by The global compaction machines market is one of the rapidly growing construction equipment markets. Compaction machines are widely used for pressing or squeezing excavated soil and aggregates into a tighter form to increase density and reduce porosity in the construction of roads, highways, residential buildings, and commercial complexes. Road rollers, rammers, and vibrating plates are some of the commonly used compaction machines. They provide efficient soil compaction which enhances the load-bearing capacity and durability of the foundation. With increasing spending on infrastructure projects across major economies, the demand for high-quality compaction for effective construction is growing steadily.
The global Compaction Machines Market is estimated to be valued at US$ 5620.2 Mn in 2023 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing demand for automated construction equipment with advanced monitoring and controlling systems is one of the key trends in the compaction machines market. Leading manufacturers are focusing on the development of autonomous compactors integrated with technologies such as IoT, telematics,gps, and analytics. For instance, Volvo Construction Equipment launched EC35F compactor with careTrack and machine management solutions that provide real-time machine monitoring and operational analytics. Similarly, other players such as Wacker Neuson, Caterpillar, and Wirtgen group have introduced connectivity and autonomy features in their latest compactor models. This is expected to revolutionize soil compaction by enhancing efficiency, reducing machine downtime and improving overall job site safety.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate. The compaction machinery market requires high capital investment and established distribution channels. However, the market is growing steadily which provides opportunities for new players.
Bargaining power of buyers: The bargaining power of buyers is moderate. Buyers have a reasonable choice of suppliers and machines in the market. However, supplier switching costs are high which increases buyer dependency on existing suppliers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While major players dominate the supply market, availability of global and regional suppliers provides buyers alternatives. Suppliers also depend on repeat buyers.
Threat of new substitutes: The threat of new substitutes is low. There are limited substitutes for compact machinery used for construction activities. New technologies may introduce some substitutes over the long term.
Competitive rivalry: The competitive rivalry is high due to presence of numerous global and regional players. Key strategies adopted include new product launches, mergers and acquisitions to gain market share.
Key Takeaways
The global compaction machines market growth is expected to witness high over the forecast period of 2023 to 2030 supported by rising infrastructure development activities globally.
Asia Pacific region currently dominates the market and is expected to grow at highest pace during the forecast period. Rapid infrastructure development projects in China and India are driving the demand for compaction machines in the region. Europe and North America are also significant markets supported by ongoing expansion and maintenance of existing road networks.
Key players: Key players operating in the compaction machines market are Wacker Neuson SE, Sany Heavy Industry Co. Ltd, Volvo Construction Equipment, Wirtgen Group, Caterpillar Inc., Atlas Copco, Terex Corporation, Zoomlion Heavy Industries Science & Technology Co Ltd, Fayat Group, BOMAG GmbH, and XCMG Co. Ltd. Players are focusing on new product development and adopting inorganic growth strategies to gain higher shares in emerging regional markets
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
