Strong growth for construction equipment in Brazil

The overall construction equipment sector in Brazil is expected to achieve 9% growth in 2024. Image: Adobe Stock

The report projects a 14% increase in sales of so-called ‘yellow line’ equipment (equipment that is used directly in construction and earthmoving: excavators, dozers, wheeled loaders, motor graders, backhoe loaders, and skid steers) in 2024 compared to the previous year, marking a recovery for the sector after a challenging period.

In 2024, yellow line machinery sales are expected to reach 36,600 units, a significant jump from the 32,300 units sold in 2023. This growth follows an 18% decline experienced in 2023 compared to 2022.

This market recovery is attributed to several factors, including manufacturer incentives, infrastructure investments, and momentum in the real estate sector.

Certain equipment categories have led the surge in sales, particularly compact equipment. This segment experienced over 30% growth, driven by mini-excavators (32%) and skid steer loaders, which saw a 39% increase in sales. Additionally, compactor roller sales climbed 30%, reflecting intensified work on roads and highways.

Meanwhile, hydraulic excavators and backhoe loaders saw sales rise by 13% and 19%, respectively.

However, not all categories experienced growth. Wheeled loaders recorded a 10% decline, selling approximately 6,000 units – their second consecutive year of decreased sales following the 9,200 units sold in 2022.

The ‘other equipment’ category, which includes cranes, portable compressors, telescopic handlers, and lifting platforms, is projected to remain stable at around 8,000 units.

The overall construction equipment sector is expected to achieve 9% growth in 2024, reaching 58,200 units sold compared to 53,500 units in 2023.

A notable development in the sector is the reduction of the idle fleet to 11%, down from 19% in 2023. This marks the lowest percentage of unused machinery since 2017, when idle rates peaked at 57%, reflecting improved utilisation and market efficiency.

Looking ahead, the Sobratema study forecasts stability in 2025, with a modest 1% growth in yellow line equipment sales and a 2% increase in the broader construction equipment sector.