Recent research indicates the global construction machinery telematics market is growing. Its rate of growth is, in fact, faster than ever. Changes in foreign city planning policy is one of the main reasons for the growth. Infrastructure investments are making an impact as well. Around the world, the demand for construction machinery is increasing. This trend should last for at least the next 10 years.
Global Infrastructure Investments
The United States, India and China are increasing infrastructure budgets. The intent is to stimulate economies. Within India and China alone, new job creation contributed to a global GDP rise by 3.9% in 2018, according to the IMF. That’s proof infrastructure spending pays off.
The fastest-growing infrastructure market is in the Asian-Pacific region. But the United States will also be spending more on its infrastructure as time passes.
Increased spending on construction machinery occurs as China expands its subway system. Urban transportation projects are being planned in the region as well.
One specific project driving growth in China include its Belt and Road initiative. The initiative includes building railways, ports, and green energy projects. These projects are earmarked for expansion from west China towards Europe.
The United States government will invest over 1 trillion USD in its infrastructure. This investment is expected to occur over the next 10 years.
China’s Deregulation of Development Projects Drive Growth
China is easing its restrictions on foreign investments. Foreign land development projects are being welcomed like never before. This shift in policy increases the demand for high-performance construction equipment. More luxury hotel and large-scale theme park projects will take place in the region. New international exhibition centers will have an impact on equipment demand as well. Higher demand for construction equipment in the region is expected for years to come.
The Hong Kong, Guandong, and Macao Bay area’s economic policies are development driven. Excavators and heavy construction machinery will be in high demand within those municipalities.
Real estate development drives demand for construction equipment in this region as well.
India’s Construction Sector Boom
India’s growing economy causes higher levels of demand within its construction sector, too. New road networks a major driving force behind India’s increasing demand for equipment. In 2017 a network of new rural roads resulted in the government allocating 90 billion USD. An estimated 80,000 kilometers of roadway will be built within 5 years. The government of India reports it will be spending 3 billion USD on such development soon.
Real estate projects also drive demand for high-performance construction equipment in this region.
The highest CAGR will likely be observed in the Asia-Pacific region. Equipment availability will contribute to the demand for construction equipment in this region. More mobile device usage adds to the growth of this region’s construction sector. Demand within the Asia-Pacific region may thus grow faster than in North America.
Fast-paced growth within the entire global market is forecasted.
The global construction machinery telematics industry can look forward to increasing profits. There is only one wildcard in this anticipated growth. How fleet operators integrate new technology into existing business processes remains in question. Yet the demand for high-performance construction machinery will increase, regardless.