ 1.5 trillion investment in the construction industry, including US$ 200 billion in federal funding over ten years from 2018.
Furthermore, the U.S. residential construction market is rapidly growing, with the market expected to reach US$ 207.21 billion by 2023. Increasing disposable income, coupled with the growing residential construction market, will drive the U.S. heavy construction equipment market growth over the forecast period.
Impact of COVID-19
The COVID-19 pandemic had a massive impact on the construction industry, with many ongoing construction projects halted due to lockdown measures. As a result, the demand for heavy equipment dropped in 2020. However, the market is expected to show steady growth for the next three years as the industry recovers from the pandemic’s effects.
Rental Segment Growth
The rental segment in the heavy construction equipment market is expected to grow as companies opt to rent equipment rather than buy new equipment. This trend is driven by the high cost of construction equipment and the preference of end-users for rental services for components required for specific periods. The growth of the rental segment will help the market remain steady during the forecast period.
Market Outlook
Despite the short-term challenges posed by the COVID-19 pandemic, the long-term outlook for the U.S. Heavy Duty Construction Equipment Market remains optimistic. The market is expected to exhibit a compound annual growth rate (CAGR) of 6.0% between 2022 and 2030, reaching a value of US$ 113.7 million by 2030.
Key players operating in the U.S. heavy-duty construction equipment market include AB Volvo, Atlas Copco, Caterpillar, Inc., CNH Industrial N.V., Deere & Company, Doosan Infracore, Hitachi Construction Machinery Co. Ltd., and Hyundai Construction Equipment Americas, Inc.
Conclusion
The U.S. Heavy Duty Construction Equipment Market has experienced significant growth in recent years and is expected to continue growing at a steady pace over the next decade. Factors such as increasing government investment in public infrastructure projects, the growing residential construction market, and the rise of the rental segment are driving this growth. Despite the challenges posed by the COVID-19 pandemic, the long-term outlook for the market remains positive, with the market projected to surpass US$ 113.7 million by 2030.