Global market for equipment to present annual growth of over 6%

The presence of the construction equipment sector in Brazil Road Expo has followed this growth: the last edition of the event, held in April this year, was attended by 58% more representatives of the segment than the debut edition, in 2011.


The global market for construction equipment will have an average annual growth of over 6% in the coming years, as pointed out by the Freedonia Group’s survey, which also shows that the sector should record an increase of $142 billion in 2012 to $189 billion by 2017. Brazil Road Expo, the only major event 100% focused on road and highway infrastructure market also reflects this growth in the market for road construction and maintenance equipment. 

Of 34 exhibitors from the segment in the first edition of the trade show, held in 2011, the event has had an increase in the participation of manufacturers and distributors of this type of equipment to 54 companies in 2013, amounting to an increase of over 58%. “For the next edition, which takes place on April 9-11, 2014, we expect to reach 70 brands in the sector”, said engineer Guilherme Ramos, director of Brazil Road Expo.

The companies that will collaborate with this perspective include Volvo Construction Equipment Latin America, which will be participating in the trade show for the first time as an exhibitor. “Volvo will bring to Brazil Road Expo its line of products and services for road construction and maintenance, as well as financial solutions through Volvo Financial Services”, explained Suzanne Darié, Marketing & Corporate Communication Manager of the Company.

Another company in the industry that ensured its presence as an exhibitor is  Ammann Latin America. "Our participation in Brazil Road Expo is strategic because we understand that the event is the ideal showcase to show our products to professionals working in road construction and maintenance and also to highlight the advantages of having an entire line of leading edge equipment now produced in Brazil, allowing them to know ever better Ammann and its lines of compactors, pavers and asphalt plants", explains company's managing director, Gilvan Pereira. Ammann, the world leader in asphalt Plants and which is already a recognized brand in the market for paving and road infrastructure has completed two years of operation in Latin America, has entered this year a new phase with the opening of a factory in Gravataí (RS), that serves the entire Latin American market.

Participating in the trade show for the second time, engineer Luciano de Oliveira, director of Ticel Equipamentos, justifies the renewal for 2014 with the results obtained in 2013. “The trade show was very representative. We have had the pleasure of doing business and receiving visits from potential clients. “It is a show that is aimed at our market and that is what we always search for in a show. We have been able to promote our products. We will be present next year, given the result and satisfaction we had with the event this year”, he explained.

The survey

Also according to the survey by the Freedonia Group, Latin America will have an average increase of over 4.6% per year, bringing $8.3 billion to the sector by 2017. The highest growth will be seen in the Asia-Pacific region, where the market for equipment will grow on average more than 8.3% per year, amounting to a total of $93.4 billion. This figure, according to the survey, is greater than that presented in 2007 ($40.6 billion), accounting for almost half of the global demand for construction equipment.

According to the survey, North America, the second largest market for equipment after Asia, will grow on average 2.9% per year by 2017, with regional sales of $47 billion.
Other regions will record growth below the global average, such as Africa and the Middle East, which will present annual growth of over 5.5%, reaching $9.6 billion by 2017.
For Western Europe, even under 6%, a relatively strong growth of over 5.1% is expected between 2012 and 2017. Eastern Europe will grow +4.7% per year.


Source: Brazil Road Expo with information from KHL