Contractors prefer tracked pavers: CEG

Monday, December 17, 2018 – Southeast Edition # 26
Team fact. MR

According to estimates by Fact.MR, the Asphalt paver The market will see sales of more than 34,600 units in 2018, a slight increase from 2017. The overall growth of the market will be driven by:

  • Use of predictive maintenance systems in construction machinery to avoid downtime and reduce operating costs
  • Improved fleet management with various financing and acquisition options
  • Development of efficient asphalt pavers with improved screed operation and agile paving width

Fact.MR shows that the expansion and improvement of the road infrastructure are the main reasons for the sales of asphalt pavers in the construction machinery market. Airport paving projects are another prominent consumer of asphalt pavers as construction equipment companies focus on sourcing large projects.

North America leads in volume sales

The sales of asphalt pavers in North America are determined by the need to maintain the extensive road infrastructure in the USA. The Fact.MR study estimates that North America will report a large part of the global demand for asphalt pavers in 2018 as well.

Europe will be closely following North America in terms of sales in 2018. The Fact.MR study assumes that APEJ will record a significant increase in sales of 4.9 percent in 2018 compared to 2017.

“The increasing emphasis on extending the life of existing road and highway infrastructures and increasing public and private investment are major drivers of demand for asphalt pavers. As construction companies vie for lower operating costs and higher productivity, the paver market has seen the adoption by some of the outstanding high-performance models of asphalt pavers over the past half decade, “said a senior analyst at Fact.MR.

The study shows that chain pavers will hold more than 73 percent of the market share in 2018, as contractors for asphalt road and airport paving projects strongly favor chain pavers over wheel pavers.

However, pavers continue to see steady demand, especially for paving applications or paving projects on city streets.

The demand for hydrostatic screed continues to grow among the end users of asphalt pavers because of its superior function of providing an even screed across the road surface. The study estimates that the share of asphalt pavers with hydrostatic screed in sales in 2018 will be over two thirds.

Investment decisions for width and weight

Pavement width and operating weight are two of the outstanding features that, according to Fact.MR, are of decisive importance for construction companies when optimizing their investments. The study estimates that screeds with a pavement width of 4.9 to 8.2 feet are in great demand due to their low engine power and economy and will account for more than 40 percent of total sales by the end of 2018.

With the growth of mega-projects in the developing world, Fact.MR predicts that asphalt pavers with pavement widths greater than 16.4 feet will see rapid expansion.

Asphalt pavers with an operating weight of 17,637 to 26,455 pounds are still preferred as this range of operating weight allows cost-effective operation throughout the construction project, according to the study. Asphalt pavers with an operating weight of 17,637 to 26,455 pounds will see moderate growth from 2017 to 2018.

In the consolidated landscape of the construction machinery industry, the asphalt paver market dominates the dominance of a handful of market participants. Fact.MR’s assessment shows that tier 1 players hold more than 64 percent of the total market share.

Sourcing big ticket projects remains an important strategy for Tier 1 companies in the asphalt paver market. For example, a construction machinery fleet of more than 50 machines from the Wirtgen Group is in use at New Istanbul Airport, the world’s largest airport project. Another example is Dynapac, whose machines are used by Kuwait’s largest construction company Galfar Engineering and Contracting to support road and infrastructure projects in Kuwait.

The Fact.MR report tracks the Asphalt Pavers market for the period 2018-2028. According to the report, the market is expected to grow steadily, with an annual growth rate of more than 3 percent through 2028.

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