Dublin, July 12, 2024 (GLOBE NEWSWIRE) -- The "Germany Construction Equipment Market - Strategic Assessment & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering.
The German construction equipment market size by volume is expected to grow at a CAGR of 2.74% from 2023 to 2029.
Earthmoving equipment accounted for the largest share of the Germany construction equipment market in 2023. Excavators in the earthmoving segment accounted for the largest share in 2023. Rising investment in housing, port expansion, and public infrastructure projects is expected to drive the demand for excavators in the Germany construction equipment market.
In 2023, the German construction equipment market experienced a transitional phase marked by a downturn in building construction and geopolitical tensions. New order intake decreased notably, yet sales remained relatively stable. This stability was attributed to reducing the significant order backlog from 2021/2022.
In 2023, the construction sector in Germany faced difficulties due to an overall economic slowdown. Factors like increased product costs, labor shortages, and financing challenges affected the market, especially in housebuilding. The PMI index has continuously declined since April 2022, suggesting a prolonged downturn with no immediate resolution.
In March 2024, the German government planned to invest approximately USD 108.2 million to support the USD 324.7 million expansion of the North Sea port of Cuxhaven. This investment will boost the sales of mobile cranes in the Germany construction equipment market.
Increased Investment in Public Infrastructure Projects
- The Federal Ministry for Digital and Transport (BMDV) has acknowledged a significant neglect of the rail sector in previous decades, resulting in a substantial investment backlog. To address this, they have anticipated a requirement for up to USD 48.8 billion additional funding by 2027. Moreover, in the draft 2024 budget, the Ministry of Transport has allocated USD 1.6 billion for rail, sourced from the CO2 surcharge on heavy goods vehicles.
- It prioritizes structural maintenance of current networks and alleviates bottlenecks on major transport routes. Out of the total funding of USD 302.2 billion until 2030, approximately USD 159.1 billion will be allocated to maintaining existing networks.
- Moreover, as of Sept 2023, Germany's Transport Ministry announced a USD 42.7 billion investment plan at the 2023 Rail Summit in Frankfurt. This funding, available until 2027, addresses the country's neglected rail infrastructure.
- Since 2021, the German government has been unable to achieve its yearly goal of constructing 400,000 apartments. According to the German Property Federation (ZIA), a deficit of 600,000 apartments in Europe's largest economy is projected to increase to 830,000 by 2027.
- The country has planned to spend USD 220 billion by 2026 to assist in industrial transformation, including climate protection, hydrogen technology, and electric vehicle charging station expansion. These projects are projected to support the growth of the Germany construction equipment market. Also, construction equipment and buildings experienced a 22% growth in 2021 compared to the previous year due to the push of infrastructure with highways, dams, and green cities.
- In 2023, the German government provided an extension of financial guarantees for Siemens Energy, a leading wind farm manufacturer headquartered in Munich. This decision is part of a USD 16.2 billion package designed to support the company amidst financial challenges and enable its continued involvement in significant renewable energy initiatives.
MARKET TRENDS & DRIVERS
Adoption of Building Information Modeling (BIM) to Enhance Remote Monitoring & Digitization
- In the German market, approximately 20% of companies have maturely applied the BIM strategy, and approximately 40% are still applying it. Projects exceeding USD 98.87 million are mandated to apply BIM.
- The Federal Ministry of Transport and Digital Infrastructure (BMVI) is aiding medium - and small-sized companies in integrating BIM to increase the productivity of construction processes and improve the quality of buildings.
Investment in Green Infrastructure Strategy
- Germany has targeted investing USD 220 billion by 2026 to support industrial transformation, including climate protection, hydrogen technology, and the expansion of electric vehicle charging stations.
- The Green Infrastructure Strategy was developed by the European Commission in 2020, which aimed to develop organic systems, both natural and engineered, that act as living infrastructure in rural and urban settings to promote social, economic, and ecological growth, focusing on sustainable growth.
Surge in Renovation & Repair Projects for Public Infrastructure Supports Demand for Construction Equipment
- In Sept 2023, Germany's Federal Ministry for Transport announced a USD 43.3 billion investment plan until 2027 to improve Germany's railway infrastructure at the 2023 Rail Summit in Frankfurt.
- The ministry stated that the majority of funds in 2024 will be directed toward Germany's construction industry, with approximately USD 20.4 billion designated for building renovations and new constructions.
Response to Focus on Sustainability and Smart City Development to Propel the Demand for Compact Machines in the Germany Construction Equipment Market
- "Green building" is one of the German government's key investment strategies and is expected to boost the demand for compact-powered construction equipment. Germany has invested approximately USD 12.5 billion in developing green buildings in compliance with ESG norms.
- The growing demand for excavators in the Germany construction equipment market is attributable to improvements in the underground mining and construction sectors and a few government projects, such as the smart city project. Moreover, the market for compact excavators is evolving into a more innovative sector due to the intelligent systems driven by IoT and data analysis for service, networking, and sustainability.
Increased Investment in Green Fuel Solutions to Generate Demand for Related Infrastructures
In 2023, the German government unveiled its National Hydrogen Strategy update, aiming to accelerate establishing a hydrogen market to achieve climate neutrality by 2045. The update includes doubling the 2030 target for domestic electrolyzer capacity to produce green hydrogen from renewable sources to 10 gigawatts. Furthermore, since 2021, the German government has been unable to achieve its yearly goal of constructing 400,000 apartments. According to the German Property Federation (ZIA), a deficit of 600,000 apartments in Europe's largest economy is projected to increase to 830,000 by 2027.
INDUSTRY RESTRAINTS
Germany's Residential Slump Expects to Impact the Germany Construction Equipment Market Negatively
According to calculations by the German Property Federation (ZIA), there is currently a shortage of 600,000 apartments in Europe's largest economy. This deficit is projected to increase to 830,000 by 2027. Also, Germany's housing crisis persists, as the Federal Statistical Office (Destatis) reported a 23.5% decrease in residential building permits issued in January 2024 compared to the same period in 2023. Only 16,800 apartments were granted permits in January, marking a decline from the previous year.
The Skilled Labor Shortage in the Country Hampers the Pace of Construction Projects
In Feb 2024, the German government highlighted the significant challenge facing Europe's largest economy, emphasizing growth constraints due to a workforce shortage. For 2024, the government anticipates a growth rate of 0.2%, down from the previous forecast of 1.3%. Further, with approximately 700,000 vacancies currently unfilled, Germany's economic growth potential has declined to 0.7% from around 2% in the 1980s and is projected to decrease further to 0.5% if the issue remains unresolved.
The Scarcity of Logistics Space and High Rents in the Country Negatively Impact the Demand for Construction Equipment
- Germany is facing a shortage of logistics space. The Federal Association of Forwarding and Logistics expects around four million square meters of additional storage space to be needed by 2025.
- In Berlin, the prime rent for storage space for approximately 5,000 m or more rose due to the increasing shortage of space from $7.03/m/month to $8.40/m/month.
VENDOR LANDSCAPE
- Caterpillar, Komatsu, Volvo CE, Liebherr, JCB, and Hitachi Construction Machinery are leaders in the Germany construction equipment market. These companies have a strong market share and offer diverse sets of equipment.
- LiuGong, Terex, Bobcat, Yanmar, Manitowoc, Hydrema, John Deere, Manitou, Jungheinrich AG, Wacker Neuson, and Toyota Material Handling are niche players in the German construction equipment market. These companies offer limited product diversification and have a strong presence in the local German market.
- XCMG, SANY, Kobelco, Kubota, Zoomlion, CNH Industrial, DEVELON, and HD Hyundai Construction Equipment are emerging in the German construction equipment market. These companies are introducing new technologically advanced products to challenge the market share of the country's market leaders.
- AUSA, Merlo Spa, Hidromek, Kato Works, Bomag, Tadano, Takeuchi, Haulotte, JLG, Ammann, and Mecalac have low product diversification in the German construction equipment industry, and they are lagging in adopting new technologies.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 234 |
| Forecast Period | 2023 - 2029 |
| Estimated Market Value in 2023 | 118.61 Thousand Units |
| Forecasted Market Value by 2029 | 139.5 Thousand Units |
| Compound Annual Growth Rate | 2.7% |
| Regions Covered | Germany |
Key Vendors
- Caterpillar
- Komatsu
- Volvo Construction Equipment
- Hitachi Construction Machinery
- Liebherr
- JCB
- SANY
- Xuzhou Construction Machinery Group (XCMG)
- Kobelco
- Zoomlion Heavy Industry Science & Technology
- CNH Industrial
- Hyundai Construction Equipment
- John Deere
Other Prominent Vendors
- Kubota
- Liugong
- Yanmar
- Terex Corporation
- Manitou Group
- Takeuchi Manufacturing
- DEVELON
- Hidromek
- Tadano
- KATO Works.
- MERLO
- Bobcat
- Haulotte
- Toyota Material Handling
- Ammann
- AUSA
- Sunward Intelligent Equipment
- Mecalac
- Hydrema
- Wacker Neuson
- The Manitowoc Company
- JLG
- Jungheinrich
- Bomag
Distributors Profiles
- Thomas Baumaschinen
- KUHN- BAUMASCHINEN.
- Schluter Baumaschinen
- Swecon
- Tecklenborg Construction and Industrial Machines
- GS Arbeitsbuhnen
- Werner Seemann
- Baumaschinen Aschauer
For more information about this report visit https://www.researchandmarkets.com/r/b2nbty
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