May 26, 2024
Compaction Machines Market
Ict

The Compaction Machines Market Is Projected To Driven By Growth Of Construction Industry

The compaction machine market has witnessed significant growth over the past few years due to the increasing infrastructure development activities across both commercial and residential sectors globally. Compaction machines are predominantly used in construction applications for tasks like soil compaction, asphalt compaction and waste compaction. These machines provide consistent compaction for optimum density and construction quality by reducing the air voids in materials like soil, gravel and asphalt.

The growing population has increased the demand for housing units and commercial spaces such as malls, hospitals and offices which require extensive construction projects involving roads, bridges, and other civil structures, thereby driving the sales of compaction machines.

The global Compaction Machines Market is estimated to be valued at US$ 5620.2 Mn in 2023 and is expected to exhibit a CAGR of 4.8%  over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends

One of the key trends in the compaction machines market is the adoption of electric and hybrid models. With growing environmental concerns and stringent emission norms, construction equipment manufacturers are focusing on developing electrically powered compaction machines. Electro-mobility offers numerous benefits like zero local emissions, reduced operating costs and noiseless operations. Many tier 1 players have already launched battery-electric vibratory plate compactors, tandem rollers and rammers. The market share of electric models is expected to increase significantly over the coming years owing to supportive government initiatives and policies promoting cleaner construction activities. Electric compaction machines are well-suited for urban infrastructure projects located near residential areas where noise and emission levels need to be minimized. Their deployment will help reduce carbon footprint of the construction industry to a great extent.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate. High capital requirement for R&D, manufacturing, marketing and distribution acts as a barrier.

Bargaining power of buyers: The bargaining power of buyers is high due to presence of numerous regional and global players providing similar products.

Bargaining power of suppliers: The bargaining power of suppliers is moderate due to availability of substitute components from different suppliers.

Threat of new substitutes: The threat of new substitutes is low as compaction machines have highly specialized functionalities for construction applications.

Competitive rivalry: The competitive rivalry is high owing to presence of numerous global and regional players competing on basis of product features, quality and pricing.

Key Takeaways

The global Compaction Machines Market Share is expected to witness high growth. The global Compaction Machines Market is estimated to be valued at US$ 5620.2 Mn  in 2023 and is expected to exhibit a CAGR of 4.8%  over the forecast period 2023-2030.

North America leads regionally with nearly 30% share of the global market in 2022 majorly attributed to ongoing investments in infrastructure development projects. Asia Pacific is expected to witness fastest growth during the forecast period owing to growing construction activities in developing economies such as India and China.

Key players related content comprises Key players operating in the Compaction Machines market are Asa-Lift, MIKASA, Wacker Neuson, Toro and Bomag. Asa-Lift is a leading player in Japan with strong presence across Asian countries. MIKASA specializes in pneumatic and electric rammers. Wacker Neuson offers wide product portfolio catering to various end-use sectors. Toro provides compaction equipment for utility and landscaping applications. Bomag holds a major market share in road construction segment across Europe and North America.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it