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RRI’s Take on Global Crane Market: ‘Pre-owned’ and ‘Rental’ Trends Pulling New Crane Sales

Research Report Insights (RRI), in its latest report, titled 'Global Crane Market: Industry Analysis 2014-2018 and Forecast 2019-2029,’ offers key analysis and insights on the global crane market. The market study offers key insights and in-depth analysis for the crane market for the forecast period (2019-2029).

Grounded on key analysis, the crane market is projected to experience significant demand during the forecast period, owing to the growing construction activities in major industries, worldwide, along with the increase in mining activities. The global crane market is estimated to grow at a CAGR of around 4% over the forecast period.

The tower cranes segment is projected to lead the global crane market in terms of value, followed by the all-terrain cranes segment. In terms of growth rate, the tower cranes segment is expected to grow at a CAGR of nearly 5%. The construction segment is projected to lead the crane market by application, accounting for high demand on a global level. Moreover, the stiff design segment is anticipated to capture high market share over the forecast period.

Used Loader Cranes Gaining Traction Owing to Cheaper Costs & Low Maintenance

Growing investments made by governments, and public as well as private sector firms in infrastructural development projects is the key factor driving the demand for cranes. In these infrastructure projects, the main demand drivers, going forward, are mining operations, urban infrastructure, irrigation, and road construction. Investments in infrastructure can be classified into investments on roads, airports, waterways, ports, irrigation, pipelines, railways, and urban infrastructure.

One of the major restraints in the sales of cranes is the growing trend of rental equipment. There are many vendors that offer equipment on rental basis. The influx of used cranes has majorly contributed to the current depressed state in the global crane market. It has been observed that, a majority of end users are turning towards used loader cranes, as new loader cranes are costly and demand high maintenance. Moreover, strong demand for used cranes against low-cost China-based cranes has been observed in India, Vietnam, and the Middle East & Africa (MEA), primarily due to the lack of monetary resources to invest in new cranes.

With the flourishing industrial sector, including mining, manufacturing, construction, utilities, and oil & gas, the demand for cranes in these regions is expected to increase during the forecast period. Due to these reasons, many companies are entering markets in Asia Pacific (APAC) and the Middle East and Africa (MEA) with the hope of capitalizing on the demand and expanding their geographical footprint. For this, companies are focusing on developing products that comply with the respective safety and emission standards in local markets.

Developing Economies Provide a Strong Base for Crane Market Expansion

Asia Pacific is expected to emerge as a lucrative region and a major consumer of cranes by the end of the forecast period. China, India, and Japan are the main countries with significant demand for cranes in Asia Pacific region. The demand for cranes in these regions is also primarily driven by growing construction activities. India is also anticipated to be a prominent market in terms of volume and value, with the region shaping up as a new manufacturing hub. The Middle East & Africa (MEA) is expected to remain a prominent market over the forecast period, due to the growth of key end-use industries in the region.

According to RRI’s report, Brazil, India, and Russia are anticipated to emerge as most the lucrative countries in the global crane market. India’s growing industrialization coupled with Brazil’s robust growth in commercial spaces is expected to peg Asia Pacific and Latin America as emerging regions in the global crane market during the projected period.

Key Vendor Landscape

The crane market is largely fragmented, owing to a large number of established and large players. The report also provides details of some of the key players in the global crane market, such as Liebherr Group, XCMG Construction Machinery Co. Ltd, The Manitowoc Company, Texrex Corporation, Cargotec Oyj, Tadano Ltd., Zoomlion Heavy Industry Science & Technology Co., Ltd. Kobelco Ltd, and Kato, to name a few.