The global heavy equipment industry is estimated to be sized at around 192 billion U.S. Dollars
Typically, heavy equipment is used for different functions such as hauling, drilling, excavating, paving, and grading. Also, the global heavy equipment market covers various industries including oil and gas, manufacturing, military, forestry, and public works. Increasing residential, industrial, and commercial construction activities, rising public-private partnerships, and global economic growth is expected to drive the demand for heavy equipment in the coming years. Additionally, the advancement in technology is leading to the introduction of highly efficient heavy equipment, thereby, forcing the competitors in the market to reach for new levels of differentiation.
Although the global heavy equipment industry is proliferating, several challenges are restricting the growth prospects. A few factors include:
- Carbon emission: Most of the companies in this space use diesel as fuel for its operations. Use of such fuel intensifies the emission of CO2 and further increases carbon footprint and health risks. Therefore, the increasing level of carbon emissions poses a major challenge to the growth of the market. As a result, it is crucial for companies to identify alternative energy sources to reduce the carbon emission.
- Renting options: Today, renting is a viable option for a large number of businesses to reduce heavy investments by saving on the high costs of equipment. This poses a significant challenge to the manufacturers.
Challenges such as these are driving manufacturers across the globe to leverage the use of market share analysis solutions. With the help of market share analysis, firms can gain a holistic view of the latest trends and identify opportunities to capture additional shares in the market. These solutions also help establishments realize the amount of share that they embrace and accordingly allocate their resources.
The Business Challenge
The client: A renowned heavy equipment manufacturer
The client, a global heavy equipment manufacturer, based out of the US, wanted to increase market share and sustain its competitive position in the industry. As a result, the client was committed to achieving an integrated development process. They also wanted to conduct an assessment of their business process, management tools, and linkages to internal organizational touchpoints to increase the effectiveness of the resources and achieve their business objectives.
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Infiniti’s market share analysis experts carried out extensive research comprising interviews and discussions with leading stakeholders in the heavy equipment industry space to help the client achieve an integrated customer development process. The experts also compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums.
The Solution and the Business Impact
With the help of Infiniti’s market share analysis, the heavy equipment industry client carried out an organizational valuation and analysis based on the dimensions of the organizational effectiveness model. This helped them identify and reach consensus on the most effective approach to achieve the goals including:
- Business process re-engineering opportunities were identified.
- Management tool improvements to balance the restructured organization and re-engineered processes have been identified.
- Restructuring performance indicators and incentives around the customer-focused goals.
Going forward, there will be much more creative freedom for autonomous developments in the heavy equipment industry as compared to commercial self-driving cars. Additionally, businesses involved in manufacturing, construction, agriculture, and other heavy industries may be benefitted by looking at the autonomous innovations of industry leaders in their sector – and better understanding how equipment autonomy may impact their operations and finances.