According to Arizton's latest research report, Germany construction equipment market will grow at a CAGR of 4.02% during 2021-2028. The country's new government under the 'Federal Ministry for Housing, Urban Development and Building in 2022 has aimed to expand housing construction. It has planned to build 400,000 apartments every year. Under the Housebuilding subsector, investments grew by 39% in 2021, where the number of new flats and houses coming to the market doubled to more than 300,000 units. Such initiatives by the government give a significant boost to the Germany construction equipment market.

Market Size and Forecast is projected in:

Value ($ Billion)- USD 5.94 Billion

Volume (Units)- 101,807 Units

The Germany Rail (Deutsche Bahn) and the federal government have targeted to spend USD 13.56 billion in 2022, which is a 6.3% increase compared to 2021. This investment by the government majorly focuses on renewing and modernizing Germany's rail infrastructure. The country has planned to mend bridges on much of the country's Autobahn network. A budget of USD 529.17 million has been set by the German Government's Road firm, Autobahn, in 2022.

In addition, the German government allotted USD 372.42 million for road construction projects in 2022 in the Brandenburg region, which is approximately USD 5 million higher than in 2021, which will significantly contribute to the Germany construction equipment market growth.

The Earthmoving Segment Accounted for the Largest Share

In 2021, the earthmoving segment accounted for a share of 56.5% of the Germany construction equipment market. Excavators accounted for the largest market share of 54.3% of the earthmoving segment.

Germany's National Development Plan 2030 has increased the number of civil engineering and housing projects in 2021, which, in turn, is expected to support the demand for excavators in Germany.

High Demand for Excavators Due to Mining, Construction, and Smart City Projects

Regardless of the Covid-19 impact, investment opportunities in the construction industry have attracted foreign investors who have aided the construction equipment market in 2021. The government's aid in the residential projects, rise in infrastructure construction, increase in FDI and surge in the rental investment of construction equipment is expected to lead the Germany construction equipment market.

The growing demand for excavators is attributable to the improvements in the mining and construction sectors and a few government projects like the smart city project. The smart city project is supported by the government's investment of USD 751.42 million. The mining industry consumes a large part of the excavator industry in Germany. Hard coal and lignite make up most of the mineral resources extracted in the country.

Investment in Green Infrastructure Strategy

The country has targeted investing USD 220 billion by 2026 to support the industrial transformation, including climate protection, hydrogen technology, and electric vehicle charging station expansion. The construction machinery and building experienced a 22% increase from the previous year (2020) due to the infrastructure push with highways, dams, and green cities, which require tons of heavy machinery; such activities are contributing to the Germany construction equipment market.