LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global telehandlers market for the construction industry to grow at a CAGR of more than 5% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global telehandlers market for the construction industry for 2017-2021. To calculate the market size, Technavio analysts consider the revenue generated from sales of new telehandlers worldwide in 2016.
The large telehandler segment is the largest in the global telehandlers market for the construction industry. The demand for large telehandlers has constantly been fluctuating in the construction industry. However, the market is expected to be driven by strong demand for maintenance and repair work.
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Technavio analysts highlight the following three factors that are contributing to the growth of the telehandlers market for the construction industry:
Growth in infrastructure development
Infrastructure development has a direct impact on various sectors of the global economy. The need for better infrastructure leads to a high demand for telehandlers, as they can be useful in a wide range of construction activities. The worldwide construction industry is continuously recovering after having gone through a long period of slowdown in the wake of the financial crisis.
Likhitha Bandla, a lead construction research analyst at Technavio, says, “Construction ventures in developing markets are likely to keep growing at a much quicker rate than that in advanced economies. Developing markets represented more than half of the world's construction market.”
Demand from rental market
The rental equipment industry is capital-intensive. Funds are required for acquisition and maintenance of equipment fleets, secure storage facilities, work on fleets, and for operating businesses. Factors such as cash inflows from businesses, equipment utilization, dollar and time utilization, and higher prices have contributed to the growth of the market.
“Owing to the temporary requirement of telehandlers in building projects, construction market customers often opt to rent telehandlers instead of making a purchase. Rental organizations are focused on customer services, and help customers find appropriate telehandlers to complete various work efficiently,” adds Likhitha.
Aging telehandler fleet
Telehandlers usually have a higher resale value due to lesser wear out components when compared with other products such as excavators. Frequent serviceability and unexpected repairs of telehandlers keep these machines off rent. The reduction in equipment utilization is a major challenge for rental companies.
It is noted that the employment of telehandlers, so far, has not depreciated in the used market. Many rental companies sell their equipment and upgrade their fleet for increased productivity. It is estimated that the average age of a telehandler fleet is 53 months.
- Genie (Terex)
- J C Bamford Excavators
- JLG Industries
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Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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