The mining sector is driving demand, high demand for rentals, growing interest in compact cars, focus on ecological transformation

Canadian construction equipment market

Dublin, May 23, 2024 (GLOBE NEWSWIRE) — The Canadian Construction Equipment Market – Strategic Assessment and Forecast 2024-2029 report has been added to ResearchAndMarkets.com offering.

The Canadian construction equipment market is expected to reach $14.59 billion by 2029 from $11.2 billion in 2023, growing at a CAGR of 4.27% from 2023 to 2029

The Canadian construction equipment market is highly competitive with local and international players. The key players in the market are the largest companies such as Wolff Group Construction Equipment Canada, Frontline Machinery Canada and RockZone Americas Canada. These companies offer a wide range of construction equipment including excavators, loaders and cranes for various segments such as residential, commercial and infrastructure construction. Evolution Mechanical Ltd. is another significant player known for its expertise in providing heavy equipment solutions.

Caterpillar, Hitachi Construction Machinery, Volvo CE, SANY, XCMG and Komatsu are leaders in the Canadian construction equipment market. These companies have a large market share and offer a variety of equipment sets.

Investments in infrastructure development, including affordable housing and transportation infrastructure, support the growth of the Canadian construction equipment market. However, the main challenges include the growing risk of economic recession, supply chain pressures and over-dependence on foreign labor. The government aims to achieve carbon neutrality by 2050. That is why it is increasing its emphasis on the use of renewable energy sources and reducing the use of fossil fuels. It promotes the use of electric vehicles in the transport sector and installs solar panels on buildings to generate electricity.

Construction activity in Canada is expected to decline over the next few quarters. However, a potential rebound could occur in spring 2024 if inflation calms down and debt markets stabilize, boosting investor confidence. Material costs are projected to increase by 3% to 5% and employee wages are expected to increase by 4% to 6%. Total costs are expected to increase by 3-6%.

The Canadian construction industry is struggling with skills shortages and declining productivity. Therefore, improving the competences and productivity of the workforce will be crucial. The sector’s areas of focus include employee retention, upskilling and building trust among employees. In February 2023, the federal government published the preliminary budget estimates for the 2023–24 financial year. These included C$198.2 billion ($153.8 billion) in budget expenditures for operating and capital expenditures, for a total of C$432.9 billion ($335.9 billion) in spending. The province of Ontario released its 30-year transit plan in 2023. Over the next ten years, it will cost C$84.7 billion ($65.7 billion) to build a transportation network primarily focused on new highways, rail lines and subways.

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TRENDS

• High Demand: There is high demand for equipment such as excavators, bulldozers, graders and asphalt pavers to support infrastructure development and maintenance of existing networks. The number of demolition works is also increasing, which further increases the demand for equipment.

• Shifting Preferences: The industry is showing increasing interest in sustainable practices, increasing demand for electric and hybrid construction equipment.

KEY NEWS

• Earthmoving equipment held the largest share of the Canadian construction equipment market in 2023. In 2023, excavators had the largest share in the earthworks segment. Rising investment in housing, port expansion and public infrastructure projects is expected to drive demand for excavators in the Canadian construction equipment market.

• The region is experiencing a boom in residential and commercial construction, especially in urban areas. This is driving demand for equipment such as forklifts, basket lifts and concrete mixers in the Canadian construction equipment market.

• Rising interest rates and higher raw material prices may hamper the development of the construction equipment market in the region.

• Increased infrastructure investment and a surge in civil engineering and residential projects in 2023 are expected to support demand for excavators in the Canadian construction equipment market.

• The government’s commitment to allocate approximately 5% of GDP each year to infrastructure development is expected to open up opportunities for construction companies in the transport, energy and water sectors.

MARKET TRENDS

• Focusing on the green transformation will encourage investment in the construction industry

• Greater focus on remote monitoring technology in construction equipment

• There is an increasing focus on compact and electric construction equipment

• Increase in infrastructure projects to revitalize Canadian construction equipment market

• Growing number of transport projects driving demand for road construction machinery

• The leading mining sector supports demand for heavy construction equipment

• Land shortage will hamper infrastructure development across the country

• High demand for construction equipment rentals makes it difficult to sell new construction equipment

ANSWERS TO KEY QUESTIONS

• How big is the Canadian construction equipment market?

• Who are the major players in the Canadian construction equipment market?

• What is the growth rate of the Canadian construction equipment market?

• What are the trends in the Canadian construction equipment industry?

• Which distribution companies are the main distributors in the Canadian construction equipment market?

Key Features:

DEALER’S LANDSCAPE

Outstanding suppliers

• Caterpillar

• Hitachi construction machinery

• Komatsu

• Liebherr

• Volvo construction equipment

• Kobelco

• Kubota

• Zoomlion Heavy Industry Science & Technology Co. Ltd

• SANY

• Xuzhou Construction Machinery Group Co. Ltd. (XCMG)

• SUMITOMO CONSTRUCTION MACHINERY CO.,LTD.

• JCB

• John Deere

• Develon

Other outstanding suppliers

Distributor profiles

• National equipment distributors

• SMS equipment

• Great western equipment

• Finning International Inc.

• Cooper Equipment Rentals

• Wolff group

• First line machines

• RockZone in America

• Machine partner

• Ewolucja Mechaniczna Limited Liability Company

• SITECH

SEGMENTATION ANALYSIS

Earthmoving equipment

Road construction equipment

• Road rollers

• Asphalt pavers

Material handling equipment

• Crane

• Forklifts and telehandlers

• Aerial platforms (articulated boom lifts, telescopic boom lifts, scissor lifts)

Other construction equipment

• Trolley

• Soaker

• Concrete mixer

• Truck with a concrete pump

End users

• Construction

• Mining

• Production

• Other (power generation, utilities, oil and gas, cargo handling, power plants, waste management)

More information about this report can be found at https://www.researchandmarkets.com/r/ohat3b

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