The "France Construction Equipment Market Strategic Assessment Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering.
The France Construction Equipment Market consisted of 55.44 million units in 2023, and is expected to reach 64.52 million units by 2029, rising at a CAGR of 2.56%.
In 2023, earthmoving equipment accounted for the largest market share of the France construction equipment market, driven by significant demand from the construction industry end-users. Sales increased due to rising infrastructure investment and the transport sector's growth. However, the large construction equipment segment saw a more significant decline in sales compared to the compact segment. Despite this, mini and compact excavators and loaders experienced growth in sales, with SANY's 2.6-ton mini excavators being particularly popular.
The French housing market faced a sharp decline in 2023, attributed to rising interest rates, complex real estate loan applications, high inflation impacting home buyers' budgets, and increasing building material costs affecting construction companies' and contractors' margins. In response to industrial decarbonization efforts, construction equipment manufacturers in France are launching electric construction equipment. Notable developments include Volvo Construction Equipment delivering its first electric excavator, the EC230, for a project in the Yvelines region, and Kubota partnering with Novum Tech to launch electric retrofits of mini excavators. Takeuchi also introduced an electric mini excavator, the TB20e, to the French market.
Original Equipment Manufacturers (OEMs) are enhancing their local presence to provide better customer service. SANY Group established its subsidiary in the French market in 2023, aiming to directly distribute and service customers. Liebherr opened a new distribution branch in Paris, and XCMG increased its local distribution network to improve sales and service.
Additionally, Manitou Group announced a new loading dock facility for final inspections, featuring a solar panel roof and employing nearly 30 people. This facility ships over 50 machines worldwide daily. Hitachi Construction Machinery expanded its presence by acquiring the French dealer Cobemat SAS, demonstrating its ambition to grow its sales and rental network in France.
MARKET TRENDS DRIVERS
Renovation of Thermal Insulation in Building
Construction is the second sector in France that emits the most greenhouse gases. It accounts for 27% of CO2 emissions and nearly 45% of final energy consumption. Therefore, the construction industry will be central in achieving carbon neutrality by 2050. Also, according to data from the French residential industry, nearly 55% of current residential buildings in the country were built before 1975. Therefore, the government focuses on thermal renovations in these buildings. Therefore, the government planned to phase out fossil fuels and build zero-energy buildings in 2021. Zero-energy buildings use renewable energy resources for their energy requirements.
Surge in Demand for Demolition Excavators in the France Construction Equipment Market
The French government is investing in various renovation and rebuilding projects nationwide. Several aged infrastructures are demolished for renovation purposes, prompting the use of demolition excavators in the French construction equipment market. Crawler excavators with high durability are used for demolition. High-durable equipment can withstand demolition projects. Furthermore, Hitachi Construction Machinery in Europe sells crawler excavators designed solely for demolition.
Government Investments in the Grand Paris Express Project Olympics 2024
The French government is expected to increase investment in sports facilities to promote sports in the country. By the beginning of the Olympic Games in Paris in 2024, the government planned to invest USD 200 million in building 5,000 new sports facilities.
The government aims to build 1,000 multi-sports athletic complexes, 500 tennis courts, and 500 basketball courts. The investment is also directed at improving public infrastructure facilities and hotels, which are mainly used to accommodate international athletes and media personnel delegations. These investments are projected to positively impact the French construction equipment market.
Rise in Infrastructure Public Transit Projects
The French government planned to invest USD 270.4 million in the construction of cycle lanes in 2023. USD 216.3 million was allocated for infrastructure and USD 54.1 million for cycle parking spaces. The project aims to increase the number of cycle lanes to maintain existing lanes and improve cycle routes. Also, in 2024, the government has planned to invest USD 2.6 billion in improving hospital facilities, investing in e-health, and renovating residential care and medical centers across the country.
Rising Government Investment in Various Sectors in France
The government invested USD 5.1 billion to repair and renovate roadways across the country in 2023. Moreover, USD 13.4 billion was allocated to develop and modernize roads, highways, bridges, ports.
The government invested USD 28.1 billion in uniting Paris with IIe-de-France with a 200-kilometer new metro line in 2023. The project aims to link Paris with other significant regions through new and extended metro and rail lines and includes the development of 77 new stations. The project is expected to be completed by 2030.
INDUSTRY RESTRAINTS
Rising Building Material Prices Due to Surge in Transport Cost
In Q2 2023, France's construction or renovation materials market continued to rise by 2.8% and 5.2%, respectively. The French market has increased the prices of materials such as cement, glass, ceramic products, and tile.
A rise in prices is due to growing inflation surge in transport costs. The Russia and Ukraine conflict disrupted the raw material supply, further worsening the construction industry in France. A surge in building material prices hampered the real estate industry in France. Growing prices make it difficult for construction companies to meet projected construction deadlines for new buildings.
Declining Real Estate Industry in France
The new housing sector in France worsens at the end of September 2023. According to the General Council for the Environment and Sustainable Development statistics, home sales were down by 20% by October 2023. The annual housing demand will fall to 287,000 units in 2023 compared to over 350,000 units in 2022. Also, the Non-Residential sector witnessed a sharp decline of 17.4% from January to September 2023 compared to the same time in 2022. New house construction falls sharply in all the major regions in France.
VENDOR LANDSCAPE
- Caterpillar, Komatsu, Kobelco, and Volvo Construction Equipment have a strong market share in the France construction equipment market. These manufacturers are leaders in the market.
- Manitou Group, BOMOG, Bell Equipment, Mecalac, Konecranes, and Toyota Material Handling are niche players in the French construction equipment market. These manufacturers offer little product diversification and are more concentrated in the local market.
- JCB, SANY, XCMG, Hitachi Construction Machinery, and Kubota are emerging players in France. These manufacturers are introducing innovative products to the market
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 214 |
| Forecast Period | 2023 2029 |
| Estimated Market Value in 2023 | 55.44 Million Units |
| Forecasted Market Value by 2029 | 64.52 Million Units |
| Compound Annual Growth Rate | 2.5% |
| Regions Covered | France |
SEGMENTATION ANALYSIS
Earthmoving Equipment
- Excavator
- Backhoe Loaders
- Wheeled Loaders
- Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers)
Road Construction Equipment
- Road Rollers
- Asphalt Pavers
Material Handling Equipment
- Crane
- Forklift Telescopic Handlers
- Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)
Other Construction Equipment
- Dumper
- Tipper
- Concrete Mixer
- Concrete Pump Truck
End Users
- Construction
- Mining
- Manufacturing
- Others (Maintenance Utility Works, Landscaping, Power Generation)
Key Vendors
- Caterpillar
- Komatsu
- Xuzhou Construction Machinery Group (XCMG)
- Liebherr
- Volvo Construction Equipment
- Hitachi Construction Machinery
- JCB
- SANY
- Kobelco
- Hyundai Construction Equipment
Other Prominent Vendors
- Yanmar
- Konecranes
- Wacker Neuson
- Bell Equipment
- MERLO Group
- Magni TH
- Takeuchi
- Toyota Material Handling
- Manitou
- BOMAG
- Kubota
- Bobcat
- Mecalac
- Tadano
- Terex Corporation
- Shantui Construction Machinery Co., Ltd
- SENNEBOGEN
- Ammann
- Develon
- SENNEBOGEN
- Dynapac
Distributor Profiles
- M3
- Aprolis
- Avlo Group
- COBEMAT
- Mini BTP
- Ludimat
- SODINEG
- Blanchard BTP
- Bouchard Manutention
For more information about this report visit https://www.researchandmarkets.com/r/yvtfp9
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