Autonomous Heavy Equipment Market Trends

Growth Drivers

• Rapid Development in the Real Estate Sector – In the recent period, the demand for strong and robust structures has considerably grown up owing to the swift urbanization and industrialization across the globe. As a result, the real estate sector has considerably grown, which is anticipated to further create opportunities for the utilization of autonomous heavy equipment in a wide array of activities. Hence, this factor is expected to bring favorable growth opportunities for the expansion of market growth in the upcoming future.  For instance, it has been noticed that the real estate sector is recovering as the global pandemic recedes. As per recent estimates, the revenue generation of real estate companies worldwide stood at approximately USD 10 billion in 2021.
• Significant Increase in Infrastructure Development Projects – Recently, the governments of different nations are working towards the development of infrastructures such as highways, roads, bridges, and others for connecting parts of the world. Such heavy construction activities generate the need for autonomous heavy equipment for performing efficient construction processes. Therefore, the rising initiations to develop several infrastructures are estimated to create a positive outlook for the development of the global autonomous heavy equipment market in the assessment period. For instance, one of the major infrastructure projects is the Belt and Road Initiative by China. The project aims to accelerate economic growth across central and eastern Europe, Asia Pacific, and Africa by addressing the infrastructure gap between these regions. As of July 2022, up to 150 countries had officially agreed to join the Belt and Road Initiative (BRI) by China. Further, as per predictions by experts, China should spend up to USD 9 trillion over the life of the BRI.
• Growing Adoption of Automation Processes Across the World – With the rising technological advancements, industries are propelled to adopt advanced technologies such as automation for performing heavy tasks. This factor is projected to increase awareness about the advantages of autonomous heavy equipment among the global population, which in turn, is anticipated to contribute positively towards market growth in the next few years. Recent statistics that have been published in 2022, stated that automation is expected to boost global productivity by almost 2% every year. Also, almost 85% of global businesses are forecasted to introduce robots and automation in the next ten years.
• Escalation in the Use of Artificial Intelligence (AI) – Businesses around the world are focused on digital transformation by using the benefits of Artificial Intelligence (AI) for upgrading their activities and gaining major profits. Therefore, the use of autonomous heavy equipment is preferred owing to its various advantages which are further estimated to help in market growth. It has been stated that AI is predicted to contribute almost USD 16 trillion to the global economy by 2030, and nine out of ten leading businesses are forecasted to invest in AI technologies.
• Increased Investment in the Research & Development (R&D) Sector – As per the World Bank, the Research and Development expenditure accounted for 2.63% of total GDP in 2020. This was a rise from 2.13% of the total GDP in 2017.

Challenges

• Rising Concerns Regarding Safety and Cyber Security Issues – To automate heavy equipment, an efficient control system is generally used. However, cyber security cases are estimated to pose a challenge to market growth as it is difficult to control the potential damage that could be caused by hacking heavy equipment. Hackers are able to exploit the communication systems between vehicles and infrastructures. Hence, the threats associated with the protection and safety of heavy equipment are projected to limit the growth of the autonomous heavy equipment market in the near future.
• Requirement of a High Initial Investment
• Shortage of Labor Who Are Skilled to Use the Equipment