DUBLIN–(BUSINESS WIRE)–The “Portugal Construction Equipment Market – Strategic Assessment and Forecast 2022-2028” report has been added to ResearchAndMarkets.com’s offering.
Government investment in infrastructure, real estate & transport industries under National Development Plan 2030 drives the demand for construction equipment in Portugal.
The Earthmoving segment has the largest share of Portugal’s Construction equipment. The excavators held the largest share in the earthmoving segment in 2021. The growth in infrastructure investment under the national development plan 2030. The surge in civil engineering & housing projects in 2021 is expected to support the demand for excavators.
In 2021, Portugal’s government increased the public & transport infrastructure investment. The government has also shifted its focus on renewable energy resources and planned to invest $26.2 billion to upgrade the renewable energy industry in the next 10 years.
The rise in Government investment in warehouse & logistics infrastructure supports the country’s logistics & E-commerce industry growth in 2021. The surge in construction, renewable energy projects & growth in the E-commerce industry positively impact the demand for construction equipment in Portugal.
In 2021, Portugal’s recycling and waste management activities increased by 6.4%. The recycling activities is expected to grow in 2022 as the government aims to recycle 65% of waste by 2035, so demand for medium-size excavator having light weight & high swing speed are growing in recent times in the market, which is most suitable for recycling activities.
Growth in Construction, Renewable & Logistics Industries Drives the Economic Recovery
In 2020, Portugal’s economy contracted by 7.6% due to a severe decline in tourism & exports caused by the government’s lockdown measures. Construction & Manufacturing industry declined by 3.9% & 10.9% respectively.
The country’s economy slightly grew by 4% in 2021 due to increased government infrastructure investment and resilient construction industry performance. The real estate & housing industry witnessed growth in 2021, and the country’s export increased by 8.1% due to a surge in foreign demand. According to European Commission, Portugal’s economy is expected to grow by 5.8% in 2022. European Union granted $14.8 billion under Portugal’s Recovery & Resilience Plan. The government also announced an investment of $43.5 billion for infrastructure development across the country in 2021.
Expected Growth in FDI Inflow in Renewable Energy Sectors of Northern & Alentejo Region
Foreign direct investment in 2021 was increased by 38%. The manufacturing & service industries attracted maximum FDI inflow in 2021. The Northern & Lisbon Region of the country attracted more than 80% of FDI inflow. European countries like France, Germany & UK were some investors in Portugal’s economy in 2021. High growth in renewable energy sectors is expected in 2022 due to various ongoing solar projects in Porto & Mertola City of the northern & Alentejo region, respectively.
Investment In Public Infrastructure & Logistic Industry
Portugal’s government announced in 2021 to invest $45.1 billion in public infrastructure, including a high-speed railways link between Lisbon & Porto cities. This project is estimated to cost $ 4.7 billion and is expected to be completed by 2030. The government investments focused on the country’s transport & energy sectors. $22.7 billion was allocated for transport projects, and $13.7 billion was directed toward clean energy projects.
In 2022, public infrastructure projects are in progress, funded by the national budget, European Union funds, & private investment. European Union granted $14.5 billion under PRR (Portugal Recovery Resilience) plan in the second half of 2021. The construction of residential buildings is expected to grow by 5.5%, maintaining a competitive position in the real estate market. Civil engineering, which is expected to be the most dynamic segment in 2022, is expected to grow by 7.5%.
The surge in government investment in developing logistics infrastructure, the growing E-commerce sector, and rising exports positively impact Portugal’s logistics & warehousing market. The government is investing in upgrading transport infrastructure and expanding major ports such as Leixos & Sines in 2022. Portugal’s exports are expected to grow by 22% in 2022.
Shifting of Focus Towards Renewable Energy Resources
Portugal aimed to increase its renewable energy production from 20% in 2021 to 80% by 2026. In 2021, Portugal’s government planned to shift away from fossil fuel to renewable energy sources such as wind, solar & hydro. The government planned to invest $26.2 billion to upgrade the renewable energy industry in the next 10 years. The country has committed to becoming carbon natural by 2050 and producing electricity using renewable energy resources. Recently in 2022, Portugal closed its two-coal fire plant and replaced it with 7.3 GW of hydroelectric & 5.6 GW of the onshore wind park, which fulfilled ~83% of the total capacity of coal fire plants in the region.
According to Portugal’s government, Photovoltaic solar energy had tremendous potential as it grew by more than 20% in 2021. The installed capacity of photovoltaic solar was 7,359 MW in 2021 and is expected to grow sharply in 2022 due to increasing government focus and investment.
Anti-Mining Protest Against Lithium Extraction & Rising Building Material & Labour Costs Are Major Challenges
Many environmentalists are against it as it can increase soil pollution and deforestation and can hamper the ecosystem. Anti-mining protests are observed in, especially in Northern & southern parts of the country where the Lithium mines are majorly present. The country’s environmental association wants the government should make environmental assessments & study the impact of lithium exploration on the environment. Three major Lithium extraction projects in 2022 are hampered due to local protests of villagers & environmentalists in Minas do Barroso (Boticas), Angela (Covilha & Fundao) & Romano (Montalegre) regions.
Instituto Nacional de Estatistica (INE) states that new housing construction costs will increase by 7% in 2021. The increase in the price of materials and cost of labor triggered the overall increase in the price of new houses in the Portugal market. In 2021, the price of building materials and labor rose by 8% & 5.1%, respectively.
In 2022, the building material & commodities prices increased by 18% due to a mismatch of demand and supply. Steel concrete rods increased by 54%, aluminum (61%) & Copper (47%) which is expected to have an adverse impact on the demand for new housing in the country.
Electric Equipment & Medium Size Excavators Are Gaining
Environmentalists are suggesting the government study the environmental impact of Lithium extraction. Therefore, Portugal Government introduced green mining technology. Green mining focuses on reducing carbon emissions during extraction, resulting in low environmental impact. Green mining can trigger the demand for electric construction equipment in Portugal.
Portugal’s government focused on recycling and waste management processes in 2021. The recycling of packaging increased by 6.4% in 2021 compared to 2020. Portugal government aims to increase recycle target by 55% in 2025,60% by 2030 & 65% by 2035. Government has recycling plants in the Lisbon & Porto region of the country. With the rise of recycling & waste management activities across the region, the demand for medium-sized excavators increased in 2021. Hitachi Construction Machinery (HCE) introduced the ZX300LCN-6 excavator in the Portugal market for recycling work.
Hitachi Construction Machinery, Caterpillar, Komatsu, & Liebherr are the market leaders, accounting for 23.1% of the market share in 2021.
Prominent vendors are Hitachi Construction Machinery, Caterpillar, Komatsu, Kobelco, Hyundai Construction Equipment, JCB, Liebherr & Volvo Construction Equipment.
Other prominent vendors are Liu Gong, Yanmar, Case Construction Equipment & Terex Corporation.
Hitachi Construction Machinery
Hyundai Construction Equipment
Other Prominent Vendors
CASE Construction Equipment
Auto Mecanica Alvorgenese
Sociedade Tecnica de Equipamentos e Tractores SA
For more information about this report visit https://www.researchandmarkets.com/r/h05fna
>>> Don’t Miss Today’s BEST Amazon Deals! <<<<