Improving Public Infrastructure Propelling Global Construction Equipment Demand

The boom in urbanization in emerging economies expands the construction industry, thus resulting in the rising demand for the associated equipment. Developing countries are focusing on attaining the status of a developed nation, by improving the living standards with quality facilities. The ensuing boom in construction results in the increasing requirement for tower cranes, excavators, trenchers, concrete mixers, loaders, compactors, dump trucks, telehandlers, and other equipment.

Population Explosion: The human population is rapidly increasing due to a lower mortality rate as compared to the birth rate and the longer life span than before. It has resulted in a rising demand for better healthcare facilities, education, and employment, which is why a large number of hospitals, schools and colleges, and all other types of spaces are being constructed.

Urbanization: Around 50% of the global population lives in urban areas currently, and by 2050, it is expected that 2.5 billion people will migrate to cities, as per the UN. The rate of urbanization is especially high in the emerging economies of APAC and Africa, primarily due to the rising employment opportunities in urban areas. Since people migrate in a large number to cities, the demand for housing has increased significantly in recent years, in turn, leading to a rise in construction activities.

Industrialization: The secondary sector is a major pillar of emerging economies, which is why the industrialization rate in LATAM, APAC, and MEA is rather high. According to MOSPI, industrial production in India has witnessed a jump of 7.1% YoY in April 2022. Manufacturing contributes 78% to the total industrial production in India, which signifies a major demand for construction equipment of all kinds.

Thus, the rapid urbanization would result in the increasing demand for construction equipment.

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