DUBLIN–(BUSINESS WIRE)–July 28, 2022–
The “Portuguese Construction Equipment Market – Strategic Assessment and Forecast 2022-2028” report has been added to ResearchAndMarkets.com’s offering.
Public investment in infrastructure, real estate and transport under the National Development Plan 2030 is driving demand for construction equipment in Portugal.
The earthmoving segment has the largest share of construction equipment in Portugal. Excavators held the largest share of the earthmoving segment in 2021. Growth in infrastructure investment under the 2030 national development plan. Surge in civil engineering and housing projects in 2021 is expected to support the demand for excavators .
In 2021, the Portuguese government increased investment in public and transport infrastructure. The government has also shifted its focus to renewable energy resources and has planned to invest $26.2 billion to modernize the renewable energy industry over the next 10 years.
Increased public investment in warehousing and logistics infrastructure supports the growth of the country’s logistics and e-commerce industry in 2021. Increased construction, renewable energy projects and growth of the e-commerce industry is having a positive impact on the demand for construction equipment in Portugal.
In 2021, Portugal’s recycling and waste management activities increased by 6.4%. Recycling business is expected to increase in 2022 as the government aims to recycle 65% of waste materials by 2035, so the demand for medium-sized excavators having light weight and high rotation speed is increasing lately on the market, which is the most suitable for recycling activities.
Growth in the construction, renewable energy and logistics sectors is driving economic recovery
In 2020, the Portuguese economy contracted by 7.6% due to a sharp drop in tourism and exports caused by government containment measures. The construction and manufacturing industry declined by 3.9% and 10.9% respectively.
The country’s economy grew slightly by 4% in 2021 due to increased public investment in infrastructure and the resilient performance of the construction industry. The real estate and housing industry saw growth in 2021 and the country’s exports increased by 8.1% due to a surge in foreign demand. According to the European Commission, the Portuguese economy is expected to grow by 5.8% in 2022. The European Union has granted $14.8 billion as part of Portugal’s recovery and resilience plan. The government also announced an investment of $43.5 billion for infrastructure development across the country in 2021.
Expected growth of FDI inflows in the renewable energy sectors of the North and Alentejo region
Foreign direct investment in 2021 increased by 38%. Manufacturing and services industries attracted maximum FDI in 2021. The North and Lisbon region of the country attracted more than 80% of FDI inflows. European countries such as France, Germany and the United Kingdom have been investors in the Portuguese economy in 2021. Strong growth in the renewable energy sectors is expected in 2022 due to various solar projects underway in Porto and Mertola City in the North and Alentejo region, respectively.
Investment in public infrastructure and the logistics industry
The Portuguese government announced in 2021 a $45.1 billion investment in public infrastructure, including a high-speed rail link between the cities of Lisbon and Porto. This project is estimated at $4.7 billion and is expected to be completed by 2030. Government investments have focused on the country’s transport and energy sectors. $22.7 billion was allocated to transportation projects and $13.7 billion was spent on clean energy projects.
In 2022, public infrastructure projects are underway, financed by the national budget, European Union funds and private investments. The European Union granted $14.5 billion under the 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 should be the most dynamic segment in 2022, should grow by 7.5%.
The increase in public investments in the development of logistics infrastructure, the growth of the e-commerce sector and the rise in exports are having a positive impact on the Portuguese logistics and warehousing market. The government is investing in the modernization of transport infrastructure and the expansion of major ports such as Leixos and Sines in 2022. Exports from Portugal are expected to increase by 22% in 2022.
Shift in focus to renewable energy resources
Portugal aimed to increase its renewable energy production from 20% in 2021 to 80% by 2026. In 2021, the Portuguese government planned to switch from fossil fuels to renewable energy sources such as wind, solar and hydroelectricity. The government planned to invest $26.2 billion to modernize the renewable energy industry over the next 10 years. The country has pledged to become natural carbon by 2050 and generate electricity from renewable energy resources. Recently in 2022, Portugal shut down its dual-coal power plant and replaced it with 7.3 GW of hydropower and 5.6 GW of onshore wind farm, which filled around 83% of the total coal-fired power plant capacity of the region.
According to the Portuguese government, solar PV had huge potential as it grew by more than 20% in 2021. The installed capacity of solar PV was 7,359 MW in 2021 and is expected to increase sharply in 2022 by due to increased government attention and investment.
Anti-mining protests against lithium mining and rising construction material and labor costs are major challenges
Many environmentalists oppose it because it can increase soil pollution and deforestation and can hamper the ecosystem. Anti-mine demonstrations are observed, especially in the northern and southern regions of the country where lithium mines are mainly present. The country’s environmental association wants the government to do environmental assessments and study the impact of lithium exploration on the environment. Three major lithium mining projects in 2022 are hampered due to local protests by villagers and environmentalists in the regions of Minas do Barroso (Boticas), Angela (Covilha & Fundao) and Romano (Montalegre).
The Instituto Nacional de Estatistica (INE) says construction costs for new housing will increase by 7% in 2021. Rising material prices and labor costs triggered the overall price increase new homes on the Portuguese market. In 2021, the price of construction materials and labor increased by 8% and 5.1% respectively.
In 2022, the prices of construction materials and raw materials increased by 18% due to a mismatch between supply and demand. Steel concrete rods were up 54%, aluminum (61%) and copper (47%), which is expected to negatively impact new housing demand in the country.
Electrical equipment and medium-sized excavators are gaining ground
Environmentalists suggest the government study the environmental impact of lithium mining. Therefore, the Portuguese government introduced green mining technology. Green mining focuses on reducing carbon emissions during extraction, resulting in low environmental impact. Green mining can trigger demand for electrical construction equipment in Portugal.
The Portuguese government focused on recycling and waste management processes in 2021. Packaging recycling increased by 6.4% in 2021 compared to 2020. The Portuguese government aims to increase the recycling target by 55% by 2025, 60% by 2030 and 65% by 2035. Government owns recycling plants in the Lisbon and Porto region of the country. With the boom in recycling and waste management activities in the region, the demand for medium-sized excavators has increased in 2021. Hitachi Construction Machinery (HCE) has introduced the ZX300LCN-6 excavator to the Portuguese market for construction works. recycling.
- Hitachi Construction Machinery, Caterpillar, Komatsu and Liebherr are the market leaders, accounting for 23.1% market share in 2021.
- The main suppliers are Hitachi Construction Machinery, Caterpillar, Komatsu, Kobelco, Hyundai Construction Equipment, JCB, Liebherr and Volvo Construction Equipment.
- Other important suppliers are Liu Gong, Yanmar, Case Construction Equipment and Terex Corporation.
- Hitachi construction machinery
- Hyundai construction equipment
Other Important Suppliers
- Terex Company
- Liu Gong
- CASE Construction equipment
- Auto Mecanica Alvorgenese
- Ascendum Maquininas
- Sociedade Tecnica de Equipamentos e Tractores SA
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KEYWORD: PORTUGAL EUROPE
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SOURCE: Research and Markets
Copyright BusinessWire 2022.
PUBLISHED: 07/28/2022 11:10 a.m. / DISK: 07/28/2022 11:12 a.m.