South America Construction Equipment Market Research Report, 2027

In the South America region, there is robust demand for construction equipment. Contractors, mining, and construction companies are the major consumers of the South American construction equipment rental market. Rental companies such as Carlyle Group, Grupo Orguel, and BigRentz have a fair share of the market. An upsurge in global commodities prices is expected to positively drive South America's mining sector. Enhanced demand for natural resources in recent years will positively impact demand for construction equipment used in the mining industry, such as excavators, loaders, and cranes. Apart from this, the major market drivers in the South America region are the recovery in the construction industry, the surge in private-public partnerships, and rapid urbanization. According to the recently published by Actual Market Research report titled "South America Construction Equipment Market Research Report, 2027", the South American construction equipment market has recorded a tremendous market size of around USD 9 billion, which is anticipated to expand at more than 6.5% CAGR for 2022–2027. In terms of construction, infrastructural development and the construction of new roadways are expected to drive the market in the region. In addition to that, the marketers are now focusing on designing compact high-performance models with more fuel efficiency. The prominent players have introduced advanced heavy construction equipment, which adheres to the government norms and caters to the demand from these end-users. The governments' investment in developing public infrastructures such as roads, airports, ports, and the energy sector is expected to bring strong growth to the construction equipment market in South America. There is a robust demand for construction equipment in the region. Contractors, mining, and construction companies are the major customers of the equipment in the market.

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The growth of the South American vehicle market is supported by the introduction of low-emission and energy-efficient models. The heavy equipment market's growth is restrained by the fluctuation in oil prices, increased carbon footprints, and the weak economic conditions in South America. On account of an individual country's accountability, Brazil dominates the market for construction equipment, with no disputes from the other countries. The collection of the smaller countries considered together amounts to more than Brazil, while countries like Argentina and Colombia are expected to show a decline in the market share in the forecasted period. The application of earth moving equipment dominates the market, owing to the constantly improving needs of residential and commercial buildings, which are supported by infrastructural development, which attracts many private investments. While earth-moving machinery is expected to decline in market share, material handling machinery is to grow too, with the highest difference. A steady increase in the market can be owed to the increase in developments in infrastructure, majorly in the construction and renovations of the existing road transport systems in the region. As the demand for technologically advanced equipment has picked up a pace around the region, the market is known to be prone to various challenges, which have emerged as a hurdle in the way of growth. The major challenges in the regional market are interlinked and giving way to one another, like the high initial cost of the machinery, which has made the end users move towards the purchase of used equipment. Despite these obstacles, rapid urbanization and an understanding of the economic impact of poor road connectivity have been major drivers of market growth. Extensive R&D activities conducted by equipment manufacturers are expected to enable the development of low-cost machines with better fuel efficiency and lower carbon emissions. A recovering and steadily growing construction industry combined with increased support from extraction services provides the basis for the demand for mining and construction equipment. Gross output for machines for mining and construction declined heavily in 2015 and 2016, but started to rebound in 2017 and 2018. The market is expected to remain stable or slightly decline in 2019, though output in Brazil is expected to increase. The region has proven to be an attractive field for companies planning to expand and solidify their operations and market outreach. The importance of having a consistent and engaged presence based on long-term growth is often crucial.

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Kripa Shah

Senior Analyst

COVID-19 Impacts: A shortage of labor coupled with the increasing costs associated with it is adding to the construction equipment industry in South America. The outburst of a global pandemic has negatively impacted the growth of the market-leading disrupting the supply chain. The lockdown in various countries led to the shutting down of manufacturing and business units, further slowing the development of the industry. While being one of the worst hit regions by the COVID-19 pandemic, South America strikes back from the economic crisis, with infrastructural development seen as a way to optimize the economy and thus the market value, rising at an exponential growth rate during the forecast period. Major Companies Present In the Market Caterpillar Private Limited, CNH Industrial, Doosan Infracore, Epiroc Construction Machinery Co. Ltd, Hitachi Construction Machinery Co. Ltd, J C Bamford Excavators Ltd, John Deere Ltd, Kobe Steel Ltd, Komatsu Ltd., Kubota Corporation, Liebherr Group, Metso Corporation, Sandvik Mining And Rock Technology, Sany Group, Terex Corporation, Volvo Construction Equipments, XCMG Ltd., Zoomlion Co. Ltd Considered In the Report • Geography: South America • Base year: 2021 • Historical year: 2016 • Estimated year: 2022 • Forecasted year: 2027

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Countries covered: • Brazil • Argentina • Columbia Aspects Covered In the Report • Market Size By Value for the historic time period (2016-2021) • Market Size By Value for the forecast time period (2021-2027) • Market Share by Application (2016, 2021 & 2027F) • Market Share by Equipments (2016, 2021 & 2027F) • Market Share by Country (2016, 2021 & 2027F) • Market Share by Company (2021) Segments covered in the Report By Application • Earth Moving Machinery • Material Handling Machinery • Concrete and road construction Machinery • Other Machinery By Earth Moving Machinery • Excavators • Loaders • Dozers • Motor Graders By Material Handling Machinery • Dumper /Dump Truck/ Tippers • Cranes (Tower Crane, Mobile Crane) • Telescopic Handlers • Forklift By Concrete and Road Construction Machinery • Cement/Transit mixers • Compactors & Road Rollers • Pavers/Asphalt Finishers • Others The approach of the report: We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free. Intended Audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the construction machinery and excavator industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.