The global overhead cranes market size was worth USD 5,895 million in 2022. It is expected to reach USD 10,456 million by 2031, growing at a CAGR of 5.9% during the forecast period (2022–2030). In industrial settings, overhead cranes—also called bridge cranes or industrial cranes—are primarily used for lifting and moving large, heavy objects. It comprises a single or double girder system that facilitates trolley and hoist movement. The hoist only permits vertical direction; the trolley only allows horizontal movement. Additionally, overhead cranes are frequently used in metal & mining, aerospace, automotive, shipbuilding, and other industries.
The need for overhead cranes is rising, propelling the growth of the overhead cranes market. These industries include manufacturing, transportation & logistics, and warehousing & storage facilities. Government and corporate organizations invest in infrastructure development projects, including building roads, dams, bridges, railroads, and waterways. Large overhead cranes with great loading capacities frequently need lifting and moving heavy goods. As a result, there is an increasing need for overhead cranes in these emerging industries. Furthermore, work precision is increased by overhead cranes created using specialist tools by requirements. During the projection period, these factors are anticipated to increase demand for overhead cranes.
|Market Size||USD 10,456 million by 2031|
|Fastest Growing Market||Europe|
|Largest Market||Asia Pacific|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The infrastructural gap is an essential issue in nearly all countries globally, owing to capital-based investment and recurrent expenditure requirements. According to the Global Infrastructure Hub (GIH) in 2020, the current investment in 56 global countries across seven sectors, including energy, telecommunication, airport, road, rail, ports, and water, was valued at USD 79 trillion, whereas the investment needed was USD 94 trillion, creating a gap of USD 15 trillion. Through the G20 initiatives, the GIH is trying to attract investments from private and public firms to shrink the infrastructure gap.
Other developing countries such as India, Vietnam, Mexico, and others, are focusing on public-private partnerships (PPPs) to build infrastructure. In November 2020, the real estate firm Warburg Pincus based in the US, signed an agreement with the state government of Maharashtra, India, to invest USD 578.8 million to develop 11 industrial and logistics parks across the two urban cities, Pune and Mumbai. Such developments are expected to boost the demand for overhead cranes, significantly driving the overhead cranes market.
Growing Demand for Workplace Safety in Industrial Applications to Aid Growth
Overhead cranes can lift huge, bulky goods in industrial settings, where improper lifting techniques for such heavy loads and containers can compromise workplace safety and harm the product. Multiple forklifts can be replaced by a single overhead crane, which lowers product damage. Furthermore, overhead cranes are less likely to transfer cargo to people, walls, machinery, or other obstructions than forklift traffic because they operate in an overhead space. These elements fuel an increase in demand for overhead cranes. Additionally, fewer human interventions lower labor and production costs. Consequently, the need for overhead cranes is increased due to the reduction of overall operational costs in the manufacturing process and the improvement of worker safety.
Overhead crane manufacturers face issues obtaining components from their suppliers at the required rate. In addition, overhead crane manufacturers need skilled labor to manufacture the crane, where restricted availability of skilled labor poses a natural limit to equipment sales. Such factors highly impact the lead times in manufacturing processes, which in turn restrains the growth of the overhead cranes market.
The regional governments' low manufacturing costs and supportive policies influence the growth of the end-user industries in many developing countries. Additionally, many emerging nations like India, Sri Lanka, and others are investing in domestic manufacturing, which is anticipated to offer attractive chances to small and new overhead crane manufacturers to grow their company capacities during the projection period.
Geographically, the global overhead cranes market has been analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the largest shareholder and is estimated to expand at a CAGR of 5.6% during the forecast period. China holds the maximum share in the overhead crane industry in the Asia-Pacific region, followed by Japan. Countries such as India, South Korea, Vietnam, and others possess high growth opportunities, owing to rapid infrastructural development. In addition, the US-China trade war has resulted in various North American manufacturers shifting their production outside China. According to the American Chamber of Commerce, this is highly profitable for investors due to the abundance of the human workforce and low land prices. Countries such as Vietnam, Thailand, Malaysia, Indonesia, and others are at the forefront regarding worker productivity and have high gross domestic product (GDP) growth rates. Such factors are anticipated to propel the overhead cranes market growth in Asia-Pacific.
Europe is the second-largest region and is projected to grow at a CAGR of 4.7%. Europe is a central hub of global overhead crane manufacturers, where four significant manufacturers have the largest market share in the region. The overhead crane industry is highly consolidated in Europe, whereas the demand from China is lower to promote the sales of local manufacturers. Furthermore, companies are adopting acquisition and partnership strategies to gain a significant market share in the European overhead cranes market. For instance, the company Konecranes Plc., based in Finland, acquired around 50% stake in the MHE-Demag, a global manufacturer of overhead cranes. These factors affect the growth of the overhead crane industry in Europe.
North America is the third largest region. The US is among the most significant users of overhead cranes. It has a sophisticated sales and aftersales market with various local and international players such as Konecranes Inc., Gorbel Inc., American Equipment Inc., and others. Although the automotive manufacturing industry growth has been slow-paced since the US and China trade war, the increasing focus on oil & gas extraction is expected to bolster the demand for mobile cranes in the US and Canada.
According to a report on Investment in Canadian and the US Oil & Gas sectors published in 2019 by the Fraser Institute, the US oil & gas industry has expanded production and capacity significantly. In November 2018, the Energy Information Agency of the US announced that shale oil output was more than the target and was expected to hit records in December 2018. Such immense growth in the oil & gas industry in North America drives the development of the overhead cranes market.
The global overhead cranes market is segmented by boom type, business type, end-user, and region.
The Single Girder segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.4% during the forecast period. Single girder cranes are very cost-effective and are highly suitable in medium to light-duty applications or when the facility has less floor space or headroom. Further single girder cranes also use less construction and are more compact and lightweight than double girder cranes. This also results in a reduction of costs in materials, installation, and freight. Single girder cranes are available in maximum lifting capacities of 5 tons to 35 tons. Such advantages of single girder cranes boost the growth of the overhead cranes market.
The Double Girder segment is growing significantly. Double girder cranes are highly recommended for heavy-duty applications such as in heavy automotive industries, oil & gas, shipbuilding, steel production, and others. These cranes have a more complex design and are more expensive than single girder cranes. They require more material for the runway system and bridge beams. They also have a greater hook height, typically 18" to 36" more than single girder cranes.
Additionally, the inclusion of automation technologies is also boosting the productivity of these cranes, which will likely attract more consumers to double overhead girder cranes. For instance, Condra Cranes and Hoists, based in South Africa, developed a fully automated overhead crane for South African platinum group metals operation. It is an electric double girder crane having a span of 16 meters and a lifting capacity of 16 tons. The crane is fully automated and can monitor remotely from a control room. Such developments are expected to boost the market growth during the forecast period.
The OEM segment is the highest contributor to the market and is estimated to grow at a CAGR of 4.7% during the forecast period. Most overhead crane manufacturers, including Weihua Group, Konecranes Plc., and others, are involved in original equipment manufacturing (OEM) activities; however, they also outsource various equipment parts from other companies. These companies produce the highest revenue in the global market. The automation software providers, engine manufacturers, and other part manufacturers assist OEMs by providing the latest technologies. Furthermore, China is a significant manufacturer of overhead cranes and highly contributes to global demand. Including" Industry 4.0" and automation in the manufacturing process has proven to be advantageous for propelling the growth of OEM companies in the overhead cranes market.
The Aftermarket segment is the fastest growing. Major players in the industry focus on providing efficient aftersales services to increase the working life of overhead cranes. Overhead cranes are expensive equipment, and routine maintenance is necessary to avoid downtimes and accidents. In addition, the aftermarket overhead cranes market has lucrative opportunities in the rental industry. Due to the high overhead crane cost, contractors mainly rent equipment for small job sites. The demand for rental business propels the growth of the aftermarket mobile cranes industry.
Automotive is the dominant segment and is estimated to grow at a CAGR of 5% during the forecast period. Overhead cranes are highly efficient for applications in the automotive industry. It is used for lifting and transporting automobile parts to an entirely assembled car depending upon the requirement and lifting capacity of the crane. This reduces the dependence on human power and the traffic on the work floor, which optimizes the process. Moreover, employee safety has been a significant trend within automotive manufacturers, bolsters the use of overhead lifting equipment such as overhead cranes, vacuum lifters, and hoists.
According to the manager of handling systems applications engineer for the company Schmalz GmbH based in Germany, an automotive manufacturer has different concerns and return on investment (ROI) calculations than any other industry. More automotive manufacturers are focusing on overhead cranes, even for small weights, as this equipment lifts numerous units daily to sustain the production cycle. This drives the demand for overhead cranes in the automotive industry, thereby boosting the growth of the overhead cranes market.
The Utility segment is the fastest growing. The aging power generation infrastructure and need for digitization are the major drivers for the growth of the utility industry. In addition, the changing landscape of electricity generation from non-renewable to renewable resources is likely to be lucrative for the industry's growth during the forecast period. Moreover, the construction of grid systems for electric vehicle charging, solar-based public lighting systems, smart city metal & mining, and others can provide significant growth for the market.
Various private companies in the utilities and power sector are offering products and services for the changing public metal & mining landscape. For instance, the company Siemens AG, based in Germany, provides the VersiCharge AC series hardware and software products for electric vehicle charging. This changing scenario of public utilities is likely to drive the demand for overhead cranes, which drives the global overhead cranes market expansion.