Rock Products

AUG 2019

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Page 72 of 159 ROCK products • August 2019 • 71 Aggregates Industry Almanac Equipment Update Road rollers of all size and specification are the fastest grow- ing single item of equipment in the market, with increasing use attributed to need for highway infrastructure in developing countries such as India and China. Large road development projects such as the China–Pakistan Economic Corridor (CPEC), which aims to connect China with Central Asia, creating a modern 'silk route' is also a contributor to this factor. Upcoming infrastructural projects and increased government spending have led to an increase in construction activities globally. With the advancements in technology, CAM equip- ment is becoming more fuel-efficient with lower emission levels, with enhanced safety and better-handling features. The Rise of the Machines The "Internet of Things" (IoT) phenomenon will be the next factor the will determine how machines best serve the industries. The definition of IoT, is the interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data. This emerging technology will mean that machines will become self managing, and reshape the CAM machinery sec- tors, in as much as they will be potentially capable of: driving autonomously, self-driving in such a way to be highly fuel effi- cient, using GPS to navigate, out-put more efficiently, record operating data to produce delivery invoices in the haulage sector, be more secure, and in time will be able to self-order spare parts for routine services and then telling the operator that they need fitting. Robot Farming and Mining The industry is currently moving from the old electric drive designs to full hybrid and pure electric. Electrification is also crossing over with the journey toward automation and ultra-precision agriculture. With issues such as demographic pressures, and ageing populations, farmer's may be driven toward "robot farming." These factors, along with increasing environmental concerns over the use of herbicides may mean that in 10 years, the best-selling EVs in numbers are likely to be robot-weeding machines! Meanwhile, the most expensive EVs will be in the mining sector, where monster autonomous load-haul-dump machines, with the electricity to power these vehicles also becoming cleaner, with massive, renewable generation sites set up off grid, right next to the locations where these mon- ster EVs operate. Emissions Regulations Engines conforming to Tier-5 emission regulation are projected to have the largest market share of all current con- struction equipment, in use, by 2029. North America, Canada and Mexico are speculated to have enforced these regulations by 2025. Additionally, it is speculated that Japan will also follow these regulations once they are in place. Selective Cat- alytic Reduction (SCR) is projected to be the largest segment of the construction equipment market by aftertreatment devices, due to the stringent emission regulations that are speculated to be implemented in the Asia Pacific region. Construction equipment with 200- to 400-hp output are pro- jected to be the fastest-growing segment, with the market in Asia Oceania expected to grow at a faster rate as the require- ment for infrastructure development, China and India are growing steadily. Infrastructure is not only the largest, but also the fast- est-growing segment of the construction equipment market by application. Equipment such as crawler excavator, wheeled loader, motor grader, crawler dozer, asphalt finisher, and road roller are used to develop bridges, roads, and tunnels. Due to the increase in infrastructure projects, the demand for this equipment will also increase. Market Domination Asia Pacific is the largest market for rental construction equipment, with increasing population and urbanization, the demand for infrastructure development, housing, and office space in this region is projected to increase signifi- cantly over the next few years, thus it is expected to be the largest market for the rental market. The Asia Pacific region is estimated to dominate the OEM construction equipment market and is projected to remain the largest market for construction equipment in 2029. This growth can be attributed to the improving socioeconomic conditions in emerging economies such as China and India. The Middle East region is expected to grow at the fast- est compound annual growth rate during this period because of the large infrastructure projects planned in Qatar, the UAE, and Saudi Arabia. The construction equipment market is dominated by a few global players and comprises several regional play- ers. Some of the key manufacturers operating in the market are Caterpillar, Komatsu, Terex, Volvo Construc- tion Equipment and Hitachi Construction Machinery. Caterpillar has been the dominant global player in the con- struction equipment market for a long time, with a wide portfolio of products that are innovative and technologi- cally advanced. During the next 10 years, it is expected to remain the largest player in the markets. Asian players such as XCMG and Zoomlion are expanding into developed mar- kets to diversify their revenue streams.

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