U.K. Construction Equipment Industry Report 2024: Strategic Assessments & Forecasts 2023-2029 with Caterpillar, JCB, Volvo CE, Komatsu, Liebherr, and Hitachi Leading the Market - ResearchAndMarkets.com

The "U.K. Construction Equipment Market - Strategic Assessment & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering.

The U.K. Construction Equipment Market consisted of 57,227 units in 2023, and is expected to reach 65,010 units by 2029, rising at a CAGR of 2.15%.

Earthmoving equipment accounted for the largest market share of the U.K. 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 U.K. construction equipment market.

Caterpillar, JCB, Volvo CE, Komatsu, Liebherr, and Hitachi Construction Machinery are leaders in the U.K. construction equipment market. These companies have strong market share and offer diverse sets of equipment.

Takeuchi, Tadano, Terex, Hydrema, LiuGong, John Deere, Mecalac, Toyota Material Handling, Manitou, Wacker Neuson, and Bell Equipment are niche players in the U.K. construction equipment market. These companies offer low product diversification and have a strong presence in the U.K. local market.

Kubota, XCMG, SANY, DEVELON, Bobcat, Kobelco, CNH Industrial, Zoomlion, and HD Hyundai Construction Equipment are emerging in the U.K. construction equipment market. These companies are introducing new technologically advanced products to challenge the market share of the country's market leaders.

Hydraulic excavators are the most widely produced construction equipment globally, including in the UK. In 2022, over 614,000 crawler excavators were manufactured worldwide, comprising 314,000 midi - and full-size excavators and 299,000 mini excavators. The production of hydraulic excavators in the UK primarily focuses on JCB in Staffordshire, which serves the domestic market. JCB expanded its capacity to 7,400 units in 2020 to meet increasing local demand, a target surpassed in 2022.

In 2023, sales of construction and earthmoving equipment experienced a decrease of nearly 9%. The year was characterized by two distinct halves, with sales being 8% higher than 2022 levels in the first half but declining by 25% in the second half compared to the previous year. Despite this decline, sales in 2023 remained relatively high, with levels comparable to those seen in the two years prior, which were the highest since the financial crash in 2008.

In 2023, the private housebuilding sector saw significant double-digit activity declines, marking it the weakest sector in the construction market. However, the infrastructure sector offered some stability, driven by major projects like HS2, the Thames Tideway Tunnel, and Hinkley Point C. Equipment sales in 2024 are projected to decrease by up to 10%. The exceptionally high sales in the first half of 2023 are not expected to continue, with demand likely to be impacted by lower housebuilding activity and reduced requirements from infrastructure projects.

Market Trends & Drivers

Net-Zero Emissions Objective

• Regulatory Pressure: The U.K. has set ambitious targets to reduce CO2 emissions by 30% for new homes and 27% for other buildings like offices and shops. These regulations drive the adoption of green technologies, including electric compact construction equipment.
• Government Investment: In 2023, the U.K. government mobilized USD 29.44 billion for green industrial projects, signaling a strong commitment to sustainability. Additionally, foreign investments amounting to USD 6.57 billion further support this transition.
• Decarbonizing Initiatives: Funding of USD 4.42 billion for heating decarbonization, including a USD 509.51 million Boiler Upgrade Scheme, supports the shift to cleaner energy solutions in construction.

Integration of AI & Robotics

• Technological Advancements: Companies like Hitachi Construction Machinery are leveraging AI and IoT for remote monitoring and analysis of equipment, enhancing operational efficiency. For instance, the ConSite Mine system aids in problem resolution at mining sites.
• Robotic Innovations: The HERON project showcases advancements in road maintenance through autonomous robots, addressing tasks such as crack sealing and pothole patching.

Hydrotreated Vegetable Oil (HVO) Adoption

• Fuel Substitution: To counteract rising fuel prices, the U.K. construction sector is turning to HVO as a replacement for red diesel. The ZECHER project, supported by a USD 521,465 grant, focuses on developing hydrogen fuel technology for construction equipment.
• Environmental Benefits: HVO and hydrogen fuel technologies align with the U.K.’s carbon reduction goals, offering more sustainable fuel alternatives.

National Infrastructure and Construction Pipeline

• Investment Surge: The 2023 National Infrastructure and Construction Pipeline includes 660 projects with a combined value of USD 205.7 billion through 2025. Notable initiatives, such as Network North (USD 45.1 billion), enhance infrastructure development.
• Funding Allocation: Significant investments in infrastructure boost demand for construction equipment and materials, reflecting the government's commitment to long-term infrastructure projects.

Green Energy Investments

• Funding for Green Projects: The U.K. plans to invest USD 1.20 billion in the Green Industries Growth Accelerator to support clean energy manufacturing. This funding targets areas like carbon capture and offshore wind, influencing the demand for material handling equipment.
• Long-term Certainty: The focus on developing domestic clean energy supply chains provides stability and encourages investment in related equipment and technologies.

Affordable Homes Programme

• Increased Housing Investment: The government's Affordable Homes Programme, with USD 14.3 billion allocated for 2021-2026, aims to deliver 180,000 new homes by March 2029. Additionally, single-family home investments have surged to USD 11.3 billion, reflecting a strong demand for housing units.
• Impact on Construction: This increased funding for affordable housing drives the demand for construction equipment and materials, contributing to market growth.

Industry Restraints

Increasing Construction Costs

• Rising Costs: Building costs are expected to increase by 15% over the next five years, with tender prices rising by 17%. This upward trend in costs may impact construction budgets and project viability.
• Rent Price Surge: The average rent in the U.K. has increased by 9% in the past year, with London seeing a 10.6% rise. Higher rent prices can strain financial resources and affect construction investment.

Skilled Labour Shortage

• Impact of Brexit: Post-Brexit immigration rules have exacerbated the skilled labor shortage in the U.K., with a deficit of 330,000 workers. The reduction in net immigration and the need for 937,000 new workers by 2032 highlight the labor market challenges.
• Specific Skill Gaps: There is a particular shortage of skilled trades such as plumbers, bricklayers, carpenters, and electricians, which could hinder the pace of construction projects.

Warehouse Space Shortage

• Space Constraints: Telford faces a severe shortage of warehouse space, with significant rent increases of 61% due to limited availability. This shortage affects logistics and supply chain operations.
• Planning Issues: The stagnant national planning system and regional investment disparities hinder the development of new warehouse spaces, impacting the logistics sector.

Water Scarcity

• Building Impact: Water scarcity issues may affect building activities, especially in regions experiencing severe shortages. This can impact construction timelines and increase costs for water-dependent processes.

KEY QUESTIONS ANSWERED

• How big is the U.K. construction equipment market?
• What is the growth rate of the U.K. construction equipment market?
• Who are the key players in the U.K. construction equipment market?
• What are the trends in the U.K. construction equipment market?
• Which are the major distributor companies in the U.K. construction equipment market?

Key Attributes:

Prominent Vendors

• Caterpillar
• Komatsu
• Volvo Construction Equipment
• Hitachi Construction Machinery
• Liebherr
• JCB
• Takeuchi Manufacturing Co., Ltd.
• SANY
• Xuzhou Construction Machinery Group (XCMG)
• Kobelco
• Zoomlion Heavy Industry Science & Technology Co., Ltd.
• Kubota
• CNH Industrial
• Hyundai Construction Equipment
• John Deere

Other Prominent Vendors

• Liugong
• Yanmar
• Terex Corporation
• Manitou Group
• DEVELON
• Hidromek
• Tadano
• KATO WORKS CO., LTD.
• MERLO Spa
• Bobcat
• Haulotte
• Toyota Material Handling
• Ammann
• AUSA
• Sunward Intelligent Equipment Group
• Mecalac
• Hydrema
• Wacker Neuson
• The Manitowoc Company, Inc.
• JLG
• Bomag
• Euromach
• Bell Equipment
• Versalift
• C.M.C. s.r.l.

Distributors Profiles

• Gordons Construction Equipment
• Molson Group
• Dennis Barnfield Ltd
• Warwick Ward
• Ernest Doe & Sons Ltd
• SMT GB

Segmentation by Type

Earthmoving Equipment

• Excavator
• Backhoe Loaders
• Wheeled Loaders
• Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers)

Road Construction Equipment

• Road Rollers
• Asphalt Pavers

Material Handling Equipment

• Crane
• Forklift & Telescopic Handlers
• Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)

Other Construction Equipment

• Dumper
• Tipper
• Concrete Mixer
• Concrete Pump Truck

Segmentation by End Users

• Construction
• Mining
• Manufacturing
• Others (Power Generation, Utilities Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation Plants, Waste Management)

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