The valuation of the total sales of compact construction equipment in the year 2023 is estimated to be US$ 224.1 billion. The global compact construction equipment market is expected to register a CAGR of 3.8% from 2023 to 2033. Based on the compact construction equipment market analysis report by FMI, it can reach US$ 325.4 billion by 2033.
Compact construction equipment's main advantage is its adaptability and capacity to handle tasks that were previously reserved for large machinery. Equipment, such as a compact backhoe or vibratory roller compacter has several advantages. Including low cost, small weight, and ease of transport and operation.
Rising uses of small-size equipment, like a compact backhoe tractor for its low price, reliability, and increased productivity is driving the market. Also, both residential as well as commercial sectors are adopting small backhoe tractors and other equipment driving the overall business. Furthermore, many private users, such as sundowners or hobby farmers, and real estate developers, have played a vital role in strengthening the market.
The adoption of compact construction equipment is also growing due to the increase in new technology attachments available for performing different functions. For instance, small articulated loaders, levelers, soil conditioning tools, and trenchers have popularized the use of compactors in construction. Moreover, the changing trends from pedal operation to the use of joysticks are further advancing compact construction equipment.
| Attributes | Details |
|---|---|
| Compact Construction Equipment Market Value (2022) | US$ 215.9 billion |
| Compact Construction Equipment Market Size (2023) | US$ 224.1 billion |
| Compact Construction Equipment Market Share (2033) | US$ 325.4 billion |
| Compact Construction Equipment Market CAGR (2023 to 2033) | 3.8% |
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The net worth of the global compact construction equipment was estimated to be around US$ 196.4 billion in 2018. By the end of 2022, it reached US$ 215.9 billion following an average growth rate of 2.4% during this period.
Though the market started with a promising growth rate after 2018, however, it dipped down during the years 2020 and 2021. The pandemic had a negative influence on building and construction activities. This has reduced the sales of construction equipment including its compact forms.
In the year 2022, the mark2et's demand and growth resumed to pre-pandemic levels, which explains a higher CAGR through 2033. Moreover, greater emphasis on infrastructure and public transport spending boosts the market
The provision of suspension seats and air conditioners at reasonable prices have helped to popularize some products such as mini backhoe tractor. Self-monitoring and auto shutdown are other attractive emerging features in the electric compact construction equipment.
Growing demand for compact construction equipment is being observed in mining, agriculture, forestry, material handling waste management, and municipal bodies. To supply effective equipment for such new end users the key players are now investing in research and development.
Another emerging trend is the global position system (GPS) tracking system in many construction equipments. Such as a small tractor with loaders & backhoes. Its use in compact equipment is a key attraction for rental purchasers. As it helps them track its location when needed and theft.
FMI finds the overall market has to face several challenges during the forecast years. Including fuel price volatility, and environmental restrictions. Other than that, low entry barriers and a lack of organization are anticipated to limit the expansion of the market at the regional level.
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With a revenue share of more than 60% in 2022, the forklift equipment segment led the market in terms of value. With a growing demand from new end users, it is predicted that its superiority may last throughout the projected timeline.
Based on distinguished product type market segments and trends, sales of wheeled loaders are likely to stay on the higher side. Wheeled loaders assist in loading, unloading, and bulk material movement at construction sites making it a fundamental category of the market.
Owing to a huge and highly developed building and construction sector, the United dominates the global compact construction equipment market. According to the Associated General Contractors of America (AGC), the construction market growth was 3.7% in August 2020. Pointing to increased infrastructure spending. The expansion of this regional market is also being aided by the presence of notable businesses such as Caterpillar and Sany America.
The rapid acceptance of zero-emission technology can be linked to the growing demand for compact and efficient construction equipment in the Country. Furthermore, strict government rules about environmental goals may promote the use of electric and compact construction equipment.
European countries together held over 40% of the total revenue share generated by the market globally in the year 2022. Surging construction activities are anticipated to continue expanding the construction equipment market throughout the projection period.
Germany is the leading country in Europe for producing and supplying all types of construction equipment including compact ones. Also, Germany has the considerable possibility to expand over the projection year. As it has Europe's best-performing machine and equipment industry. In addition to this, the United Kingdom holds substantial opportunities for all compact construction equipment manufacturers in Europe.
The two prominent countries, China and Japan, have created lucrative markets in the Asia Pacific with higher adoption of construction equipment. Also, many leading compact construction equipment manufacturers with a global presence are based in these two countries. The market in China is predicted to grow quickly throughout the projection period. Because of the region's fast infrastructural development and stringent environmental protection regulations.
To illustrate, the Chinese government ratified the free trade deal. It is a Regional Comprehensive Economic Partnership with nations around the Asia Pacific. This partnership's main goal is to build and expand the transportation network. Moreover, not to compromise environmental standards through the use of sustainable construction equipment.
Another notably growing country in the Asia Pacific, India, is expected to gain market dominance through industrial development. The advent of online retail stores for heavy machinery, and the availability of machines for rent, are also expected to contribute.
Increased government spending in building infrastructure and capital funding is anticipated to surge the demand for compact construction equipment during this period. The Indian government is also investing heavily in renewable energy, and SMEs, which is driving up demand for construction equipment.
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The overall market is dominated by Caterpillar, JCB, Komatsu, AB Volvo, and Liebherr, who hold up to 40% of the revenue share. The construction equipment manufacturers operating in the market are approaching the market with new tactics and a more efficient company model.
The global electric compact construction equipment market is also projected to see a remarkable rise in the coming year. New players in the market are striving to capitalize on the opportunity by expanding their operations into such potential markets.
Recent Developments by the Compact Construction Equipment Manufacturing Industries
With the recent strategic supplier agreement between John Deere and Wacker Neuson, the former Swedish company may expand rapidly. Both pneumatic compacter manufacturers are planning for building compact excavators of John Deere at the Wacker Neuson facility in China. The partnership also focuses on enhancing the distribution network of compact construction equipment range in Southeast Asia, Oceania, and China.
A similar business extension was carried out by another key market player, JCB Inc., in North America. This multinational compact construction equipment manufacturing company has made huge investments to acquire the business of its West Coast dealer. Expansion of JCB of Southern California, to extend their sales for the customers throughout greater Los Angeles and Mexico.
Doosan Bobcat Company unveiled a prototype of T7X in January 2022. It is an electric version of the T7X small track loader. This recently introduced product is entirely electric and has advantages including doing away with hydraulic pressure systems, pollutants, and tremors.
How can Manufacturers Scale their Businesses in the Global Small Satellite Market?
The construction equipment market in North American and Western European countries has been growing steadily favoring the development of compact equipment. However, greater emphasis on infrastructure development by emerging economies in recent is poised to shift the businesses towards Eastern geographic region.
Market players' overt activities in the areas of technical advancements, and aftermarket services could help more in further scaling their businesses. As per the experts, as construction equipment and machinery are complex establishing service centers at strategic locations can be the key.
| Attributes | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | Units for Volume and US$ million for Value |
| Key Segments Covered |
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| Key Regions Covered |
|
| Key Countries Covered | United States, Canada, Germany, United Kingdom, France, Italy, Spain, Russia, BENELUX, China, Japan, South Korea, India, ASEAN, Australia, New Zealand, GCC Countries, Northern Africa, and South Africa. |
| Key Players Covered |
|
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
Surging construction for smart cities fuels equipment sales.
Germany is anticipated to be the market with the high potential.
The market is forecast to register a CAGR of 3.8% through 2033.
The market has generated a revenue of US$ 224.1 billion in 2023.
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1. Executive Summary | Compact Construction Equipment Market
1.1. Global Market Outlook
1.2. Demand-side Trends
1.3. Supply-side Trends
1.4. Technology Roadmap Analysis
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Market Background
3.1. Market Dynamics
3.1.1. Drivers
3.1.2. Restraints
3.1.3. Opportunity
3.1.4. Trends
3.2. Scenario Forecast
3.2.1. Demand in Optimistic Scenario
3.2.2. Demand in Likely Scenario
3.2.3. Demand in Conservative Scenario
3.3. Opportunity Map Analysis
3.4. Product Life Cycle Analysis
3.5. Supply Chain Analysis
3.5.1. Supply Side Participants and their Roles
3.5.1.1. Producers
3.5.1.2. Mid-Level Participants (Traders/ Agents/ Brokers)
3.5.1.3. Wholesalers and Distributors
3.5.2. Value Added and Value Created at Node in the Supply Chain
3.5.3. List of Raw Material Suppliers
3.5.4. List of Existing and Potential Buyer’s
3.6. Investment Feasibility Matrix
3.7. Value Chain Analysis
3.7.1. Profit Margin Analysis
3.7.2. Wholesalers and Distributors
3.7.3. Retailers
3.8. PESTLE and Porter’s Analysis
3.9. Regulatory Landscape
3.9.1. By Key Regions
3.9.2. By Key Countries
3.10. Regional Parent Market Outlook
3.11. Production and Consumption Statistics
3.12. Import and Export Statistics
4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
4.1. Historical Market Size Value (US$ Million) & Volume (Units) Analysis, 2018 to 2022
4.2. Current and Future Market Size Value (US$ Million) & Volume (Units) Projections, 2023 to 2033
4.2.1. Y-o-Y Growth Trend Analysis
4.2.2. Absolute $ Opportunity Analysis
5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type
5.1. Introduction / Key Findings
5.2. Historical Market Size Value (US$ Million) & Volume (Units) Analysis By Type, 2018 to 2022
5.3. Current and Future Market Size Value (US$ Million) & Volume (Units) Analysis and Forecast By Type, 2023 to 2033
5.3.1. Track Loaders
5.3.2. Excavators
5.3.3. Backhoe Loaders
5.3.4. Skid Steers
5.3.5. Wheel Loaders
5.3.6. Telehandlers
5.4. Y-o-Y Growth Trend Analysis By Type, 2018 to 2022
5.5. Absolute $ Opportunity Analysis By Type, 2023 to 2033
6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Power Output
6.1. Introduction / Key Findings
6.2. Historical Market Size Value (US$ Million) & Volume (Units) Analysis By Power Output, 2018 to 2022
6.3. Current and Future Market Size Value (US$ Million) & Volume (Units) Analysis and Forecast By Power Output, 2023 to 2033
6.3.1. <100 HP
6.3.2. 101-200 HP
6.3.3. 201-400 HP
6.3.4. >400 HP
6.4. Y-o-Y Growth Trend Analysis By Power Output, 2018 to 2022
6.5. Absolute $ Opportunity Analysis By Power Output, 2023 to 2033
7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Engine Capacity
7.1. Introduction / Key Findings
7.2. Historical Market Size Value (US$ Million) & Volume (Units) Analysis By Engine Capacity, 2018 to 2022
7.3. Current and Future Market Size Value (US$ Million) & Volume (Units) Analysis and Forecast By Engine Capacity, 2023 to 2033
7.3.1. <5L
7.3.2. 5L-10L
7.3.3. >10L
7.4. Y-o-Y Growth Trend Analysis By Engine Capacity, 2018 to 2022
7.5. Absolute $ Opportunity Analysis By Engine Capacity, 2023 to 2033
8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
8.1. Introduction
8.2. Historical Market Size Value (US$ Million) & Volume (Units) Analysis By Region, 2018 to 2022
8.3. Current Market Size Value (US$ Million) & Volume (Units) Analysis and Forecast By Region, 2023 to 2033
8.3.1. North America
8.3.2. Latin America
8.3.3. Europe
8.3.4. Asia Pacific
8.3.5. MEA
8.4. Market Attractiveness Analysis By Region
9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
9.1. Historical Market Size Value (US$ Million) & Volume (Units) Trend Analysis By Market Taxonomy, 2018 to 2022
9.2. Market Size Value (US$ Million) & Volume (Units) Forecast By Market Taxonomy, 2023 to 2033
9.2.1. By Country
9.2.1.1. USA
9.2.1.2. Canada
9.2.2. By Type
9.2.3. By Power Output
9.2.4. By Engine Capacity
9.3. Market Attractiveness Analysis
9.3.1. By Country
9.3.2. By Type
9.3.3. By Power Output
9.3.4. By Engine Capacity
9.4. Key Takeaways
10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
10.1. Historical Market Size Value (US$ Million) & Volume (Units) Trend Analysis By Market Taxonomy, 2018 to 2022
10.2. Market Size Value (US$ Million) & Volume (Units) Forecast By Market Taxonomy, 2023 to 2033
10.2.1. By Country
10.2.1.1. Brazil
10.2.1.2. Mexico
10.2.1.3. Rest of Latin America
10.2.2. By Type
10.2.3. By Power Output
10.2.4. By Engine Capacity
10.3. Market Attractiveness Analysis
10.3.1. By Country
10.3.2. By Type
10.3.3. By Power Output
10.3.4. By Engine Capacity
10.4. Key Takeaways
11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
11.1. Historical Market Size Value (US$ Million) & Volume (Units) Trend Analysis By Market Taxonomy, 2018 to 2022
11.2. Market Size Value (US$ Million) & Volume (Units) Forecast By Market Taxonomy, 2023 to 2033
11.2.1. By Country
11.2.1.1. Germany
11.2.1.2. United Kingdom
11.2.1.3. France
11.2.1.4. Spain
11.2.1.5. Italy
11.2.1.6. Rest of Europe
11.2.2. By Type
11.2.3. By Power Output
11.2.4. By Engine Capacity
11.3. Market Attractiveness Analysis
11.3.1. By Country
11.3.2. By Type
11.3.3. By Power Output
11.3.4. By Engine Capacity
11.4. Key Takeaways
12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
12.1. Historical Market Size Value (US$ Million) & Volume (Units) Trend Analysis By Market Taxonomy, 2018 to 2022
12.2. Market Size Value (US$ Million) & Volume (Units) Forecast By Market Taxonomy, 2023 to 2033
12.2.1. By Country
12.2.1.1. China
12.2.1.2. Japan
12.2.1.3. South Korea
12.2.1.4. Singapore
12.2.1.5. Thailand
12.2.1.6. Indonesia
12.2.1.7. Australia
12.2.1.8. New Zealand
12.2.1.9. Rest of Asia Pacific
12.2.2. By Type
12.2.3. By Power Output
12.2.4. By Engine Capacity
12.3. Market Attractiveness Analysis
12.3.1. By Country
12.3.2. By Type
12.3.3. By Power Output
12.3.4. By Engine Capacity
12.4. Key Takeaways
13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
13.1. Historical Market Size Value (US$ Million) & Volume (Units) Trend Analysis By Market Taxonomy, 2018 to 2022
13.2. Market Size Value (US$ Million) & Volume (Units) Forecast By Market Taxonomy, 2023 to 2033
13.2.1. By Country
13.2.1.1. GCC Countries
13.2.1.2. South Africa
13.2.1.3. Israel
13.2.1.4. Rest of MEA
13.2.2. By Type
13.2.3. By Power Output
13.2.4. By Engine Capacity
13.3. Market Attractiveness Analysis
13.3.1. By Country
13.3.2. By Type
13.3.3. By Power Output
13.3.4. By Engine Capacity
13.4. Key Takeaways
14. Key Countries Market Analysis
14.1. USA
14.1.1. Pricing Analysis
14.1.2. Market Share Analysis, 2022
14.1.2.1. By Type
14.1.2.2. By Power Output
14.1.2.3. By Engine Capacity
14.2. Canada
14.2.1. Pricing Analysis
14.2.2. Market Share Analysis, 2022
14.2.2.1. By Type
14.2.2.2. By Power Output
14.2.2.3. By Engine Capacity
14.3. Brazil
14.3.1. Pricing Analysis
14.3.2. Market Share Analysis, 2022
14.3.2.1. By Type
14.3.2.2. By Power Output
14.3.2.3. By Engine Capacity
14.4. Mexico
14.4.1. Pricing Analysis
14.4.2. Market Share Analysis, 2022
14.4.2.1. By Type
14.4.2.2. By Power Output
14.4.2.3. By Engine Capacity
14.5. Germany
14.5.1. Pricing Analysis
14.5.2. Market Share Analysis, 2022
14.5.2.1. By Type
14.5.2.2. By Power Output
14.5.2.3. By Engine Capacity
14.6. United Kingdom
14.6.1. Pricing Analysis
14.6.2. Market Share Analysis, 2022
14.6.2.1. By Type
14.6.2.2. By Power Output
14.6.2.3. By Engine Capacity
14.7. France
14.7.1. Pricing Analysis
14.7.2. Market Share Analysis, 2022
14.7.2.1. By Type
14.7.2.2. By Power Output
14.7.2.3. By Engine Capacity
14.8. Spain
14.8.1. Pricing Analysis
14.8.2. Market Share Analysis, 2022
14.8.2.1. By Type
14.8.2.2. By Power Output
14.8.2.3. By Engine Capacity
14.9. Italy
14.9.1. Pricing Analysis
14.9.2. Market Share Analysis, 2022
14.9.2.1. By Type
14.9.2.2. By Power Output
14.9.2.3. By Engine Capacity
14.10. China
14.10.1. Pricing Analysis
14.10.2. Market Share Analysis, 2022
14.10.2.1. By Type
14.10.2.2. By Power Output
14.10.2.3. By Engine Capacity
14.11. Japan
14.11.1. Pricing Analysis
14.11.2. Market Share Analysis, 2022
14.11.2.1. By Type
14.11.2.2. By Power Output
14.11.2.3. By Engine Capacity
14.12. South Korea
14.12.1. Pricing Analysis
14.12.2. Market Share Analysis, 2022
14.12.2.1. By Type
14.12.2.2. By Power Output
14.12.2.3. By Engine Capacity
14.13. Singapore
14.13.1. Pricing Analysis
14.13.2. Market Share Analysis, 2022
14.13.2.1. By Type
14.13.2.2. By Power Output
14.13.2.3. By Engine Capacity
14.14. Thailand
14.14.1. Pricing Analysis
14.14.2. Market Share Analysis, 2022
14.14.2.1. By Type
14.14.2.2. By Power Output
14.14.2.3. By Engine Capacity
14.15. Indonesia
14.15.1. Pricing Analysis
14.15.2. Market Share Analysis, 2022
14.15.2.1. By Type
14.15.2.2. By Power Output
14.15.2.3. By Engine Capacity
14.16. Australia
14.16.1. Pricing Analysis
14.16.2. Market Share Analysis, 2022
14.16.2.1. By Type
14.16.2.2. By Power Output
14.16.2.3. By Engine Capacity
14.17. New Zealand
14.17.1. Pricing Analysis
14.17.2. Market Share Analysis, 2022
14.17.2.1. By Type
14.17.2.2. By Power Output
14.17.2.3. By Engine Capacity
14.18. GCC Countries
14.18.1. Pricing Analysis
14.18.2. Market Share Analysis, 2022
14.18.2.1. By Type
14.18.2.2. By Power Output
14.18.2.3. By Engine Capacity
14.19. South Africa
14.19.1. Pricing Analysis
14.19.2. Market Share Analysis, 2022
14.19.2.1. By Type
14.19.2.2. By Power Output
14.19.2.3. By Engine Capacity
14.20. Israel
14.20.1. Pricing Analysis
14.20.2. Market Share Analysis, 2022
14.20.2.1. By Type
14.20.2.2. By Power Output
14.20.2.3. By Engine Capacity
15. Market Structure Analysis
15.1. Competition Dashboard
15.2. Competition Benchmarking
15.3. Market Share Analysis of Top Players
15.3.1. By Regional
15.3.2. By Type
15.3.3. By Power Output
15.3.4. By Engine Capacity
16. Competition Analysis
16.1. Competition Deep Dive
16.1.1. JCB
16.1.1.1. Overview
16.1.1.2. Product Portfolio
16.1.1.3. Profitability by Market Segments
16.1.1.4. Sales Footprint
16.1.1.5. Strategy Overview
16.1.1.5.1. Marketing Strategy
16.1.1.5.2. Product Strategy
16.1.1.5.3. Channel Strategy
16.1.2. Mustang
16.1.2.1. Overview
16.1.2.2. Product Portfolio
16.1.2.3. Profitability by Market Segments
16.1.2.4. Sales Footprint
16.1.2.5. Strategy Overview
16.1.2.5.1. Marketing Strategy
16.1.2.5.2. Product Strategy
16.1.2.5.3. Channel Strategy
16.1.3. John Deere
16.1.3.1. Overview
16.1.3.2. Product Portfolio
16.1.3.3. Profitability by Market Segments
16.1.3.4. Sales Footprint
16.1.3.5. Strategy Overview
16.1.3.5.1. Marketing Strategy
16.1.3.5.2. Product Strategy
16.1.3.5.3. Channel Strategy
16.1.4. Volvo
16.1.4.1. Overview
16.1.4.2. Product Portfolio
16.1.4.3. Profitability by Market Segments
16.1.4.4. Sales Footprint
16.1.4.5. Strategy Overview
16.1.4.5.1. Marketing Strategy
16.1.4.5.2. Product Strategy
16.1.4.5.3. Channel Strategy
16.1.5. Ditch Witch
16.1.5.1. Overview
16.1.5.2. Product Portfolio
16.1.5.3. Profitability by Market Segments
16.1.5.4. Sales Footprint
16.1.5.5. Strategy Overview
16.1.5.5.1. Marketing Strategy
16.1.5.5.2. Product Strategy
16.1.5.5.3. Channel Strategy
16.1.6. Gehl
16.1.6.1. Overview
16.1.6.2. Product Portfolio
16.1.6.3. Profitability by Market Segments
16.1.6.4. Sales Footprint
16.1.6.5. Strategy Overview
16.1.6.5.1. Marketing Strategy
16.1.6.5.2. Product Strategy
16.1.6.5.3. Channel Strategy
16.1.7. Vermee
16.1.7.1. Overview
16.1.7.2. Product Portfolio
16.1.7.3. Profitability by Market Segments
16.1.7.4. Sales Footprint
16.1.7.5. Strategy Overview
16.1.7.5.1. Marketing Strategy
16.1.7.5.2. Product Strategy
16.1.7.5.3. Channel Strategy
16.1.8. Caterpillar
16.1.8.1. Overview
16.1.8.2. Product Portfolio
16.1.8.3. Profitability by Market Segments
16.1.8.4. Sales Footprint
16.1.8.5. Strategy Overview
16.1.8.5.1. Marketing Strategy
16.1.8.5.2. Product Strategy
16.1.8.5.3. Channel Strategy
16.1.9. New Holland
16.1.9.1. Overview
16.1.9.2. Product Portfolio
16.1.9.3. Profitability by Market Segments
16.1.9.4. Sales Footprint
16.1.9.5. Strategy Overview
16.1.9.5.1. Marketing Strategy
16.1.9.5.2. Product Strategy
16.1.9.5.3. Channel Strategy
16.1.10. Hyundai Heavy Industries Co. Ltd.
16.1.10.1. Overview
16.1.10.2. Product Portfolio
16.1.10.3. Profitability by Market Segments
16.1.10.4. Sales Footprint
16.1.10.5. Strategy Overview
16.1.10.5.1. Marketing Strategy
16.1.10.5.2. Product Strategy
16.1.10.5.3. Channel Strategy
17. Assumptions & Acronyms Used
18. Research Methodology
Industrial Automation
December 2024
REP-GB-15928
263 pages
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Compact Construction Equipment Market
