DUBLIN–( BUSINESS WIRE )–The “U. S. Used Construction Equipment Market- Strategic Assessment & Forecast 2022-2028” report has been added to ResearchAndMarkets. com’s offering.
The U. S. used construction equipment market is expected to grow at a CAGR of 1. 97% during 2022-2028.
The used construction equipment market in the US is expected to reach 45, 766 units by 2028. The particular US government investment in the up-gradation of infrastructure & renewable energy projects is expected in order to support the particular demand for used gear in the US during the forecast period (2022-2028).
U. S. USED CONSTRUCTION EQUIPMENT MARKET: KEY HIGHLIGHTS
The Earthmoving segment has the largest U. S. utilized construction products market share. Other segments, including motor graders, skid loaders, bulldozers & trenchers, held the largest discuss in the particular earthmoving segment in 2021.
Infrastructure up-gradation projects such as the renovation associated with commercial buildings, railway stations, airports, repair of runways, and extension of roadways & bridges in rural parts drive high demand for used construction tools in america market.
The government aims to produce 95GW of power through renewable energy resources by 2025. For achieving this goal, the government is setting up windfarm & solar plants across the country, which is likely to support the need for utilized equipment as the new equipment supply chain is still in the particular recovery phase, so used devices caters to the need of the industry.
Less costly equipment having high operational requirements & low life expectancies, such as excavators, backhoe loaders, and forklifts, are expected to develop faster throughout the forecast period than costly apparatus such as motor graders and cranes with low operational requirements and long-life expectancy.
Recovery in the provide chain of new building equipment post-pandemic and rising rental markets are the major threat to the requirement for used construction machines in the US marketplace. However , utilized equipment is anticipated to remain popular among small contractors for a short interval associated with projects due to diverse portfolios & low acquisition cost & good resell value.
Supply String Disruption of recent Equipment Throughout Pandemic Is constantly on the Drive the particular Demand with regard to Used Building Equipment Marketplace in the U. H.
COVID-19 positively impacted the demand for used construction equipment in america market. The supply of brand new equipment was disrupted due to supply chain interruption caused by lockdown measures taken simply by the US Government. Businesses were not in favor of making large investments. These factors triggered the need for utilized equipment inside various sectors such because construction, agriculture, mining & forestry.
In 2021, the particular US authorities investment in the transport industry, including redevelopment projects for economic recovery, was expected to support the demand regarding used structure equipment. However, the volume sales for used equipment reduced in 2021, and a sharp decline within used gear sales were witnessed inside the age group of 0-10 years. Companies reduced buying used products to avoid more aging machinery in their fleet as the particular supply of new equipment has been low even in 2021. This resulted in a surge in prices & reduction in the volume of utilized equipment within the US market.
Utilized machines are an excellent choice by companies for short-term projects. Various short-term tasks of repair & redevelopment are allocated to contractors who prefer in order to use used construction tools due to its quick availability, varied portfolio & low cost associated with acquisition to complete the project plus resell the equipment then after.
Motor graders are one of the particular costliest devices ranging from $200, 000 in order to $500, 00, with an average life expectancy of around 30 years. There was a surge in requirement for utilized motor graders in the US marketplace in 2020 & 2021. The equipment operates for a brief time at construction sites compared to other earthmoving equipment this kind of as excavators & backhoe loaders. So , it will be a popular choice intended for used apparatus buyers because of factors such as the high price of new engine graders, low operating hours at the job site, & long lastting expectancy. Due to its long-life expectancy, the gear can be resold can happen multiple times.
Rise in demand for Used Equipment across Agriculture & Forestry industries Due to the lower Buying Capacity of Farmers within the aftermath from the pandemic.
Structure equipment such as mini excavators and loaders are used in farming and forestry industries. Gear used to get ground leveling, loading crops, fence building, & land clearing activities in agriculture & forestry. The need for used equipment in forestry & agriculture areas had increased in 2021.
The COVID-19 pandemic has adversely affected the US economy. The country’s agriculture sector underperforms because of to a reduction in demand & labor shortage. Farmer’s net income declined by 9% within 2020. The reduction in buying capacity of farmers triggers the particular demand pertaining to used machines in america market.
The particular shift in Focus Towards Renewable Energy Resources Triggers The demand meant for Used Mini Excavators & Crane inside The US marketplace
The US government focuses on renewable energy sources and aims to produce 25GW associated with clean energy by 2025. In Jan 2022, the government approved 18 onshore projects of 4. 17 GW plus 54 priority projects, adding 27. 5 GW associated with clean power. According in order to Energy Information Administration, ALL OF US solar energy capacity is expected to grow by 21 GW in 2022 & 25GW within 2023. Numerous solar & windfarm energy projects are progressing in different locations across the nation in 2022.
The requirement for utilized construction equipment for these projects is usually anticipated to develop sharply due to the quick availability as compared to brand new equipment. The particular new gear supply had been disrupted due to COVID-19 inside 2020. The second wave of infection in 2021 across the US worsened the situation for manufacturing new design equipment. So, the used construction products demand is definitely expected to grow for these immediate alternative energy projects. The demand for utilized cranes & mini excavators is anticipated to develop sharply designed for solar & wind farm projects.
Rise inside Used Design Equipment Prices to Devalue the Demand for Utilized Products
There is a constant increase in used construction tools prices in the US ALL market. According to Ritchie Bros, there was a 16% rise in prices associated with large earthmoving equipment this kind of as excavators, dozers, & motor graders. A similar price surge was witnessed in aerial equipment such as cranes, forklifts & aerial platforms & medium earthmoving devices such since backhoe loader, mini-excavator & trenchers.
b) A similar trend is observed in Q1 2022; large earthmoving, moderate earthmoving, & aerial apparatus prices improved by 20%, 37% & 35%, respectively. There was clearly a surge within demand just for construction machines due to increased investment in facilities projects throughout the country. Nevertheless , the particular flow of new equipment has been not recovered in 2021, and quantity sales of used equipment declined. This mismatch associated with demand & supply of used gear pushes up the costs of utilized equipment in the US market in 2021.
New Emission Standard & Rising Accident Cases within Construction Sites Can Hamper the Need for Used Construction Tools
The US government’s concern for air pollution drives it towards taking necessary steps to control this. The country is now following Tier 4 emission standard in 2022. The US is likely to launch Tier 5 emission standard simply by 2024, which focuses on reducing the emission associated with nitrogen oxides and particulate matter. Therefore, the up-gradation of emission standards in the US is expected to adversely impact the particular demand for the purpose of larger used equipment, which is older utilized equipment construction in the market.
b) There can be a rise in work accident cases in the particular US Construction industry. According to the Bureau of Labour Statistics (BLS), nearly 10 million workers had been employed inside the united states building industry within 2020. Bureau of Labour Statistics revealed that 1, 061 structure workers were killed in 2020, accounting for twenty percent of all work-related deaths in the US. The report also exposed that 60% of most design site death was related to the crane.
COVID-19 triggers Online Bidding Process for Used Devices Sales
COVID-19 has accelerated a new trend associated with online bidding in the particular used heavy-duty construction products market. In 2020, there was the 35% embrace website traffic & 71% increase in bidder registrations. This particular shift in order to an online process widens the reach for the used equipment market and creates new data insight opportunities for selling companies. The gear sales increased sharply inside 2020 because of online putting in a bid provided by major auction companies this kind of as Ritchie Bros & Sandhill.
The device owners could have good insights and help them understand the best time to sell or buy tools according to machine type, hour usage, & machine age.
VENDOR LANDSCAPE
- Caterpillar is the marketplace leader in the ALL OF US used devices market. The company excels in the sale of utilized earthmoving types of apparatus in 2021.
- John Deere was the particular second-largest player in america used equipment market in 2021. The company’s backhoe loader was sold maximum in 2021. Excavators & mini excavators were amongst the prominently used machines sold by the company inside 2021.
- Prominent vendors are usually Caterpillar, Volvo Construction Apparatus, Liebherr, Komatsu, Hitachi Building Machinery, Hyundai Construction Machines, John & Deere, and Kobelco.
- Other prominent vendors are Terex Corporation, Case Construction, LiuGong, & Tadano.
Key Vendors
- Caterpillar
- Volvo Construction Equipment
- Liebherr
- Komatsu
- Hitachi Structure Machinery
- Hyundai Construction Gear
- John & Deere
Some other Prominent Suppliers
- Terex corporation
- Tadano
- Liu Gong
- CASE Construction
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