UK Government’s Ambition to Build 300,000 Houses Per Year Drives Growth

DUBLIN, Jan. 22, 2023 /PRNewswire/ — The “UK Construction Equipment Market – Strategic Assessment & Forecast 2023-2029” report has been added to ResearchAndMarkets.coms offering.

Research and Markets Logo

The UK construction equipment market is expected to grow at a CAGR of 4.41% during 2023-2029.

Rising government investment under UK’s plan ‘Build Back Greener’ and ‘Net Zero Strategy’ is expected to prompt construction equipment sales in the UK during the forecast period.

The UK construction equipment market by volume is expected to reach 81.9 thousand units by 2029. The government’s growth strategy, ‘Build Back Better,’ has supported economic growth through significant investment in infrastructure, skills, and innovation. The increase in UK construction equipment market sales can be attributed to some of the substantial infrastructure projects, such as HS2, where the government has invested USD 87 billion.

In 2020, the UK government announced an investment of USD 105.87 billion to boost growth and support the labor market. About USD 61.40 billion whether investment was confirmed for road and rail, USD 4.45 billion for the repair and maintenance of hospitals, and over billions of capital investment to provide 40 hospitals by 2030, upgrading 500 schools over the next ten years and delivering 18,000 novel prison places across England and Wales by 2025.

Additionally, the government invested USD 23.29 billion in High Speed ​​2, Europe’s largest construction project. Approximately USD 21.17 billion investment was set aside for the Heathrow Airport Expansion would include the construction of a third runway (2,000 meters) to the northwest of the other two.

It is estimated to be completed in 2050. The government has planned to invest USD 108 million in 2022 for the upgrade of Rail 530 Projects situated over the Eastern Bank. Further, to cut the dependence on fossil fuels and reach climate targets, the UK has targeted net zero emissions by 2050.

For instance, developing two solar projects, with a combined capacity of 100MW by EDF Renewables, is expected to increase crane sales during the forecast period. Additionally, the development of the wind farm project Dogger Bank A (in three phases), situated between 130-190 km from the Northeast Coast of Englandvalue USD 1.00 billionis expected to boost crane sales in the UK construction equipment market.

Market Trends and Drivers

UK Government’s Ambition to Build 300,000 Houses Per Year

  • With its Conservative manifesto (economic plan) of 2019, the UK government pledged to build over 3,00,000 houses annually. As a part of this pledge, the government has also aimed to lay out measures for effective planning systems and better use of land and vacant buildings to deliver the homes that communities need. ‘Future Home Standard’ published in 2021, focusing on energy efficiency, claims that the houses built in 2022 will yield 31% fewer carbon emissions. Consequently, the homes built in 2025 will produce 75-80% fewer carbon emissions.

  • The government’s ‘Help to Build’ equity loan scheme, launched with 5% deposits and backed by USD 170.6 million of funding, has enabled people to outdo the extreme mortgage costs to build a home. This scheme is expected to boost the government’s ambition to build 300,000 homes annually and boost the UK construction equipment market growth.

Investment in Public Infrastructure Through the National Infrastructure Strategy and National Infrastructure & Construction Pipeline

  • The NIS aimed to transform UK’s infrastructure to achieve net zero emissions by 2050. Significant investment is planned in areas of the UK, which covers healthcare infrastructure, the transformation of bus and bicycle infrastructure, more robust flooding and coastal erosion protection, and better connectivity of the country via HS2 and an improved strategic road network.

  • Additionally, the UK government announced its National Infrastructure and Construction Pipeline document in 2021, which laid out the plan with an approximate budget of USD 740 billion for infrastructure projects over the next ten years. The country’s plans for the public infrastructure are anticipated to contribute to the UK construction equipment market. Further, the transport sector consumed the most significant part of the investment amount, receiving USD 81.46 billion between 2021-2025, and the energy sector received the second largest share.

Investment in Renewable Energy to Reach Net Zero Emissions

  • British Petroleum Company (BP) has planned to invest USD 20.22 billion in the UK’s energy system by the end of 2030. BP has committed to helping the country to achieve its ambition to boost energy security and reach net zero. It has also planned an investment of USD112.34 million to develop new ports, harbors, and shipyards, including the construction of four ships to aid the offshore wind projects across the UK.

  • The UK government-funded USD 9 million for 24 projects under the Longer Duration Energy Storage (LODES) competition. This funding is projected to support the development of new energy storage technologies and help the UK transition to renewable energy sources. Additionally, the government has invested USD 41.5 million in 2022 for renewable energy transformation across the UK. This investment intends to scale up domestic renewable energy and increase biomass production in the UK through the ‘Biomass Feedstocks Innovation Program,’ which received funding worth USD 40.44 million.

Market Restraints

Acute Scarcity of Skilled Labor Workforce Has Raised the Labor & Projects’ Cost

  • Brexit added pressure to the existing labor shortage situation in the country, as according to the Office for National Statistics (ONS), employment in the construction sector declined from 2.3 million in 2017 to 2.1 million at the end of 2020 in the UK, representing a 4% fall in UK-born workers and a 42% fall in EU workers. The mass exit of EU workers from the country has left the British construction industry facing a severe labor scarcity.

  • The new point-based immigration system, introduced by TCA, has restricted the entry of general laborers into the UK, leading to the acute labor shortage, which has driven up the labor and projects cost – further hampering the UK construction equipment market. Labor costs rose to approximately 6% in 2021 compared to 2020 due to a skilled labor shortage of tradespeople, including carpenters, groundworkers, bricklayers, plasterers, and plant operators.

Increasing Inflation Is Expected to Impact the Growth of The Construction Projects in the Country

  • According to Office for National Statistics (ONS), construction material prices rose by 25.2% YoY in April 2022 compared to 2021. The country’s steel prices surged to high levels, including nickel prices, which increased by 97%, zinc by 16%, aluminum by 6.2%, and copper at 3.5% in the first quarter of 2022.

  • Additionally, ONS claims that Britain’s inflation rates surged to the highest level in 40 years April 2022. The consumer price inflation rose to approximately 7% in the 12 months during April 2022, increasing the cost of living in the region. The Bank of England predicted that inflation would hit 11% by November 2022. There are approximately 16,755 construction companies in the country at a significant risk of closure which is a 54% rise compared to 2021. Such factors are likely to hamper the growth of the UK construction equipment market.

VendorLandscape

  • Caterpillar has the most substantial share in the UK construction equipment market. Caterpillar, Volvo, Liebherr, & JCB are the market leaders in the UK industry and has a strong distribution network & have a diversified product portfolio.

  • Hitachi Construction Machinery, Komatsu & Hyundai Construction Equipment are emerging strong in the UK construction equipment market. These companies are introducing innovative products to capture the construction equipment industry’s share. For instance, in 2022, Hitachi Construction Machinery launched the first zero-emission five-tonne battery-powered excavator (ZX55U-6EB) in the European market.

  • Kobelco and Mecalac companies have an established presence in the UK construction equipment market over a significant period. They generally lag in innovation and advanced technology products compared with their competitors. For instance, Kobelco has not introduced or included recent technology & equipment, whereas market leader Caterpillar recently introduced an advanced series of backhoe loaders (426F2 and 424B2) in 2022.

key vendors

Other Prominent Vendors

Distributor Profiles

Key Questions Answered:
1. What is the growth rate of the UK construction equipment market?
2. What is the expected number of construction equipment units sold by 2029 in the UK construction equipment market?
3. How big will be the UK construction equipment market size by 2029?
4. Who are the key players in the UK construction equipment market?
5. What are the trends in the UK construction equipment market?

Report attribute

Details

no. or pages

109

Forecast Period

2022 – 2029

Estimated Market Value in 2022

61475 units

Forecasted Market Value by 2029

81915 units

Compound Annual Growth Rate

4.1%

Region Covered

United Kingdom

Key Topics Covered:

1.Introduction

2. The Market Overview

3.MarketLandscape
3.1. UK Construction Equipment Market by Type (Volume & Value)
3.1.1. Earth Moving Equipment
3.1.1.1. Excavator
3.1.1.2. Backhoe Loader
3.1.1.3. Engine Grader
3.1.1.4. Other Earth Moving Equipment (Other Loaders, Bulldozer, Trencher, Etc.)
3.2. material handling equipment
3.2.1. crane
3.2.2. Forklift and Telescopic Handler Aerial Platform (Articulated Boom Lifts, Telescopic Boom Lifts, Scissor Lifts, Etc)
3.2.3. road construction equipment
3.2.3.1. RoadRoller
3.2.3.2. Asphalt Paver
3.3. UK Construction Equipment Market by End-User (Volume & Value)
3.3.1. Construction
3.3.2. Mining
3.3.3. Manufacturing
3.3.4. Others (Power Generation, Utilities Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation Plants, Waste Management, Etc)

4. Market Dynamics
4.1. Market Drivers, Restraints, Trends, Advantages for Uk, Key Economic Regions, Import/Export Trends, Supply Chain Analysis, Covid-19 Impact

5.Technology Development
5.1. Advent of New Technology

6. Competitive Landscape
6.1. Competitive Landscape Overview
6.2. Major Vendors (Caterpillar – Volvo Construction Equipment – Komatsu – Hitachi Construction Machinery – Liebherr – Kubota – Takeuchi – Hyundai Construction Equipment – Jcb – Cnh Industrial
6.3. Other Prominent Vendors
6.4. Distributor Profile

7. Quantitative Summary
8.Report Summary
8.1. Key Insights
8.2. Abbreviations
8.3. List of Graphs
8.4. List of Tables

9.Report Scope & Definition

For more information about this report visit https://www.researchandmarkets.com/r/c6fup4

About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

MediaContact:

Research and Markets
Laura WoodSenior Manager
press@researchandmarkets.com

For EST Office Hours Call +1-917-300-0470
For US/CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900

U.S. Fax: 646-607-1907
Fax (outside US): +353-1-481-1716

Cision

Cision

View original content: https://www.prnewswire.com/news-releases/uk-construction-equipment-market-2023-to-2029-uk-governments-ambition-to-build-300-000-houses-per- year-drives-growth-301727297.html

SOURCE Research and Markets

Leave a Comment

Your email address will not be published. Required fields are marked *

%d bloggers like this: