Belgium Construction Equipment Market Report 2022: Strategic Assessments & Forecasts to 2028 - OEMs Focus on Innovations and Digitalization to Maintain Customer Loyalty - ResearchAndMarkets.com

A rise in Government investment in warehouse & logistics infrastructure supports the country's logistics & transport industry growth in 2021. There is significant growth in demand for forklifts in Belgium during the forecast year due to the growing logistics & warehouse industry.

National Recovery and Resilience Plan (NRRP) to cover Investment for Refurbishment & Modernization of Existing Infrastructure

The pandemic adversely impacted Belgium's economy in 2020; the country's GDP contracted by 6.3%. The construction industry declined by 4.5% due to disruption in the supply of raw materials & labor. To push economic recovery, European Union granted a $6.2 billion fund under Recovery & Resilience Plan in 2021 to subside the negative impact of COVID-19.

Apart from this, The government allocated $1083.3 million from the nation's recovery & resilience plan towards renovating buildings in the country's Wallonia, Flanders, & Brussels regions. In 2021, Belgium's construction industry witnessed sharp growth of 6.6%, owing to a rise in infrastructure investments in the transport & renewable energy sectors. According to the national budget for 2021, Belgian railways would receive an additional $267.6 million fund over the following three years.

A major part of funds is allocated for expanding rail freight & upgrading transportation infrastructure. Civil engineering and non-residential markets are the key growth drivers in 2022. Furthermore, investment in public sector infrastructure, digitalization, and a circular and green economy, backed by EU financing, is projected to drive the industry's growth.

Investment in Housing Projects under Regional Housing Plan & Habitat Alliance

In 2020, the Belgium Ministry of Mobility and Public Works invested $2.5 billion in 924 minor and major projects. Investments in these projects will help in boosting the construction industry and generating employment, thereby contributing to the overall economy of the Belgium market.

In 2021, the government invested $299.7 million in affordable housing as part of the Regional Housing Plan and the Habitat Alliance to sustain the existing housing stock and build 6,400 new housing units. According to European Union data, the civil engineering segment in Belgium increased by around 3% in 2021 and is expected to grow by 3% to 4% in 2022.

Major infrastructure projects such as the Oosterweel project and other affordable housing projects in the country is expected to drive the growth of the construction industry.

Nuclear & Renewable Energy Projects Prompts Demand for Mini Excavator & Crane

With the extension of the two nuclear reactors, the federal cabinet resolved to spend an additional $1.3 billion on renewable energy sources in mid-March 2022.

The nuclear phase-out in Belgium will open the path for fast renewable energy growth. The government is likely to exceed its 2030 targets, finishing ahead of the 6.5GW wind power aim and the 6.9GW solar photovoltaics (PV) target by 4.9GW.In 2021, photovoltaic systems produced 4.7 terawatt-hours of power.

This was a 9.7% increase over 2020. Annual solar energy output is estimated to reach 9.7 terawatt-hours by 2030. In addition to it, wind farms in the North Sea are expected to generate 6.8 terawatt-hours of power. In 2022, there will be ongoing renewable energy projects for offshore windfarm and solar plants of 4.8GW and 3.8 GW capacity 2022. Increasing solar and wind energy projects across the country is expected to drive demand for mini excavators & cranes.

Increasing Building Material Prices & Labour Shortage Hamper Infrastructure Projects

The construction sector has struggled for a long time with a shortage in the labor market. 13% of construction workers leave the sector due to technological change and innovation. The prices of building materials such as steel, iron & pipeline in 2021 resulted in six out of ten projects being delayed due to the price elevation.

COVID-19 Triggers Equipment Financing Schemes

Infrastructure projects are delayed due to funding challenges faced by contractors and construction companies. Overwhelmed by the funding challenge, OEMs such as Komatsu, Caterpillar, SANY, and Hitachi construction machinery provided financial assistance to customers. In 2021, OEMs in Belgium saw a surge in equipment financing activities. OEMs are focusing on maximizing benefits from the spike in demand for construction equipment in the country caused due to rise in infrastructure projects.

OEMs in Belgium Focus on Innovations and Digitalization to Maintain Customer Loyalty

In 2022, Hitachi launches a digital application for equipment performance monitoring and technical support system. In 2021, Hitachi also launched the spare parts e-commerce platform to enhance the customer experience. Komatsu and Caterpillar are training their staff to use digital platforms for aftersales services and periodic equipment maintenance.

OEMs are using innovation & digitalization in providing services to enhance customer experience, resulting in better customer loyalty. Belgium's construction industry witnessed labor shortage issues in 2021. According to Belgium government data, ~ 13% of construction workers leave the sector every year due to technological change and innovation.

The labor shortage in the construction industry is expected to prompt the demand for automation, IoT, remote monitoring & AI-based construction equipment in the Belgium market.

Vendor Landscape

Key Vendors

Other Prominent Vendors

Distributors Profiles

Key Topics Covered:

Section 1: Introduction

Section 2: The Market Overview

Section 3: Belgium Construction Equipment (Type & Application)

Section 4: Market Dynamics

Section 5: Technology Development

Section 6: Competitive Landscape

Section 7: Quantitative Summary

Section 8: Report Summary

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KEYWORD: BELGIUM EUROPE
    

INDUSTRY KEYWORD: CONSTRUCTION & PROPERTY OTHER CONSTRUCTION & PROPERTY
    

SOURCE: Research and Markets

Copyright Business Wire 2022.

PUB: 09/19/2022 04:35 AM/DISC: 09/19/2022 04:36 AM

http://www.businesswire.com/news/home/20220919005379/en