EU Annual Review April 2021

ANNUAL REVIEW
The construction equipment industry in

EUROPE
APRIL 2021 | ISSUE 471
EUROPEAN SERVICE
The European annual review | April 2021
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ANNUAL REVIEW
The construction equipment industry in Europe
A RE VI E W OF 2 0 2 1
A N D FO R E CA ST T O
2025
April 2022 | Issue 471
CONTENTS
Summary 5
Sales by country 6
2020 versus long-term trends 8
Country analysis and forecasts 10
Austria 11
Belgium 12
Denmark 13
Finland 14
France 15
Germany 16
Ireland 18
Italy 19
Netherlands 20
Norway 21
Portugal 22
Spain 24
Sweden 25
Switzerland 26
UK 27
Equipment analysis and forecast to 2025 29
Forecast to 2025 30
Production analysis 32
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Production by country 32
Production by equipment type 33
International perspectives 36
Sales 36
China 37
India 37
Japan 38
North America 38
Production 40
China 41
India 41
Japan 42
North America 42
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SUMMARY
Table 1. Western Europe: Sales of construction equipment by country, 2016-2020
(units)
% Change % of Total
2016 2017 2018 2019 2020 2019-2020 2020
Austria 2,477 2,870 3,140 3,248 2,759 -15 2
Belgium 4,878 5,940 6,561 7,061 6,024 -15 4
Denmark 2,967 3,748 4,207 3,998 3,593 -10 2
Finland 2,221 2,336 2,584 3,009 2,357 -22 1
France 25,504 30,182 33,048 35,828 29,170 -19 18
Germany 38,161 39,523 43,824 47,983 42,807 -11 27
Ireland 1,789 2,030 2,156 2,307 1,623 -30 1
Italy 12,899 14,917 16,984 19,755 19,722 - 12
Netherlands 5,309 6,549 7,344 7,484 5,635 -25 4
Norway 4,603 4,818 4,853 5,048 4,209 -17 3
Portugal 1,006 1,412 1,655 1,987 1,709 -14 1
Spain 3,109 4,365 5,893 6,489 4,742 -27 3
Sweden 4,656 5,350 5,364 5,316 4,646 -13 3
Switzerland 3,640 3,830 3,511 3,192 3,118 -2 2
United Kingdom 30,660 35,446 38,255 35,837 26,730 -25 17
Total 143,879 163,316 179,379 188,542 158,844 -16 100
% Annual Change +11 +14 +10 +5 -16
Note: Products included in the above are itemised in Table 20
Source: Off-Highway Research
Chart 1. Western Europe: Sales of construction equipment, 2016-2020 (units)

200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
-
2016 2017 2018 2019 2020
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The construction equipment industry in Europe fell 16 per cent in 2020 to 158,844
units. This total now includes compact tracked loaders, which were added to Off-
Highway Research’s coverage for the first time in March this year.
The main driver of the decline was of course Covid-19 and resultant lockdowns,
which stifled economic activity. However, at 16 per cent, the fall was not as severe
as might have been expected in light of the pandemic. It is certainly not on a par
with the shock which came in the wake of the global financial crisis, when volumes
in Europe fell from 211,930 units sold in 2007 to just 86,552 in 2009 – an almost 60
per cent drop.
At 158,844 machines sold in 2020, the market arguably stayed at a reasonable

volume. Demand for equipment in Europe had shown robust growth in the four
years from 2016 to 2019. Having peaked at 188,542 units in 2019, the market had
risen to an unexpected high, with many individual countries – most notably
Germany – reaching new record levels. France was also at a peak in 2019, while the
UK was coming down from the high seen in 2018, but still performing well.
Even with the slump which Covid triggered, a 16 per cent drop from 2019’s peak
kept volumes reasonable, roughly the same as they were in 2017.
The underlying reason for the European equipment market remaining in acceptable
health was that after the initial lockdown when a good deal of construction activity
was halted, the industry was able to return to near-normal levels of activity. The
nature of construction work proved useful in that sites are often large, making it
possible to resume activity with appropriate personal protective equipment (PPE)
and with social distancing in place.
In addition, the shift to home working for many office workers has been reported as
a positive factor in residential repair and maintenance work last year, as many
people adapted or extended their homes to add office space. This supported sales of
compact equipment.
SALES BY COUNTRY
Sales of construction equipment fell in every European country last year, although
in Italy the drop was minimal and limited to less than 1 per cent. This is perhaps
surprising given that Italy was one of the first European countries to be affected by
Covid and had a long-lasting and strict lockdown in 2020 as a result. However, a
remarkable surge in sales in the second half of the year offset the losses in the first
half. The second key point about Italy is that its growth cycle was a few years behind
the rest of Europe going into the pandemic. While other markets had mostly peaked
in 2019, Italy was still expanding and that continued once the lockdown was lifted.
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Other relatively mild downturns were felt last year in Austria, Belgium, Denmark,
Germany, Portugal, Sweden and Switzerland, where the falls in equipment sales
were less than the European average of 16 per cent. The modest downturn of just 2
per cent in Switzerland was particularly notable. Generally, the countries with the
mildest downturns were those which were either less affected by Covid than other
European countries, or those which had the most effective responses.
At the other end of the spectrum Finland, France, Ireland, the Netherlands,
Norway, Spain and the UK saw their markets fall by more than 16 per cent. In the
case of the UK and Ireland, two of the worst affected countries, the poor handling of
the Covid outbreak was compounded by an economic environment which was
weakening in the run up to Brexit taking full effect at the start of 2021.
Table 2. Western Europe: Sales of construction equipment by country, 2016-2020

(% of total)
2016 2017 2018 2019 2020
Germany 27 24 24 25 27
France 18 18 18 19 18
United Kingdom 21 22 21 19 17
Italy 9 9 9 10 12
Netherlands 4 4 4 4 4
Belgium 3 4 4 4 4
Spain 2 3 3 3 3
Sweden 3 3 3 3 3
Norway 3 3 3 3 3
Denmark 2 2 2 2 2
Switzerland 3 2 2 2 2
Austria 2 2 2 2 2
Finland 2 1 1 2 1
Ireland 1 1 1 1 1
Portugal 1 1 1 1 1
Total 100 100 100 100 100
As the table above illustrates, the decline of the UK market last year, on top of the
drop in 2019 from the previous year’s peak, has seen it fall from being the second
largest market in Europe to the third. Even though Italy, in fourth place, continues
to grow, there is still a large gap between it and the UK in terms of the two markets’
relative sizes.
Similarly, although France has overtaken the UK to become Europe’s second largest
market, it is nine percentage points behind Germany and its own relative importance
also slipped in 2020.
Further down the table, Spain remains a relatively small market and is certainly a
shadow of the size it was in the 2000s when it regularly accounted for more than 10
per cent of European equipment demand. The heavy impact of Covid last year
means equipment sales continue to be unnaturally low given the country’s size and
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population. This certainly means the Spanish market has potential to grow, but it
will be a long journey.
Chart 2. Western Europe: Sales of construction equipment by country, 2016-2020

(% of total)
Others
Norway
9%
3%
Sweden Germany
3% 27%
Spain
3%
Belgium
4%
Netherlands
4%
Italy
12%
France
18%
United Kingdom
17%
2020 VERSUS LONG-TERM TRENDS

Table 3. Western Europe: 10 year average sales, 2010-2020 (units)
2011- 2020 average (units) 2020 (units) 2020 vs 10-year average (%)
Austria 2,354 2,759 +17
Belgium 4,799 6,024 +26
Denmark 2,964 3,593 +21
Finland 1,946 2,357 +21
France 24,604 29,170 +19
Germany 33,804 42,807 +27
Ireland 1,421 1,623 +14
Italy 11,777 19,722 +67
Netherlands 4,992 5,635 +13
Norway 3,986 4,209 +6
Portugal 1,091 1,709 +57
Spain 3,121 4,742 +52
Sweden 3,848 4,646 +21
Switzerland 3,250 3,118 -4
United Kingdom 28,172 26,730 -5
Total 144,570 158,844 +10
The table above reinforces the point that even with the 16 per cent fall in equipment
sales last year, the European market remains in reasonable health. Overall sales last
year were 10 per cent above the long-term average and every individual country
apart from Switzerland and the UK was also above this threshold.
In Switzerland’s case, the discrepancy is small – only 130 units or so in volume terms
– and reflects the fact that there is scarcely any market cycle in the country. The
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figure for the UK meanwhile might be a cause for greater alarm, indicating both the
severe impact of Covid as well as the start of a period of Brexit-induced economic
weakness.
On the positive side, of particular note are the Southern European countries of Italy,
Portugal and Spain, which were 67, 57 and 52 per cent higher than the long-term
average, although volumes remain disappointing due to the low levels they
collapsed to following the global financial crisis.
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COUNTRY ANALYSIS AND FORECASTS

Table 4. Western Europe: Forecast sales of construction equipment by country,
2020-2025, (units)
Forecast % Change 2021-
2020 2021 2022 2023 2024 2025 2025
Austria 2,759 2,674 2,816 2,861 2,937 2,952 +10
Belgium 6,024 5,813 5,792 5,625 5,687 5,812 -
Denmark 3,593 3,418 3,665 3,887 3,987 3,948 +16
Finland 2,357 2,400 2,639 2,764 2,660 2,597 +8
France 29,170 30,456 31,918 32,240 31,484 30,865 +1
Germany 42,807 40,701 41,525 42,030 41,450 41,630 +2
Ireland 1,623 1,979 2,513 2,625 2,701 2,563 +30
Italy 19,722 21,910 22,678 22,114 22,288 21,837 -
Netherlands 5,635 5,871 6,020 6,460 6,794 6,839 +16
Norway 4,209 4,502 4,837 4,861 4,803 4,841 +8
Portugal 1,709 1,961 2,089 2,051 2,129 2,109 +8
Spain 4,742 5,392 6,125 6,552 6,548 6,322 +17
Sweden 4,646 5,082 5,262 4,959 5,058 5,007 -1
Switzerland 3,118 3,284 3,493 3,573 3,667 3,589 +9
United Kingdom 26,730 29,030 31,522 32,907 33,705 33,255 +15
Total 158,844 164,473 172,894 175,509 175,898 174,166 +6
% Annual Change -16 +4 +5 +2 - -1 +6
Chart 3. Western Europe: Forecast sales of construction equipment, 2020-2025

(units)
200,000
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
-
2016 2017 2018 2019 2020 2021 2022 2022 2024 2025
Historic Sales Forecast
A modest rebound of 4 per cent is expected in the European equipment market this
year. The improvement became apparent across the region in the second half of 2020,
and almost all countries will see sales grow this year. However, there will be some
exceptions, such as Austria, Belgium, Denmark and Germany, where the return to
growth will be more measured.
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A key factor is that equipment sales in Europe were strong prior to the Covid
pandemic, and in certain individual countries – most notably Germany – demand
was running extremely high. Having not lost as much ground as other countries in
2020, Germany and a few others have limited potential to grow this year because
sales are already at historically high levels.
However, over the medium term between 2021 and 2025, there should be growth in
almost all European countries, even if it may take more than a year to get started.
The most significant growth will generally be found in the countries which fell the
furthest during the pandemic last year. Ireland, Spain and the UK are the clear
examples of this.
AUSTRIA
Table 5. Austria: Sales of construction equipment, 2020-2022* (units)
2020 2021* 2022*
Articulated dump trucks 20 24 30
Asphalt finishers 19 23 25
Backhoe loaders 24 25 25
Compact tracked loaders 10 10 12
Crawler dozers 25 23 22
Crawler excavators 726 650 675
Crawler loaders 5 3 3
Mini excavators 697 700 750
Motor graders 21 18 18
Rigid dump trucks 3 3 3
RTLTs - masted 15 15 18
RTLTs - telescopic 260 280 300
Skid-steer loaders 58 60 75
Wheeled excavators 157 120 140
Wheeled loaders < 80 HP 417 420 420
Wheeled loaders > 80 HP 302 300 300
Total 2,759 2,674 2,816
% Annual change -15 -3 +5
* Forecast
Developments in Austria have to a large extent mirrored those in Germany,

although the country’s construction sector has been much harder hit than that of its
neighbour as a result of more wide ranging restrictions, postponements and
lockdowns. In addition, Austrian economic output declined by 6.6 per cent in 2020,
significantly undermining business confidence amongst construction companies. As
a result, demand for new construction equipment declined 15 per cent in 2020,
underpinned by a larger than expected 20 per cent drop in sales of crawler
excavators, a sector that traditionally accounts for around 30 per cent of the total
machinery market.
Prior to the onset of the pandemic, the Austrian construction industry had
experienced a slow but systematic improvement during the preceding three years in
particular, and all three major construction segments – residential construction, non-
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residential construction and civil engineering – exhibited significant gains. The

gradual easing of coronavirus restrictions and a forecast economic recovery in the
second half of 2021 are expected to revive the fortunes of construction companies,
although suppliers of earthmoving machinery expect a further modest decline in the
market this year, partly as a result of supply chain difficulties, before a more
sustained recovery in 2022.
BELGIUM
Table 6. Belgium: Sales of construction equipment, 2020-2022* (units)
2020 2021* 2022*
Crawler excavators 980 1,050 1,050
Crawler loaders - - -
Mini excavators 2,350 2,300 2,300
Motor graders 6 5 3
RTLTs - telescopic 1,125 1,000 950
Total 6,024 5,813 5,792
% Annual change -15 -4 -
* Forecast
2020 started well for equipment buyers, as the change in the tax law enacted in the
final quarter of 2019 led to a rush to replace ageing machinery and generally update
existing fleets. This was particularly the case for small to medium sized machinery.
The various lockdowns throughout the year impacted on potential sales as the year
wore on.
The outlook is both promising and disappointing. The building of the western
section of the Antwerp ring road is a major infrastructure programme which will
underpin sales over the next few years, but overall new infrastructure spending is
limited and as a result overall demand is expected to show a slow decline over the
next few years.
While many believe the worst is now over from an economic standpoint, there is no
optimism that the recovery will be quick or strong, with the estimate that the overall
market will still be down in 2021 compared to 2020. Customers have not cancelled
orders, but they are not in any rush to upgrade or replace existing fleets. Sales this
year and next year are expected to be on a level last seen in the aftermath of the
financial crisis almost a decade ago.
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DENMARK
Table 7. Denmark: Sales of construction equipment, 2020-2022* (units)
2020 2021* 2022*
Motor graders 1 1 3
Rigid dump trucks - - -
Total 3,593 3,418 3,665
* Forecast
Prior to the onset of the Covid-19 pandemic, Denmark was expecting a downturn in
demand. The pandemic hastened the expected correction and deepened the
downturn, but demand compared to many markets remained relatively robust.
Overall sales fell by just under 10 per cent, which was quite a positive result
compared to many countries. As the decline in demand has not been that great, the
recovery will not be as robust as in some countries but levels in 2022 are expected to
be above pre-pandemic levels.
As in many countries demand is being restricted by a lack of product availability

which is not expected to improve very quickly.
The compact wheeled loader and mini excavator dominate the volume sectors of the
market, and machines of this size are the least affected by the economic ramifications
of the pandemic. Large scale infrastructure works have largely been completed and
today the construction market is dominated by small scale local sites. The economic
fallout from the pandemic has also restricted the amount of money local authorities
can spend, thereby restricting demand for products used in the housing sector such
as telescopic handlers and backhoe loaders.
The outlook for the Danish market is more promising. Because the market was
experiencing a correction prior to the pandemic, its impact has been less severe, and
the expectation is that any recovery will be quick. 2021 will not be a special year but
sales will be similar to those seen in the middle of the decade that is seen by many
as a standard market sustainable over a longer period of time.
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FINLAND
Table 8. Finland: Sales of construction equipment, 2020-2022* (units)
2020 2021* 2022*
Motor graders 9 5 6
Total 2,357 2,400 2,639
% Annual change -22 +2 +10
* Forecast
The headline figures for the overall market in Finland in 2020 reveal a 22 per cent
fall in sales of construction machines compared to 2019. This quite dramatic level of
decline might suggest that the impact of the pandemic was very pronounced and
that demand for machinery is now at historically low levels, but this is only partially
true.
First, any assessment of the pandemic must acknowledge the fact that the market in
Finland had already been predicted to fall considerably in 2020, in the region of 12
per cent compared to 2019. An extra decline of 10 percentage points due the
pandemic is clearly significant but much closer to reflecting the reality of its impact
on other aspects of the country and its economy. It should also be understood that
the reason for the previously anticipated decline was a cyclical adjustment following
a period of historically-high demand – 2018 and 2019 saw the highest sales since
records began. As a result, even after such a significant decline, sales volumes in
2020 remain the fifth highest ever.
If the immediate impact of the pandemic was not extreme, its longer-term
consequences could nevertheless be serious. 2021 was reported to have started in a
relatively buoyant fashion and the forecast for an increase in demand of 3 per cent
reflects this. However, a recent return to a form of lockdown has reduced demand
considerably, and there are serious concerns that this could last beyond the
relaxation of restrictions. If this is the case, notwithstanding the fact any further falls
in sales would likely still see the market at some of its highest levels in the country’s
history, a positive scenario of growth this year and next could be unduly optimistic.
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FRANCE
Table 9. France: Sales of construction equipment, 2020-2022* (units)
2020 2021* 2022*
Crawler excavators 4,166 4,400 4,500
Mini excavators 11,071 11,500 12,000
RTLTs - telescopic 7,530 7,900 8,300
Wheeled excavators 1,693 1,750 1,900
Wheeled loaders < 80 HP 1,595 1,650 1,750
Wheeled loaders > 80 HP 1,106 1,150 1,200
Total 29,170 30,456 31,918
* Forecast
Following a strong year in 2019, when demand for construction equipment in France
reached 35,633 units, the highest level since 2008, a cyclical decline of around 4 per
cent was expected in 2020. Instead, sales of construction equipment fell to below
30,000 units for the first time since 2016. Despite a partial recovery of the sector in
the summer, the lengthy lockdown in the spring and further restrictions towards the
end of the year contributed to a 22 per cent decrease in new building activity and a
15 per cent decline in civil engineering in 2020, resulting in an 18.7 per cent decline
in equipment demand.
Two types of equipment proved the exception by recording increases in sales in

2020: Crawler dozer sales rose 3.3 per cent while demand for motor graders grew 8
per cent. Conversely, some types of heavy earthmoving equipment, including
articulated dump trucks, crawler loaders and wheeled excavators experienced
decreases in demand of over 20 per cent. Crawler excavators above 6 tonnes fared
better, declining by just 10 per cent compared with 2019.
Compact equipment was also adversely affected. Sales of mini excavators, which
accounted for more than 38 per cent of total demand in unit terms, declined by 17
per cent compared with the previous year, while telescopic handler sales declined
by more than 24 per cent year-on-year. Backhoe loader sales continued their
downward trend, reaching 323 units, the lowest level since sales peaked at the start
of the new millennium.
Following the historic decline by 12.5 per cent in public works activity in 2020,
activity remained subdued at the beginning of 2021 with the National Federation for
Public Works (FNTP) forecasting an increase of between 2 and 8 per cent compared
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with 2020. The building sector reported an even larger annual decline of 15 per cent,
with permits for both new dwellings and non-residential building plunging in 2020.
The building federation forecasts a partial recovery in 2021 with an increase in
activity of 11 per cent in 2021.
The extent of the recovery of the construction equipment sector very much depends
on a return to activity in all related sectors and the absence of any major hindrances.
The general opinion is that the recovery will be gradual, with equipment sales
increasing between 3 and 5 per cent in 2021, and reaching around 31,675 units by
2022, close to 2018 levels but still some 11 per cent below the high of 2019.
GERMANY
Table 10. Germany: Sales of construction equipment, 2020-2022* (units)
2020 2021* 2022*
Mini excavators 17,181 16,400 16,500
Wheeled excavators 3,567 3,350 3,400
Wheeled loaders < 80 HP 8,892 8,500 8,750
Total 42,807 40,701 41,525
* Forecast
Following six consecutive years of growth, culminating in record sales of over 47,000
new machines in 2019, the German market underwent an overall decline of 11 per
cent in 2020, corresponding almost exactly to Off-Highway Research’s forecast made
during the middle of the year. Demand nevertheless exceeded 42,000 units, equating
to the fourth highest level of sales ever recorded in the sector and defying suppliers’
initial fears that the Covid-19 pandemic would have a significantly more detrimental
impact on the market.
Deliveries of new machines were adversely affected throughout 2020, in particular

during the second quarter of the year, by component supply problems and
production lockdowns at many manufacturers. The market recovered strongly in
the fourth quarter, however, as some customers brought forward machine
purchases due to concerns about potentially protracted delivery times in 2021.
Page 16
In contrast to several other countries in Europe, where most building sites closed for
several weeks, Germany’s construction industry continued to work throughout the
lockdown period, albeit at around 80 per cent of normal capacity. Infrastructure,
residential and utilities construction were exempted from the lockdown measures
with construction allowed to continue throughout the year.
Despite some supply issues with materials and the need to place migrant workers
under quarantine, the construction sector managed to overcome these hurdles more
successfully than initially forecast. The structure of Germany’s construction sector,
with its proliferation of small to medium sized companies, was also instrumental in
helping maintain the high level of construction activity, since these companies were
able to meet government recommendations regarding employee safety.
The construction equipment market was sustained to a large extent by a buoyant

compact equipment sector, in particular mini excavators, sales of which exceeded
17,000 units for the second year running. The decision of many homeowners to
upgrade their gardens and properties during lockdown precipitated a rapid rise in
mini excavator purchases by landscaping contractors, whilst the ongoing roll-out of
fibre optic broadband networks underpinned a high level of demand from cabling
contractors.
Conversely, the market for telescopic handlers suffered a decline of 20 per cent,
largely as a result of lengthy production lockdowns at the main European
manufacturers. Compact wheeled loaders recorded a fall in sales of 15 per cent,
although overall demand still equated to a very high level of nearly 9,000 units.
Sales of heavy equipment predictably fared less well, with demand declining in all
product sectors, albeit to varying degrees. In percentage terms the largest drops
were recorded by articulated dump trucks (-46 per cent), crawler dozers (-34 per
cent) and motor graders (-33 per cent). The high volume crawler excavator sector,
widely acknowledged to be suffering from excess capacity at both customer and
dealer level, underwent a decline of 14 per cent, equating to around 800 units.
The outlook for the construction industry remains optimistic with ongoing
investment in infrastructure and general construction sectors. However, while
demand for new machinery continues to be high, it is clear that component supply
issues will continue to beset the industry in 2021, leading to extended delivery times
and an inability to meet customer demand. The situation in the beginning of this
year has also been exacerbated by national lockdown measures, which have
restricted the ability of dealer sales staff to meet customers face to face, still an
important requirement in the construction equipment industry.
The large population of relatively new machines in the market as a result of the
unusually high volume of machines sold during the last five years is also likely to
Page 17
act as a brake on any rapid upturn in demand. As a result, Off-Highway Research

believes that the market will undergo a modest decline of around 5 per cent in 2021.
IRELAND
Table 11. Ireland: Sales of construction equipment, 2020-2022* (units)
2020 2021* 2022*
Compact tracked loaders - 2 1
Mini excavators 822 1,000 1,250
Motor graders 1 - 2
Total 1,623 1,979 2,513
* Forecast
The first quarter of 2020 had indicated a promising year ahead for demand, with the
economy growing by 1.2 per cent, while almost every other EU economy shrank.
Then came the Covid outbreak. Ireland responded swiftly, and had one of the
strictest and longest lockdowns in Europe. Construction activity came to a halt for
almost three months, causing sales of new equipment to decline by over 50 per cent
in the second quarter compared with the same period in the previous year. A brief
period of activity in the summer helped boost the sector, taking the annual decline
to 30 per cent in 2020, making it one of the worst hit construction sectors in Europe.
Total sales of 1,623 units took annual demand back to pre-2016 levels.
With the exception of skid-steer loaders, all types of equipment reported a fall in
sales, with heavy earthmoving equipment having the most significant declines.
Demand for crawler dozers declined 71 per cent while articulated dump trucks, rigid
dump trucks and wheeled loaders over 80 horsepower all experienced falls of more
than 50 per cent compared with the previous year. Crawler excavators and mini
excavators were the only products to decline by less than 30 per cent.
Despite the challenges caused by the pandemic, and the period of adjustment due
to Brexit, the construction sector is forecast to have a good year in 2021. One of the
main differences between this crisis and the financial crisis of 2008-2009 is that the
construction sector was at the heart of the property bubble which burst more than a
Page 18
decade ago, causing the economy to crash to such an extent that it took more than
six years to recover.
Governments subsequently shied away from construction projects, leaving the

sector with little support or investment. In contrast, construction is seen as a way
out of the current dilemma as a way of boosting the economy. Unfortunately, the
current lockdown requires non-essential construction sites to remain closed until
early April, with buyers reluctant to take equipment until the construction sites re-
open. However, suppliers report healthy order books and are looking forward to a
resumption in construction activity within the next few weeks.
On the premise that the lockdown is lifted and activity resumes, demand for
construction equipment is forecast to increase to just under 2,000 units in 2021, and
to 2,500 units by 2022, taking sales beyond the 2019 level. This forecast is based on
an absence of any further lockdowns affecting the construction sector, and a steady
flow of the supply chain.
ITALY
Table 12. Italy: Sales of construction equipment, 2020-2022* (units)
2020 2021* 2022*
Compact tracked loaders 947 1,025 1,075
Motor graders 8 5 7
Skid-steer loaders 1,227 1,300 1,350
Wheeled loaders > 80 HP 898 1,000 1,050
Total 19,722 21,910 22,678
% Annual change - +11 +4
* Forecast
Italy narrowly missed out on experiencing its seventh consecutive year of growth in
demand for construction machinery in 2020, with overall sales falling by just 22 units
– or 0.1 per cent – compared to 2019. Any sense of disappointment should be quickly
put to one side, however, given the initial concerns regarding the scale of the impact
of the coronavirus pandemic. With the country making international headlines as
one of the first in Europe to enforce a lockdown, and machinery sales registering a
year-on-year decline of 15 per cent in the first quarter in spite of demand having
surged in January and February, there was widespread fear of a far worse outcome.
Page 19
Instead, the market began to recover in May and then saw a surge in demand in the
last two months of 2020 in particular. Overall, the net effect was to essentially cancel
out the impact of the initial lockdown. Indeed, sales might have exceeded those
recorded in 2019 had there been greater machine availability.
This concern about a lack of machines is one of the factors tempering the forecast for
2021 and into 2022. Uncertainty over the longer-term effects of the pandemic
persists, of course, but demand at the start of the year has continued the trend set in
November and December 2020. With promised government infrastructure spending
now finally having an impact on the ground, a raft of financial and tax incentives
still in place, confidence in the availability of financing high and a growing rental
sector (albeit from a small base) there is widespread optimism concerning the next
two years at least.
The only problem anticipated beyond a resurgence in the pandemic is the limited
availability of machines and the forecast market is constrained considerably as a
result. Accordingly, instead of growth of the order of 20 per cent or even more, an
increase of just over 10 per cent is now widely expected, but in reality this could vary
considerably.
NETHERLANDS
Table 13. Netherlands: Sales of construction equipment, 2020-2022* (units)
2020 2021* 2022*
Motor graders 2 2 2
Rigid dump trucks - - -
Wheeled loaders < 80 HP 925 1,000 1,000
Total 5,635 5,871 6,020
* Forecast
Demand in the Netherlands fluctuates according to whether one of the leading rental
companies that operate on a pan-European stage has placed a very large order for
small to compact equipment. A single order of over 1,000 mini excavators is not
uncommon. The pandemic resulted in this type of orders being withheld and this is
Page 20
seen in the 28 per cent decline in mini excavator sales much higher than in any other
European market.
Similarly, the downturn in the housing sector has seen a fall in the volume of
telescopic handlers sold last year. 2021 is expected to see a start of a steady increase
in demand but volumes are not expected to exceed pre-pandemic levels over the
next three years.
The Netherlands was once a very stable market, but the advent of a strong rental
sector has resulted in a more volatile sales scenario. With major dealers operating
their own rental fleets the recovery in sales could be quick but volatile, and it will
result in new products being more readily accepted, and already the country is seen
at the forefront of adopting new electric powered machines.
NORWAY
Table 14. Norway: Sales of construction equipment, 2020-2022* (units)
2020 2021* 2022*
Mini excavators 971 1,050 1,125
Total 4,209 4,502 4,837
* Forecast
Norway saw a fall in sales of construction machinery in 2020 for the first time in a
decade. From a record high level of sales in 2019, demand fell by 17 per cent. In spite
of this stark decline the total volume of sales remained high in a historical context
having only previously been exceeded in six years since records began in 1980 (the
five years since 2015 and the previous peak in 2007).
A large part of this decline was attributable to the effects of the coronavirus
pandemic, even if overall construction activity was not too hard hit and many sites
remained open. As a result, most of the impact was indirect: a reduction in travel
saw a global fall in oil prices with a knock-on effect on the Norwegian economy, for
example. More specifically, the Norwegian Krone weakened considerably leading
Page 21
the cost of new machinery – almost all imported – to rise by as much as 25 per cent
at very short notice. In addition, a reorganisation of local and regional government
lead to a delay in the confirmation of some projects, even if this should have no long-
term effect on anticipated work volumes.
Notwithstanding these currency concerns and the ongoing impact of the pandemic,
the fundamentals of machinery demand remain sound. There is therefore a
widespread belief that the market will see an increase in sales this year, not least to
compensate for the ‘lost’ machines sales of 2020. Order books are reported to be at
the levels seen this time last year prior to the onset of the pandemic and both
infrastructure and housing demand remain strong. The most significant limiting
factor is instead anticipated to be a lack of machine availability. If this proves
unfounded, growth of more than the forecast seven per cent is likely.
PORTUGAL
Table 15. Portugal: Sales of construction equipment, 2020-2022* (units)
2020 2021* 2022*
Crawler loaders 1 - -
Motor graders 3 4 6
Total 1,709 1,961 2,089
* Forecast
Following six consecutive years of growth in the Portuguese construction equipment

sector, 2020 saw a decline of 13.6 per cent compared with the previous year,
approximately half the level of the decline experienced by its Iberian neighbour,
Spain.
The decline in sales was not experienced by all equipment types, and articulated
dump truck, asphalt finishers, crawler dozers, crawler loaders, rigid dump trucks,
skid-steer loaders and wheeled loaders over 80 horsepower all achieved increases in
sales, but unfortunately not in sufficient quantities to compensate for the losses in
other equipment types. Backhoe loader sales declined 21 per cent, while demand for
rough terrain lift trucks (masted and telescopic) decreased 32 per cent.
Page 22
Portugal was widely praised for the speed and discipline with which it dealt with
the initial outbreak of Covid-19 in the spring of 2020. Unfortunately, it did not escape
the ravages of the pandemic, and by the summer, a spike in cases resulted in curfews
in major cities. A surge in infections at the end of the year resulted in a partial
lockdown in November. This was not sufficient to curb the spread of the virus, and
almost half of all infections and deaths due to Covid-19 were recorded in January
2021, resulting in a lockdown which was finally starting to ease in March 2021.
Tourism accounts for around 15 per cent of the Portuguese economy, and the
dramatic fall of up to 90 per cent in tourist numbers severely impacted the economy,
contributing to a 7.6 per cent contraction in 2020, the biggest drop since 1936. It is
hoped that the tourist sector will see a partial recovery in 2021, as the vaccination
programme in Europe continues to roll out.
Apart from a slowing due to the necessity to adhere to strict health measures such
as social distancing, Portugal did not experience any major reduction in construction
activity, and other areas using construction equipment such as forestry and farming
continued to operate at normal levels. The gross value of residential construction
grew 4.5 per cent in 2020, benefitting from historically low interest rates, while non-
residential construction declined 0.5 per cent, partly due to the drop in tourism
related construction. The gross value of civil engineering grew by 3 per cent
compared with 2019, as some projects which had previously been put on hold were
released in 2020.
While remaining cautious, the general mood is optimistic with regard to the
construction sector.
In October 2020, the Portuguese Prime Minister announced a €43 billion investment
in public infrastructure, including a high-speed rail link between Lisbon and Porto,
to be carried out by 2030, as well as the expansion of deep water ports in Sines,
Leixoes and Lisbon. The European Recovery Fund has allocated €45 billion to
Portugal, which will be used to reboot the economy, and will include social housing
and infrastructure projects. The Government hopes that the fund will be available
for implementation by this summer.
Providing the construction industry is used as the motor of economic recovery and
projects proceed as planned, there will be an increase in demand for equipment. A
perhaps ambitious 14 per cent growth is forecast for 2021 taking sales to over 1,900
units once again. This comes with the caveat that supply chains should remain
uninterrupted, and Portugal does not succumb to another wave of Covid which
would necessitate a new lockdown.
Page 23
SPAIN
Table 16. Spain: Sales of construction equipment, 2020-2022* (units)
2020 2021* 2022*
RTLTs - telescopic 894 1,050 1,200
Total 4,742 5,392 6,125
* Forecast
Spain has experienced one of the largest falls in demand for construction equipment
in Europe due to the impact of the Covid-19 pandemic, as a result of the country’s
very strict lockdown procedures. Following seven years of consecutive growth,
overall demand for construction machinery declined 27 per cent in 2020 compared
with 2019, taking total sales to 4,694 units, a figure which is nevertheless 8 per cent
higher than the 2017 level. While this has dealt the sector a huge blow, Spain has
experienced much greater challenges in the past, with 2020 sales far exceeding the
crisis level of 2012, when just 1,150 units were sold.
In contrast to many European markets, sales of both compact and heavy equipment
were similarly affected, there were however significant differences in demand
between different kinds of equipment. On a positive note, not all machinery sales
were adversely affected, and three types of equipment bucked the trend. Rigid
dump trucks, motor graders and wheeled loaders under 80 horsepower all reported
increases in sales of 47 per cent, 18 per cent and 7 per cent respectively, while asphalt
finishers experienced only a slight decrease of -3 per cent.
Thereafter, apart from wheeled loaders over 80 horsepower, which reported an 8.5
per cent decrease, all types of equipment, suffered significant declines in demand of
between 15 and 46 per cent. While these declines may be disappointing to all
involved in the sector, the construction industry has not been as severely hit as many
other sectors in the economy.
In addition, when put into context, the current level of sales is not as bad as would
initially appear. For example, the number of telescopic handlers sold in 2020 is close
to the 5 year historic average of 908 units, and well ahead of the 10 year historic
Page 24
average of 609 units. Similarly, crawler excavator sales at 590 units adequately
surpass the 5 year historic average of 512 units and the 10 year average of 380 units.
The European Commission forecasts that the Spanish economy will experience the
largest rebound within the EU, with GDP expected to increase 5.4 per cent,
compared with an EU average of 4.1 per cent in 2021, and by 4.8 per cent compared
with an EU average of 3.0 per cent in 2022. In December 2020, the Spanish parliament
finally approved its first budget since 2016, including €11,527 million for
infrastructure projects in 2021. Spain is also one of the largest recipients of the EU
Recovery Fund, in line to receive a possible €140 billion over the next six years, half
in the form of grants and the remainder as loans.
Given that the construction industry is widely used to restart ailing economies, there
are high hopes that some of these funds will help boost the construction sector. The
market remains a little hesitant given the uncertainty surrounding the health crisis,
as the rollout of the vaccination programme has been relatively slow. However,
increasingly there is a need to renew ageing equipment, especially when interest
rates are low, and there is the hope that works that could not be done in 2020 will be
carried out in 2021.
Opinions vary on the extent of the rebound in 2021, but in the absence of any major
supply chain difficulties, or a return to the levels of lockdown experienced in 2020,
the construction equipment sector should see an increase of between 10 and 15 per
cent in 2021. Further ahead, municipal elections scheduled for 2023 will help to boost
demand for equipment in 2022 to carry out local authority works. This, combined
with a general recovery in the construction sector should assure a further increase
in demand for construction equipment, taking sales to over 6,000 units in 2022.
SWEDEN
Although sales of construction machinery declined by 12 per cent in Sweden in 2020
the market, as with those in the neighbouring countries of Finland and Norway,
remains at historically high levels. Sales have only exceeded the 4,646 units recorded
in 2020 in four previous years (2016-2019). Further evidence of just how high this
level of demand is, even in 2020, can be seen from the fact that only on one other
occasion since records began in 1980 has the market exceeded demand of 4,000 units.
Nevertheless, the market did suffer last year as a result of the coronavirus pandemic,
with certain product types being more badly affected than others. Of particular note
were the above average declines in sales of large wheeled loaders and wheeled
excavators. These fell by 18 and 17 per cent respectively compared to 2019, largely
due to the significant role played in these markets by owner-operators who were,
understandably, more cautious than larger companies to make capital investments.
Page 25
Another sector where declines were significantly above average was the market for
telehandlers which, in spite of recent strong growth in demand, remain perceived as
useful but not yet essential machines; also, the housebuilding market where they are
popular was badly affected at the start of the pandemic.
Table 17. Sweden: Sales of construction equipment, 2020-2022* (units)

2020 2021* 2022*
Total 4,646 5,082 5,262
* Forecast
A return to growth is widely expected in 2021. Government support and

infrastructure investment, strong housing demand and expansion in the rental
sector are all positive factors, as is the fact that customers who delayed purchases
last year will perhaps feel compelled or at least emboldened to invest in 2021.
Unfortunately, a lack of machine availability is already anticipated to limit the rate
of expansion. As a result, a growth rate below 10 per cent seems more likely than
one in double figures.
SWITZERLAND
Despite a strong downturn in the Swiss economy and consolidation in the
construction sector as a result of the Covid-19 pandemic, demand for new
construction machinery held up better in 2020 than many suppliers had expected,
albeit to varying degrees between the German and French speaking regions of
Switzerland. Although the market underwent an overall decline of around 3 per
cent, sales remained at a comparatively healthy level of 3,100 units. Nearly all
product sectors contributed to the traditionally stable pattern of demand, although
the leading performers continue to be mini excavators and crawler excavators. In
2020 these two product sectors alone accounted for some 63 per cent of the total
market.
Page 26
One area of concern was the Geneva region, an important market for both sales and
rental of construction equipment, where issues surrounding the Covid-19 pandemic
impacted significantly on demand. This was to some extent offset by more stable
demand in the larger German speaking region of the country, where the impact of
the pandemic has been less significant. Whilst the government ordered the
shutdown of nearly all construction activity as early as March, construction sites
were gradually opened with little obvious effects of disruption.
Table 18. Switzerland: Sales of construction equipment, 2020-2022* (units)

2020 2021* 2022*
Backhoe loaders 1 - 1
Motor graders - 2 -
Rigid dump trucks 1 - 1
Total 3,118 3,284 3,493
* Forecast
Switzerland experienced a general slowdown in construction activity in 2019

following ten years of almost uninterrupted growth, which continued into 2020
prior to the arrival of the pandemic. Suppliers nevertheless remain confident that
the market for new construction machinery in 2021 is likely to undergo a modest
recovery of around 5 per cent, with further growth of up to six per cent forecast in
2022. Furthermore, the market is likely to receive significant impetus from the Swiss
government’s pledge to invest widely in infrastructure construction, in particular
railway projects, in an effort to boost the economy.
UNITED KINGDOM
The Covid-19 pandemic has had a major impact upon all countries, but the UK has
been particularly badly hit. The construction industry was completely shut down
for three months from March until July. Prior to the pandemic the market was
expected to decline by approximately 6 per cent but the pandemic saw demand fall
sharply during the first lockdown period. The second half of the year saw a gradual
recovery, but by the end of 2020, overall demand for the year was still down 25 per
cent.
Page 27
The encouraging news is that the recovery seen at the end of last year has continued
throughout the early months of 2021. The expectation is that the market will rebound
by at least 9 per cent and would be greater if there were machines available to meet
the demand in the market.
Table 19. UK: Sales of construction equipment, 2020-2022* pre-Covid-19 (units)

2020 2021* 2022*
Mini excavators 13,150 14,000 14,000
Motor graders 4 5 5
Total 26,730 29,030 31,522
* Forecast
The HS2 high speed railway linking London to Birmingham, and then onward to
Manchester and Leeds, is the catalyst for increasing confidence and the
Government’s commitment to improving the infrastructure of the country has
cemented that new-found confidence.
The worst affected product last year was the telescopic handler, down almost 40 per
cent, as the housing market was badly impacted by the pandemic, but this sector is
now improving. The least impacted product has been the mini excavator down only
6 per cent. Generally, the larger the product the more adversely impacted by the
pandemic.
Page 28
EQUIPMENT ANALYSIS AND FORECAST TO 2025

Table 20. Western Europe: Sales of construction equipment by type, 2016-2020
(units)
% change % of total
2016 2017 2018 2019 2020 2019-2020 2020
Articulated dump 1,407 1,542 1,579 1,754 1,128 -36 1
trucks
Asphalt finishers 977 1,039 1,079 1,048 965 -8 1
Backhoe loaders 2,419 2,544 2,686 2,576 1,898 -26 1
Compact tracked 576 854 1,267 1,434 1,576 +10 1
loaders
Crawler dozers 966 1,191 1,182 1,220 996 -18 1
Crawler excavators 25,397 28,035 30,983 31,217 25,442 -18 16
Crawler loaders 126 132 176 195 128 -34 -
Mini excavators 56,060 62,983 67,938 70,129 64,341 -8 41
Motor graders 163 180 193 207 193 -7 -
Rigid dump trucks 189 202 273 242 206 -15 -
RTLTs - masted 1,037 1,213 1,217 1,299 1,019 -22 1
RTLTs - telescopic 21,835 26,681 29,954 32,336 23,573 -27 15
Skid-steer loaders 3,272 3,466 4,020 4,353 3,487 -20 2
Wheeled excavators 8,063 9,673 10,079 10,422 8,626 -17 5
Wheeled loaders 12,114 13,521 15,609 18,133 15,469 -15 10
< 80 HP
Wheeled loaders 9,278 10,060 11,144 11,977 9,797 -18 6
> 80 HP
Total 143,879 163,316 179,379 188,542 158,844 -16 100
% Annual Change +11 +14 +10 +5 -16 -16 -
Chart 4. Western Europe: Sales of construction equipment by type, 2016-2020

(units)
Others
Skid-steer loaders 5%
2%
Wheeled
excavators
5%
Mini excavators
Wheeled loaders > 41%
80 HP
6%
Wheeled loaders <

80 HP
10%
Crawler excavators
16%
RTLTs - telescopic
15%
Page 29
Sales of all equipment types apart from compact tracked loaders fell last year. The
growth in compact tracked loaders was due to their rise in popularity as a relatively
new equipment type, combined with buoyancy in Italy, which is by far the largest
European market for this type of machine.
Among the more lightly affected equipment types were asphalt finishers, mini
excavators, motor graders, rigid dump trucks and compact wheeled loaders, all of
which experienced falls of less than the 16 per cent European average.
The most significant of these in volume terms is the mini excavator, which is by far
the most popular type of equipment in Europe. With only an 8 per cent decline in
sales, volumes remained at an extremely good level – the 64,341 units sold last year
was one of the highest totals on record. It was only surpassed in the recent peak of
2018 and 2019, and in the previous boom period in the mid-2000s. The buoyancy of
this sector and also that of the under 80 horsepower wheeled loader market was due
to the strength of residential construction in Europe last year.
The other machine types which performed well (or perhaps ‘least worst’) last year
were relatively low volume by their nature.
Meanwhile the downturns for crawler excavators and wheeled loaders over 80
horsepower, two important high volume products, were more in-line with the
overall market decline at -18 per cent each.
The most significant downturn of a high volume product was that of telescopic
rough terrain forklift trucks (RTLTs), or telehandlers. This segment fell 27 per cent
in 2020. The issue here was that the two most significant markets for these machines
in Europe are France and the UK, and these were two countries which were among
the worst affected by the downturn.
The largest fall for any equipment type was the 36 per cent decline in articulated
dump truck sales. In times of uncertainty, it is perhaps to be expected that big ticket
items like these see the steepest falls, but collapses of this magnitude were not seen
in other expensive (albeit lower volume) equipment types such as dozers, graders
and rigid dump trucks.
FORECAST TO 2025
Articulated dump trucks may have seen the steepest fall in sales in 2020, but along
with crawler dozers, rigid haulers and both types of RTLT, they are expected to see
some of the strongest growth over the next five years. One aspect of this growth is
the equipment types which fell the furthest last year may have dropped to
unnaturally low sales volumes and can therefore be expected to bounce back the
most.
Page 30
In addition, there is an expectation of stimulus spending across Europe starting this

year, and if this includes significant spending on infrastructure it should lift
earthmoving equipment sales. Articulated dump trucks and crawler dozers could
be key equipment types to benefit, as could asphalt finishers, alongside higher
volume, general purpose machines.
Table 21. Western Europe: Forecast sales of construction equipment by type, 2021-
2025* (units)
Forecast % Change
2020 2021 2022 2023 2024 2025 2021-2025
Articulated dump 1,128 1,317 1,623 1,775 1,609 1,510 +15
trucks
Asphalt finishers 965 995 1,039 1,079 1,101 1,120 +13
Backhoe loaders 1,898 2,020 2,226 2,322 2,313 2,309 +14
Compact tracked 1,576 1,677 1,740 1,803 1,743 1,794 +7
loaders
Crawler dozers 996 986 1,040 1,135 1,120 1,133 +15
Crawler excavators 25,442 26,945 29,035 28,980 29,215 29,110 +8
Crawler loaders 128 136 133 130 133 136 -
Mini excavators 64,341 66,725 68,650 67,960 67,615 66,515 -
Motor graders 193 199 208 207 213 205 +3
Rigid dump trucks 206 201 220 239 251 234 +16
RTLTs - masted 1,019 1,112 1,290 1,369 1,480 1,425 +28
RTLTs - telescopic 23,573 24,565 26,320 28,015 28,420 28,240 +15
Skid-steer loaders 3,487 3,700 4,010 4,070 4,280 4,155 +12
Wheeled excavators 8,626 8,725 9,110 9,675 9,620 9,685 +11
Wheeled loaders 15,469 15,220 15,815 16,010 15,615 15,575 +2
< 80 HP
Wheeled loaders 9,797 9,950 10,435 10,740 11,170 11,020 +11
> 80 HP
Total 158,844 164,473 172,894 175,509 175,898 174,166 +6
% Annual Change -16 +4 +5 +2 - -1
The rebounds for both crawler excavators and wheeled loaders over 80 horsepower
are also expected to be slightly above the market-wide average over the next five
years. Again, this reflects slightly more severe downturns than for other types of
equipment in 2020, along with a potential lift from stimulus spending.
The notable equipment type which is not expected to see any net growth over the
next five years is the mini excavator. As previously discussed, this is a machine type
which saw only a small downturn in 2020, and which in historic terms is still selling
at very high levels. The lack of growth forecast for the next five years is therefore not
necessarily a negative, but more a reflection of a machine type which is at its
maximum potential for the moment.
Page 31
PRODUCTION ANALYSIS
PRODUCTION BY COUNTRY
Table 22. Western Europe: Production of construction equipment by country,
2016-2020 (units)
2016 2017 2018 2019 2020 % Change 2019-2020
Austria 10,548 12,954 14,017 14,485 12,240 -15
Belgium 6,075 4,050 600 700 625 -11
Denmark 235 225 240 240 190 -21
Finland 376 394 393 528 433 -18
France 23,717 26,373 29,700 32,800 27,645 -16
Germany 30,728 34,733 38,283 39,806 32,379 -19
Italy 24,577 27,126 30,806 32,228 27,416 -15
Netherlands 6,915 8,190 9,685 10,675 8,845 -17
Norway 109 104 150 161 127 -21
Spain 695 1,060 1,064 1,338 954 -29
Sweden 9,520 10,825 11,760 11,070 8,010 -28
Switzerland 60 - - - - -
United Kingdom 39,148 44,953 51,632 50,167 32,297 -36
Total 152,703 170,987 188,330 194,198 151,161 -22
% Annual Change -5 +12 +10 +3 -22 -22
Chart 5. Western Europe: Production of construction equipment by country, 2020

(units)
Others
Netherlands
2%
6% Germany
22%
Sweden
5%
Austria
8%
Italy
18% United Kingdom
21%
France
18%
Equipment production in Europe fell 22 per cent last year, greater than the 16 per
cent decline which was seen in the region’s equipment sales.
Several factors influenced this imbalance. First, when the pandemic struck, all
stakeholders in the industry focused on selling their inventories and freeing up cash.
This naturally meant that production would be lower than sales in 2020. As has been
previously stated however, this may now be exacerbating a problem of a different
kind, as there is a clear shortage of machines worldwide to meet rebounding
demand.
Page 32
A second factor is that Europe is the key manufacturing centre for the equipment
types which were most badly affected by the worldwide slump in equipment last
year. Of particular note were the articulated dump truck and telescopic RTLT
(telehandler) markets, which were down more severely on a global basis than the
industry average for all equipment types.
A third factor is the gradual retrenchment of manufacturing away from Europe. The
last decade has seen much of the business in Europe, Africa and the Middle East
which was once served by European factories taken over by Chinese manufacturing.
This includes both the rise of several major indigenous Chinese OEMs, as well as
many international companies choosing to serve emerging markets from the large
manufacturing bases they have built in China in the 2000s.
In addition to European factories losing emerging market business, there have been
several instances of international OEMs closing their European factories in favour of
other locations. There is now very little construction equipment manufacture in
Belgium following the closure of facilities previously operated by Caterpillar,
Doosan and JLG. More recently both Hitachi and CNH Industrial have announced
changes to their industrial structures which will result in less construction
equipment being produced in Europe.
Having said that, Europe remains an important region for construction equipment
manufacturing, thanks in part to a number of large native OEMs. It remains a key
global supplier for certain types of equipment, including articulated dump trucks,
asphalt finishers, backhoe loaders and telehandlers.
In terms of individual countries’ output last year, there were notable downturns in
Sweden and particularly the UK. This was partly due to the production stoppages
specific to the dominant manufacturers in those countries (Volvo and JCB) and
partly due to the fall in worldwide demand for key products produced by them
(ADTs and telehandlers).
The very sharp fall in UK production meant that it was overtaken by Germany as
Europe’s largest equipment producing country last year.
Having said that, all countries in Europe saw double-digit falls in equipment output
last year, with nowhere escaping unscathed. This applies across countries producing
equipment in high volumes as well as those with a much smaller output.
PRODUCTION BY EQUIPMENT TYPE

The picture is similar if analysed from the point of view of which equipment types
are produced in Europe. Most equipment types were down by double-digit
Page 33
percentages last year, although a few relatively low volume equipment types such
as asphalt finishers, compact tracked loaders, crawler dozers, rigid dump trucks and
skid-steer loaders saw either growth or only limited falls.
Table 23. Western Europe: Production of construction equipment by type, 2016-

2020 (units)
2016 2017 2018 2019 2020 % Change 2019-2020
Articulated dump trucks 4,458 5,214 5,778 5,475 3,849 -30
Asphalt finishers 3,185 3,303 3,635 3,210 3,300 +3
Backhoe loaders 14,461 14,783 16,414 15,993 12,139 -24
Compact tracked loaders - 97 87 105 145 +38
Crawler dozers 3,075 3,101 3,444 3,320 3,150 -5
Crawler excavators 11,884 13,156 13,503 14,695 9,956 -32
Crawler loaders 460 450 463 445 315 -29
Mini excavators 38,096 42,635 45,467 46,480 37,709 -19
Motor graders 200 225 215 279 243 -13
Rigid dump trucks 155 75 - 32 65 +103
RTLTs - Masted 2,069 2,306 2,450 2,751 1,906 -31
RTLTs - Telescopic 37,887 43,391 49,631 51,156 38,671 -24
Skid-steer loaders 469 527 606 577 574 -1
Wheeled excavators 8,491 10,102 11,070 11,830 9,437 -20
Wheeled loaders < 80 HP 13,600 16,175 17,826 20,155 16,045 -20
Wheeled loaders > 80 HP 14,213 15,447 17,741 17,695 13,657 -23
Total 152,703 170,987 188,330 194,198 151,161 -22
% Annual Change -5 +12 +10 +3 -22 -22
Chart 6. Western Europe: Production of construction equipment by type, 2020

(units)
Articulated dump Others
trucks 6%
2% RTLTs - Telescopic
Wheeled
excavators 26%
6%
Crawler
excavators
7%
Backhoe loaders
8%
Wheeled loaders
> 80 HP
9% Mini excavators
Wheeled loaders 25%
< 80 HP
11%
However, the drop in the mainstream equipment types were all severe at -20 per
cent or more. Most striking was the 32 per cent drop in crawler excavator
production. This may be due to the relatively long and strict lockdowns which were
in place in Europe last year, which clearly impacted output and perhaps put
Page 34
European manufacturing at a disadvantage compared to Japan and Korea, the other

two major countries supplying the region’s excavator market.
This was also reflected in European mini excavator production, which was down 19
per cent, compared to just a n 8 per cent decline in regional demand for these
machines.
It remains to be seen to what extent European equipment manufacturing will bounce

back this year given the issues of supply and capacity constraints.
Page 35
INTERNATIONAL PERSPECTIVES
SALES
Table 24. Regional sales of construction equipment, 2020-2021* (units)
China Western Europe North America Japan India
2020 2021* 2020 2021* 2020 2021* 2020 2021* 2020 2021*
Articulated dump trucks 10 12 1,128 1,317 2,610 2,800 60 70 - -
Asphalt finishers 2,810 2,500 965 995 1,955 2,050 450 400 1,014 1,150
Backhoe loaders 180 160 1,898 2,020 8,950 10,250 - - 38,030 40,000
Crawler dozers 4,470 4,700 996 986 8,275 8,800 500 500 531 450
Crawler excavators 192,400 202,000 25,442 26,945 22,590 24,700 26,300 26,000 16,382 22,000
Crawler loaders - - 128 136 325 350 20 20 - -
Mini excavators 101,100 115,000 64,341 66,725 55,145 61,000 28,800 28,000 1,372 1,700
Motor graders 1,681 1,800 193 199 2,675 2,900 150 100 812 1,000
Rigid dump trucks 289 320 206 201 345 375 100 90 401 500
RTLTs - masted - - 1,019 1,112 1,100 1,200 - - - -
RTLTs - telescopic 40 50 23,573 24,565 14,500 18,100 5 5 318 400
Skid-steer loaders 2,110 2,200 3,487 3,700 26,460 28,500 500 400 563 750
Wheeled excavators 2,690 3,300 8,626 8,725 720 750 50 50 5 -
Wheeled loaders 104,700 102,500 25,266 25,170 18,890 20,400 10,700 10,300 2,532 3,000
Total 412,480 434,542 157,268 162,796 164,540 182,175 67,635 65,935 61,960 70,950
% Annual Change +30 +5 -16 +4 -16 +11 +3 -3 -10 +15
* Forecast.
Chart 7. Regional sales of construction equipment, 2020-2021* (units)

450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
-
2020 2021*
* Forecast.
Despite the Covid pandemic, global construction equipment sales last year stayed
level with, if not slightly higher than the volume in 2019. This was due to the
enormous surge in China, which offset the falls which were seen in most other
markets around the world.
The outlook for 2021 is that most of the countries which saw equipment sales fall last
year will experience a rebound of about 5-10 per cent. The Chinese market is also
forecast to see modest growth, and the combination of these factors could take global
construction equipment demand to record levels.
Page 36
CHINA
As soon as China emerged from its national lockdown in March and April last year,
it embarked on a massive stimulus programme. The main instrument of this was
allowing provincial governments to issue special bonds. This saw construction
equipment sales to rise to more than 412,000 units, or more than 480,000 units if
compaction equipment and mobile cranes are included. Such high sales have only
been seen once before in China, during the boom of 2010 and 2011. That was also a
result of stimulus spending, on that occasion in response to the global financial crisis.
Within the Chinese market since then the structure of demand has shifted, with
excavators and mini excavators becoming the dominant products. The traditional
high volume equipment type, the wheeled loader, still sells in very high numbers –
at more than 102,000 units sold last year, China accounted for well over half the
global demand for this type of machine. However, in the boom of 2010 and 2011,
sales of wheeled loaders came to more than 200,000 units in each of those years.
Excavators have grown in popularity since then. Mini excavator sales in 2011 stood
at 38,600 units, compared to 101,100 machines last year, while crawler excavator
sales a decade ago came to 158,000 units, compared to 192,400 machines in 2020. In
addition to the rising popularity of excavators, the market for small and medium
sized wheeled loaders in China has been undermined by very cheap, low technology
farm equipment, which has concentrated sales of genuine wheeled loaders in the 200
horsepower and above classes.
Further growth is anticipated in China this year, which will see the market rise
another 5 per cent. This would equal or even surpass the previous record high seen
in 2011.
The question for China then is what the subsequent years will bring. The last boom
was followed by a long and damaging recession in the Chinese equipment industry,
so it is hoped that the inevitable downturn which is coming for the market is better
managed and less ever than last time.
Further detailed analysis can be found in the Chinese Annual Review which is now available.
INDIA
Prior to the Covid pandemic, 2020 was expected to be a year of robust growth for
the Indian construction equipment market, following the disruption of the 2019
general election.
In the event, the pandemic precipitated a 10 per cent decline in sales, to 67,635 units,
or 73,275 if mobile cranes and compaction equipment are included. This took
Page 37
demand back to where it was in 2017 and was some 25 per cent lower than the peak
year of 2018. As disappointing as this was for a market which was showing clear
signs of returning to robust growth at the end of 2019, a 10 per cent downturn as a
result of the pandemic and lock downs is not as bad an outcome as might have been
expected.
The backhoe loader, by far the most popular equipment type in India, saw only a
four per cent decline in sales last year. Losses were more pronounced among other
equipment types, particularly crawler excavators and wheeled loaders, where the
downturns in 2020 were of the order of 20 per cent or higher.
Sales in India are expected to bounce back this year, with a 15 per cent rise taking
volumes back to the levels seen in 2019. The market environment in India remains
positive, with continued infrastructure investment providing impetus for
equipment sales. This should see further growth in 2022 and 2023, by which time the
market should achieve a new record high.
Further detailed analysis can be found in the Indian Annual Review which is now available.
JAPAN
Equipment sales in Japan rose 3 per cent in 2020, despite the pandemic causing a
significant slowdown in the first half of the year.
Increased public spending on infrastructure was a trigger for the recovery in the
second half of the year, and this was particularly apparent in medium-sized
equipment such as crawler excavators and wheeled loaders.
In addition, there was a certain amount of pent-up demand in Japan. The

introduction of higher consumption tax in 2019 distorted the normal seasonal
pattern to some extent and demand fell once the new 10 per cent rate was introduced
in October. However, fleet renewal cannot be put off indefinitely, and sales in 2020
were lifted somewhat as a result of the unnaturally low sales in the latter part of
2019.
Having said that, the Japanese market is a relatively stable one, with sales for the
last four years coming in between 63,000 and 68,000 units per annum. So, while a 3
per cent fall in demand is forecast for this year, it is arguably more accurate to view
it as a continuation of a fairly stable sales pattern.
NORTH AMERICA
The pattern seen in North America in 2020 was similar to Europe’s, with a steep
decline in the first six months – particularly the second quarter – being partially
offset by a recovery in the second half of the year. Overall, demand fell 16 per cent –
Page 38
the same downturn as was seen in Europe. And like Europe, this result was milder
than might have been expected and also a more than reasonable volume in historic
terms.
At 164,540 units, Sales in North America last year were on a par with the volumes
seen in 2017. If compact tracked loaders are included, total sales in the region came
to 238,890 units, a fall of just 8 per cent on the previous year. The reason for the
difference is that compact tracked loaders have become hugely popular in North
America in the last decade, and are now the highest volume construction product
sold in the region. Sales of these machines increased a remarkable 14 per cent last
year in response to the quick and robust mid-year recovery in residential
construction.
Overall market growth in North America this year is expected to come in at 11 per
cent, a reflection of continuing strength in the residential market and the recent
passing of President Biden’s US$1.9 trillion stimulus plan.
Page 39
PRODUCTION
Table 25. Production by type and region, of construction equipment, 2019-2020
(units)
2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
Articulated Dump Trucks 45 10 5,475 3,849 565 400 800 600 - -
Asphalt Finishers 2,740 3,110 3,210 3,300 1,835 1,845 550 490 1,083 964
Backhoe Loaders 850 800 15,993 12,139 7,710 5,620 - - 43,980 41,431
Crawler Dozers 6,975 7,000 3,320 3,150 10,660 7,850 4,500 2,000 178 272
Crawler Excavators 162,000 230,400 14,695 9,956 16,490 12,195 80,000 72,000 20,802 17,209
Crawler Loaders - - 445 315 200 130 - - - -
Mini Excavators 84,300 124,750 46,480 37,709 23,600 23,560 111,000 107,000 828 975
Motor Graders 5,140 5,020 279 243 2,800 2,200 300 700 605 355
Rigid Dump Trucks 272 335 32 65 553 440 680 510 1,091 640
RTLTs - Masted - - 2,751 1,906 1,300 900 - - - -
RTLTs - Telescopic 50 60 51,156 38,671 15,850 9,390 - - 326 360
Skid-Steer Loaders 3,008 4,668 577 574 27,750 24,645 650 400 2,363 2,447
Wheeled Excavators 2,000 3,300 11,830 9,437 330 280 500 370 - -
Wheeled Loaders 127,800 134,000 37,850 29,702 19,140 15,055 12,400 8,400 2,914 2,221
Total 395,180 513,453 194,093 151,016 128,783 104,510 211,380 192,470 74,170 66,874
% Annual Change +6 +30 +3 -22 -3 -19 -1 -9 -16 -10
Chart 8. Regional sales and production of construction equipment, 2020 (units)
550,000
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
2020 Sales 2020 Production
Page 40
Construction equipment production in the five major regions under review came to
1.03 million units in 2020, a 2 per cent increase on the 2019 total and an all-time
record volume.
The chart above illustrates total sales and production in each region, and therefore
gives a picture of net imports and exports. It illustrates that China and Japan are the
major net exporters of construction equipment, while sales and production are more
or less balanced in Europe and India, with North America as a net importer.
The key products in this equation are crawler and mini excavators, which are the
two highest volume products in the global construction equipment industry. Last
year some 84 per cent of global production of these machines across the five regions
was in China and Japan.
CHINA
Equipment production in China surged by 30 per cent last year, matching the
increase which was seen in domestic demand. However, China’s exports of
construction equipment also increased some 4 per cent. This took the level of exports
to a record in volume terms of 82,133 units, although high demand domestically
meant this equated to 14 per cent of production, as opposed to 17 per cent in 2019.
The key export products from China are the ones it produces in high volumes,
namely crawler and mini excavators, along with wheeled loaders. Increased exports
of these, along with high demand at home meant that the global production of these
three equipment types rose in 2020, while it fell for all other machines.
International manufacturers have made significant contributions to the export totals

from their Chinese factories or partners including Caterpillar/SEM, Volvo/SDLG
and Bomag, Kubota and Sakai in their specialist sectors. Leading indigenous
exporters from China include LiuGong, Sany, XCMG and Zoomlion.
Further detailed analysis can be found in the Chinese Annual Review which is now available.
INDIA
As previously noted, backhoe loader sales in India held up reasonably well last year.
This kept production above 40,000 units for the third year in succession, although
somewhat distant from the record in 2018 when more than 51,000 backhoe loaders
were manufactured in India.
The next highest volume machine type produced in India is the crawler excavator,
and output of these was down 17 per cent in 2020, reflecting lower demand for what
is a relatively expensive machine.
Page 41
There was some growth in production of some machines which sell in low volumes
in India, namely crawler dozers, mini excavators, skid-steer loaders and
telehandlers. However, output of the more mainstream equipment types was down
due to reduced demand in the Indian market.
Further detailed analysis can be found in the Indian Annual Review which is now available.
JAPAN
Equipment production in Japan was down 9 per cent last year. The country is the
only equipment producer in the world where exports are greater than domestic
demand, so its production is governed more by overseas demand than domestic
construction dynamics.
Having said that, the small rise in sales at home was helpful, particularly in the
crawler excavator segment. But continued success for Japan’s equipment exports
was also an important factor.
Equipment sales in the world excluding China were down 12 per cent last year, so
the fact that Japanese production fell only 9 per cent implies an improved share for
Japanese-built equipment. One region where this was apparent was Europe, where
regional production fell 22 per cent against declining sales of 16 per cent, and it is
clear that one of the dynamics of this was increased sales of Japanese-made crawler
and mini excavators.
Similarly, the reasonably strong demand for mini excavators in North America last
year was a positive for the Japanese industry, as only two OEMs (Caterpillar and
Bobcat) produce mini excavators in North America, with the majority of demand
being met by imports from Japan.
NORTH AMERICA
Production in North America totalled 104,510 units last year, a 19 per cent decline
on the 2020 figure. With sales in North America falling 16 per cent the difference
implies a loss of market share for North American made products in their home
market, the same as the situation in Europe.
Most equipment production in North America is sold within the region, although it
is a major exporter of certain equipment types including graders and skid-steer
loaders.
In addition to the machines listed in the table, more than 60,000 compact tracked
loaders were manufactured in North America in 2020. This is some way below the
demand of 74,000 units which was seen last year, the difference being made up of
Page 42
machines manufactured in Japan by the country’s leading compact equipment

OEMs.
Page 43
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Page 45
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ANNUAL REVIEW

The construction equipment industry in

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The construction equipment industry in Europe

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Chart 1. Western Europe: Sales of construction equipment, 2016-2020 (units)

Source: Off-Highway Research

© Off-Highway Research. Contents confidential to the subscriber.

At 158,844 machines sold in 2020, the market arguably stayed at a reasonable

© Off-Highway Research. Contents confidential to the subscriber.

Table 2. Western Europe: Sales of construction equipment by country, 2016-2020

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Chart 2. Western Europe: Sales of construction equipment by country, 2016-2020

2020 VERSUS LONG-TERM TRENDS

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COUNTRY ANALYSIS AND FORECASTS

Chart 3. Western Europe: Forecast sales of construction equipment, 2020-2025

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Developments in Austria have to a large extent mirrored those in Germany,

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residential construction and civil engineering – exhibited significant gains. The

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As in many countries demand is being restricted by a lack of product availability

© Off-Highway Research. Contents confidential to the subscriber.

© Off-Highway Research. Contents confidential to the subscriber.

Two types of equipment proved the exception by recording increases in sales in

© Off-Highway Research. Contents confidential to the subscriber.

Deliveries of new machines were adversely affected throughout 2020, in particular

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The construction equipment market was sustained to a large extent by a buoyant

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act as a brake on any rapid upturn in demand. As a result, Off-Highway Research

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Governments subsequently shied away from construction projects, leaving the

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© Off-Highway Research. Contents confidential to the subscriber.

© Off-Highway Research. Contents confidential to the subscriber.

Following six consecutive years of growth in the Portuguese construction equipment

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Table 17. Sweden: Sales of construction equipment, 2020-2022* (units)

A return to growth is widely expected in 2021. Government support and

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Table 18. Switzerland: Sales of construction equipment, 2020-2022* (units)

Switzerland experienced a general slowdown in construction activity in 2019

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Table 19. UK: Sales of construction equipment, 2020-2022* pre-Covid-19 (units)

© Off-Highway Research. Contents confidential to the subscriber.

EQUIPMENT ANALYSIS AND FORECAST TO 2025

Chart 4. Western Europe: Sales of construction equipment by type, 2016-2020

Wheeled loaders <

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© Off-Highway Research. Contents confidential to the subscriber.

In addition, there is an expectation of stimulus spending across Europe starting this

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Chart 5. Western Europe: Production of construction equipment by country, 2020

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PRODUCTION BY EQUIPMENT TYPE