An Incisive, In-depth Analysis on the Compaction Machines Market
This study offers a comprehensive, 360 degree analysis on the Compaction Machines market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Compaction Machines market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.
A compaction machine is a type of a mechanical device that is used to compact or reduce the size of the soil, gravel, trash, concrete or asphalt used in the construction of roads, dams and airports, and in other construction related activities. Road rollers or compactors normally use the weight of the vehicle to compact the surface being rolled or use its mechanical advantage through vibration by getting enough power from its engine. Compaction machine plays an essential role in a wide range of road construction projects. Streets and highways, airport runways and most types of structures cannot be built without proper compaction of base material under paved surfaces.
The compaction machines market, globally, is estimated to reach US$ 3,443.3 Mn by the end of 2015, and is projected to expand at a stable CAGR of 6.2% to reach 6,310.7 Mn by the end of the forecast period. In terms of unit sales, it is estimated that, globally, 342,639 units of new compaction machines would be sold by the end of 2025. Asia Pacific dominates the market in terms of value currently, accounting for about 40% market share due to higher volume sales of heavy compaction machinery in the region. However, Western Europe is expected to dominate the market in terms of unit sales, over the forecast period garnering more demand for light compaction machines.
Drivers, Restraints & Trends
There has been significant investment being made in infrastructure globally, with rise in the number of paved roads, which in turn is expected to fuel the market for compaction machines over the forecast period. Investment in road maintenance and development alone is expected to account for approximately 28% of the overall infrastructure investment made during the forecast period. Furthermore, increasing demand for smart cities, new construction projects and building dams and airport runways, in turn, is expected to boost the demand for compaction machinery over the forecast period. Intelligent compaction, including sensors, displays and telematics is the trend observed in the global compaction machines market currently. The financing industry for heavy compaction machines is expected to expand at a CAGR of over 15% during the forecast period, with leading private and central banks taking initiatives to finance heavy machinery by way of leases or loans. Moreover, European manufacturers are increasingly catering to the dynamic market in Asia Pacific through mergers and acquisitions. Currently, the heavy compaction machinery’s rental penetration and secondary sales market is growing significantly. However, this trend is expected to pose a major challenge for new equipment sales. Apart from this, delay in project clearances, globally, along with low labour productivity, are some of the other challenges faced by the global compaction machines market.
Analysis by Product
On the basis of product type, the global compaction machine market is segmented into two major segments, namely heavy compaction machines and light compaction machines. The heavy compaction machines segment is further sub-segmented into heavy tandem roller, single drum roller and pneumatic roller. The light compaction machines segment, on the other hand, is sub-segmented into hand operated machines, light tandem roller and trench roller. The global compaction machine market accounted for about 4% share of the overall construction equipment market in 2014, with 42.8% revenue share of the market held by the single drum roller segment alone. Heavy tandem roller, single drum roller and light tandem roller are further broken down into various categories, by weight (tonne). Hand operated machines include rammer, vibratory plates (forward), vibratory plates (reverse) and walk behind roller. In terms of unit sales, the light compaction machines segment currently accounts for about 85% market share in terms of sales and is likely to dominate the overall market by the end of 2025, in view of the increasing importance of these machines in road, footpaths and highway maintenance. The heavy compaction machines segment is anticipated to grow at a high rate as compared to the light compaction machines segment.
Key players in the global compaction machines market include Volvo Construction Equipment - Volvo CE, Caterpillar Inc., Terex Corporation, BOMAG GmbH, Wacker Neuson SE, XCMG Co. Ltd, Zoomlion Heavy Industries Science and Technology Co Ltd, Atlas Copco, Wirtgen Group and Sany Heavy Industries Co Ltd. Even though global players account for more than 75% share of the global compaction machines market, small and unorganised market players are anticipated to have a huge role to play during the forecast period.
The global compaction machines market deals with machines that are used to compact or reduce the size of the soil, gravel, trash, concrete or asphalt used in the construction of roads, dams and airports, and in other construction related activities. Road rollers normally use the weight of the vehicle to compact the surface being rolled or use its mechanical advantage through vibration by getting enough power from its engine. Compaction machine plays an essential role in a wide range of road construction projects. Streets and highways, airport runways and most types of structures cannot be built without proper compaction of the base material under paved surfaces. There has been a significant investment being made in infrastructure globally, with the rise witnessed in the number of paved roads, which is expected to fuel the compaction machines market over the forecast period. The global compaction machines market is expected to expand at a steady CAGR of 6.2% over the forecast period (2015-2025), to account for US$ 6,310.7 Mn by the end of 2025.
To understand and assess the opportunities in this market, the report is categorically split into three sections, namely introduction and overview of the market, market analysis and forecast on the basis of all types of products and categories, and regions. The report analyses the global compaction machines market in terms of market value (US$ Mn) and by volume (unit sales)
The report starts with an overview of the global compaction machines market and its different product types. In the same section, FMI covers the global compaction machines market’s performance in terms of revenue and unit sales. This section also includes FMI’s analysis of the global road infrastructure scenario, construction industry outlook, key trends, drivers and restraints from supply and demand perspectives.
The next section of the report analyses the market on the basis of products and presents the forecast in terms of value for all the years till 2025. Products covered in the report are as follows:
Heavy compaction machines
Heavy tandem roller
- 5-8 Tonne
- 8-11 Tonne
- > 11 Tonne
Single drum roller
- 3-5 Tonne
- 5-8 Tonne
- 8-12 Tonne
- 12-15 Tonne
- > 15 Tonne
- Pneumatic roller
- Heavy tandem roller
Light compaction machines
Hand operated machines
- Vibratory plates (forward)
- Vibratory plates ( reverse)
- Walk behind roller
Light tandem roller
- < 1.8 Tonne
- 8-3 Tonne
- 3-5 Tonne
- Trench roller
- Hand operated machines
The next section of the report analyses the market on the basis of region and presents the projection in terms of value for the forecast period. The global compaction machine market report covers the following regions:
- Rest of Latin America
- Rest of Western Europe
- Rest of Eastern Europe
- Australia & New Zealand
- Rest of Asia Pacific
Middle East & Africa
- South Africa
- Rest of Middle East & Africa
When developing the market forecast, the starting point involves sizing the current market, which forms the basis for the forecast as to how the market is anticipated to take shape during the forecast period. For this, FMI referred to several subject matter experts involved in the road construction and compaction machinery domain. Given the characteristics of the market, we triangulated the outcome based on different analysis based on the supply side, demand side and the dynamics of the market, such as regulation, trends and infrastructure scenario globally. Quantification of data has been considered along with the provisions of the qualitative and quantitative insights collected directly from the market through discussions with regional managers, suppliers, manufacturers, sales person and subject matter experts. Primary research had a major contribution in the analysis of the market for the forecast period.
We have also taken into consideration the year-on-year growth based on historical trend analysis, in order to understand predictability of the market and to identify right opportunities in the global compaction machines market.
As previously highlighted, the global compaction machine market is split into two major segments, namely by product type and by region. Both these segments have been analysed in terms of Basis Point Share (BPS) to understand the individual segments’ relative contribution to market growth.
The absolute dollar opportunity provided in the report is critical and is expected to help in assessing the level of opportunity that a provider can look to achieve from a sales perspective in the compaction machines market.
FMI has developed the market attractiveness index for two major segments, namely, product and region. This index helps in identifying the real opportunities in the market.
In the final section of the report, the global compaction machines market landscape is included to provide report audiences with a dashboard view, based on categories of providers in the global compaction machines product portfolio. Their key developments and strategies have also been included wherever possible. Key market participants covered in the report are Volvo Construction Equipment - Volvo CE, Caterpillar Inc., Terex Corporation, BOMAG GmbH, Wacker Neuson SE, XCMG Co. Ltd, Zoomlion Heavy Industries Science and Technology Co Ltd, Atlas Copco, Wirtgen Group and Sany Heavy Industries Co Ltd.