by The global Compaction Machines Market is estimated to be valued at US$ 4,955.1 Mn in 2022 and is expected to exhibit a CAGR of 6.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Compaction machines are equipment used for compacting soil, sand, quarry materials and other products in civil construction and mining projects. They are designed to maximize the weight and impact that can be applied to new embankments, layers of road bases or sub-bases, asphalt, backfilling of trenches and other tasks. The main advantages of compaction machines are that they help to remove air voids from fill materials and increase the density and strength of earthen fills. This is important for the stability and longevity of constructed earthworks and pavements. The growing demand from infrastructure development activities such as road construction, housing projects and commercial construction is driving the need for compaction machines.
Market key trends:
One of the key trends in the compaction machines market is the increasing adoption of smart compaction technology. Smart compaction integrates global positioning systems (GPS) and proximity sensors with machines to provide real-time density mapping and documentation of compacted materials. This allows construction managers to identify any areas requiring re-compaction and to meet specified density requirements more efficiently. Several major manufacturers like Caterpillar, Volvo, Bomag and Wirtgen are introducing smart systems on their latest machines. Moreover, the growing popularity of rental fleets for construction equipment is also benefiting the compaction machines market. Many contractors prefer renting machines as per requirements of projects to avoid large capital expenditure.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the compaction machines market is moderate. High capital requirement for manufacturing plants and equipment prevents the entry of new players. However, some opportunities exist through franchisee models.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of many established players offering similar products. Buyers can negotiate on price and demand value-added services and technical support during equipment operation.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many suppliers for raw materials and components. However, suppliers of key technologies and components derive some power due to differentiation.
Threat of new substitutes: The threat from substitutes is low as compaction machines have few alternatives for achieving desired compaction levels during construction activities. Developments in related equipment categories may pose some threat.
Competitive rivalry: The competitive rivalry in the market is high due to the presence of established global and regional players offering similar products. Players compete based on product performance, pricing, quality, services, and innovations.
Key Takeaways
The global compaction machines market size was valued at US$ 4,955.1 Million in 2022 and is expected to witness high growth, exhibiting CAGR of 6.5% over the forecast period due to increasing infrastructure development activities across the globe.
Regional analysis: Asia Pacific dominated the market with over 35% share in 2022 due to large-scale investments in transportation and utility infrastructure projects in China, India, and other developing countries. Western Europe and North America are also major markets due to ongoing upgrades to road networks and rising commercial construction spending.
Key players: Key players operating in the compaction machines market are Wacker Neuson SE, Sany Heavy Industry Co. Ltd, Volvo Construction Equipment, Wirtgen Group, Caterpillar Inc., Atlas Copco, Terex Corporation, Zoomlion Heavy Industries Science & Technology Co Ltd, Fayat Group, BOMAG GmbH, and XCMG Co. Ltd. Wacker Neuson offers an extensive range of rammers, vibratory plates, and soil compactors for construction applications.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
