Digitization and New Business Models Powering the Global Construction and Mining Equipment Market, 2030

The global equipment industry is impacted by growing digitalization trends, trends in the used and rental equipment market, and urbanization. Construction contractors are leaning towards deploying both used and rental equipment as opposed to purchasing brand new ones due to lack of funding and government subsidies, and the liabilities associated with equipment maintenance. New equipment come with standalone digital platforms and pre-programmed operations for enhancing convenience and improving efficiency. However, the on-boarding of modern equipment to a seasoned but depleting labor force is a tedious task. Manufacturers are forming alliances with rental agencies and dealerships to commission equipment for specific projects to avoid downtime and improve their market standing.

Digitalization has proved to improve efficiency in operations and convenience for operators in several parts of Europe and Asia-Pacific (APAC) where it has been tested and released into both the urban construction and mining environments. Ease of adoption of modern technology and new equipment is region and application specific, and certain markets are more receptive to modernization than the rest.

Globally, there is a growing need for electric powertrains and the use of alternate powertrains to reduce greenhouse emissions. Equipment manufacturers are employing these new powertrains in their compact machines for use in growing urbanization and residential construction projects, and in mining equipment such as large excavators. The mining industry offers ease of implementation of autonomous technology for dump truck operations; this has been widely implemented in APAC and Europe, and is in the testing phase in North America.

Online portals for equipment and parts sales are having positive effects on equipment purchases and offering services more proactively. There are several OEMs using online channels, dealerships, rental agencies, and other service providers alike. Suppliers are capitalizing on online channels to improve services and sales of aftermarket parts.

This report covers all key trends in the construction and mining industries, as well as region-specific trends impacting new equipment sales and modernization. Equipment in operation (EIO) data is available for all regions. Forecasts of new equipment sales for the total global market, as well as regions, are provided. The impact of the coronavirus (COVID-19) pandemic starting late 2019 and extending through 2020 is assessed for all regions; its impact on construction and mining equipment in particular is reflected in the forecasting methodology adopted. Growth opportunities for key market participants and emerging companies are highlighted by region. Case studies covering modernization in construction and mining are also included.