Dublin, Aug. 03, 2022 (GLOBE NEWSWIRE) — The “Sweden Construction Equipment Market – Strategic Assessment and Forecast 2022-2028” report has been added to ResearchAndMarkets.com’s offering.
Around 35,000 units of construction equipment are expected to be sold by 2028 in Sweden. The growth in construction equipment is majorly driven by Government investment in public infrastructure, road construction & focus on renewable energy projects.
Investment Under National Transport Development Plan to cover Investment for Refurbishment & Modernization of Existing Infrastructure
The Swedish economy has made a strong recovery from a 2.9% contraction in 2020 to a growth of 4.8% in 2021. Swedish economic growth is slightly hampered by Russia & Ukraine war which negatively impacts the country’s exports. The country’s inflation rate is expected to rise in 2022, affecting economic growth.
However, the Swedish economy is resilient due to substantial government investment in public welfare, improved labor market situation, and investment in the development of the transport industry. According to the Swedish government Swedish economy is expected to grow by 3.1% in 2022.
In 2021, the Swedish government’s national transport development plan allocated $86.9 billion of funds for 12 years. The plan also includes investments of $71.2 billion for new construction, refurbishment, and modernization of existing infrastructure. The government also planned to triple the mining output by 2025. The growth in the construction & mining industry is expected to positively impact the demand for construction equipment in Sweden.
Sweden was ranked 10th in the ease of doing business index among 190 countries in 2019 compared to 12th in 2018. It has complete Information and Communications Technology (ICT) and industrial internet sectors and can cooperate effectively across industries, academia, and government, making it an attractive market for new technologies. Stockholm, Uppsala, & Oster Gotland are the major cities that accounted for ~66% of the overall GDP in 2021.
In 2021, the government eased foreign investment norms in the construction, transport, and renewable energy sectors. Sweden has a solid and successful manufacturing/industrial engineering sector that accounts for roughly 20% of the country’s GDP. Services & manufacturing industries accounted for more than 50% of FDI inflow in 2021.
In Sweden, major infrastructure projects such as Stockholm Arlanda Airport ($200 million), North Bothnia rail line ($ 2.9 billion), double track between Angelholm & Helsingborg region ($200 million), Olskroken Project ($ 400 million), Onshore Wind Farm Markbygden Vind AB, Stockholm Bypass Project ($ 3.7 billion), & Motorway construction road between intersection Ronneby East & Nattraby are under progress in 2022.
Growth In Public Infrastructure & Mining Sector Investment
In 2021, under the transport development plan government proposed to maintain, expand, and develop the Swedish transport infrastructure over the next twelve years with an investment of $89.6 billion. The government has established a national plan for infrastructure for the years 2018-2029. The government planned to invest in developing the airport, railway lines, roads, and bridges across the country’s major cities in 2021.
There was a surge in demand for minerals and metals in the global market in 2021 post-pandemic due to increased economic activities. Sweden’s government aims to triple the mineral production by 2025; the country’s mining industry witnessed growth after high demand for minerals in the market. The country has tremendous potential for iron ore production based on exploration data. So, the government focused on increasing iron production by 2025. The growth of the mining industry is expected to support the demand for large excavators, wheeled loaders, and cranes in Sweden’s construction equipment market.
Strong Growth in Oil & Gas Industry & Investment in Solar energy projects
In 2021, Sweden aimed to produce 100% of its electricity from renewable energy resources by 2040. The wind power capacity of Sweden was 12.8GW in 2020, and the wind power generation sector’s ability grew by 2.7 GW in 2021 after the addition of new wind power generation plants. The government aims for 17GW of accumulated installed wind power by 2024.
In 2022, 58 onshore and offshore wind projects are planned for the next five years, with a total project value of $25 billion. For instance, Onshore Wind Farm Markbygden Vind AB, with a total capacity of 4,061MW in northern Sweden. Other Offshore Wind Farm Kriegers Flak (Sweden) Baltic Sea between Sweden and Germany, with a capacity of up to 640MW, is planned by the government in 2022.
The robust growth of the Construction Rental Market & Government’s Poor Housing Scheme is major Restraints for Construction Equipment in Sweden’s Market.
With the rise in infrastructure development across Sweden, the demand for rental construction equipment has increased since 2019. There was a further push for rental equipment in 2021 to eliminate new equipment costs. In Sweden’s construction market, civil engineering & redevelopment projects are growth drivers for rental construction equipment. Rental equipment demand increased in commercial, office, and healthcare building construction projects in 2021.
According to Rental Company DKLBC (Danderyd-Kedjan Lastbilcentalen), CEO Per Geber, the construction equipment rental business grows by ~40% in Sweden. The rental equipment has strong demand from broad customer groups such as significant construction companies, machine contractors & private individuals. The rental construction equipment solves the customer requirement on short notice and is cost-efficient. The rise in demand for rental equipment in the Sweden market can hamper the growth of new construction equipment sales during the forecast period.
Sweden has been facing severe housing shortages since 2017. The Swedish government follows old & rigid policies for controlling rent which negatively impacted the building of new houses for rent due to the low-profit margin for the house owners & builders. The strict rent controls discourage developers from building and renting out vacant properties. The government also increases mortgage taxes which hampers the country’s housing market.
In 2021, the demand for housing declined due to the rise in central bank interest, which resulted in a surge in inflation, hampering consumers’ buying capacity. According to government data, 70% of Sweden’s municipalities will face a severe housing shortage in 2021. The poor housing scheme and increasing taxes are expected to impact the demand for housing business in 2022 adversely.
Use of Large Excavators & Adoption of Hydrogen Fuel Technology is a Recent Trend in Swedish Market
Sweden has a large reserve for cobalt, phosphate, & graphite. Various mineral extraction projects in Lovisagruvan, Zinkgruvan, and Aitik mines are underway.
The demand for large excavators with high lifting capacity increased in 2021; the country’s major OEM Volvo construction equipment launched EC950F large excavator with a high lifting capacity of 34 tons. With the rise in mining activities in Sweden, other OEMs such as Caterpillar, Hitachi, and Komatsu are expected to shift their focus on developing sizeable, flexible excavators with high lifting capacity for Sweden market.
Green hydrogen fuel cell technology uses clean energy resources to produce hydrogen fuel cells used to power the construction equipment. The demand for green hydrogen fuel technology is expected to grow among heavier equipment due to its environmental benefits.
Volvo Construction Equipment introduced a hydrogen fuel cell test lab in 2021. The company launched green hydrogen fuel technology in 2021, which is expected to use in newly launched equipment in the Sweden market. The technology supports the aim of Volvo Construction equipment to become a fossil-free manufacturer by 2040.
KEY HIGHLIGHTS IN THE REPORT
The material handling equipment has the largest share in the Sweden market as compared to earthmoving & road construction equipment. Forklifts have the highest percentage among material handling segments in the Swedish construction equipment market for 2021.
Government investment in road construction, infrastructure development, housing projects, smart cities, and a focus on renewable energy projects of wind and solar is expected to support the demand for material handling equipment in Sweden’s market during the forecast period.
The government’s national transport development plan and increasing focus on renewable energy projects are major economic driver factors for economic recovery and growth in demand for construction equipment in the market. The government investment in solar roof panels and wind power projects is expected to support the need for excavators & cranes in the Sweden market.
The demand for electric machinery in the Sweden market will increase in 2021. For instance, Volvo construction equipment launched new series of electric excavators and loaders in the Sweden market.
Volvo Construction Equipment & Caterpillar are major construction equipment players in the Swedish market. Volvo Construction Equipment has introduced advanced technologies such as automation & green hydrogen fuel as per market requirements in Sweden.
- Volvo Construction Equipment, Caterpillar, Kubota, Komatsu & Liebherr accounts for 54% of the share in the construction equipment market.
- Volvo Construction equipment accounts for the largest share in the Sweden market. The company has four manufacturing units in the Braas, Eskilstuna, Hallsberg & Gothenburg regions.
- Prominent vendors are Volvo Construction Equipment, Caterpillar, Hitachi Construction Equipment, Komatsu, Liebherr, Kubota, JCB, Hyundai Construction Equipment, & Kobelco.
- Other prominent vendors are Liu Gong, Yanmar, Case Construction Equipment & Terex Corporation.
- Volvo Construction Equipment
- Hitachi Construction Machinery
- Hyundai Construction Equipment
Other Prominent Vendors
- Terex corporation
- Yanmar manufactures
- CASE Construction Equipment
- ABL Construction Equipment
- HAULOTTE SCANDINAVIA
- RF-System AB
For more information about this report visit https://www.researchandmarkets.com/r/wxlal8