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Latin America Construction Equipment Market - Strategic Assessment & Forecast 2024-2029

TO BE PUBLISHED : Feb 2024 | Pages : 326

THE LATIN AMERICA CONSTRUCTION EQUIPMENT MARKET SIZE WAS ESTIMATED AT 133,889 UNITS IN 2023 AND IS EXPECTED TO REACH 171,928 UNITS BY 2029, GROWING AT A CAGR OF 4.25%.

The Latin America Construction Equipment Market Research Report Includes Segments By

  • Earthmoving Equipment: Excavator, Backhoe Loaders, Wheeled Loaders, Other Earthmoving Equipment
  • Road Construction Equipment: Road Rollers and Asphalt Pavers
  • Material Handling Equipment: Crane, Forklift & Telescopic Handlers, and Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)
  • Other Construction Equipment: Dumper, Tipper, Concrete Mixture, and Concrete Pump Truck
  • End Users: Construction, Mining, Manufacturing, and Others
  • Region: Brazil, Argentina, Chile, Mexico, Colombia, and Peru

The Industry Analysis Report Provides Industry Trends, Drivers, Opportunities, Competitive Outlook, Market Size, Sales, and Growth Forecast for 2024-2029

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326 Pages

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09 Tables

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40 Companies

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5 Market Segment

LATIN AMERICA CONSTRUCTION EQUIPMENT MARKET SCOPE

Report Attribute Details
MARKET SIZE- VOLUME (2029) 171,928 Units
MARKET SIZE- VOLUME (2023) 133,889 Units
CAGR- VOLUME (2023-2029) 4.25%
MARKET SIZE- REVENUE (2029) USD 8.2 Billion
HISTORIC YEAR 2020-2022
BASE YEAR 2023
FORECAST YEAR 2024-2029
EQUIPMENT TYPE Earthmoving Equipment, Road Construction Equipment, Material Handling Equipment, and Other Equipment
END-USERS Construction, Mining, Manufacturing, and Others
KEY VENDORS Caterpillar, Komatsu, Liebherr, Xuzhou Construction Machinery Group (XCMG), Volvo Construction Equipment, Hitachi Construction Machinery, Zoomlion Heavy Industry Science & Technology Co., Ltd., JCB, SANY, and Hyundai Construction Equipment

INDUSTRY OUTLOOK

Latin America construction equipment market sales in 2023 was 133,889 units and is expected to reach 171,928 units in 2029, growing at a CAGR of 4.25%. Brazil, Mexico, and Argentina are the leading countries that received high government investment for public infrastructure projects. Governments of these countries are also investing in upgrading the existing infrastructure. Several transport infrastructure upgrade projects, such as the renovation of pavements, footpaths, traffic signal lights, & repairing over-bridges, are under progress in various countries of the region; such factors are projected to support the market growth. Moreover, the Latin America construction equipment market is driven by rising government investment in public infrastructure and the transport industry during the forecast period.

Growing Investment in Public Infrastructure in Latin America

  • In 2023, the governments in the Latin American region invested in public infrastructure projects, such as constructing new roadways, railway lines, & airports across multiple countries. Investment in public infrastructure projects drives the Latin America construction equipment market growth in the region.
  • Latin America is one of the leading producers of metals such as iron ore, lithium, gold, & copper in the world. Demand for these metals is growing in the global market, which supports the growth of mining industries in Brazil, Chile, Argentina & Peru in 2023. The surge in mining activities for extracting these metals drives the region's demand for construction equipment.
  • Lithium mining has also taken center stage in the region. The region between Bolivia, Chile & Argentina, which is known as the lithium triangle, has been attracting large amounts of investment from countries like China, the U.S., India, and others for lithium mining as lithium is in focus for manufacturing of battery packs from mobiles to large machines as well.
  • Governments in the region are also investing in various renewable energy projects to achieve the carbon neutrality goal. Investments are directed at installing solar panels, wind farms, and hydroelectric projects across the continent. Growing investment in renewable energy projects drives the demand for construction equipment such as cranes, excavators & loaders in the Latin America construction equipment market.

KEY HIGHLIGHTS

  • Earthmoving equipment accounted for the largest market share in the Latin America construction equipment market in 2023. Construction industry end-users accounted for the largest share of construction equipment in Latin America. The sales increased due to rising infrastructure investment & transport sector across the countries in Latin America.
  • Brazil is the largest market in Latin America construction equipment market. The country accounts for nearly 40% of overall construction equipment sales in the region in 2023.
  • Brazil is the center of construction equipment manufacturing in the continent. All the major construction equipment OEMs have manufacturing centers in the Sao Paulo region of the country.
  • Hydraulic excavators and backhoe loaders are the region's two most sold construction equipment. The demand for this equipment is expected to grow sharply in the Latin America construction equipment market in 2024.
  • Construction equipment manufacturers are introducing customized construction equipment according to the needs of the customers in the region. Liebherr introduced a harbor crane for port operations in the Latin American region.
  • The construction and mining market accounts for more than 70% of construction equipment utilization in the continent.
  • The demand for electric equipment is growing in the Latin America construction equipment market. Several companies are introducing electric equipment in the region. For instance, Link-Belt launched an X4S Series electric excavator.
  • In a strategic move, XCMG established a new Central America region, which will help the company grow aggressively.

MARKET TRENDS & DRIVERS

Water Management Projects Triggering Demand for Backhoe Loaders With Flexible Attachments

There is a rise in water management projects across the Latin American countries. CAF (Development Bank of Latin America) allocated USD 4 billion for financing water management projects and better water governance at a regional level till 2026. Further, ECLAC (Economic Commission for Latin America and the Caribbean) launched the Regional Network and Observatory for Water Sustainability (ROSA) project for managing water resources in five countries: Colombia, Bolivia, Dominican Republic, El Salvador, and Panama in 2023, to enhance construction project completion, the country needs to optimize its resources and increase efficiency. Integration of BIM in construction machinery will help to reduce construction costs and make construction sites safe.

The Surge in Infrastructure Investment Propelling the Latin America Construction Equipment Market

  • In 2023, various infrastructure development projects were announced by the governments in Latin America. There is a diverse range of infrastructure investments and opportunities across the region.
  • There will be an 11% surge in investment in infrastructure projects in Brazil in 2023. According to the National Transport and Logistics Observatory of Infra South America, Brazil invested USD 1.4 billion in transport infrastructure projects in the first seven months of 2023.
  • According to the government of Brazil, there are 172 infrastructure investment projects in progress, ranging from airports to power distribution, mining, and urban mobility, in 2023.

Rising Demand for Electric Forklifts in the Latin American Countries

  • Latin American countries are aiming to reduce their carbon footprint by 2040. Countries are planning to reduce their dependence on fossil fuels in the future.
  • The demand for electric equipment is rising in the Latin America construction equipment market. The major countries in Latin America, such as Brazil and Mexico, are investing in port development projects in 2022.
  • BYD has been operating in South American markets such as Brazil, Mexico, and Chile, among others, offering green transportation solutions to support the region's transition to a low-carbon transportation sector.

Rise in Mining Activities Drives the Latin America Construction Equipment Market Growth

  • There is a surge in demand for commodities such as gold, copper, iron ore, and silver across the globe. Latin America's mining sector has had ample opportunity to grow in recent times. The region is one of the leading producers of iron ore, copper, and gold.
  • Chile, Argentina, and Bolivia, which form the lithium triangle, contain the largest lithium reserves. Lithium mining has already been started, and new licenses are being issued.
  • Brazil is one of the world's largest sources of reserves and metal, including aluminum, iron ore, and nickel, and the world's largest producer of gold. The demand for these metals is expected to rise due to their use in market and construction activities.

INDUSTRY RESTRAINTS

High Inflation Rates Adversely Impact Corporate Investments & Construction Equipment Import
Latin American countries are facing the challenge of rising inflation rates. The Russian invasion of Ukraine pushed up energy prices. The disruption in the supply of raw materials such as steel, iron & rubber further worsened the condition. Moreover, Brazil’s annual inflation reached a six-year high of over 10% in 2022. The inflation rates surpassed the government targets, leading to a decrease in domestic consumption. Further, other Latin American countries such as Argentina, Colombia & others have witnessed a similar surge in inflation.

Mining Project Hampered by Environmental Protest
Environmental protests often lead to social conflicts, halting industrial projects, including mining, & construction projects in the country. The growth of Argentina’s mining market is hampered due to several environmental protests, halting some of the major mining projects in the country. Further, some mining projects, such as the USD 3.3 billion open-pit molybdenum copper alloy extraction project and the USD 2.4 billion Mara (Minera Agua Rica– Alumbrera) copper mining project, were hampered due to protests in 2023. The inhabitants of Andalgalá detected a greater presence of iron, aluminum, and fluoride in their drinking water due to cooper mining projects in Argentina in 2023.

VENDOR LANDSCAPE

  • Caterpillar, Komatsu, Hitachi, XCMG, Liebherr & Volvo Construction Equipment have a strong market share in the Latin America construction equipment market. These manufacturers are market leaders in the market.
  • LiuGong, Yanmar, CNH Industrials, and Manitou are niche players in the Latin America construction equipment industry. These manufacturers provide low product diversification and are concentrated more in the local market.
  • Zoomlion, JCB, SANY, Kobelco, & Hyundai Construction Equipment are emerging players in the Latin America construction equipment market. These manufacturers are introducing innovative products to the market.

Frequently Asked Questions

How big is the Latin America construction equipment market?

The Latin America construction equipment market size was valued at 133,889 units by 2023 and is expected to reach 171,928 units by 2029.

What is the growth rate of the Latin America construction equipment market?

The Latin America construction equipment market share by volume is expected to grow at a CAGR of 4.25% from 2023-2029.

Who are the key players in the Latin America construction equipment market?

Caterpillar, Komatsu, Liebherr, Xuzhou Construction Machinery Group (XCMG), Volvo Construction Equipment, Hitachi Construction Machinery, Zoomlion Heavy Industry Science & Technology Co., Ltd., JCB, SANY, and Hyundai Construction Equipment are the key players in the Latin America construction equipment market.

What are the trends in the Latin America construction equipment industry?

Extensive demand for cranes in the region, the shift toward green hydrogen fuel-based construction equipment, and Latin America’s increasing focus on solid waste management activities are trends in the Latin America construction equipment industry.

Which are the major distributor companies in the Latin America construction equipment market?

Grúas San Blas, Tecmaco Integral S.A., Bramaq, Centro Vial, Cowdin, Repas, ZMG Argentina, IGARRETA MAQUINAS, Noroeste Maquinas Equipamentos LTDA, FW Maquinas, Mason Equipamentos, Engepecas, and Extra Group are the major distributor companies in the Latin America construction equipment market.

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The Latin America construction equipment market size is expected to grow at a CAGR of approximately 4.25% from 2023 to 2029.

The following factors are likely to contribute to the growth of the Latin America construction equipment market during the forecast period:

  • Latin America’s Increased Investments in Public Infrastructure
  • Surge in Renewable Energy Projects in the Region
  • Robust Growth in the Development of Ports

Base Year: 2023

Forecast Year: 2024-2029

The report considers the present scenario of the Latin America construction equipment market and its market dynamics for 2024−2029. It covers a detailed overview of several market growth enablers, restraints, and trends. The study covers both the demand and supply sides of the market. It also profiles and analyzes leading companies and several other prominent companies operating in the market.

Key Vendors

  • Caterpillar
  • Komatsu
  • Liebherr
  • Xuzhou Construction Machinery Group (XCMG)
  • Volvo Construction Equipment 
  • Hitachi Construction Machinery
  • Zoomlion Heavy Industry Science & Technology Co., Ltd.
  • JCB
  • SANY
  • Hyundai Construction Equipment

Other Prominent Vendors

  • Kobelco
  • LiuGong
  • John Deere
  • Yanmar
  • CNH Industrial
  • Toyota Material Handling
  • Bobcat
  • Wacker Neuson
  • Tadano
  • SAKAI HEAVY INDUSTRIES, LTD.
  • Shantui Construction Machinery
  • BOMAG GmbH
  • AMMANN
  • Sunward
  • HANGCHA
  • Romanelli
  • AIMIX Group

Distributor Profiles

  • Grúas San Blas
  • Tecmaco Integral S.A.
  • Bramaq
  • Centro Vial
  • Cowdin
  • Repas
  • ZMG Argentina
  • IGARRETA MAQUINAS
  • Noroeste Maquinas Equipamentos LTDA
  • FW Maquinas
  • Mason Equipamentos
  • Engepecas
  • Extra Group

Segmentation by Type

  • Earthmoving Equipment
    • Excavator
    • Backhoe Loaders
    • Wheeled Loaders
    • Other Earthmoving Equipment
  • Road Construction Equipment
    • Road Rollers
    • Asphalt Pavers
  • Material Handling Equipment
    • Crane
    • Forklift & Telescopic Handlers
    • Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)
  • Other Construction Equipment
    • Dumper
    • Tipper
    • Concrete Mixer
    • Concrete Pump Truck
  • End Users
    • Construction
    • Mining
    • Manufacturing
    • Others (Maintenance & Utility Works, Landscaping, Power Generation)
  • Region
    • Brazil
    • Argentina
    • Chile
    • Mexico
    • Colombia
    • Peru

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