UK used construction equipment market is expected to grow at a CAGR of 2.97% during 2021-2027.
The UK used construction equipment market is expected to increase significantly by 2022. This is because of the economic recovery after Brexit and the rising population for new infrastructure projects, giving rise to the demand for cost-effective construction tools.
AI will also offer predictive statements by analyzing buzzwords and catching on to trends before anyone else does. It can also increase engagement rates with machines such as drones and 3D printers because it can discover issues before they occur. User type: Construction professional Artificial intelligence is not a new concept. It has been around for decades but is still making waves in the construction industry as AI becomes more sophisticated. AI can be used to forecast the weather and market supply and demand, which will help construction professionals in several ways.
Construction professionals can use predictive statements by analyzing buzzwords and catching on to trends before anyone else. They can also increase engagement rates with machines such as drones and 3D printers because they can learn how to make them better. Creative problem-solving skills can help people, and after all, it helps them think outside the box and develop new innovative solutions. What are some careers that can benefit from this skill?
—Looking back at the trends through the past years will help for future market estimates.
The UK used construction equipment market is forecasted to grow at a CAGR during 2022-27 to reach $3,514.3 billion in worth, up from $2,782.9 billion in 2020 and $2,168 billion.
With increased infrastructure and economic growth around the UK, the construction industry is set to recreate its’ structure with new buildings and companies. As a result of this growth, new users are expected to come onto the scene and solve the current lack of use – shortage of construction machinery, which attaches consequences in terms of a high-quality workforce, for instance. The employment sector provides various potential solutions, such as work-at-home opportunities, which have grown in recent years. For example, the construction business has thrived with the help of new technologies and construction machinery.
Accordingly, industry growth will create higher demand for machinery, which can either increase or affect industry surplus depending on how production surges up or down and what happens next with decreased or increased usability of machinery. Considering that much worldwide demand comes from Asia, these fluctuations will heavily impact the economy. Africa’s population is expected to grow from just over 1 billion in 2013 to 2 billion by 2050, and its key industries have enormous growth potential. Some central African countries include South Africa, Nigeria, Egypt, and Morocco.
The global demand for agricultural products has been increasing due to an increased desire for biofuel production and environmental concerns due to climate change. The United Nations predicts that more than 70% of all people living on Earth will live in cities by 2050. It is expected that this will increase the demand for food and land and intensify the role of agriculture in society. Agriculture? The need for farm products has increased globally due to an increased desire for biofuel production and environmental concern due to climate change.
The UK construction equipment market has been estimated to achieve £2,477m in 2022 and £2,911m by 2027.
Despite increasing competitors’ markets, the UK construction industry is within reach of impressive increases in the financial performance of this sector. This growth will be influenced by initiatives and demand driven by government and central policy focusing on efficiency and solutions for selling new and efficient building materials to the general public.
As the market competition increases, companies understand innovation to keep up with their competitors and times regarding products and services.
The industry has significantly evolved recently, which led to a
segmentation of the market. Four market segments are currently available for players that differentiate themselves from their competitors: volume builder, capital provider, private clients, and specialist seller. The remote client segment is based on maker-renter relationships or building upon equity release homes. The volume builder focuses primarily on providing builders with a markup on land values and non-prime contractors with a social license status.
Specialist sellers provide track record equipment such as skid steers or diggers when they have built wealth or been offered free equipment by heavy-duty manufacturers. They gather data on their usage to help focus the marketing efforts around effective distribution channels, potential revenues, and technologies that work best in practice. The final segment is capital providers, mainly catering to pre-built sites and offering finance packages according to personal credit-weighted factors.
Rising government investment in Affordable Housing & National Health Schemes will prompt the UK’s used construction equipment sales during the forecast period. The United Kingdom used construction equipment market by volume is expected to cross 20,918 units by 2028. In 2021, the government planned to invest USD 900 billion in infrastructure development projects across the UK for the next ten years. The government is also investing in affordable housing schemes and the healthcare sector. An investment of USD 4.3 billion & USD 4.9 billion is allocated for building hospitals & affordable housing schemes in 2022, respectively.
Investments were also directed for the upgradation of public infrastructure such as roadways, railways, & airports. USD 171 billion will be allocated to repair and redevelop roads, bridges, and traffic signals across the UK in 2022. Such development projects are projected to grow the UK used construction equipment market. KEY HIGHLIGHTS The material handling segment has the largest share in the UK used construction equipment market. Forklifts & telehandlers held the largest share in the material handling segment in 2021.
Forklifts are compact equipment used for material handling in confined spaces such as small warehouses & distribution centers. In 2021, the growth in the e-commerce & logistics industry in the UK prompted the demand for warehouses. Government investment doubled to USD 7.9 billion in 2021 for expanding warehouses in Northwest, East Midlands, & West Midlands. Growth in the logistics & e-commerce industry is expected to positively impact the demand for used forklifts & telescopic handlers in the UK used construction equipment market.
According to the CEA (Construction Equipment Association) report, telehandlers witnessed sharp growth of more than 100% growth in 2021.
Used mini excavators are also gaining market share in the UK used construction equipment market. Small & medium contractors prefer to buy used mini excavators for digging, stone plying and handling medium size loads at construction sites. The UK is facing the challenge of rising labor costs, so contractors prefer to buy these machines to reduce dependency on construction laborers.
UK government also increased its focus on upgrading public infrastructure, including developing airports & railway stations. An investment of USD 3.9 million is planned for developing airports across the UK in 2022. In addition, the USD 491.6 million funds are allocated for building eco-friendly stations by installing solar panels & intelligent LED lighting.
The demand for young used equipment is growing in the UK market due to the government’s strict environmental norms. UK government introduced the Stage V emission Standard, which is expected to prompt the demand for young used equipment around 2-4 years old. Used construction equipment demand is expected to remain steady in the UK market due to the rise in public infrastructure projects in 2022.
MARKET TRENDS & DRIVERS
Government Investment for Housing Development Projects to Overcome Housing Crisis
The UK faces a housing crisis due to low investment in the country’s housing sector in 2022. The mismatch of demand & supply of housing units across the country resulted in a surge in the prices of houses. In 2022, the housing price increased by 11% compared to 2021.
Cities with the most significant housing shortages primarily concentrate in the Greater Southeast of England, such as London and Brighton. To overcome the housing crisis, the government plans to build 300,000 new homes yearly to match demand and keep housing costs affordable from 2020. However, the government missed the yearly housing target, and 216,000 housing units were constructed between 2020-2021.
In 2021, the government introduced the affordable Housing Delivery Plan 2022-2025 in Bristol city. The project aims to build 1,000 new affordable housing units in a year by 2024. This project is an updated Housing Delivery Plan 2017-2020. The UK-used construction equipment market will likely play a vital role in housing development projects.
Rise In Government Investment For Development Of Transit Facilities Across UK
In 2022, the government planned to boost the investment in transport infrastructure in the country’s Cornwall, Greater Manchester, Newcastle & Southampton regions to enhance the economic recovery post-pandemic.
The government planned to invest USD 170 million in four significant road development & maintenance projects across the country, which is expected to reduce traffic congestion and improve connectivity.
Four major road projects announced by the UK government in 2022 are a 6.2-kilometer road linking St Austell to A30 road in Cornwall (USD 83.4 million), maintenance of Tyne Bridge & central motorways (USD 37.5 million), enhancing walking & cycling accessibility across A34 between Greater Manchester & Stockport (USD 35.7 million), & maintenance of A35 Red bridge Causeway connecting New Forest, & Southampton (USD 14.2 million).
Growing Investment in the National Health Sector
The pandemic pressured the Nation’s health sector with the surge in demand for upgraded treatment facilities across the UK. Responding to this demand, the government developed the national healthcare plan to construct new hospitals and upgrade the existing ones.
The UK government is expected to invest USD 4.3 billion in constructing 40 hospitals by 2030. The government is implementing new guidelines that will help to standardize the design for new hospitals and use modular construction methods to accelerate the building program. The government also announced USD 1 billion for upgrading its facilities in the existing 20 hospitals. Such healthcare projects will propel the growth of the UK-used construction equipment market.
Newer Used Construction Equipment Witness Growth in Demand in UK Market
Stage V emission norms introduced in 2020 focus on reducing carbon emissions. The government introduced strict emission norms for heavy construction equipment in 2020. There is a surge in demand for newer used construction equipment that are 2-4 years old in the UK market in 2021. The rental companies & contractors focused on buying more unique used equipment to fulfill the emission standard set by the government.
The government makes it mandatory to use construction equipment maintaining Stage V emission standards for one of England’s most significant transport infrastructure projects (HS2) & other highway development projects.
Growth in Renewable Projects
In 2022, the government’s increased investment in renewable projects resulted in a 6.5% increase in renewable energy generation capacity in 2022 as compared to 2021. The country aims to produce 100% electricity from renewable energy resources by 2035. In 2022, the government invested $427.6 million to develop offshore wind generation projects. USD 34.1 million have been allocated to increase biomass production, and USD 5.3 million will be used to support innovative biomass-based hydrogen generation technologies. Investment is also planned for setting up solar panels & heat pumps to reduce carbon emissions from buildings.
Rising Building Material Costs & Labour Shortage Restrict the Demand for Used Construction Equipment.
In 2022, the UK construction industry was facing severe issues of labor shortage & rising building material prices such as iron, steel, timber & glass. Labor shortages in the UK construction industry were major issues post-Brexit in 2020. Changes in immigration laws post Brexit in 2020 restrict the labor migration in the UK from other European countries.
Other factors, such as supply chain disruption of raw materials & rising inflation, and low labor availability due to the aging population hampering the construction industry’s growth in the UK. There is a sharp rise in building material prices such as steel (52.7%), timber (30%), cement (24.4%) & concrete (37%) in 2022 as compared to 2021 in the market. Hindrance in infrastructure projects due to the low availability of labor & rising building material prices is expected to restrict the demand for used construction equipment in the UK market.
Due to rising prices, there will be a decrease in demand for used construction equipment.
There is a sharp rise in used construction equipment in the UK market in 2022. According to Euro Auction data, used construction equipment is almost as high as new ones in 2022. The recently used construction equipment auction event organized by Euro Auction in Feb 2022 in Leeds witnessed high demand for good-condition used machinery. A sharp rise in prices is seen for telehandlers & mini excavators in Leeds Auction in 2022; these equipment prices were close to new ones. The demand for mini excavators & telehandlers is growing due to the rise in infrastructure development projects across the UK. This equipment can operate in confined places and is majorly used for repair & redevelopment projects.
JCB has the most robust share in the UK used construction equipment market. JCB, Kubota, Caterpillar & Volvo are the market leaders in the UK industry and has a strong distribution network & provide a wide variety of products. Kubota is the market leader in mini excavators in the region.
Hitachi Construction Machinery, Komatsu & Manitou are emerging strong in the UK used construction equipment market. These companies are introducing innovative products to capture construction equipment market share. For instance, in 2022, Hitachi launched Z-axis excavators equipped with Stage V emission technology for the UK industry. Manitou group also launched ultra-compact rough terrain telehandlers in the European market to capture customers from the construction & agriculture industries.