The global construction equipment market worldwide is expected to improve some 3.6% this year, after a weak performance in 2015 when global unit sales fell more than 10%.

Supported by growth in the European, North American and Indian equipment markets, global construction equipment sales would increase from 731 510 units in 2015 to 760 508 units this year, a new report by specialist economic forecasting and market research consultancy Off-Highway Research showed.

This growth was expected to continue for the next four years, with sales of around 777 000 units expected in 2017 and 2018. By 2019, with sales of 808 941 units, industry sales would near 2014 levels, when 818 000 units were sold.

Off-Highway Research MD David Phillips told Engineering News Online during a bauma/Ifat media dialogue, held in Munich, Germany, this week, that growth had started to set in late last year, with the gradual improvement seen in Europe expected to continue.

Figures released this week by the consultancy showed growth across all regions, except Japan.

Sales in Europe would increase from 125 705 units in 2015 to 130 503 this year, gradually growing to 133 353 in 2019.

Sales in the “buoyant” North American market was forecast to grow 4% from 177 935 units in 2015, to a forecast186 025 units this year, before declining gradually to 167 900 units by 2019.

However, India and China were forecast to show gradual, but continual, growth over the next few years.

Stabilisation would be seen in China, where sales declined some 70% since 2011.

Equipment sales was forecast to grow 4% to 137 820 units this year, followed by expected sales of 147 430 units and 156 985 units in 2017 and 2018 respectively. Equipment sales in China would reach 169 375 units in 2019 – a far cry from the 435 000 units sold in 2011, but showing significant growth regardless.

In India, equipment sales were expected to increase from 38 554 units in 2015 to 46 414 units this year and 63 060 units in 2019.

Sales across the rest of world would also experience gradual growth, from 177 973 units sold in 2015 to 200 948 units by 2019.

Japan’s growth would contract somewhat, with only 73 825 units expected to be sold in 2016, falling to 71 000 in 2017 and 2018, compared with the 80 000-odd sold last year. However, a marginal return to growth was expected by 2019, with forecast sales of 74 000 units.

“Off-Highway Research’s forecast is for the start of a gradual return to health in the global construction equipment market in 2016. However, as has been the case since the crisis years of 2008/9, business confidence remains fragile and the uncertain geopolitical outlook around the word could have a negative impact on the sector,” said Phillips.

The company planned to present updated forecasts for the global industry at trade show bauma, to be held in Munich from April 11 to 17.