From raw materials to scaffolding to heavy machinery, construction equipment is essential for construction buildings. As modern and cutting-edge technologies become more prevalent in the construction industry, the establishment of massive structures and skyscrapers worldwide is expected to drive the growth of construction equipment.
The United States alone has nearly 70+ skyscrapers ranging from a height of 800 feet to more than 1700 feet. The One World Trade Center in New York City towering at a height of 1,776 feet (still 1,000 less than Burj Khalifa in Dubai) is the tallest building in the U.S., built at a construction cost of a whopping $3.8 billion!
As the demand for stronger buildings goes on “skyrocketing”, better and improved construction equipment is being expected from original equipment manufacturers. Let’s see the landscape of the construction industry in 2023.
The Rise of Residential Neighborhoods in Metropolitan Cities
With increasing disposable incomes of the population residing in urban, metropolitan and developing cities, there has been a significant rise in the number of residential neighborhoods. According to the U.S. Census Bureau, as a part of the New Residential Construction’s release in February 2023, the construction of residential buildings will now take place in a more accurate and quicker manner while targeting various jurisdictions across metropolitan areas.
It has been estimated that approximately 83% of the U.S. population reside in urban areas. With rapid infrastructure development in the country, the demand for construction equipment has witnessed a substantial increase simultaneously. The rising global public-private partnerships (PPP) are also projected to increase residential activities across the country.
According to the Institute of Civil Engineers, countries including the United States, India and China are expected to witness rapid infrastructure growth with the valuation reaching up to USD 8 trillion by 2030. Furthermore, due to cultural settings, Latin America and Asian countries are creating a huge demand for residential infrastructure in smart cities.
Infrastructure Development Growth Flourishing Emerging Economies
International governments worldwide are investing heavily in the building of essential infrastructure facilities including hospitals, schools, stadiums, airports, and government buildings which is driving the demand for construction equipment.
With the growth of infrastructure developments, several worldwide construction projects are being implemented which is driving the demand for construction equipment. Furthermore, the need for routine maintenance to keep residential and commercial buildings safe in the United States is also expected to impact construction projects.
In order to capitalize on these outdated and underutilized spaces, building owners and builders spend a lot of money remodeling them. As a consequence, demand for construction equipment is rising with increasing activities for maintenance, refurbishing and renovation of buildings. The concept of smart building is also boosting construction activities.
Latest Trends Driving Demand of Construction Equipment in 2023
As the world adopts artificial intelligence solutions to heavy machinery equipment, the predictions are for dramatic improvement in construction sites. Several trends including rising residential buildings and the increased regulations on cleaner alternatives to conduct construction activities, here are a few latest trends expected to revolutionize construction equipment in 2023:
- Rental Services for Construction Equipment: With investment and development facilities from the various heavy machinery leasing companies, the construction activities have witnessed tremendous growth in recent years. For instance, American Rental Association (ARA) provides the option for machinery rental which is emerging as an efficient and economical solution for the construction industry.
- Autonomous & Automated Construction Equipment: Autonomous and automated construction equipment is encouraging cleaner solutions in the form of electric construction equipment showcasing multiple advantages. For instance, battery-powered devices make it simpler for workers to work in the field, have less maintenance requirements, reduce noise and lower machine vibration intensity.
- New Entrants Bringing Next-Gen Construction Equipment: With rising technological advancements in propulsion types of construction equipment, new players are entering the market to capture the maximum share. For instance, in March 2022, Alta Equipment Group Inc. announced to handle Arizona sales and service for Nikola Corporation which offers heavy-duty-zero emission vehicles. This is essential for contributing to the Net Zero Goal of the United Nations by 2050.
Construction Industry to Devour Itself in Upcoming Projects?
With increasing construction projects around the world, construction equipment is projected to be in demand for the coming years. However, the demand for cleaner construction equipment alternatives is what is projected to drive immense growth and investments in the industry. Upcoming construction projects worldwide are expected to rise as a result of AI-enabled construction equipment manufacturers and leasing companies.