The global construction equipment market is expected to reach $240.97 billion over the next five years with a CAGR (compound annual growth rate) of 8.9 per cent, said a report.

The construction equipment market includes heavy machinery such as loaders, cranes, forklifts, excavators, and dozers, used for earthmoving, material handling, excavation and other applications across different industry verticals.

Among the different types of construction equipment, loader and cranes would continue to remain the most preferred type, due to their numerous applications in construction, mining and public works, according to a new report by Allied Market Research.

The lifting and material handling application, said the report, would grow at a relatively faster CAGR of 12.4 per cent during 2015-2020, in comparison to all the other applications, it added.

The loader segment would drive the market significantly by 2020, contributing more than 44 per cent of the total market revenue, due to increased application in earthmoving operations, said the Allied Market Research report.

The Asia-Pacific region, one of the most promising markets, was expected to grow at a CAGR of 10.2 per cent during 2015-2020, it added.

According to the researchers, the global crane market was growing at a steady pace due to the growing demand for lifting and material handling from different industries.

From industries' perspective, public works and rail road sector would significantly drive the market due to the increasing number of infrastructural projects worldwide. Other prominent end-user industries include oil and gas, mining and manufacturing, they stated.

Construction equipment finds maximum usage in earthmoving and lifting and material handling applications. The two applications collectively accounted for around 50 per cent of the total market in 2014.

Between the two, earth-moving applications would grow at a faster rate during the forecast period, due to the upsurge in construction for commercial and residential infrastructure setup.

The market is further segmented into solution type, comprising of product and services. The market shares of products and services would hover in the ratio of 80:20 throughout the analysis period.

The Allied Market Research said public work activities would continue to drive the global construction equipment market. "Excavation and mining application involving the use of construction equipment would grow notably at a CAGR of 9.5 per cent over the next five years," it added.-TradeArabia News Service