Water management projects triggering demand for backhoes with flexible attachments

Latin American market of construction equipment

Dublin, March 25, 2024 (GLOBE NEWSWIRE) — The “Latin America Construction Equipment Market – Strategic Assessment and Forecast 2024-2029” report has been added to ResearchAndMarkets.com’s offers

Sales of the Latin America construction equipment market in 2023 were 119,270 units and are expected to grow at a CAGR of 3.43% between 2023 and 2029, to reach 145,980 units in 2029.

Caterpillar, Komatsu, Hitachi, XCMG, Liebherr and Volvo Construction Equipment have a substantial market share in the Latin American construction equipment market. These manufacturers are market leaders. LiuGong, Yanmar, CNH Industrials and Manitou are niche players in the Latin American construction equipment industry. These manufacturers provide little product diversification and concentrate more on the local market.

Earth-moving equipment accounted for the largest market share in the Latin America construction equipment market in 2023. End-users in the construction industry accounted for the largest share of construction equipment in America Latin Sales increased due to increased investment in infrastructure and the transport sector in Latin American countries.

Brazil is the largest market in the construction equipment market in Latin America. The country accounts for nearly 40% of total construction equipment sales in the region by 2023. Brazil is the continent’s construction equipment manufacturing hub. All major construction equipment manufacturers have manufacturing centers in the Sao Paulo region of the country.

Hydraulic excavators and backhoes are the two best-selling construction equipment in the region. The demand for this equipment will grow a lot in the Latin American construction equipment market in 2024.

Construction equipment manufacturers are introducing customized construction equipment according to the needs of customers in the region. Liebherr introduced a port crane for port operations in the Latin American region.

The story continues

The construction and mining market accounts for more than 70% of construction equipment utilization on the continent.

Demand for electrical equipment is growing in the Latin American construction equipment market. Several companies are introducing electrical equipment in the region. For example, Link-Belt launched an X4S series electric excavator. In a strategic move, XCMG established a new Central America region, which will help the company grow aggressively.

MARKET TRENDS AND DRIVER

Water management projects triggering demand for backhoes with flexible attachments

There is an increase in water management projects in Latin American countries. The CAF (Latin American Development Bank) allocated 4 billion dollars to finance water management projects and better water governance at the regional level until 2026. In addition, ECLAC (Economic Commission for in Latin America and the Caribbean) launched the Regional Network and Observatory for Water Sustainability. (ROSA) for the management of water resources in five countries: Colombia, Bolivia, Dominican Republic, El Salvador and Panama in 2023, to improve the completion of the construction project, the country needs to optimize its resources and increase efficiency. Integrating BIM into construction machinery will help reduce construction costs and make construction sites safe.

Increasing investment in infrastructure driving the construction equipment market in Latin America

• In 2023, the governments of Latin America announced several infrastructure development projects. There is a wide range of investment and infrastructure opportunities in the region.

• There will be an 11% increase in investment in infrastructure projects in Brazil by 2023. According to the National Observatory of Transport and Logistics of Infra South America, Brazil invested $1.4 billion in infrastructure projects transport infrastructures during the first seven months of 2023.

• According to the Brazilian government, by 2023 there are 172 ongoing infrastructure investment projects, from airports to energy distribution, mining and urban mobility.

Increased demand for electric forklifts in Latin American countries

• Latin American countries aim to reduce their carbon footprint by 2040. Countries plan to reduce their dependence on fossil fuels in the future.

• Demand for electrical equipment is increasing in the Latin American construction equipment market. Major Latin American countries such as Brazil and Mexico are investing in port development projects by 2022.

• BYD has been operating in South American markets such as Brazil, Mexico and Chile, offering green transportation solutions to support the region’s transition to a low-carbon transportation sector.

The increase in mining activities is driving the growth of the construction equipment market in Latin America

• There is an increase in demand for commodities such as gold, copper, iron ore and silver worldwide. Latin America’s mining sector has had ample opportunity to grow recently. The region is one of the main producers of iron ore, copper and gold.

• Chile, Argentina and Bolivia, which form the lithium triangle, contain the largest lithium reserves. Lithium mining has already started and new licenses are being issued.

• Brazil is one of the world’s largest sources of reserves and metals, including aluminum, iron ore and nickel, and the world’s largest producer of gold. Demand for these metals is expected to increase due to their use in market and construction activities.

INDUSTRY LIMITATIONS

High inflation rates negatively affect corporate investments and the import of construction equipment

Latin American countries face the challenge of rising inflation rates. Russia’s invasion of Ukraine sent energy prices soaring. The disruption in the supply of raw materials such as steel, iron and rubber further worsened the situation. In addition, Brazil’s annual inflation reached a six-year high of more than 10% in 2022. Inflation rates exceeded the government’s targets, leading to a decline in domestic consumption. In addition, other Latin American countries such as Argentina, Colombia and others have witnessed a similar rise in inflation.

Mining project hindered by environmental protest

Environmental protests often lead to social conflicts, halting industrial projects such as mining and construction projects in the country. The growth of the Argentine mining market is hampered by several environmental protests, which halt some of the country’s main mining projects. In addition, some mining projects, such as the $3.3 billion molybdenum open-pit copper alloy mining project and the $2.4 billion Mara copper mining project (Minera Agua Rica- Alumbrera), are were hindered due to protests in 2023. Andalgala residents detected a more significant presence of iron, aluminum and fluoride in their drinking water due to copper mining projects in Argentina in 2023.

LANDSCAPE OF THE SELLER

Key vendors

• caterpillar

• Komatsu

• Liebherr

• Xuzhou Construction Machinery Group (XCMG)

• Volvo construction equipment

• Hitachi construction machinery

• Zoomlion Heavy Industry Science & Technology Co., Ltd.

• JCB

• NUMBER

• Hyundai construction equipment

Other featured sellers

• Kobelco

• LiuGong

• John Deere

• yanmar

• CNH Industrial

• Toyota material handling

• Bobcat

• Wacker Neuson

• Tadano

• SAKAI HEAVY INDUSTRIES, LTD.

• Shantui Construction machinery

• BOMAG GmbH

• AMMAN

• towards the sun

• HANGCHA

• Romanelli

• AIMIX group

Dealer Profiles

KEY QUESTIONS ANSWERED

• What is the size of the Latin America construction equipment market?

• What is the growth rate of Latin America Construction Equipment market?

• Who are the key players in the Latin America Construction Equipment market?

• What are the trends in the construction equipment industry in Latin America?

• Who are the main distributor companies in the Latin America construction equipment market?

Key Attributes:

Report segmentation

Segmentation by type

• Earthmoving equipment

• Road construction equipment

• Material handling equipment

• Other construction equipment

• End users

• region

For more information on this report, visit https://www.researchandmarkets.com/r/8vtobt

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