Market overview of construction tools and equipment

Continuing to survey various segments of the industrial tool market, we would like to turn today to a tool for construction, repair and finishing. Let's look at the trends that have emerged in recent years and evaluate the newly opened prospects. We present you the latest data of 2022!

Traditionally, the market overview is divided into 3 main blocks: description and classification of the instrument in question; overview of global trends (here we will switch to the market of heavy construction equipment); acquaintance with key manufacturers in the world and in Russia.

Construction tools are a very broad area of goods that includes various groups of tools, equipment, tooling and materials for very different purposes. Therefore, there are different classifications for construction tools.

Classification of construction tools according to the principle of operation

Conditionally, all the variety of tools can be split into two groups: hand tool and power tool.

The manual tool includes:

• percussion instrument (axes, sledgehammers, hammers, mallets)

• rivets and rivets

• screwdrivers and bits

• spatulas and trowels

• tile cutters

• construction levels and rules

• hacksaws and saws

• files, chisels, chisels, glass cutters

• a tool for mounting networks

• paint rollers and brushes

• graters and ironers

• mixers for mixing mortar and paint

• squares, rulers and construction roulettes

• hinge-lip tool and metal scissors

Power tools include:

• drills, drills and screwdrivers

• jackhammers

• saws, jigsaws, planes, milling cutters, electric scissors

• grinding machines

• blowers and hair dryers

• and, of course, accessories for power tools: drills, drills, bits, spikes, crowns, discs and much more

Classification of construction tools by application area

This is a narrower classification, if compared with the previous division of the tool into manual and power tools.

Depending on the application of the tool in a particular field of construction, it is divided into the following groups:

• measuring tool

• metal-cutting tool

• woodworking tool

• household tool

• abrasive tool

• carpentry tool

• locksmith tool

• hardware and fasteners

• finally, an important group is workwear and protective equipment

Classification of construction tools by consumer groups

Any tool that we have previously classified according to the principle of operation and the scope of application, in addition, it can be classified by consumer groups. Namely on:

• household tool

• professional tool

A professional tool is more expensive than a household one, since it has a longer life of continuous operation, it is more fault-tolerant. The professional tool is made of more durable and expensive materials, which makes it suitable for use in the most difficult tasks and conditions.

Household tools do not need such characteristics. As a rule, it is used to solve simple single tasks that periodically arise in everyday life - at home or in the country.

Global trends in the construction equipment market

International magazines do not consider the construction tool market separately. There are publications in the field of power tools or hand tools, but we have already talked about the growth rates and trends in these markets in our previous reviews (power tool market overview and hand tool).

However, the same international magazines have been actively and for a long time studying the market of heavy construction equipment for construction, which is the most powerful engine, including the market of tools, repairs and finishing. After all, without new buildings, there are no new premises for repair.

Key indicators of the construction equipment market

The volume of the global construction equipment market in 2020 amounted to 133.37 billion US dollars. The global impact of COVID-19 was quite strong: the demand for construction equipment was declining in all regions in the context of the pandemic. According to the analysis, the global market showed a lower growth of 2.6% in 2020 compared to the average annual growth in 2017-2019. The market is projected to grow from US$ 141.99 billion in 2021 to US$222.14 billion in 2028, with an average annual growth rate of 6.6% in the period 2021-2028. The growth of the CAGR is explained by the demand and growth of this market, which returns to pre-pandemic levels after the end of the pandemic.

The growth of the global market is observed due to an increase in the number of public-private partnerships, an increase in the volume of industrial, residential and commercial construction, as well as an increase in public investment in infrastructure development. The main players operating in the market invest in research and development to modernize equipment to provide efficient equipment for industry and end users, including mining, agriculture, forestry, loading and unloading operations (e.g. ports, warehouses), recycling facilities, municipal facilities.

An important observed market trend is the ongoing transition from traditional equipment to automated equipment, as consumers modernize and update old technologies. In order to increase productivity in the construction industry, prominent and strong players are effectively trying to tighten the supply chain of construction equipment and achieve higher efficiency.

The appearance of construction equipment rental services will become the main trend

Rental services currently they are gaining more and more popularity in the world market. According to the Construction Equipment Rental Association (CERA), demand for rental services is expected to grow in developing and most populous countries such as China and India during the forecast period. Regional and local new players are likely to strengthen their presence in the rental services business by generating sufficient revenue from their regional customer base. Large construction firms work mainly in the following sectors to get higher profits: general infrastructure, oil and gas, utilities and electrical, commercial and residential construction.

In addition, as infrastructure development plans receive ever larger budgets in developing countries, the growth of the construction equipment rental market will be sustainable, as government projects prefer equipment rental. Moreover, it is safer, more convenient and more affordable for the government to work with rental companies than to own your own fleet of construction equipment.

Introduction of advanced construction equipment to stimulate growth

Consumers all over the world are demanding more economical, technologically upgraded equipment to expand construction work. The introduction of upgraded equipment reduces labor costs, ensures tracking of the work done at each stage of the process, and also reduces operating costs. Players are working to expand the scope of their business by providing products, services or solutions, as well as new values that fully utilize information and communication technologies, as well as cloud technologies. In addition, they are engaged in the introduction of advanced equipment that can not only meet the requirements of customers, but also solve social and environmental problems. Thus, end users increasingly like advanced technology and machines. Recently, the Australian company Black Cat Civil discovered that Cat Next Gen excavators are ideal for their technology-oriented business model.

Increased investment in construction and infrastructure worldwide stimulates demand for equipment

The public and private sectors around the world are investing heavily in the construction of new residential and commercial buildings and public infrastructure, supporting the growth of the construction industry. According to the Institute of Civil Engineers, the global construction market is expected to reach approximately $8 trillion by the end of 2030, thanks to infrastructure development in the United States, China and India. The growing urbanization, especially in Latin America and Asia, creates a huge demand for residential infrastructure, contributing to the growth of the construction equipment market. European governments are investing in new smart city development projects. It is noted that by 2020 there are already more than 300 smart cities in the European Union, which contributes to the introduction of advanced construction machines.

The use of construction equipment leads to an imbalance of the environment and slows down growth

In addition to growth factors, there are also constraining factors for the construction equipment market.

Heavy construction equipment is the main source of ozone emissions, which leads to deterioration of air quality. The emissions generated by this equipment, such as nitrogen oxides, volatile organic compounds and carbon monoxide, negatively affect the environment, causing an ecological imbalance in rural and urban areas. In addition, mining equipment operating in mines is another source of significant ozone emissions.

However, in order to achieve control over these emissions around the world, local transport departments, utilities, government agencies and private companies are beginning to jointly collect data on the number of equipment and locations of construction sites. Similarly, building permits for commercial, residential buildings and demolition projects are collected to calculate and monitor building emission substrates with a geographical code using various software technologies. Moreover, developed countries are actively taking steps to tighten laws on emissions from construction equipment, as well as to improve energy efficiency, thereby curbing the effects of global warming.

Segmentation of the construction equipment market

The segment of loading and unloading equipment and cranes will demonstrate high growth rates in the forecast period

Depending on the type of equipment, the market is divided into earthmoving equipment, loading and unloading equipment and cranes, concrete equipment, road construction equipment, civil engineering equipment, crushing and screening equipment and others.

Predicted, that the loading and unloading equipment segment will have exponential and significant growth due to the growing demand for cranes and other equipment in several areas for handling heavy construction materials and products. AGVs, forklifts and telehandlers are the main loading and unloading cranes used in construction and warehouses. In addition, the road construction and earthmoving equipment segments are expected to show growing demand as investment in industrial and commercial construction projects grows in developing countries such as China and India.

It is expected that the segments of civil engineering and concrete equipment will demonstrate stable growth, since the need for this equipment depends on the number of ongoing construction and infrastructure projects. The crushing and screening equipment segment is expected to have significant growth due to limited demand for the mining industry.

Other equipment consists of dump trucks, trailers and tankers, the demand for which probably will not change in the market as a whole.

The industrial construction segment will grow faster than others

Depending on the application area, the market is divided into residential, commercial and industrial.

The industrial application segment is expected to show progressive growth in the near future due to increasing industrialization and foreign direct investment for several international manufacturing enterprises in developing countries. The development of commercial infrastructure in developed and developing countries is likely to create a significant market worldwide.

Rapid population growth in Asia and Africa is expected to stimulate the residential construction segment.

Key global players in the field of heavy construction equipment

• AB Volvo (Sweden)

• Caterpillar Inc. (USA)

• Komatsu Ltd. (Japan)

• Doosan Infracore Co. Ltd. (South Korea)

• Hitachi Construction Machinery Co., Ltd. (Japan)

• J.C. Bamford Excavators Ltd. (UK)

• Liebherr Group (Sewing)

• CNH Industrial N.V. (UK)

• Hyundai Construction Equipment Co., Ltd. (South Korea)

• SANY Group (China)

Russian manufacturers of construction tools

Traditionally, we will consider the key Russian manufacturers of construction tools and estimate their scale by gross profit for 2021//2020:

• Brands Sibrtech, Sparta, Gross, etc. / Mir Instrumenta LLC, TIN: 7722537534, 9.12 billion rubles // 7.61 billion

• Jonnesway / TD PRIDE LLC, TIN: 7743139407 → 596.7 million // 424 million p

• FIT / RK LLC, TIN: 7801501178 No data available;

• Anchor / IK ANCHOR LLC, TIN: 3666080389 - 193 million rubles // 147 million rubles

• ZUBR / CJSC ZUBR OVK - 120 million rubles // 81 million rubles

• Diold / CJSC Diffusion Tool, TIN: 6731015596 ⇒ 396 million // 345 million;

• Einhell / Einhell LLC - 339 million // 184 million;

• AKOR - 225 million //172 million;

• Vortex / Cascade INN LLC: 7727835943 - 955.7 million // 640 million

• Trigger - 18.5 million // 25.1 million
  

The virtual exhibition Enex presents products of Russian and foreign manufacturers of construction tools - view the catalog.