Growth in Construction Industry in Developed and Developing Nations Driving Excavator Remanufactured Components Market Growth
Countries such as the United States, India, Canada, Germany, and France have shown significant investments in new construction and infrastructure development projects with government support and initiatives. For instance, according to the European Commission, the construction industry directly employs more than 18 million individuals, which forms ~9% of the EU’s GDP. The production volume across the European construction industry increased by 4.8% in 2022 compared to 2021. According to the European Commission organization, the 27 EU member states’ combined investment in building amounted to ~US$ 1.72 trillion for the entire 2021, representing 11.1% of the EU’s GDP. The key construction projects considered in the report include non-residential constructions such as offices, hotels, hospitals, schools, and industrial buildings, representing 31.3% of all construction activities in Europe. Further, the construction industry in India has several ongoing infrastructure development projects with government investment. Under the National Infrastructure Pipeline program in 2021, India announced an investment of ~US$ 1.4 trillion in infrastructure development.
The rise in construction work across residential and commercial sectors owing to growing urbanization propels the excavators remanufactured components market growth. According to the Ceramics Organization Report, the global market for residential buildings, including new construction, renovation of buildings, and remodeling, was valued at US$ 6.80 trillion in 2022. Government bodies are putting additional emphasis on strengthening construction and infrastructural development, further enduring the demand for cladding systems. As per Global Construction 2030, the volume of construction output worldwide is estimated to increase by 85% to US$ 15.5 trillion by 2030. The US, China, and India contribute to having the largest share and India is growing with the highest CAGR during the forecast period. Moreover, investment to renovate old buildings and structures and increased inclination toward a greener future are boosting the requirement for green buildings, further nurturing the excavators remanufactured components market growth.
As the demand for new buildings and infrastructure continues to grow in developed and developing countries, including the US, Canada, India, Mexico, China, Germany, and the UK, the excavators remanufactured components market is expanding at a rapid pace. The industry is primarily driven by the residential sector in the developed countries. Also, Americans were increasingly shifting to new homes amid the COVID-19 pandemic. According to the US Bureau statistics, ~1.6 million new private houses were constructed in 2021, an increase of 16.0% compared to 2020. Canada’s construction sector is expected to be worth more than US$ 430 billion and is expected to grow at the rate of 8.5% by 2024. Furthermore, a surge in residential construction across North American states is propelling the excavators remanufactured components market growth in the region.
China’s excavators remanufactured component market is driven by rapid growth in the mining sector and increased coal production. As per the data published by the National Bureau of Statistics (NBS), the mining sector accounted for US$ 144.84 billion in revenue generation in the first seven months of 2022, an increase of 1.05 times from 2021. China is the world’s greatest producer and user of coal, but its record output is noteworthy. According to figures published by China’s National Bureau of Statistics in January 2022, coal output reached a record 4.07 billion metric tons last year in 2021, up 4.7% from 2020. In 2022, China accounted for 63% of global rare earth mining, 85% of global rare earth processing, and 92% of global rare earth magnet production. This growth in mining has directly affected the demand for equipment, such as wheel loaders and wheel dozers, ultimately driving the excavator remanufactured components market share in developing nations.
Excavator Remanufactured Components Market Analysis: Market Overview
Based on components, the global excavator remanufactured components market is segmented into engine, axle, transmission, hydraulic cylinder, and others. The engine segment is anticipated to hold the largest excavator remanufactured components market share during the forecast period due to its wide usage of excavators in construction and mining sector. Engines are modified using the remanufacturing programs held by the key players across the globe. Increasing use of excavators for performing several operations such as digging, exploration, wrenching, production, and reclamation is driving the market growth. Construction-related work globally was valued at ~US$ 9.7 trillion in 2022 and is expected to reach US$ 13.9 trillion by 2037. In Asia Pacific, Japan and India are the rapidly growing construction markets. Further, governments of developing nations focus on expanding their mining activities. As per the data published by the Government of India in March 2023, the government has set an objective of boosting the mining sector’s contribution to GDP to 2.5% by 2026–2027. It intends to introduce investor- and industry-friendly standards for the sector. The initiatives to expand the mining sector will increase the requirement for mining equipment in the coming years, ultimately driving the excavator remanufactured components market.
Excavator Remanufactured Components Market: Competitive Landscape and Key Developments
AB Volvo, Caterpiller Inc., Atlas Copco, Epiroc AB, SRC Holding Corporation, Hitachi Construction Machinery Co. Ltd., Liebherr Group, Komatsu Ltd., J C Bamford Excavators Ltd., and Swanson Industries are among the key market players profiled during this excavator remanufactured components market report. In addition, several other important excavator remanufactured components market players have been studied and analyzed during the study to get a holistic view of the excavator remanufactured components market and its ecosystem. The excavator remanufactured components market report includes company positioning and concentration to evaluate competitors’ performance in the market.
| Year | News | Country |
| November 2022 | Swanson Industries—a leading provider of hydraulic cylinder manufacturing, remanufacturing, repair, and distribution services—announced that it acquired the majority ownership of Tiefenbach North America, LLC (“TNA”). Also, Tiefenbach Control Systems, Gmbh (“TCS”) will retain a minority interest in TNA. This acquisition was completed on October 31, 2022. | North America |
| November 2023 | Komatsu Ltd. started its remanufacturing business in Japan to manufacture capacitors and inverters as the key components of hybrid hydraulic excavators. Komatsu Ltd. planned to expand its remanufacturing business and include several components remanufacturing for hybrid hydraulic excavators. | APAC |