In Latin America, the construction equipment comprises of the heavy-duty vehicles, which are specially designed for the use in various construction tasks such as drilling, hauling, excavating, paving, and grading.
The report titled Latin America Excavator
Market Research Report, 2027' by Actual Market Research highlights how the market has grown over the years now and the forecasted results for the market. According to the findings of the report, the South American market was recorded to be growing at a CAGR of more than 3.5% and is estimated to reach a market of USD 4 Billion by the end of the forecast period. Fuel consumptions and carbon emissions are the major concerns for the excavator manufactures in the region. The prominent players have introduced advanced heavy construction equipment, which adhere to the government norms and cater to the demand from these end users.
The growth of the South America heavy vehicle market is supported by the introduction of low emission and energy efficient models. contradicting to which the fluctuation in the oil prices, increased carbon footprints, and the weak economic conditions in the South America restrain the heavy equipment market growth. However, these less fuel-consuming vehicles have not yet captured a huge market due to its high price compared to the conventional machines. Extensive R&D is conducted by the equipment manufacturers to enable the development of better fuel efficiency and less carbon emissions at lower cost.
The demand for heavy construction equipment has increased within the region, especially in Colombia and Chile, owing to rapid urbanization and heavy investment in infrastructure segment. Unlike the majority of the continent, the excavator segment used in mining, agriculture and other utility activities, over the excavators used in construction, dominates the South American excavator market. This has opened market space for the marketers to experiment with the heavy machinery models and invest more in research to attract more customers through captivating offers and strategies. The manufacturers have extended their expertise by offering certification courses and financial supports that allows the buyers of such heavy machineries to acquire the machine at a less initial cost.