US Used Construction Equipment Market Assessment and Forecast 2022-2028: New Equipment Supply Chain Disruption During Pandemic Continues to Drive Demand – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The report “U.S. Used Construction Equipment Market – Strategic Assessment and Forecast 2022-2028” has been added to from ResearchAndMarkets.com offer.

The US used construction equipment market is expected to grow at a CAGR of 1.97% during the period 2022-2028.

The used construction equipment market in the United States is expected to reach 45,766 units by 2028. US government investment in upgrading infrastructure and renewable energy projects is expected to support demand for used construction equipment. opportunity in the United States over the forecast period (2022 -2028).

USED ​​CONSTRUCTION EQUIPMENT MARKET: HIGHLIGHTS

The earthmoving segment holds the largest used construction equipment market share in the United States. Other segments including graders, skid steer loaders, bulldozers and trenchers held the largest share of the earthmoving segment in 2021.

Infrastructure modernization projects such as renovation of commercial buildings, railway stations, airports, repair of runways and extension of roads and bridges in rural areas are driving high demand for used construction equipment on the American market.

The government aims to generate 95 GW of electricity from renewable energy resources by 2025. To achieve this goal, the government is setting up wind farms and solar power plants across the country, which is expected to support the demand for electricity. second-hand equipment because the new equipment supply chain is still in the recovery phase, so used equipment meets the needs of the industry.

Less expensive equipment with high operational requirements and low service life such as excavators, backhoe loaders and forklifts are expected to grow faster during the forecast period than expensive equipment such as graders and cranes with low operational requirements and long service life.

The recovery of the supply chain for new construction equipment after the pandemic and the rise in rental markets pose a major threat to demand for used construction equipment in the US market. However, used equipment is expected to remain popular among small contractors for a short range of projects due to diverse portfolios, low acquisition cost and good resale value.

Disruption to the supply chain for new equipment during the pandemic continues to drive demand for the used construction equipment market in the United States

COVID-19 has had a positive impact on the demand for used construction equipment in the US market. The supply of new equipment has been interrupted due to the disruption of the supply chain caused by the lockdown measures taken by the US government. Companies were not in favor of large investments. These factors have triggered the demand for used equipment in various sectors such as construction, agriculture, mining and forestry.

In 2021, U.S. government investments in the transportation industry, including redevelopment projects for economic recovery, were expected to support demand for used construction equipment. However, the volume of used equipment sales declined in 2021 and a sharp drop in used equipment sales was observed in the 0-10 age group. Companies reduced their purchases of used equipment to avoid more aging machines in their fleet, as the supply of new equipment was low even in 2021. This led to price spikes and a reduction in the volume of used equipment on the American market.

Used equipment is an excellent choice for contractors for short-term projects. Various short-term repair and refit projects are awarded to contractors who prefer to use used construction equipment due to its quick availability, diverse portfolio and low acquisition cost to complete the project and resell the material then.

Motor graders are one of the most expensive pieces of equipment ranging from $200,000 to $500,000, with an average life expectancy of around 30 years. There has been an increase in the demand for used graders in the US market in 2020 and 2021. The equipment operates for a short time on construction sites compared to other earthmoving equipment such as excavators and backhoe loaders. It is therefore a popular choice for buyers of used equipment due to factors such as the high price of new graders, low hours of operation on the job site and long life. Due to its long life, the equipment can be resold many times.

Rise in demand for used equipment in the agriculture and forestry sectors due to low purchasing capacity of farmers in the aftermath of the pandemic.

Construction equipment such as mini excavators and loaders are used in the agricultural and forestry industries. Equipment used for land leveling, crop loading, fence construction and land clearing activities in agriculture and forestry. The demand for used equipment in the forestry and agriculture sectors had increased in 2021.

The COVID-19 pandemic has had a negative impact on the US economy. The country’s agricultural sector is underperforming due to reduced demand and labor shortages. Farmers’ net income decreased by 9% in 2020. Reduced purchasing ability of farmers triggers demand for used equipment in the US market.

Shift in focus to renewable energy resources triggers demand for used mini excavators and cranes in US market

The US government is focused on renewable energy sources and aims to produce 25 GW of clean energy by 2025. In January 2022, the government approved 18 onshore projects of 4.17 GW and 54 priority projects, adding 27 .5 GW of clean energy. According to the Energy Information Administration, solar power capacity in the United States is expected to increase by 21 GW in 2022 and 25 GW in 2023. Various solar and wind power projects are progressing in different locations across the country in 2022.

The demand for used construction equipment for these projects is expected to increase sharply due to its rapid availability compared to new equipment. The supply of new equipment has been interrupted due to COVID-19 in 2020. The second wave of infection in 2021 across the United States has worsened the situation for the manufacture of new construction equipment. Thus, the demand for used construction equipment is expected to increase for these near-term renewable energy projects. The demand for used cranes and mini excavators is expected to rise sharply for solar and wind farm projects.

Rising prices for used construction equipment to devalue demand for used equipment

There is a steady increase in prices for used construction equipment in the US market. According to Ritchie Bros, there has been a 16% increase in prices for large earthmoving equipment such as excavators, bulldozers and graders. A similar price spike was seen in aerial equipment such as cranes, forklifts and aerial platforms and medium earthmoving equipment such as backhoe loaders, mini diggers and trenchers.

b) A similar trend is observed in the first quarter of 2022; prices for large earthworks, medium earthworks and aerial equipment increased by 20%, 37% and 35% respectively. The demand for construction equipment has increased due to increased investment in infrastructure projects across the country. However, the supply of new equipment has not been restored in 2021 and volume sales of used equipment have declined. This mismatch between demand and supply for used equipment is driving up used equipment prices in the US market in 2021.

New Emission Standard and Rise in Construction Site Accident Cases May Hamper Demand for Used Construction Equipment

The concern of the American government for the air pollution pushes it to take the necessary measures to control it. The country now follows the Tier 4 emission standard in 2022. The United States is expected to launch the Tier 5 emission standard by 2024, which focuses on reducing nitrogen oxide and particulate emissions. Therefore, the upgrade of emission standards in the United States is expected to negatively impact the demand for larger used equipment, which is older used equipment in the market.

b) There is an increase in work injury cases in the construction industry in the United States. According to the Bureau of Labor Statistics (BLS), nearly 10 million workers were employed in the construction industry in the United States in 2020. The Bureau of Labor Statistics revealed that 1,061 construction workers were killed in 2020, which represents 20% of all work-related deaths in 2020. the United States. The report also revealed that 60% of all fatalities on construction sites were crane-related.

COVID-19 triggers online bidding process for used equipment sales

COVID-19 has accelerated a new trend in online auctions in the used heavy construction equipment market. In 2020, there was a 35% increase in website traffic and a 71% increase in bidder registrations. This move to an online process expands the reach of the used equipment market and creates new data analysis opportunities for sales companies. Equipment sales rose sharply in 2020 due to online auctions provided by major auction companies such as Ritchie Bros & Sandhill.

Equipment owners could have good information and help them understand the best time to sell or buy equipment based on machine type, time of use and machine age.

VENDOR LANDSCAPE

  • Caterpillar is the US market leader in used equipment. The company excels in the sale of used earthmoving machinery in 2021.

  • John Deere was the second-largest player in the US used equipment market in 2021. The company’s backhoe loader sold the most in 2021. Excavators and mini diggers were among the most used equipment sold by the company in 2021.

  • The main suppliers are Caterpillar, Volvo Construction Equipment, Liebherr, Komatsu, Hitachi Construction Machinery, Hyundai Construction Equipment, John & Deere and Kobelco.

  • Other important suppliers are Terex Corporation, Case Construction, LiuGong and Tadano.

Main suppliers

  • caterpillar

  • Volvo construction equipment

  • Liebherr

  • Komatsu

  • Hitachi construction machinery

  • Hyundai construction equipment

  • John Deere

Other Important Suppliers

  • Terex Company

  • tadano

  • Liu Gong

  • CASE Building

For more information about this report visit https://www.researchandmarkets.com/r/ior8zf

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