Heavy equipment demand strong in Asia-Pacific according to report

A report from market analysis specialist Timetric has highlighted increased demand for machines in the Asia-Pacific region. This report shows that the Asia-Pacific region has overtaken Europe and North America in demand for heavy construction machinery and earthmoving equipment. The 57.8% market share of the Asia-Pacific market for these machines makes it the largest in the world, followed by Europe with 22.0% and North America with 12.4%, according to the report. Economic uncertainty in Europe and slow growth in the US means that these figures could decline further. The report suggests that by 2016, European market share will fall to 18.2% while the market share in North America will fall to 9.8%. Growing economies in Asia-Pacific, China and India in particular, have boosted demand for construction equipment. The report suggests that this growth will continue as the Asia-Pacific market is estimated to increase its share to 64.5% by 2016. Between 2007 and 2011 the global compound annual growth rate was as little as 2.5%. The reason for this low growth rate is set to be the 23.9% decline in annual growth recorded in 2009. This was the worst year in the global economic crisis, which resulted in a declining demand for construction work and heavy machinery. Positive news is that the compound annual growth rate is expected to increase to 7.98% over the forecast period 2012-2016, following an anticipation of the future growth of the global construction industry.