Global piling equipment market estimated to reach $6.47 billion by 2024
The MEA region will witness significant growth at a CAGR of 4.5% from 2016 to 2024 in light of favourable government inclination towards the development of infrastructure and tourism
The global piling machine market is expected to reach $ 6.47 billion by 2024, according to a report by Grand View Research. Markets with booming construction industries are expected to propel the demand for piling equipment and supplies necessary in pile foundation work. They include India, China, Thailand, Saudi Arabia, UAE, Thailand and Malaysia where urbanization, population growth, and government infrastructure development initiatives in transportation, healthcare, education, water and energy are creating new demand for piling and foundation equipment for the construction of residential and commercial buildings, manufacturing facilities, drilling platforms, mining bases, wind farms, solar power plants, and power transmission plants.
The MEA region will witness significant growth at a CAGR of 4.5% from 2016 to 2024 in light of favourable government inclination towards the development of infrastructure and tourism. Further, according to a new research study published by Persistence Market Research, growing investments in non-conventional sources of energy and rising exploration activities to extract new mineral deposits are expected to fuel demand and revenue growth in the global piling equipment and supplies market. Abundant availability of solar energy to produce electricity in Saudi Arabia is expected to increase the installations of power stations, which in turn will drive product demand over the coming years.
Technology enabled advances in hydraulic fracturing have led to a shift from conventional production of utilities to non-conventional shale gas and tight oil production. Shale gas and tight oil is produced in large quantities in the U.S and Canada and this is likely to result in an increase in foundation work in shale gas production facilities, thereby amplifying the demand for piling equipment. A shifting focus towards unconventional energy sources such as solar and wind energy to generate power is being underpinned by regulatory approvals and governmental support in countries such as India, China, and Japan. This is further anticipated to lead to increase in foundation work and thereby fuel the demand for piling equipment.
Manufacturers of piling equipment are leveraging technological innovation to improve the quality and performance of their products while complying with rules and regulations pertaining to environmental protection and sustainability. The diesel hammer has slowly given way to hydraulic hammers and in several densely populated regions, piling equipment used both to drill piles into the ground and excavate existing piles, uses vibration technology to reduce instances of noise and dust pollution.
The latest piling equipment models are pre-fitted with GPS and other land positioning systems that help locate foundations. For instance, sensors are used on crane booms, foundation rig masts, and in vertical lead systems to position foundation elements. Technological development allows rigs and cranes to correctly position the foundation within specific coordinates and thereby minimizes costs associated with surveys. These advancements are expected to bolster revenues in the global piling equipment and supplies market.
The high cost associated with buying new piling machines on account of increasing cost related to consumables including engines and heavy-duty hydraulic systems is expected to force buyers to prefer rental equipment. Furthermore, rising tooling cost in light of recommendations by OEMs to use specialized tools and relevant lubrication oils is likely to remain a concerning factor for industry participants.
Growing focus of numerous governments including the US and Germany to increase energy output through wind sources is expected to increase the installation of turbines. As a result, the growth of the wind power sector will create immense market potential over the next five years.
Piling rigs will see high demand owing to their ability to perform multi-purpose functions including drilling and grouting and auger and screw boring. Expansion of railways network in various countries including China, India, UAE and Saudi Arabia in light of new establishments of metro rail systems is expected to increase usage of multi-functional piling machines, which in turn will augment industry expansion over the coming years.
Impact hammers constitute another large market segment. Lower cost as compared to other products along with their ease of incorporation in foundation industry is expected to propel their demand in the future.
Vibratory drivers were a prominent segment and is projected to witness a decrease in its share by 2024 on account of stringent regulations aimed at restricting the application scope of construction equipment causing high noise levels. Vibratory drivers will witness steady growth owing to increasing application in sandy or gravel geographies on account of effectively breaking down skin friction to drive the piles. Rising usage of vibratory drivers on account of their exceptional penetration speed is expected to fuel demand over the forecast period. However, stringent regulations to reduce the vibrations and noises during construction is expected to hamper its growth over the forecast period.
The impact driven method is projected to witness growth as a result of its low-cost and efficient pile installations at sites with firm soil. Impact-driven is done with the help of a hydraulic system, compressor, diesel or manual impact hammer machine.
Rising usage in full displacement piling and construction of foundations of tall buildings will promote industry expansion. Increasing construction of high-rise buildings is expected to augment market growth over the forecast period. Growing popularity of new methods such as reverse circulation drilling and rotary boring is foreseen to be a major hindrance for the industry.
The increasing use of screw tools for undergoing boring is expected to be a favourable factor for growth. Continuous flight auger (CFA) piling will show the fastest growth until 2024 at a CAGR of 6.5% in light of providing fewer vibrations.