The compact construction equipment industry has shown a robust double-digit growth rate over the past few years. According to a recent report by FMI called Compact Construction Equipment Market: Global Industry Analysis and Opportunity Assessment 2014-2020, the most popular category in the compact equipment market is track loaders which has the largest market share. The skid steer market is the second most attractive market and is anticipated to experience healthy growth by 2020, according to the report. Decent growth has been observed in the construction equipment market in North America and Western Europe and is anticipated to grow further due to an increase in construction and repair activities. Actually, Asia is anticipated to be the largest market for compact construction equipment by 2020.
The major factors driving the compact construction equipment market are an increasing preference for small size construction equipment, affordable pricing, reliability and improved productivity. The increasing number of new technology attachments available for compact construction equipment such as levelers, soil conditioning tools and trenchers are also driving the growth of compact construction equipment. Also, the private user market such as sundowners or hobby farmers and real estate developers has been contributing significantly to the increasing adoption of compact construction equipment. Volatility in fuel prices, low entry barriers and lack of structure are the key challenges for the compact construction equipment market.
The changing trends from pedal operation to the use of joysticks and availability of suspension seats and air conditioners at reasonable prices are further driving growth in the compact construction equipment market. Another emerging trend is the GPS tracking system in compact equipment, which is a major attraction for rental purchasers as it helps them to safeguard their machinery against theft and track its location when needed. Self-monitoring and auto shutdown are other attractive emerging trends in the compact construction market. The major players in the market are Bobcat, Case, JCB, Mustang, John Deere, Volvo, Ditch Witch, Gehl, Vermeer, Caterpillar and New Holland.