Keeping up with the global crane market can be a lot of information at once. There are many aspects to watch out for, but if you keep up with the trends and growth, you can be ahead of the curve.
We here at Kor-Pak work with all things cranes. Our modernizations and upgrades help us to see where the crane market is going. These trends in an ever-growing industry can shape your very business.
Curious to find the lowdown on what the future holds for the crane market? Let’s explore with a crane market overview.
The Global Crane Market Overview
The global crane market comes in with a market worth of over $42 billion in 2018. The expectations are that its growth will continue at a steady pace for the near future. Investments in construction and reconstruction projects are booming. As well, equipment reinforcement for the mining industry is growing.
While the steady rise and value of the crane market is a positive sign, it affects some more than others. Let’s dive a bit deeper into the specific areas of growth and the trends that cause them.
Understanding Growth
As always, there are several factors that can push or stifle growth for the crane market. While the lack of skilled labor remains a growing problem in all construction industries, the new opportunities are driving the market into new territory.
India and China are looking for stronger infrastructure growth, so government contracts from those countries will push a lot of development to that area. This also pushes the construction type over other crane purposes, which we’ll dive into below.
1. Regional Growth
Driven by India and China’s high demands, growth by region has had a significant focus on the Asia-Pacific region. Government contracts are often the biggest and many countries in that area besides the big two are still open for development.
North America still ranks high, though, and an increase in new real estate work only helps that.
2. Market Segmentation
Like with any market, the crane market works in parts. For this industry, it is often split by the crane’s function, such as construction, offshore, and port work.
Due to the focus on new real estate and development, most growth has been on construction.
Recent Trends
These growths come from two exciting trends that have shaped the what and why of the crane market.
1. Rental Cranes
Despite much higher demand for construction, companies are not buying as many new cranes. Instead, they are focusing on a short term boost by renting cranes for their individual projects.
This new shift stifles growth in crane manufacturers but provides a new and exciting boon for rental business.
2. More Mega Projects
Instead of a wide variety of smaller projects, trends are pushing toward a handful of massive, mega projects. Massive buildings and huge development lots have seen an upswing, making each individual contract more valuable but fewer.
Looking to the Future
The focus on rental projects will mean smaller crane market investments. This short term planning might leave opportunity for long term investments, even more so if you plan to step into the rental crane business.
Government contracts have always been a sweet spot for construction — the details on where big countries like India and China push will be key.
There is a lot more information to be had, and new developments happen all the time. Keep up with us at Kor-Pak, and we’ll guide you forward. For more information, contact us today!