According to Technavio, the global used construction machinery market size is estimated to grow by USD 27.33 billion from 2022 to 2027. The market is expected to grow at a CAGR of 5.3% during the forecast period. Moreover, the growth momentum will accelerate. APAC will account for 56% of the growth of the global market during the forecast period.

Segment overview

Technavio has segmented the market based on product (crane, excavator, material handling equipment, and others) and application (commercial, residential, and infrastructure).

The crane segment will grow at a significant rate during the forecast period. This growth is attributed to factors such as the rising demand for cranes for construction and industrial applications. Cranes are used in the construction of chemical, energy, power distribution, utilities, and other industrial plants. In the construction sector, the rising number of high-rise buildings for residential and commercial purposes is expected to increase the demand for used cranes.

Geography overview

Based on geography, the global used construction machinery market is segmented into APAC, North America, Europe, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global used construction machinery market.

APAC is estimated to account for 56% of the growth of the global market during the forecast period. This growth is attributed to factors such as the growing construction activities in emerging Asian economies. The steady growth of the market in the region will generate a demand for new infrastructure to provide residential and commercial spaces for the growing urban population.

Key factor driving market growth

The growing secondhand machine market is driving the market growth.

Manufacturing and mining industries in countries such as Romania and Germany have closed due to high labor costs and strict pollution laws, which has increased the availability of used machines.

Many industries have moved to APAC to leverage low-cost manufacturing, which has increased the demand for used machines from the US and Europe in emerging economies such as China and India.

Used machines enable businesses to manage their capital investment, as they are available at affordable prices.

Such factors are expected to increase the demand for used construction machinery, which, in turn, will propel the growth of the market during the forecast period.

Leading trends influencing the market

The growing trend of used construction equipment rentals is a key trend in the market.

Used construction equipment such as crawler excavators are highly expensive and require a significant initial investment, which makes it difficult for mining companies to buy the equipment for small-scale or short-term projects.

Hence, mining and construction companies prefer to rent their machines for a fixed period based on the requirements of their projects.

Renting used construction machinery is common in Europe, MEA, and North America and this trend is rapidly gaining momentum in developing countries.

Major challenges hindering market growth

Stringent emission regulations will hamper the market during the forecast period.

The focus on combating climate change and making production and construction processes more environmentally friendly has compelled organizations to enforce strict emission regulations.

Environmental governing bodies have set strict emission standards for factories, vehicles, production facilities, and waste management machinery and equipment.

The need to comply with new and strict emission regulations has declined the profit margins of various manufacturers of used construction machinery, as designing and manufacturing machines as per new standards increases costs.

As a result, the rise in price will increase the price of such machines, which is expected to curb the growth of the market during the forecast period.