Europe Construction Equipment Market Share was around USD 34 billion in 2019 and is expected to grow at a CAGR of 3.5% from 2020 to 2026.
The European market is driven by the changing technology landscape and the amplifying trend of automation in the construction industry. The region is expected to witness a growing demand for electric and autonomous construction equipment due to the shifting focus toward technologically advanced machines in the construction industry. Companies are introducing improved construction machinery in the market to reduce diesel engine exhaust emissions in compliance with stringent EU emission regulations. For instance, in February 2020, Volvo CE launched its new compact electric excavator and wheel loader, ECR25 across its key markets in Europe including France, Germany, the UK, and the Netherlands.
Strong investments in the R&D sector by key manufacturers of construction equipment, such as Liebherr, Schwing Stetter, Putzmeister, Wirtgen, ZF, and Thyssenkrupp AG, are supporting industry growth in Europe. For instance, in 2019, Thyssenkrupp AG spent approximately USD 384.9 million on research & innovation programs. The rising R&D initiatives have led to the launch of several new technologically advanced construction equipment models in the market, further contributing to the growth of construction equipment market size until 2026.
The rapidly spreading COVID-19 health crisis has affected the global economy on a large-scale. Stringent lockdowns announced by several countries across the globe have resulted in a temporary suspension of construction activities. The pandemic has also led to financial insecurities among consumers in Europe owing to which the demand for new residential properties is sharply declining. Construction contractors and companies operating in the infrastructure development sector are postponing the purchases of new construction equipment, thereby hampering industry growth in 2020.
The material handling & cranes segment is anticipated to witness a rapid growth rate in the European construction equipment market owing to an attractive economic landscape and significant demand for goods movement. Furthermore, the need for a safe working environment in industrial facilities in European countries will fuel the demand for cranes and other material handling equipment. The increasing adoption of bulk-material handling equipment for fast completion of large construction projects is augmenting equipment demand in Europe.
Companies operating in the industry include Liebherr Group, AB Volvo, J.C. Bamford Excavators Limited, Deere & Co., Palfinger AG, Wacker Neuson, Komatsu Ltd., and Caterpillar, Inc. These players are focusing on strategic partnerships with other industry players to enhance their market share. For instance, in July 2020, The Liebherr Components, a division of Liebherr Group, announced a strategic partnership with Reycom to develop next-generation industrial and connected IoT solutions for construction equipment.