The economic meltdown of 2008 affected the global construction market negatively. However, financial crisis aside, consumers are investing in housing around the world. One of the leading key trends which support the growth of the construction industry is the emerging economies in Asia Pacific. Countries such as China, Indonesia, Brazil, and India are emerging economies that are increasing their infrastructure which is a marked contribution to the global construction industry.
The future trends in the construction industry will not only crucially affect the international business of global engineering and construction companies, but also the localization strategy. The common segments observed in the emerging economies are marketing materials and legal materials tender proposals which secure contracts and promote services.
The Three Major Segments of the Construction Market
Construction is a large-scale industry which is segmented into many types of building and jobs of civil engineering. Some examples of the jobs that the construction industry is involved in are road construction, carpentry, home design, and bridge development. This industry is one of the oldest and largest in the world due to the responsibility it shoulders for creating infrastructure necessary for cities, towns, and countries.
The three major segments of the construction industry are civil engineering construction, specialty trade construction, and general contractors. Each segment has a specific function in the construction market.
Civil engineering construction specializes in building of roads, tunnels, bridges, and other important infrastructure. On the other hand, there are many specialty trade groups which are involved in small-scale operations such as floor installation, carpentry, brick layering, etc. These groups work under the supervision and guidance of the general contractor. General contractor oversees the organization and supervision of plumbing, painting, and electricity-related operations.
Types of Construction Equipment Used Globally
The global construction equipment market is a major segment of the construction industry, which provides equipment necessary to carry out construction-related operations in various industries.
The construction equipment market according to product type is categorized into earth moving equipment, concrete and road construction equipment, material handling equipment, concrete mixer and pavers, pumps, and others.
The earth moving equipment is further segmented into loader, excavators, graders, rollers, and others. Material handling equipment sector is categorized into truck-mounted cranes, trailer-mounted cranes, crawler-cranes, and others. Some other construction equipment types are construction vehicles and parts and attachments used in the construction equipment.
Global Construction Market Overview
The global construction industry is steadily reshaping its size and aligning to the expected growth rate, which is supported by the boom of this industry in the emerging countries around the world. The industry according to geography is segmented into four zones namely U.S., Asia Pacific, Europe, and Rest of the World.
Brazil market continues to be attractive due to large investments in infrastructure, political stability, and economic growth. In Asia Pacific, China and India drive the growth of this market which is primarily dominated by the organization Joint Ventures. In the Middle East and Africa, there is promise for the construction industry as many construction OEMs are about to enter these markets.
Some of the market drivers which fuel the growth of this industry are increasing infrastructure around the world and especially, in the developing countries. Investment from government and private organizations in the construction market also boosts this industry.
However, factors such as safety and security concerns, strict regulations, high initial investment, and differences in import duties restrictions inhibit the growth of this industry.