Page 12 - Construction_Opportunities_August_2024

COVER STORY

The rapid growth in the development of several novel infrastructure attractive to customers who might not have extensive experience
designs which has resulted in new momentum and trend in the in operating heavy equipment.
construction sector and increasing usage of these loaders in both The 80-100 HP segment accounted for largest market share,
large and small construction projects particularly for material mainly due to its numerous beneficial characteristics including
excavation, powering building equipment, demolitions, paving higher fuel saving, much faster response time in excavation, and
pads, landscaping, digging, and transporting building material better loading and diggings. The rapidly increasing investment of
among others are the primary factors driving the global backhoe governments towards the infrastructure development, that includes
loaders market growth at significant pace. Backhoe loaders construction of roads, bridges, buildings, and many others, is likely
have always been able to help increase productivity and reduce to spur the demand for backhoe loaders in the coming years. The
operational costs on projects because they can 1) dig deep, 2) under 80 HP segment is also likely to gain significant growth rate
lift heavy loads and 3) reach up high. This trio has kept backhoe over the coming years, mainly attributable to its higher affordability
loaders sales steady for decades. and fuel efficiency, which encourages small contractors and
even farmers to opt for these machines coupled with the surging
Market Segmentation: government support and focus on promoting the use of small
According to Polaris research, the center pivot backhoe loaders machinery equipment for agriculture as well as construction.
segment is expected to grow at high CAGR in the near future, Based on application, the construction and mining segment
on account of growing popularity and prevalence regarding the accounted for around 55% market share in 2023. The adoption
adoption of these types of loaders across the globe due to its high of backhoes in construction and mining applications is driven
versatility, exceptional performance, and better job site efficiency. by their versatility, cost-effectiveness, and ability to perform
Additionally, these machines are designed with operator comfort various tasks. This equipment can efficiently handle excavation,
in mind, with features such as adjustable seats, air conditioning, trenching, material handling, and loading, making them essential
and ergonomic controls, which makes them more comfortable for a wide range of tasks on job sites. In addition, they excel in
to operate, increase operator productivity, and reduce fatigue, foundation work and utility installation in the construction industry.
are also driving the segment growth. Their adaptability to different environments and tasks makes
The side shift backhoe loaders segment led the industry market them a preferred choice for contractors seeking efficient and
with substantial share in 2022, which is mainly attributed to its ability multifunctional equipment.
to perform efficiently in tight spaces and job sites with very limited Based on propulsion type, the diesel segment held around 91% of
access and they are relatively easy to operate, which makes them the market share in 2023. Diesel engines are known for their high

12 CONSTRUCTION OPPORTUNITIES|AUGUST 2024