Technavio analysts forecast the global telehandler market to post a CAGR of close to 6% by 2020, according to their latest report.

The research study covers the present scenario and growth prospects of the global telehandler market for 2016-2020. To calculate the market size, Technavio’s analysts have considered the total production of telehandlers.

Technavio’s report segments the global telehandler market based on different applications, which include rental, construction, and agriculture. In 2015, the rental segment held the maximum share of 65% in the market because most users prefer renting telehandlers due to its cost-effectiveness and convenience.

Technavio’s report highlights four major factors that are influencing the growth of the global telehandler market:

  • Infrastructure development in BRIC countries
  • Technological advancements
  • High demand from rental market
  • Revival of construction industry

Infrastructure development in BRIC countries

Infrastructure development has a direct impact on various sectors of the economy. The need for better infrastructure leads to high demand for telehandlers, as they can be useful in a wide range of construction activities. Massive spending on infrastructure construction projects, mining activities, and growth in industrial activity in all BRIC nations have made a positive impact on the telehandler market. Economic conditions of these nations will continue to boom, which in turn will boost the market for telehandlers in these countries.

“The Brazilian government started the Growth Acceleration Program in 2007 followed by a second program in 2010 to infuse investments in the infrastructure sector. Both of these programs have been successful and around 12,000 public and private infrastructure projects are in progress in Brazil. Most of these projects belong to the transportation sector,” says Siddharth J, Technavio’s lead automotive manufacturing industry analyst.

Technological advancements

The report states that to make machines more efficient, manufacturers are modifying engines and hydraulic systems. They have been working on producing hydraulic pumps, which are more efficient and provide high output with a given engine and horsepower. Manufacturers are also focusing on making these machines fuel-efficient.

With the use of different attachments, telehandlers can be used for various processes other than just pick and place. They can replace other machines on a construction site and can be used for skid steering, as loaders or backhoes.

High demand from rental market

The rental equipment industry is capital intensive and requires huge amount of funds for acquisition and maintenance of equipment fleets, secure storage facilities, work on the fleets, and for operating the business. Factors such as cash inflows from business, equipment utilization, dollar and time utilization, and higher prices contributed to growth of the market.

“We believe that it is the beginning of the replacement cycle and that telehandlers have not penetrated all the markets yet. As a result, there is a huge market opportunity for telehandlers in other parts of the world as well in the coming years,” said Siddharth J.

Revival of construction industry

The construction industry is the largest user of telehandlers, therefore, the growth of this industry has a direct impact on the telehandlers market. The construction industry has been expanding for several years now, especially in the US. Total construction activity in the US recorded the strongest annual gain this year since the 2008 financial crises and is expected to rise by 12% in 2016.

The non-building construction projects like many massive liquefied natural gas terminals in the Gulf Coast region and the growth of new power plants have significantly improved this segment of the construction industry in the US.

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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