Europe Used Construction Machinery Market

Europe Used Construction Machinery Market Analysis

The Europe Used Construction Machinery Market is expected to register a CAGR of 4.2% during the forecast period.

Due to the COVID-19 pandemic, many industries across Europe, including construction witnessed a slump in investment in 2020. This came after government strict measures prevailed to restrain the spread of infection. In addition, with lockdown measures across the European Union, the construction industry witnessed a decline in its overall throughput which ultimately affected the demand for Used construction machinery.

Moreover, post-COVID-19, 2021 was marked as a year of transition, and growth is expected during 2022 attributed to the increasing investments and multiple construction projects including road, infrastructure and housing etc.. For instance, In 7 April 2022, United Kingdom government announced funding of EUR 30 million for highway decarbonization projects. The funding will support pioneering projects looking at ways to decarbonize local highways infrastructure in regions across the United Kingdom.

The Europe construction industry is highly dynamic, and numerous factors, such as the overall economy, budgets, and global economic scenario, are influencing the market's growth. Volatility in these aspects affects the businesses of construction equipment OEMs, which will, in turn, affect the used construction machinery demand.

Renting and leasing construction machinery is on the rise in Europe. Although there is a significant growth for re-selling of construction equipment owing to huge profits for equipment owners, owing to sales of used construction equipment. Germany, in particular, along with Northern and Western Europe, is seeing record levels in the used construction equipment market. Moreover, the recovery of poorly performing Southern Europe, Central, and Eastern European countries will now see improved forecasted sales in their respective regions. However, factors such as the free trade crisis and ongoing political and economic uncertainties could hinder the growth in the short term.

Considering these factors and the government's forefront in expanding construction and infrastructure development, demand for used construction machinery in Europe is anticipated to witness an improved sales bar during the forecast period.

Europe Used Construction Machinery Market Trends

Used Cranes to Drive the Construction Machinery Market Growth

There has been several factors driving the demand for used cranes in Europe. New cranes are typically higher priced than used cranes. Thus, makes crane operators to opt for used cranes option. In addition, the lead time of crane availability has been seen of the key deciding factor. New cranes purchase can take several months as it takes months to built the required design and specifications, whereas used cranes are already in stock and usually delivered immediately to the clients. Widespread application areas of cranes in construction industry and availability of several used crane providers are supporting the growth of the market segment.

Due to the rising cost of purchasing equipment, increasing economic uncertainty, lack of capital, technology upgradation, unpredictable construction and infrastructure growth, depreciation woes, costly breakdowns, and limited space availability market is seeing a demand for second-hand equipment

Although, for other construction equipment such as earthmoving and road equipment, only 70% of manufacturers anticipate a positive growth and, component manufacturers in 80% of the major companies are also planning a higher increase. However, concrete equipment producers expect to see a far lesser growth. Nevertheless, the construction industry is getting smarter with improved digitalization, connectivity, and automation, and the future remains bright.

In addition, with growing advanecment in the used crane landscape, OEM are offering connected technology to integrate the cranes with cloud to keep monitoring the equipment from away. For instnace, In July 2022, Manitowoc which is one of the largest used, rental crane company launched CONNECT platform in order to improve the crane monitoring. The CONNECT is a app which is configured with the crane to enable crane's GPS.

Considering these developments and factors, demand for used cranes are expted to witness high growth rate during the forecast period.

Germany to Remain the Growth Enabler

Germany is Europe's leading construction market, and it is the home to the continent's largest building and Infrastructure development hub. The country is witnessing immense growth in terms of investment this is largely expected to continue in the foreseeable future.

The country is witnessing high growth in terms of road, ports, infrastructure, and housing projects to exhibit high potential for the adoption of used construction machinery. For instance:

• In September 2022, German company Deutsche ReGas has announced the start of LNG terminal construction of 'Deutsche Ostsee', in Lubmin which is the northeast of country. In addition, the industrial port will undergo several upgrades to receive larger ships which would require large scale construction machinery for the developments.
• In September 2022, Denmark and Germany joined hands to jointly develop the longest immersed tunnel under the Baltic seas. This tunnel will connect Denmark and Germany as the new travel line which is expected to be completed by 2029. The length of the tunnel is 18 kilometres which are considered as one of the largest infrastructure projects in Germany.
• In March 2022, VINCI Highways announced that start of road development projects which is a part of contract. The B247 road would connect between Mühlhausen and Bad Langensalza in Germany. The project was initially developed by German federal road under a PPP scheme with an investment of around EUR 500 million.

Considering the pipeline construction proejcts in Germany, demand for used construction equipment is expted to remian high during the forecast period owing to its economical cost and benifts over new.

Europe Used Construction Machinery Industry Overview

Europe Used Construction Machinery Market is consolidated with existing players such as Caterpillar, Kobelco Construction Machinery, Deere & Company, Komatsu Ltd, Volvo Group, Doosan Infracore, and XCMG, captured about 40% of the market share in 2019. Apart from the above top players, domestic and local businesses contribute towards the 60% of the market.

Since the construction machinery market is characterized by the presence of numerous international and regional players, construction manufacturers are trying to have the edge over its competitors by making joint-ventures, partnerships, launching new products with advanced technology.

Europe Used Construction Machinery Market Leaders

Europe Used Construction Machinery Market News

In April 2022, Ritchie Bros. Auctioneers which is a leading global asset management, auctioneer, and services company announced that it has discontinued the operation of its wholly owned indirect subsidiary, Ritchie Bros. UK Holdings Ltd. The company now operates as an independent firm in the auction of used construction equipment sales in the European market.