Construction Equipment Aftermarket Projected to Exceed $30 Billion by End of 2027

The construction equipment aftermarket, consisting of parts and service offerings after a new equipment sale, was projected to exceed $20 billion for 2020 and continue to grow at more than 5{92b8314a80b58944ba0df9bff999fd6692ae6ba618bc5950ca8fb5ab90484bed} CAGR from 2021 to 2027, when it is projected to reach more than $30 billion, according to Global Market […]

The construction equipment aftermarket, consisting of parts and service offerings after a new equipment sale, was projected to exceed $20 billion for 2020 and continue to grow at more than 5{92b8314a80b58944ba0df9bff999fd6692ae6ba618bc5950ca8fb5ab90484bed} CAGR from 2021 to 2027, when it is projected to reach more than $30 billion, according to Global Market Insights, Inc. Active efforts by suppliers to expand their service portfolios and boost their market presence will help to fuel the industry growth.

Factors fueling expansion in the construction equipment aftermarket include the significant increase in global construction activity, which has resulted in higher equipment usage and accelerated wear and tear on parts and components, as well as growing equipment safety concerns and government regulations on equipment emissions.

While growth in the construction equipment aftermarket slowed during the early part of the pandemic, there was a notable rise in online sales of construction parts globally throughout the later months, a trend that is expected to continue well into the future. Interestingly, this shift online appeared to be far less prominent in North America, which saw the construction equipment spare parts market exceed $5 billion in 2020.

“Offline sales of spare parts for construction equipment and machinery accounted for more than 70{92b8314a80b58944ba0df9bff999fd6692ae6ba618bc5950ca8fb5ab90484bed} of North America construction equipment aftermarket during 2020,” Hrishikesh Kadam, Global Market Insights, reports. “The dominance of this segment across the region can be attributed to the advantages associated with purchasing through offline stores, such as the ‘look and feel’ factor. The proliferation of physical stores that sell aftermarket construction parts will further drive up offline sales in the forthcoming years.”

ACBM staffA key factor that could limit aftermarket sales growth is the high initial cost and availability challenges associated with replacement parts and services. To address this, key players such as Volvo Construction Equipment, CNH Industrial and Caterpillar Inc. are adopting 3D spare parts printing for cost reduction and shorter lead times.

While technology is coming to the aid in parts availability, it is also increasingly becoming a limiting factor for market expansion. Technological developments, such as connectivity solutions, as well as the move on the part of equipment owners to “fail-safe machines” with advanced sensor integration that can help to reduce downtime and maintenance, are cutting into parts and service needs and thereby affecting industry revenue.

To meet evolving customer requirements, construction equipment manufacturers have focused on offering additional aftermarket services such as component care plans for new equipment, as well as the expansion of spare parts availability to ensure faster parts replacement services to customers worldwide.

Click here to read further market insights.

 Information provided by Global Market Insights and edited by Becky Schultz.

https://www.forconstructionpros.com/equipment/news/21903883/construction-equipment-aftermarket-projected-to-exceed-30-billion-by-end-of-2027

Shaqil Heaton

Next Post

One-way traffic: why some petrol prices are on the road to $2 a litre | Australia news

Tue Nov 23 , 2021
Service stations are a new source of public angst, with their red neon signs searing the psyches of drivers worried about how much their next filling will set them back. Petrol prices are emerging as a political touchstone again too, with $2 a litre in major cities in prospect for […]