INDUSTRY MARKET RESEARCH FOR BUSINESS LEADERS, STRATEGISTS, DECISION MAKERS CLICK TO VIEW

Table of Contents 2

List of Tables & Charts 3

Study Overview 5

Sample Text, Table & Chart 6

Sample Profile, Table & Study Coverage 7

Order Form & Corporate Use License 8

About Freedonia, Custom Research, Related Studies 9

World Machinery

Industry Study with Forecasts for 2019 & 2024

Study #3282 | June 2015 | $6500 | 447 pages

The Freedonia Group 767 Beta Drive Cleveland, OH • 44143-2326 • USA www.freedoniagroup.com Toll Free US Tel: 800.927.5900 or +1 440.684.9600 Fax: +1 440.646.0484 Email: [email protected] Study #3282 June 2015 $6500 World Construction Machinery 447 Pages Industry Study with Forecasts for 2019 & 2024

Table of Contents Construction Machinery Supply & Demand...107 Poland...... 256 Construction Machinery Outlook...... 111 Other Eastern Europe...... 262 Executive Summary ...... 113 Africa/Mideast...... 268 France...... 119 General...... 268 Market EnvironmenT United Kingdom...... 126 Construction Machinery ...... 132 Supply & Demand...... 270 General...... 4 Spain...... 139 Construction Machinery Outlook...... 273 World Economic Overview...... 5 Other Western Europe...... 145 South Africa...... 275 Recent Historical Trends...... 6 Switzerland...... 153 Other Africa/Mideast...... 281 World Economic Outlook...... 7 ...... 154 Saudi Arabia...... 289 World Population Overview...... 10 Netherlands...... 155 Turkey...... 290 Population...... 11 Belgium...... 156 United Arab Emirates...... 292 Urban Population...... 13 Austria...... 157 All Other...... 293 World Construction Outlook...... 15 Finland...... 158 Nonbuilding...... 19 All Other...... 159 INDUSTRY STRUCTURE Residential Building...... 21 Nonresidential Building...... 24 /PACIFIC General...... 295 Pricing Patterns...... 26 Industry Composition...... 296 Legal & Regulatory Environment...... 31 General...... 161 Market Share...... 298 Technology Trends...... 33 Construction Machinery Supply & Demand...162 Product Development & Manufacturing...... 304 Used, Remanufactured, Construction Machinery Outlook...... 166 Marketing & Distribution...... 307 & Rented Machinery...... 36 ...... 169 Cooperative Agreements...... 308 ...... 176 Financial Requirements...... 317 OVERVIEW ...... 182 Mergers & Acquisitions...... 318 South Korea...... 188 General...... 40 ...... 194 Company Profiles Regional Overview...... 41 ...... 200 Demand...... 41 Other Asia/Pacific...... 206 Astec Industries...... 323 Production...... 47 Malaysia...... 213 Atlas Copco...... 327 International Trade...... 50 Taiwan...... 215 Bamford (JC) ...... 329 Demand by Product...... 52 ...... 216 Belarusian Autoworks OJSC...... 331 Loaders...... 55 All Other...... 217 BEML Limited...... 333 Cranes & Draglines...... 58 Caterpillar Incorporated...... 335 Dozers & Off-Highway Trucks...... 61 OTHER REGIONS Chelyabinsk Tractor Plant-Uraltrac...... 340 Excavators...... 65 CNH Industrial...... 342 Mixers, Pavers, & Related Equipment...... 68 Central & South America...... 219 Concern Tractor Plants...... 345 , Rollers, & Related Equipment...... 71 General...... 219 Deere & Company...... 347 Parts & Attachments...... 74 Construction Machinery Doosan Infracore...... 351 Rental & Leasing Markets...... 77 Supply & Demand...... 220 Groupe Fayat...... 354 Construction Machinery Outlook...... 224 Guangxi LiuGong Machinery...... 357 NORTH AMERICA ...... 227 Herrenknecht AG...... 359 Other Central & South America...... 233 Limited...... 361 General...... 80 Chile...... 240 Hyundai Heavy Industries...... 367 Construction Machinery Supply & Demand.....81 Argentina...... 241 ...... 369 Construction Machinery Outlook...... 84 All Other...... 242 Komatsu Limited...... 372 United States...... 87 Eastern Europe...... 243 Corporation...... 377 Canada...... 93 General...... 243 Liebherr-International AG...... 379 ...... 99 Construction Machinery Lonking Holdings...... 383 Supply & Demand...... 245 Manitou BF...... 385 WESTERN EUROPE Construction Machinery Outlook...... 248 ...... 250 (continued on following page) General...... 106

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Table of Contents 3 World Construction Machinery 8 United Kingdom: Construction Machinery Company Profiles Net Exports by Region...... 52 Demand by Product...... 132 4 World Construction Machinery 9 Italy: Construction Machinery (continued from previous page) Demand by Product...... 54 Supply & Demand...... 137 5 World Demand by Region...... 57 10 Italy: Construction Machinery Manitowoc Company...... 387 6 World Crane & Dragline Demand by Product...... 139 Heavy Industries...... 391 Demand by Region...... 60 11 Spain: Construction Machinery Oshkosh Corporation...... 393 7 World Dozer & Off-Highway Supply & Demand...... 143 SANY Heavy Industry...... 396 Truck Demand by Region...... 64 12 Spain: Construction Machinery Shantui Construction Machinery...... 400 8 World Demand by Region...... 67 Demand by Product...... 145 Sumitomo Heavy Industries...... 402 9 World Mixer, Paver, & Related Equipment 13 Other Western Europe: Construction Tadano Limited...... 405 Demand by Region...... 70 Machinery Supply & Demand...... 149 Tata Motors...... 409 10 World , Roller, & Related 14 Other Western Europe: Construction Terex Corporation...... 411 Equipment Demand by Region...... 73 Machinery Demand by Product...... 151 Volvo AB ...... 415 11 World Construction Machinery Parts & 15 Other Western Europe: Construction Wacker Neuson...... 418 Attachments Demand by Region...... 76 Machinery Supply & Demand Wirtgen Group...... 421 by Country...... 152 Xiamen XGMA Machinery...... 424 Xuzhou Construction Machinery...... 425 NORTH AMERICA ASIA/PACIFIC Zoomlion Heavy Industry 1 North America: Construction Machinery Science and Technology...... 428 Supply & Demand...... 83 1 Asia/Pacific: Construction Machinery Other Companies Mentioned in Study... 431-447 2 North America: Construction Machinery Supply & Demand...... 165 Demand by Product...... 86 2 Asia/Pacific: Construction Machinery 3 United States: Construction Machinery Demand by Product...... 168 List of Tables Supply & Demand...... 91 3 China: Construction Machinery 4 United States: Construction Machinery Supply & Demand...... 174 Demand by Product...... 93 4 China: Construction Machinery Executive Summary 5 Canada: Construction Machinery Demand by Product...... 176 1 Summary Table...... 3 Supply & Demand...... 97 5 Japan: Construction Machinery 6 Canada: Construction Machinery Supply & Demand...... 180 Market EnvironmenT Demand by Product...... 99 6 Japan: Construction Machinery 7 Mexico: Construction Machinery Demand by Product...... 182 1 World Gross Domestic Supply & Demand...... 103 7 India: Construction Machinery Product by Region...... 10 8 Mexico: Construction Machinery Supply & Demand...... 186 2 World Population by Region...... 13 Demand by Product...... 105 8 India: Construction Machinery 3 World Urban Population by Region...... 15 Demand by Product...... 188 4 World Construction Expenditures WESTERN EUROPE 9 South Korea: Construction Machinery by Type & Region...... 18 Supply & Demand...... 192 5 World Nonbuilding Construction 1 Western Europe: Construction Machinery 10 South Korea: Construction Machinery Expenditures by Region...... 21 Supply & Demand...... 110 Demand by Product...... 194 6 World Residential Building Construction 2 Western Europe: Construction Machinery 11 Australia: Construction Machinery Expenditures by Region...... 24 Demand by Product...... 112 Supply & Demand...... 198 7 World Nonresidential Building 3 Germany: Construction Machinery 12 Australia: Construction Machinery Construction Expenditures by Region..26 Supply & Demand...... 117 Demand by Product...... 200 8 World Construction Machinery Prices...... 30 4 Germany: Construction Machinery 13 Indonesia: Construction Machinery Demand by Product...... 119 Supply & Demand...... 204 OVERVIEW 5 France: Construction Machinery 14 Indonesia: Construction Machinery Supply & Demand...... 124 Demand by Product...... 206 1 World Construction Machinery 6 France: Construction Machinery 15 Other Asia/Pacific: Construction Demand by Region...... 44 Demand by Product...... 126 Machinery Supply & Demand...... 210 2 World Construction Machinery 7 United Kingdom: Construction Machinery Shipments by Region...... 49 Supply & Demand...... 130 (continued on following page)

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List of Tables 20 Other Africa/Mideast: Construction NORTH AMERICA (continued from previous page) Machinery Supply & Demand...... 286 21 Other Africa/Mideast: Construction 1 North America: Construction Machinery 16 Other Asia/Pacific: Construction Machinery Demand by Product...... 288 Demand by Country, 2014...... 84 Machinery Demand by Product...... 212 22 Other Africa/Mideast: Construction 2 North America: Construction Machinery 17 Other Asia/Pacific: Construction Machinery Supply & Demand by Product, 2014...... 87 Machinery Supply & Demand Demand by Country...... 289 by Country...... 213 WESTERN EUROPE INDUSTRY STRUCTURE OTHER REGIONS 1 Western Europe: Construction Machinery 1 Construction Machinery Sales Demand by Country, 2014...... 111 1 Central & South America: Construction by Company, 2014...... 297 2 Western Europe: Construction Machinery Machinery Supply & Demand...... 223 2 Selected Cooperative Agreements...... 311 Demand by Product, 2014...... 113 2 Central & South America: Construction 3 Selected Acquisitions & Divestitures...... 321 Machinery Demand by Product...... 226 ASIA/PACIFIC 3 Brazil: Construction Machinery Supply & Demand...... 231 1 Asia/Pacific: Construction Machinery List of Charts Demand by Country, 2014...... 166 4 Brazil: Construction Machinery Demand by Product...... 233 2 Asia/Pacific: Construction Machinery 5 Other Central & South America: MARKET ENVIRONMENT Demand by Product, 2014...... 169 Construction Machinery 1 World Construction Expenditures Supply & Demand...... 237 by Region, 2014...... 19 OTHER REGIONS 6 Other Central & South America: 2 World Construction Machinery 1 Central & South America: Construction Machinery Prices, 2004-2024...... 30 Demand by Product...... 239 Construction Machinery 7 Other Central & South America: Demand by Country, 2014...... 224 Construction Machinery Supply OVERVIEW 2 Central & South America: & Demand by Country...... 240 1 World Construction Machinery Construction Machinery 8 Eastern Europe: Construction Machinery Demand by Region, 2014...... 45 Demand by Product, 2014...... 227 Supply & Demand...... 247 2 World Construction Machinery 3 Eastern Europe: Construction Machinery 9 Eastern Europe: Construction Machinery Demand: Projected 2014-2019 Demand by Country, 2014...... 248 Demand by Product...... 249 Annual Rate of Growth...... 46 4 Eastern Europe: Construction Machinery 10 Russia: Construction Machinery 3 World Construction Machinery Demand by Product, 2014...... 250 Supply & Demand...... 254 Shipments by Region, 2014...... 50 5 Africa/Mideast: Construction Machinery 11 Russia: Construction Machinery 4 World Construction Machinery Demand by Country, 2014...... 273 Demand by Product...... 256 Demand by Product, 2014...... 55 6 Africa/Mideast: Construction Machinery 12 Poland: Construction Machinery 5 World Loader Demand by Region, 2014...58 Demand by Product, 2014...... 275 Supply & Demand...... 260 6 World Crane & Dragline Demand 13 Poland: Construction Machinery by Region, 2014...... 61 INDUSTRY STRUCTURE Demand by Product...... 262 7 World Dozer & Off-Highway Truck 1 World Construction Machinery 14 Other Eastern Europe: Construction Demand by Region, 2014...... 65 Market Share, 2014...... 299 Machinery Supply & Demand...... 266 8 World Excavator Demand 15 Other Eastern Europe: Construction by Region, 2014...... 68 Machinery Demand by Product...... 268 9 World Mixer, Paver, & Related Equipment 16 Africa/Mideast: Construction Machinery Demand by Region, 2014...... 71 Supply & Demand...... 272 10 World Grader, Roller, & Related Equipment 17 Africa/Mideast: Construction Machinery Demand by Region, 2014...... 74 Demand by Product...... 274 11 World Construction Machinery 18 South Africa: Construction Machinery Parts & Attachments Demand Supply & Demand...... 279 by Region, 2014...... 77 19 South Africa: Construction Machinery Demand by Product...... 281

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As infrastructure spending continues to increase, developing regions register above average gains, with more than two-thirds of all new construction equipment demand being attributable to China.

World demand to rise 3.9% annually through 2019 World Construction Machinery Asia/Pacific World demand for construction machin- Demand, 2019 ery is forecast to advance 3.9 percent ($218 billion) per year through 2019 to $218 billion, decelerating significantly from the pace of the 2009-2014 period. The Asia/ Pacific region, Central and South America, and the Africa/Mideast region North America are all expected to register above average gains moving forward as construction spending, especially on infrastructure projects, continues to increase in developing countries. More Western Europe than two-thirds of all additional construc- tion equipment demand generated Other Regions between 2014 and 2019 will be attribut- able to China. In contrast, industrialized areas like North America and Western Europe will underperform in the global market in large part due to strong sales Summer Olympics. Increased surface these products will be fueled by rising in 2014 as these countries recovered activity and rising construction construction and surface mining activity, from the global financial crisis and expenditures of all kinds will help drive as loaders and excavators are versatile operators replaced older machines. As a construction machinery demand in the and can be used in a variety of settings. result of these relatively recent new Africa/Mideast region. Sales of equip- Increased infrastructure spending will purchases, as well as the large used ment in Eastern Europe are expected to help support advances for graders, equipment markets in these countries, slow from the 2009-2014 period but still mixers, pavers, rollers, and related replacement sales are expected to slow. grow roughly in line with global demand. equipment, while rising residential Market expansion will be fueled by an building construction spending, particu- Continued growth in construction activity acceleration in all types of construction larly in urban areas, will help drive new and significant investment in large spending, particularly nonbuilding. crane sales. Although demand for dozers surface mining projects will help Central and off-highway trucks will expand at the and South America recover from the Excavators, loaders to be slowest rate of any major product sales declines registered between 2009 category through 2019, increased and 2014. Demand in the region had fastest growing machinery surface mining activity will help support dropped largely due to declining sales in Demand for excavators and loaders is gains for these machines. As more Brazil, which purchased a significant expected to advance at the fastest pace operators purchase new machinery amid amount of new construction equipment of any major construction machinery improving economies, sales of aftermar- in the intervening years in preparation for product segment through 2019. Sales of ket parts and attachments will suffer. the 2014 FIFA World Cup and the 2016 Copyright 2015 The Freedonia Group, Inc.

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Sample Text, TABLE V-3 Table & Chart GERMANY: CONSTRUCTION MACHINERY SUPPLY & DEMAND (million dollars)

Item 2004 2009 2014 2019 2024

Population (millions) 82.5 81.8 80.7 80.2 79.1 per capita GDP 37810 39220 43680 47130 50820

asia/pacific Gross Domestic Product (bil 2013$) 3119 3208 3525 3780 4020 % construction 8.9 8.4 8.9 8.1 7.7 Japan: Construction Machinery Supply & Demand The market for construction machinery in Japan totaled $11.0Construction bil- Expenditures (bil 2013$) 278.1 269.1 315.0 307.5 311.0 lion in 2014, accounting for 16 percent of regional demand and making Nonbuilding 48.4 48.9 53.0 55.5 58.5 it the third largest market for this equipment in the world behind the Residential Building 160.3 149.7 186.1 171.3 165.4 US and China. The country’s sizable building stock, elaborate public Nonresidential Building 69.4 s 70.5 amp 75.9 l 80.7 e 87.1 infrastructure, and diverse construction and mining industries sustain a significant amount of equipment demand. Also, small residential build $ machinery/capita - 48.5 50.2 tabl 74.3 e 79.2 94.8 ings in Japan have a shorter lifespan than in other countries because $of machinery/000$ GDP 1.28 1.28 1.70 1.68 1.87 local construction techniques and the building materials used, mean - $ machinery/000$ construction 14.4 15.3 19.0 20.7 24.1 ing these structures are demolished and rebuilt more frequently. Since a large share of the construction work done in Japan is carried outConstruction in Machinery Demand 4000 4110 6000 6350 7500 densely populated urban areas, the country has high levels of demand net for exports 4900 6975 7300 7850 9400 such products as cranes and compact excavators and loaders. DemandConstruction Machinery Shipments 8900 11085 13300 14200 16900 for construction equipment in Japan rose at a 15 percent annual rate from 2009 to 2014, bolstered by improving economic conditions, an increase % Germany 33.0 40.0 37.9 36.5 35.1 in construction expenditures, and significant pent-up demand. W Europe Construction Machinery Shpts 26970 27705 35100 38950 48200

Japan is also the world’s third largest supplier of construction Source: The Freedonia Group, Inc. machinery, with 2014 shipments of $21.5 billion representing more than a quarter of regional output. Japanese manufacturers operate state-of- the-art facilities and offer a range of technologically advanced machines. The equipment produced in Japan is known for its quality and is compet- itive with products from any other country, despite usually being more expensive. From 2009 to 2014, construction machinery shipments from facilities in Japan grew nearly 12 percent per year. Manufacturing gains are largely attributable to rising local demand, although Japanese produc- ers also export large quantities of equipment to all regions. As a result, CHART VIII-1 Japan was sa neta exportermpl ine 2014 with a trade surplus of $10.6 billion, equivalent to 49 percent of domestic output. Significant export marketsWORLD CONSTRUCTION MACHINERY MARKET SHARE for Japanese equipmenttext include the US, Indonesia, Russia, China, and ($180.0 billion, 2014) Australia.

Copyright 2015 The Freedonia Group, Inc. 177 13.3% C aterpillar

M a rke t O th e rs L e a d e rs 8.4% Komatsu 6 6 .1 % sample 3 3 .9 % chart 4.3% Volvo 3.4% H itachi 3.0% Liebherr Intl D oosan 2.9% Infracor

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Sample Profile & TABLE VII-4

BRAZIL: CONSTRUCTION MACHINERY DEMAND BY PRODUCT Table, & Study (million dollars) Coverage Item 2004 2009 2014 2019 2024

Construction Machinery Demand 775 3755 3225 4500 6500 Loaders 125 610 510 720 1055 Cranes & Draglines 110 570 500 740 1100 Dozers & Off-Highway Trucks 120 570 475 680 990 Excavators 110 s 560 amp 485 l 715 e 1070 Mixers, Pavers, & Related Equipment 65 325 275 395 575 Graders, Rollers, & Related Equipment 85 t 425 abl 360 e 515 750 Parts & Attachments 160 695 620 735 960

% Brazil 26.7 43.6 38.4 40.2 41.5 COMPANY PROFILES C&S America Constr Machinery Demand 2905 8615 8400 11200 15650

Source: The Freedonia Group, Inc. Belarusian Autoworks OJSC 40 let Oktyabrya Street 4 222160 Zhodino Belarus 375-1775-3-27-82 http://www.belaz.by

Annual Sales: $1.7 billions a(estimated)mple Employment: 11,000 (estimated)profile STUDY Key Products: wheel loaders, wheel dozers, concrete mixers, and dump trucks COVERAGE

Belarusian Autoworks, or BELAZ, is a manufacturer of dump This Freedonia study, World trucks and other heavy vehicles for use in mining and construction ap- Construction Machinery, offers plications. The Company is privately held. historical demand data (2004, The Company participates in the world construction equipment 2009, 2014) plus forecasts (2019, industry through the manufacture of wheel loaders, wheel dozers, and 2024) for supply and demand, as concrete mixers. These items are marketed under the BELAZ and well as demand by product, in 6 MOAZ brand names. BELAZ’s wheel loaders have engines with pow- er ratings ranging from 360 to 490 horsepower (hp), hydromechanical regions and 18 countries. The transmissions, and payload capacities of up to 10 metric tons. In March study also considers key market 2015, the Company expanded its wheel loader line with the introduc- environment factors, assesses tion of the BELAZ-78250 model, which features a bucket capacity of 11.5 cubic meters and a payload capacity of 20 metric tons. the industry structure, evaluates company market share and pro- Wheel dozers from BELAZ include the BELAZ-7823 type, which files 37 global industry players. has a 3.9 meter wide blade and a operating weight of 50,000 kilograms (kg); and the MOAZ-4048 variety, which is equipped with a 4.2 meter wide blade and an operating weight of 30,400 kg. The Company makes concrete mixers with payload capacities up to 11 metric tons. BELAZ

Copyright 2015 The Freedonia Group, Inc. 331

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