The "Turkey Construction Equipment Market - Strategic Assessment & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering.

The Turkey Construction Equipment Market's size consisted of 25,191 units in 2023, and is expected to reach 34,388 units by 2029, rising at a CAGR of 5.32%.

Caterpillar, Komatsu, Liebherr, XCMG, SANY, Hitachi Construction Machinery and Volvo CE are the front runners in the Turkey construction equipment market. These companies have a strong market share and offer diverse sets of equipment in the market.

Tadano, Terex, Manitou, SDLG, Merlo Spa, Yanmar, MST, Hidromek, Mecalac, and Takeuchi are niche players in the Turkey construction equipment market. These companies offer low product diversification and have a strong presence in the country's market.

KEY HIGHLIGHTS

• Material handling equipment accounted for the largest market share in the Turkey construction equipment market in 2023. Forklifts & Telescopic Handlers in the material handling segment accounted for the largest share in 2023. Significant investment in the country's industrial sector is driving the growth of several logistics infrastructures across Turkey.
• Turkey's construction market is witnessing significant growth due to economic recovery and considerable government investments in industrial facility development, resulting in a heightened demand for high-quality construction equipment.
• In 2023, Hidromek experienced robust equipment sales in Turkey. While a slight dip is anticipated for 2024, sales are expected to remain strong. Europe is the company's largest market, with Spain being a key country.
• In August 2024, Liebherr delivered ship-to-shore (STS) cranes to Marport Terminal, a major container terminal operator in Turkey. Situated on the European side of the Bosphorus, around 20 km from Istanbul, within the Ambarli Port Facility, the terminal has a handling capacity of 2.3 million TEU.

Increased Investment in Public Infrastructure Projects Across Turkey

• The Turkish government has allocated USD 35.53 billion for 12,041 projects in its 2024 budget. Of this, USD 9.32 billion is set aside for 773 projects in the transportation and communication sectors.
• The country is planning to double its production of electric vehicles (EVs) in the upcoming years. The government has planned to build a semiconductor chip factory with an investment of USD 5 billion in 2024. Furthermore, Turkey will provide USD 2.5 billion in grant support for solar cell facilities with up to 15 GW capacity, and the government has allocated another USD 1.7 billion to manufacturing critical components in wind energy.
• Turkey aims to become a global leader in railroad transportation, with plans to expand its high-speed, very high-speed, and conventional train networks by 2053.
• The country will add over 8,500 kilometers to its existing railways, aiming to strengthen connections between Asia and Europe. Strategic projects include the "Great Istanbul Tunnel" and expanding freight corridors to enhance international trade. The projects are projected to support the growth of the Turkey construction equipment market.
• Turkey has been investing heavily in infrastructure, including highways, railways, and airports, especially as part of the "Vision 2023" initiative. Large-scale projects like the Istanbul Canal and new motorways are boosting the need for road rollers in the construction sector.
• The Turkish government has invested heavily in port modernization as part of its logistics master plans. For instance, the Turkish Maritime Strategy and Logistics Master Plan focuses on expanding and upgrading port infrastructure to meet international standards.

MARKET TRENDS & DRIVERS

Green Building Projects Trigger the Use of Electric Construction Equipment and Supports Turkey Construction Equipment Market Growth

• Turkey has adopted a proactive strategy to encourage sustainable construction, minimize environmental impact, and enhance energy efficiency through green building and production initiatives.
• Over the past two years, Turkey has witnessed a notable surge in the adoption of green building design and construction practices, particularly following the establishment of the nation's first Leadership in Energy and Environmental Design (LEED)-certified building in the suburbs of Ankara.
• This trend has led to an increase in the number of green buildings, with approximately 250-300 structures achieving LEED certification.

Hydrogen Technologies Strategy and Roadmap to Boost Turkey Construction Equipment Market

• The Turkish Energy, Nuclear, and Mining Research Institute (TENMAK) will prioritize the advancement of green hydrogen and electrolyzer technology from 2023 to 2053. Starting with a 500 kW electrolyzer in 2023, TENMAK's ambitious plan aims to scale up to 500 MW to 1 GW by 2053.
• Additionally, the institute is committed to developing hydrogen utilization technologies, targeting fuel cell production for heavy land vehicles, marine vessels, railways, and aircraft, with goals ranging from a 300-kW fuel cell in the early stages to a 300 MW fuel cell by 2053.

Turkey's Thriving Tourism Sector Is Fueling the Expansion of Hotels

• Turkey's hospitality industry is expecting a boost, as the country's ten largest hotel groups are set to launch 155 new projects by 2025. Domestic companies are key players in the accommodation sector, overseeing investments, operations, and development, which are vital to the flourishing tourism market.
• This heightened activity in the tourism sector is also drawing interest from top international hotel brands looking to open new locations in Turkey, reinforcing its status as a premier destination for global tourists.
• By 2026, Turkey is expected to complete 354 new hotel and tourism investment projects, including developments from both local and international brands.

Investment in Renewable Energy Projects Drives the Sales of Material-Handling Equipment in the Turkey Construction Equipment Market

• In 2024, Turkey announced an investment plan for approximately USD 20 billion in energy efficiency by 2030, with public and private sector collaboration. These efforts aim to achieve significant energy savings, reduce carbon dioxide emissions, and enhance energy infrastructure.
• The government committed to invest USD 73 billion in renewable energy projects by 2035. Turkey signed a financial agreement of USD 1 billion with the World Bank to accelerate clean energy transitions. Growing investment in renewable energy projects is expected to drive the sales of materials handling equipment such as cranes & aerial platforms in the Turkey construction equipment market.

INDUSTRY RESTRAINTS

High Inflation Rate in the Country

• Turkey's inflation, which soared above 75% earlier in 2024 and currently stands at 52%, along with significant increases in electricity and gas prices, is worsening the country's financial struggles.
• Additionally, the overvaluation of the Turkish lira has weakened its competitiveness against countries like Vietnam and Bangladesh. The government's policy-tightening measures have resulted in a total rate increase of 41.5% points since June 2023, making credit difficult to obtain and driving many exporters into financial hardship.

High Construction Costs Will Hinder the Growth of the Construction Industry

• Rising construction costs in Turkey, fueled by inflation and a weakening currency, are significantly disrupting the construction industry and hampers Turkey construction equipment market growth. Budget overruns, project cancellations, and delays are becoming more common, as developers and investors struggle to manage escalating expenses.
• Recent building permit statistics reveal a sharp decline in construction activity during the second quarter of 2024. Permits for the number of buildings, flats, and total flat area dropped by 22.7%, 28.9%, and 30.9%, respectively. A total of 137,210 housing units were approved for construction, marking the lowest second-quarter figure since 2009, excluding the pandemic year of 2020.

VENDOR LANDSCAPE

Prominent Vendors

• Caterpillar
• Komatsu
• Hitachi Construction Machinery
• Volvo Construction Equipment
• Liebherr
• Xuzhou Construction Machinery Group Co. Ltd. (XCMG)
• SANY
• Kobelco
• JCB
• HD Hyundai Construction Equipment
• Zoomlion Heavy Industry Science & Technology Co., Ltd.
• CASE Construction Equipment
• Bobcat

Other Prominent Vendors

• HIDROMEK
• Mecalac
• SUMITOMO CONSTRUCTION MACHINERY CO., LTD.
• LiuGong
• DEVELON
• Tadano
• Terex Corporation
• Manitou
• Yanmar
• SDLG
• MERLO S.p.A
• Takeuchi
• Bomag
• Ammann
• KATO WORKS CO., LTD.
• Haulotte
• The Manitowoc Company, Inc.
• AUSA
• HELI
• MST
• PALFINGER AG
• Shantui Construction Machinery Co., Ltd.

Distributor Profiles

• ENKA Pazarlama
• TSM Global
• Marubeni Distribution and Service
• Ascendum Turkiye
• HASEL
• SIF IS MAKINALARI 

Key Attributes:

Report Segmentation

• Earthmoving Equipment
  • Excavator
  • Backhoe Loaders
  • Wheeled Loaders
  • Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers, Motor Graders)
• Road Construction Equipment
  • Road Rollers
  • Asphalt Pavers
• Material Handling Equipment
  • Crane
  • Forklift & Telescopic Handlers
  • Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)
• Other Construction Equipment
  • Dumper
  • Tipper
  • Concrete Mixer
  • Concrete Pump Truck
• Segmentation by End Users
  • Construction
  • Mining
  • Manufacturing
  • Others (Power Generation, Utilities Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation Plants, Waste Management)

For more information about this report visit https://www.researchandmarkets.com/r/ks8gwy

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