Construction Equipment Market

Construction Equipment Market Outlook (2024 to 2034)

The global construction equipment market size is poised to reach US$ 128.3 billion in 2024 and climb to a value of US$ 191.7 billion by the end of 2034. Worldwide sales of construction equipment are evaluated to rise at a CAGR of 4.1% from 2024 to 2034.

The construction sector requires a wide range of equipment for both small- and large-scale operations. These devices increase output, lower overall construction costs, accelerate the planned rate of production in areas where skilled and unskilled labor is scarce, and eliminate the need for heavy manual work by humans, thereby reducing fatigue and a variety of other hazards and health issues.

Key Market Growth Drivers

• Construction sector expansion is primarily being driven by rising urbanization, population growth, technological advancements, need to modernize existing infrastructure, and a greater emphasis on developing sustainable green projects.
• Favorable government initiatives, such as stimulus packages and lower housing rates, which are influencing consumers to purchase new houses, are projected to drive the construction equipment market growth during the forecast period.
• Technological advancements for more optimized and reliable products are benefitting market players. The off-highway industry is progressively embracing autonomous operating technologies.
• Construction activities are well-suited for autonomous machinery as the tasks are repetitive, physical, precise, and time-sensitive. Due to this, there is an increased need for automation in construction equipment.
• Manufacturers are developing wireless, automated construction machinery that uses radio waves from other devices to facilitate communication, receive instructions, and report conditions. This innovation ensures improved production, reduced unplanned maintenance, and increased safety. As a result, the rising popularity of autonomous construction equipment presents a significant business opportunity for the industry.

Report Attribute	Detail
Construction Equipment Market Size (2024E)	US$ 128.3 Billion
Forecasted Market Value (2034F)	US$ 191.7 Billion
Global Market Growth Rate (2024 to 2034)	4.1% CAGR
East Asia Market Share (2024E)	28.7%
North America Market Share (2024E)	22.5%
Market Share of Earth Moving Machinery (2024E)	27.4%
Key Companies Profiled	J C Bamford Excavators Ltd.; Deere & Company; Kobelco Construction Machinery Co. Ltd.; Caterpillar; CNH Industrial N.V; Doosan Corporation; Escorts Limited; Hitachi Construction Machinery Co. Ltd.; Hyundai Construction Equipment Co. Ltd.; Komatsu Ltd.

How is the Market for Construction Equipment Evolving Globally?

“Investments in Infrastructure Development and Policies Promoting Public-Private Partnerships”

Planned investments and increased construction activity for infrastructure development are projected to drive demand for construction equipment during the forecast period. The residential infrastructure construction sector is experiencing heightened demand for construction equipment due to decreasing housing prices and increased urbanization in developing countries such as China and India. In addition, government policies promoting public-private partnerships (PPP) and infrastructure projects over the forecast period are forecasted to boost the construction equipment market.

• In June 2022, the European Union announced an investment of nearly US$ 5.4 billion in transportation infrastructure development, selecting approximately 135 projects for development funding.
• Beijing's development plan for 2021 to 2025 includes 102 megaprojects. In December 2021, China's finance ministry announced an early allocation of US$ 229 billion in quotas for special-purpose bonds to support infrastructure investments.
• The United Kingdom Construction Leadership Council reported that 700 projects and more than US$ 645.7 billion are planned for the National Infrastructure Pipeline.

What is Hindering Opportunities for Market Players?

“Stringent Environmental Regulations Driving Up Project Budgets”

Real estate projects in developing countries have been delayed by stringent regulations and environmental concerns. This, in turn, increases project budgets and slows down project timelines. For instance, heavy equipment is often rented and left idle for extended periods. These factors negatively impact construction equipment revenues.

The secondary market for used construction equipment is still evolving. Consequently, the secondary construction equipment market suffers from reduced overall revenue due to the challenges in reselling equipment.

Country-wise Insights

Key factor that is projected to contribute to the expansion of the construction equipment market size over the forecast period is the increase in construction spending worldwide. North America is set to account for a 22.5% share of the market in 2024.

Spending on construction has been increasing in the North American region over the past few years. Several upcoming multifamily housing construction projects in Europe are also driving the market for construction equipment. The real estate market in India is also contributing to the demand for construction equipment.

How is the United States Maintaining its Competitive Edge in the Construction Sector?

“Growing Emphasis on Investments and Technological Advancements and Innovation”

Attribute	United States
Market Value (2024E)	US$ 22.7 Billion
Growth Rate (2024 to 2034)	4% CAGR
Projected Value (2034F)	US$ 33.6 Billion

The United States is expected to hold a substantial 78.5% share of the North American market in 2024. This rising demand for upgraded machinery is attributed to the growing prevalence of earthmoving equipment rentals, especially mini-excavators and compact truckloaders. The market in the United States is characterized by technological advancements and innovations, maintaining its competitive edge in the global market.

The United States is home to several prominent construction equipment manufacturers, such as Caterpillar Inc., Deere & Company, and Komatsu America Corp., which bolster its strong global market position.

How is China Addressing Environmental Issues Through its Construction Practices?

“Rising Investments in Green Infrastructure and Sustainable Construction Practices”

Attribute	China
Market Value (2024E)	US$ 19.7 Billion
Growth Rate (2024 to 2034)	4.1% CAGR
Projected Value (2034F)	US$ 29.4 Billion

The Regional Comprehensive Economic Partnership (RCEP) between China and Asia Pacific countries, including Japan, South Korea, Australia, and other smaller Southeast Asian countries, aims to enhance the region's transport infrastructure, thereby increasing demand. The agreement was strategically crafted for China to fortify its regional economic connections and shift focus away from the repercussions of the United States–China trade war.

Construction companies in China are progressively adopting advanced technologies and equipment to improve efficiency, productivity, and safety on construction sites, which is a key construction equipment market trend in the country. China is also investing in green infrastructure and sustainable construction practices to address environmental challenges such as pollution and climate change. These initiatives include projects focused on renewable energy, green buildings, and eco-friendly infrastructure, which require specialized construction equipment.

Category-wise Insights

The market is divided into several categories based on product type, including earth-moving equipment, earth-compacting machinery, hauling equipment, construction material handling machinery, concrete, and road construction machinery, hoisting equipment, conveying equipment, aggregate production equipment, and pile-driving equipment.

Each of the categories includes a list of equipment used for various purposes. Out of these earth-moving machineries are set to hold 57.4% of the global market share in 2024. In terms of sales, distributors are set to hold a construction equipment market share of 73.5% in 2024.

How are Earthmoving Equipment Such as Loaders and Dump Trucks Streamlining the Construction Process?

“Efficient Movement of Large Quantities of Earth and Materials”

Attribute	Earth Moving Machinery
Segment Value (2024E)	US$ 73.6 Billion
Growth Rate (2024 to 2034)	4.1% CAGR
Projected Value (2034F)	US$ 110.3 Billion

Earthmoving equipment, also known as heavy equipment or heavy-duty vehicles, is designed specifically for carrying out construction operations that involve earthwork, such as moving large amounts of earth or digging foundations and landscape areas.

The earthmoving equipment segment is divided into excavators (compact excavators, dredging, dragline excavators, front shovels, and others), loaders (skip loaders, wheel loaders, front loaders, backhoe loaders, etc.), construction tractors, and others (grader, scraper, track loader, material handler, etc.). Earthmoving equipment such as loaders and dump trucks are used to transport soil, gravel, sand, and rocks around construction sites. They can load, transport, and unload large amounts of material quickly and efficiently, easing the construction process.

How are Exclusive Partnerships with Manufacturers Benefiting Construction Equipment Distributors?

“Partnerships Enhancing Credibility and Reputation and Access to Premium Brands”

Attribute	Distributors
Segment Value (2024E)	US$ 94.3 Billion
Growth Rate (2024 to 2034)	4.1% CAGR
Projected Value (2034F)	US$ 140.7 Billion

Distributors possess specialized knowledge of the construction equipment they sell, enabling them to offer customers valuable advice on equipment selection, features, and capabilities based on specific needs and requirements. In addition, distributors provide after-sales support, including maintenance, repairs, and spare parts availability, which enhances customer satisfaction and retention.

Distributors often have exclusive partnerships with major construction equipment manufacturers, allowing them to sell premium brands and reach a larger customer base. This brand association strengthens the distributor's credibility and reputation, leading to increased sales and market share.

Competition Analysis

Key players in the construction equipment market are creating wireless, self-contained construction machinery using radio waves from other devices to obstruct communication technology, receive instructions, and report status. This ensures increased productivity, less unplanned maintenance, and greater safety. As a result, the increasing popularity of self-driving construction equipment is creating a business opportunity for the industry.

• Komatsu Ltd. and Honda Motor Co., Ltd. signed a joint development agreement in January 2021. Komatsu and Honda worked together to electrify Micro Excavators (PCO1) and set up a battery-sharing system to provide Battery Power Packs (MPP) for use in construction equipment and related equipment.
• The new electric mobile crane from Manitex Vall, the V 110 R, was unveiled in February 2021. The battery-powered and remote-controlled lift rises to a height of 10.4 meters, has a lifting capacity of 11,000 kg, and operates at a height of 10.4 meters.

Fact.MR provides detailed information about the price points of leading construction equipment manufacturers positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Construction Equipment Market Research

• By Product Type :

  • Earth Moving Machinery
    • Excavators
    • Loaders
    • Others
  • Construction Material Handling Machinery
    • Crawler Cranes
    • Trailer Mounted Cranes
    • Truck Mounted Cranes
  • Concrete & Road Construction Machinery
    • Concrete Mixer & Pavers
    • Construction Pumps
    • Others

• By Sales Channel :

  • Direct Sales
  • Distributors

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa