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The global cranes market size was USD 34.95 billion in 2020 and is projected to grow from USD 36.36 billion in 2021 to USD 49.64 billion in 2028 at a CAGR of 4.5% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with the market witnessing a positive impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a stellar growth of 2.7% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Crane is a type of machine that is utilized to transport loads horizontally. It is equipped with wire ropes, sheaves, and hoist ropes that support the raising or lowering down of heavy loads. The structure is mainly divided into sections, including, hydraulic system, electric system, boom system, turntable assembly, operator cabin, and chassis.
The market is witnessing growth, owing to the increasing demand from the construction sector. The evolving designs and the high load-lifting capacity are expected to serve the requirements of various industries, including, complex manufacturing, telecommunication worksites, and shipbuilding.
In addition, manufacturers are focusing on renting or leasing the hoists, which has become a trend in the market. Despite economic challenges, India, Italy, Vietnam, Turkey, and others are emphasizing more on renting services. Additionally, increasing investments by governments and private firms in the infrastructure sector are driving the global market growth. High investments in technological developments to establish smart factories for manufacturing are further propelling the market share. For instance, in 2019, Zoomlion Heavy Industry Science and Technology Co., Ltd. started the functioning of its tower crane smart factory in China with 12 automated production lines.
Global Market Adversely Affected by the COVID-19 Outbreak
The partial or complete lockdowns, owing to the COVID-19 outbreak have resulted in a severe downfall of many manufacturing processes. Additionally, closure of factory activities and changes in dealer inventories are also negatively impacting the global market. Lockdowns have further resulted in the unavailability of operators, thus reducing the revenues in ongoing residential, commercial, and industrial operations. Moreover, oil & gas, construction, mining, and industrial activities where cranes are of most use are affected by the COVID-19 outbreak. As per industry research, the overall construction equipment industry experienced a downfall in the production of approximately 43,000 machines, which is nearly 4% of 2019’s total output of about 1.07 million machines globally. Conversely, renting companies are utilizing the lockdown period to spend time on maintenance services to return on project sites.
Considering the aforementioned facts, manufacturing recovery is a challenging task in the current year. Manufacturers are optimistic about the possibility of recovery; however, the bigger challenge lies ahead in the first quarter of 2021, where the demand will be highly volatile.
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Accelerated Rental Services to Spur the Market Growth
Crane rental service has witnessed growth nearly in all the countries despite the economic challenges. Renting companies are enhancing their service offering to become premium service providers. As a result, manufacturers are also shifting toward leasing or renting options on a weekly or monthly basis along with proper maintenance of the equipment. For instance, in Vietnam, manufacturers are providing rental services of mobile hoists with capacity ranging from 25 tons to 800 tons. Additionally, the rental option reduces servicing cost, thereby allowing customers to procure advanced equipment whenever required. Furthermore, in the current cranes market trends where equipment rental services are on the verge of acceptance, the rate of expansion in such markets is expected to remain remarkable. Italy is one such economy that is witnessing the result for the same.
Increasing Investments in Construction and Infrastructure Sector to Swell Market
Governments and several private sectors are heavily investing in residential & commercial buildings construction and public infrastructure, thereby supporting the growth of the market. Rapid urbanization in Asian and Latin American countries is creating a huge demand to easily transfer materials that weigh more than 500 tons. Additionally, increasing government focus on green building development is further expected to augment the market growth. Moreover, oil & gas, mining, automotive, and other end-users are also utilizing cranes in their overall transportation process, which, in turn, is creating a positive impact on the global cranes market growth.
High Investment Costs and Lack of Safety Measures to Hamper Market Growth
Maintenance and service costs associated with cranes are very high, owing to costly replacement parts and unavailability of service facilities across Asia Pacific, Europe, Latin America, and other regions across the globe. Additionally, high initial investments are restraining manufacturers and end-users in the purchase of this equipment. Various safety standards are enacted by governmental bodies, including the International Organization for Standardization (ISO), Occupational Safety and Health Administration (OSHA), and others. However, the incidences of injuries are still on a page while working on floating structures, ascribed to the lack of importance of safety measurements amongst the manufacturers and workers.
Mobile Crane is Expected to be the Fastest-growing Segment in Future
The increasing demand for power has resulted in the expansion of power distribution patterns, thereby acting as a key driving factor of the mobile crane market growth in near future. Furthermore, the increasing demand for truck-mounted hoists is anticipated to result in the growth of the market. Fixed cranes are expected to experience significant growth during the forecast period, owing to better stability offered by the product.
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Construction Industry to Grow at Higher CAGR during the Forecast Period
The construction segment is expected to witness the highest growth attributed to increasing demand for fixed cranes. These structures are fixed to the ground, which provides excellent stability with high load capacity at greater heights. Furthermore, rising government initiatives concerning infrastructure development are positively contributing to the industry. Industrial, oil and gas, mining, and other end-users are expected to witness progressive market growth with steady pace of investments across these sectors around the world.
Asia Pacific Cranes Market Size, 2020 (USD Billion)
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Asia Pacific is expected to be the fastest-growing region in the global market, owing to increasing infrastructure projects. For instance, in 2018, the National Development and Reform Commission (NDRC) of China sanctioned 27 infrastructure projects worth approximately USD 219.43 billion. Thus, rise in construction activities in developing economies, such as India and China, is expected to boost the growth of the market.
China to Witness Highest Growth Rate over the Forecast Period
One of the major reasons of China leading the Asia market in terms of market share and growth rate is due to rising investments in real estate sector for commercial as well as residential infrastructures. China is one of the fastest growing economies in the world with large-scale capital investments and surge in productivity of infrastructure developments. The key Chinese manufacturers, SANY, Zoomlion, and XCMG have created their own market positions in the global market with advanced technologies, thereby surging the demand for China-based machines around the world.
The growth of the mining industry in the U.S. is augmenting the market growth in North America. Additionally, market players are expanding their product offerings to gain a competitive advantage in the U.S. market. For instance, the Manitowoc Company, Inc. introduced all-terrain cranes Grove GMK4090. It has a 51 m, six-section mega form boom that utilizes Grove’s Twin-Lock pinning system.
The increasing number of construction projects in Europe is anticipated to drive the market in future. Construction in terms of transport upgrade is also gaining momentum in Europe.
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The Middle East, Asia, and Latin America are expected to grow exponentially, owing to industrial investments, especially in the manufacturing sector and constructional works.
SANY GROUP, Manitowoc Company, Inc., Terex Corporation, Komatsu Ltd., and Liebherr Group to Dominate the Market
Key players, including SANY GROUP, Manitowoc Company, Inc. Terex Corporation, Komatsu Ltd, and Liebherr Group have dedicated business segments with an aim to improve product quality and reduce operation costs. Additionally, companies are concentrated on technological developments to establish a strong footprint in the industry.
Terex Corporation Emphasizes on Tailored Products with Technological Development as the Key Factor
Terex Corporation emphasizes on research & development to improve the quality of tailored products. The company is specifically emphasizing on inter-constructional work where space issues are of primary importance. Its ‘Terex Slewing Technology’ augments the control of cranes in various job sites.
An Infographic Representation of Cranes Market
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The report focuses on leading regions across the globe to offer a better understanding of end-users. Moreover, the report offers insights into the industry dynamics and analyzes technologies that are utilized at a rapid pace across the world. It also displays some of the key factors and restraints to help the readers to gain in-depth knowledge about the market.
Value (USD Billion)
Product Type, End-User, and Region
By Product Type
Fortune Business Insights says that the market stood at USD 34.95 billion in 2020.
In 2028, the market is expected to reach USD 49.64 billion.
Growing at a CAGR of 4.5%, the market will exhibit steady growth in the forecast period (2021-2028).
The Asia Pacific market was valued at USD 13.95 billion in 2020.
Mobile cranes are expected to be the leading segment based on product type
Increasing investment in the construction and infrastructure sector is driving the growth of the market.
SANY GROUP, Terex Corporation, Komatsu Ltd, and Liebherr are the top players in the market.
The construction industry is expected to hold the highest share in the market.
High investment cost and lack of safety measures are adversely impacting the growth of the market.
Accelerated rental service is the current trend for the market.
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