Aerial Work Platforms Market Trends

Growth Drivers  

• Growing renewable energy projects: There has been an increase in investments in renewable energy projects, driving the need for aerial work platforms. Missions like United Nations Goal 7 to provide universal access to modern, reliable, and affordable energy sources by 2030 are leading to more investments in renewable energy projects. The International Energy Agency (IEA) states that global spending on renewable energy exceeded USD 3 trillion in 2024. AWP is used in renewable energy projects for turbine maintenance, blade repair, wind turbine cleaning, etc. For instance, Palazzani launched Spider Lifts for the renewable energy industry in July 2022 to cater to the growing demands of its customers.

• Increasing focus on worker safety: There has been a rising awareness of the need for worker safety in various industries. In June 2022, the International Labor Organization (ILO) took a landmark decision so that all member states commit to the promotion of a safe and healthy environment and minimize occupational accidents. This prompted governments to enforce safety regulations stringently leading to greater demands for aerial work platforms that prioritize worker safety. AWPs such as aerial lifts significantly improve worker safety and improve work efficiency. In July 2023, Hered launched the Diesel Telescopic Boom Lift equipped with platform controls and emergency shutdown features to improve worker safety. It is expected that more industries will switch to AWP solutions from traditional solutions such as ladders and scaffolding.

• Rapid urbanization: The significant rate of urbanization is a key driver of the increasing revenue share of the aerial work platforms market. The high rate of urbanization increases construction activities in urban spaces as the growing population needs to be accommodated. The demands of a rising urban population also boost construction activities as malls, theatres, shopping complexes, food courts, corporate offices, etc., are built. The UN Department of Social and Economic Affairs (DESA) projects that 68% of world's population to live in urban areas by 2050. To tackle the demands for increasing high-rise constructions for a rapidly urbanized population, AWP shipping by rental companies is expected to boom.

Challenges

• Navigating the boom-and-bust cycles: The aerial work platforms market is known to have strong boom-and-bust cycles where there are periods of significant market expansion followed by recession. During bust cycles, the demands can plummet leading to excess capacity and lower prices. Rental companies and other businesses need to be prepared to handle the economic downturn associated with this market as often bust cycles can lead to business closures and layoffs.

• Overreliance on vendors: The AWP market depends on a network of specialized vendors for parts and maintenance services. Heavy reliance on vendors can create bottlenecks if there are disruptions in supply leading to increased operational expenses. Outsourcing maintenance and repair can also dilute a company’s control over the quality and timeliness of the services. Additionally, added security risks is a constraint in the market growth.