France Construction Equipment Market - Strategic Assessment & Forecast 2024-2029

The France construction equipment market is expected to grow at a CAGR of 2.56% from 2023 to 2029.

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.
• In 2022, the government aimed to invest USD 7 billion for the next ten years to develop 9,000 kilometers of small railway lines. In addition, USD 4.8 billion was allocated for maintaining and modernizing public transportation, including metros & trams.
• 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.

KEY HIGHLIGHTS

• Earthmoving equipment accounted for the largest market share of the France construction equipment market in 2023. Construction industry end-users accounted for France's most significant share of construction equipment. The sales increased due to rising infrastructure investment & transport sector.
• The large construction equipment segment witnessed a more significant decline in sales than the compact segment.
• Mini & compact excavators and loaders witnessed growth in sales in the France construction equipment market in 2023. For instance, SANY 2.6-ton mini excavators will be among the most popular selling equipment in the French market in 2023.
• The French housing market witnessed a sharp decline in 2023 due to the following reasons:
• Rising Interest Rates & Complex real estate loan application
• High inflation hampering home buyer's budget.
• Growing building material costs impact the construction companies' and contractors' margins.
• France is increasing its focus on industrial decarbonization. Construction equipment manufacturers in the French construction equipment market are launching electric construction equipment.
• Volvo Construction Equipment (Volvo CE) has delivered its first electric excavator, EC230, for a construction project in the Yvelines region.
• By partnering with Novum Tech, Kubota launched an electric retrofit of mini excavators, the U27-4 and KX019-4 models.
• Takeuchi also introduced an electric mini excavator, TB20e, to the French market.
• OEMs in the France construction equipment market focus on local presence to provide better customer service.
• SANY Group started its subsidiary in the French market in 2023. The company plans to distribute and service customers in France directly.
• Liebherr also opens its new distribution branch in Paris to provide better service to its local customers.
• XCMG is also increasing its local distribution number to provide better sales and service to customers in 2023.
• In July 2023, Manitou Group announced a new loading dock facility dedicated to the final inspection of its machines. The facility includes 1,300 square meters of solar panel roof covering and employs almost 30 people. More than 50 machines are shipped worldwide daily.
• In February 2023, Hitachi Construction Machinery announced its acquisition of the French Hitachi dealer Cobemat SAS. This news signifies HCME's ambition to expand its sales and rental network in France.

SEGMENTATION ANALYSIS

Segmentation by Type

• 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)

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 by 2024.
• 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.

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 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

KEY QUESTION ANSWERED:

1. How big is the France construction equipment market?

2. What is the growth rate of the France construction equipment market?

3. Who are the key players in the France construction equipment market?

4. What are the trends in the France construction equipment market?

5. Which are the major distributor companies in the France construction equipment market?