Reman Market Sizing

Part
01
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Part
01

Market Size - Remanufacturing Market For Construction Equipment Industrial Engine Applications: Global

After an extensive search of the public domain, we were unable to identify the global remanufacturing market for construction equipment industrial engine applications. However, we were able to determine that the global market size of the heavy construction equipment remanufacturing is $38.4 billion. We also determined that the global market size of the off-highway construction and mining equipment engine remanufacturing is $1.83 billion. The research methodology has been outlined below to better understand why the requested information is publicly unavailable, as well as a deep dive into what was available.

Overall size of heavy construction equipment remanufacturing

  • The global market size of heavy construction equipment is $192 billion (screenshot also attached).
  • Dealer revenue from remanufacturing is 20%.
  • Therefore, the global market size of the heavy construction equipment remanufacturing is 20% of $192 billion, which is $38.4 billion.

Overall size of off-highway construction and mining equipment engine remanufacturing

  • Off-highway engines market is valued at $26.87 billion.
  • Of this, the construction and mining industry represents 34%.
  • Therefore, the size of the construction and mining off-highway engines is 34% of $26.87 billion, which is $9.14 billion.
  • Dealer revenue from remanufacturing is 20%.
  • Therefore, the size of the off-highway construction and mining equipment engine remanufacturing is 20% of $9.14 billion, which is $1.83 billion.
  • Assuming Europe and North America's share of the engine market is the same for the remanufacturing market, then, Europe's construction and mining off-highway engines remanufacturing market size is 27% of $1.83 billion, which is $494.1 million. Similarly, North America's construction and mining off-highway engines market is 34% of $1.83 billion, which is $622.2 million.

Research Strategy

We commenced our research into the size of the global remanufacturing market for heavy construction equipment industrial engine applications by searching for reports from credible market research firms such as Grand View Research, Inc., IBISWorld, and Mordor Intelligence. Our observation showed that available reports on the remanufacturing industry were mostly focused on automotive parts remanufacturing. This initial research path also showed that national and regional bodies such as the European Remanufacturing Network (ERN) and the United States International Trade Commission have explored ways to maximize remanufacturing in their respective regions. A thorough search of these organizations showed that while they have published reports on remanufacturing, none was focused on heavy construction equipment industrial engine applications. In one of ERN's report the focus was on nine sectors: aerospace, automotive, heavy-duty and off-road (HDOR) equipment, electronic and electrical equipment (EEE), machinery and medical equipment, and on smaller sectors such as (office) furniture, rail (rolling stock), and marine.

Our next approach was to identify the size of the heavy construction equipment market as well as what percentage of this market is from industrial engine applications only. We reckoned that if we could find these figures, we could then also identify what percentage remanufacturing accounts for. While we were able to identify the size of the heavy construction equipment market, we were unable to identify what percentage of the market is derived from industrial engine applications only. Also, according to Volvo Construction Equipment, one of the key players in the heavy equipment construction market, remanufacturing accounts for 20% of dealers' revenue in Europe and North America. Without the percentage that industrial engine applications account for in the heavy construction equipment market, we can only calculate the overall size of heavy construction equipment remanufacturing, which will also include engine remanufacturing.

Another approach we pursued was to identify the size of the engine market, specifically the share for heavy construction equipment and then use the 20% figure provided by Volvo to calculate the share of the market accounted for by remanufacturing. Our search showed that the available reports either focused on just diesel engines, which is too broad for our consideration while also excluding other forms of engines, or focused on off-highway vehicle engines, which is only a sub-segment of the heavy construction equipment market. That said, the market for off-highway vehicle engines is the closest data available for the overall engine market, specific to the heavy construction equipment industry. The report on the off-highway vehicle engines focuses on engines with an output of "100 HP, 101-200 HP, 201-400 HP, and greater than 400 HP." Also, examples of off-highway construction vehicles included in the reports include excavators and stone crushers.

According to a report by Reports and Data, the off-highway engines market is valued at $26.87 billion in 2018, with Europe holding 27% market share and North America holding 34% market share. Additionally, 34% of the off-highway engines market is accounted for by construction and mining equipment engine. Consequently, in the absence of data points to calculate the global remanufacturing market for construction equipment industrial engine applications, we used these figures to estimate the global market size of the off-highway construction vehicle engines remanufacturing. We also calculated the overall size of the heavy construction equipment remanufacturing as shown above.




Part
02
of two
Part
02

Market Size - Remanufacturing Market For Mining Equipment Industrial Engine Applications: Global

After an extensive search of the public domain, we were unable to pinpoint the global remanufacturing market for construction equipment industrial engine applications. However, we were able to determine that the global market size of the mining equipment remanufacturing is $21.6 billion. We also determined that the global market size of the off-highway construction and mining equipment engine remanufacturing is $1.83 billion. The research methodology has been outlined below to better understand why the requested information is publicly unavailable, as well as a deep dive into what was available.

OVERALL SIZE OF MINING EQUIPMENT REMANUFACTURING

  • The global market size of mining equipment is $108 billion (screenshot also attached).
  • Equipment dealer/provider revenue from remanufacturing is 20%.
  • Therefore, the global market size of the heavy construction equipment remanufacturing is 20% of $108 billion, which is $21.6 billion.

OVERALL SIZE OF OFF-HIGHWAY CONSTRUCTION AND MINING EQUIPMENT ENGINE REMANUFACTURING

  • Off-highway engines market is valued at $26.87 billion.
  • Of this, the construction and mining industry represents 34%.
  • Therefore, the size of the construction and mining off-highway engines is 34% of $26.87 billion, which is $9.14 billion.
  • Equipment dealer/provider revenue from remanufacturing is 20%.
  • Therefore, the size of the off-highway construction and mining equipment engine remanufacturing is 20% of $9.14 billion, which is $1.83 billion.
  • Assuming Europe and North America's share of the engine market is the same for the remanufacturing market, then, Europe's construction and mining off-highway engines remanufacturing market size is 27% of $1.83 billion, which is $494.1 million. Similarly, North America's construction and mining off-highway engines market is 34% of $1.83 billion, which is $622.2 million.

RESEARCH STRATEGY

We commenced our research into the size of the global remanufacturing market for mining equipment industrial engine applications by searching for reports from credible market research firms such as Grand View Research, Inc., IBISWorld, and Mordor Intelligence. Our observation showed that available reports on the remanufacturing industry were mostly focused on automotive parts remanufacturing. This initial research path also showed that national and regional bodies such as the European Remanufacturing Network (ERN) and the United States International Trade Commission (USITC) have explored ways to maximize remanufacturing in their respective regions. A thorough search of these organizations showed that while they have published reports on remanufacturing, none was focused on heavy construction equipment industrial engine applications. In one of ERN's reports the focus was on nine sectors: aerospace, automotive, heavy-duty and off-road (HDOR) equipment, electronic and electrical equipment (EEE), machinery and medical equipment, and on smaller sectors such as (office) furniture, rail (rolling stock), and marine. While the HDOR sector comprises of mining, there are other industries included as well. Also, the last report published by the USITC was in 2012.

Our next approach was to identify the size of the mining equipment market as well as what percentage of this market is from industrial engine applications only. We reckoned that if we could find these figures, we could then also identify what percentage remanufacturing accounts for. While we were able to identify the size of the mining equipment market, we were unable to identify what percentage of the market is derived from industrial engine applications only. Also, according to Volvo Construction Equipment, one of the key players in the mining equipment market, remanufacturing accounts for 20% of dealers' revenue in Europe and North America. Without the percentage that industrial engine applications account for in the mining equipment market, we can only calculate the overall size of mining equipment remanufacturing using the above available data points, which will also include engine remanufacturing.

Another approach we pursued was to identify the size of the engine market, specifically the share for mining equipment and then use the 20% figure provided by Volvo to calculate the share of the market accounted for by remanufacturing. Our search showed that the available reports mostly focused on just diesel engines, which is too broad for our consideration while also excluding other forms of engines. On the other hand, we found that some reports focused on off-highway vehicle engines, which includes engines used for mining. On the assumption that all mining equipment are off-highway due to the terrain mining is done in, we reckoned we could use the mining market share out of the off-highway vehicle engines market to calculate the size of the remanufacturing market for mining equipment industrial engine applications. Unfortunately, the market share of mining is not available as a stand-alone segment, rather it is combined with construction. We posit that this is because some construction equipment is also used for mining, which creates a lot of overlap.

According to a report by Reports and Data, the off-highway engines market is valued at $26.87 billion in 2018, with Europe holding 27% market share and North America holding 34% market share. Additionally, 34% of the off-highway engines market is accounted for by construction and mining equipment engine. Consequently, in the absence of data points to calculate the global remanufacturing market for mining equipment industrial engine applications, we used these figures to estimate the global market size of the off-highway mining equipment engines remanufacturing. We also calculated the overall size of the mining equipment remanufacturing as shown above.






Sources
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