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How much money is spent yearly for the construction personal equipment globally
Thank you for your question to Wonder regarding the global yearly spend in the construction industry on personal equipment.
Industry analyst data put the global personal equipment market at $38.38 billion in 2015, rising from $35,942.5 billion in 2014. For the year 2015, the global market value for personal equipment for construction was reported as $9.5 billion, with an incremental growth of $4.3 billion through to 2020’s expected value of $13.83 billion. The construction industry has steadily recovered from the financial market crash of 2008, which affected the global yearly spend on personal equipment. However, several factors have led to a positive outlook for personal equipment used the construction industry for the coming years.
METHODOLOGY
This research aimed firstly to find an overall figure for the yearly spend on personal equipment for the construction industry. However, after careful research we found that the nearest figure provided showed the market value. Figures specific to the construction industry for personal equipment are difficult to determine as, because the equipment used applies to multiple industries. Head, eye, face and hearing protection can relate to multiple industries. The same applies to hand, respiratory and fall protection equipment. Therefore, the reported market size for the last few years, coupled with the projected CAGR for the coming years, provides the most accurate analysis of the construction industry personal equipment market. Additionally, the research provides reasons for the growth in the market and reasons for the continued expected growth through to 2020.
2014-2016 CONSTRUCTION PERSONAL EQUIPMENT MARKET
In 2014, construction and manufacturing were dominant in the personal equipment market, boasting a global market share of 27.1% of the $35,942.5 billion total protective personal equipment market. According to Technavio, by 2015 the global construction market grew by 2.7% in real growth terms and industry analysts Global Industry Analysts Inc. (GIA) expected in 2015 to see the global market for personal protective equipment reach $33.3 billion. In fact, global personal protective equipment demand was valued at $38.38 billion in 2015, prompting analysts to rethink their projections for 2016 and going forward.
The 2016 figures and forecast shows an increased expectation due to better results than were previously expected. The global personal protective equipment market was expected to reach $68.69 billion by 2024, with Technavio's recent PPE Market in Construction Industry report stating that the construction personal equipment industry is expected to grow at a CAGR of 7.80% during the period 2016-2020. The latest report by Zion Market Research, states that the the global personal protective equipment market was valued at approximately $39.37 billion in 2016 and is expected to reach approximately $57.12 billion by 2022, growing at a CAGR of around 6.4% between 2017 and 2022.
The Technavio report also shows that as of 2015, the global value of the construction personal equipment industry was $9.5 billion, with a projected value of $13.83 billion by 2020. Industrial Safety & Hygiene News (ISHN) reports that Europe and North America dominate the sales of personal equipment globally, with safety gloves accounting for more than 23% of total revenue in 2015. The top five companies accounted for over 50% of the market share in 2015. Honeywell was the market leader with a total share of 24.5% of the global revenue in 2015.
SOME REASONS FOR INCREASED YEARLY SALES
Some of the reasons for the growth, according to industry analysts are that there is an increased demand for fall protection equipment. Fall protection equipment is expected to reach a net worth exceeding $3.6 billion alone by 2024. ISHN also notes that the growing construction industry in Asia Pacific and the Middle East is anticipated to be a key factor driving the fall protection equipment demand. Also, with more women working in the construction industry, the need to provide comfortable and women-specific personal equipment has created an opportunity for vendors. Another reason for growth in the construction personal equipment industry is the infrastructure spending in emerging economies such as India, China and the the Middle East.
SUMMARY
We can conclude from the current industry reports that the construction personal equipment market is healthy. Although year on year sales figures are hard to gauge, due to construction personal equipment being sold and used across multiple industries; construction personal equipment boasted a 2015 value of $9.5 billion, with an expected CAGR of 7.80% for the period 2016-2020. During the years 2014 -2016 forecasts have been constantly reviewed positively, offering a better outlook. This leads us to confidently assume that the value of the industry will have increased in line with expected CAGR for 2017. When combined with the new sales opportunities of women in construction and infrastructure spending across India, China and the Middle East, analysts are agreed that the year on year sales of personal equipment for the construction industry will continue to confound forecasts.
I hope the information and the references provided will prove useful to you.
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