Construction Equipment Market Size, Share & Industry Analysis, By Equipment Type (Earthmoving Equipment, Material Handling Equipment & Cranes, Concrete Equipment, Road Building Equipment, Civil Engineering Equipment, Crushing and Screening Equipment, and Other Equipment), By Application (Residential, Commercial, and Industrial), and Regional Forecast, 2024 – 2032

The global construction equipment market size was valued at USD 151.60 billion in 2023. The market is projected to grow from USD 161.45 billion in 2024 to USD 271.30 billion by 2032, exhibiting a CAGR of 6.7% during the forecast period.

The global market refers to the industry that encompasses the manufacturing, distribution, and sales of machinery and equipment used in construction activities, including earthmoving, material handling, road building, and other related operations. This market includes a wide range of equipment, such as excavators, loaders, cranes, dozers, and others, which are essential for large-scale construction projects, infrastructure development, and residential, commercial, and industrial buildings.

The market is driven by factors such as increasing urbanization, rising infrastructure investments, and the growth of the construction sector across emerging economies. Technological advancements, such as the integration of automation, telematics, and electrification in construction machinery, are also propelling the market growth by improving efficiency, reducing emissions, and lowering operational costs.

The COVID-19 pandemic caused a temporary decline in the market growth due to halted projects and supply chain disruptions. However, recovery began as governments initiated infrastructure projects, and the pandemic accelerated the adoption of automation and digital technologies in construction machinery.

Construction Equipment Market Trends

Rapidly Growing Demand for Excavators to Boost Market Growth

In the global market, the growth of earthmoving equipment is considered to be an ongoing trend and is expected to remain the same during the forecast period. Across the earthmoving equipment, excavators are gaining maximum importance and held the maximum construction machinery market share in 2023. The use of excavators is growing exponentially owing to its demand in the mining, quarrying, and demolition operations. Similarly, the material handling construction machinery segment is anticipated to have the highest growth rate owing to the rising infrastructural projects globally. Furthermore, these excavators are anticipated to hold approximately 40% of the global construction machinery market share.

Among various types of excavators, crawler excavators have a high demand and are trending, owing to their higher capacity to carry weights, latest technologies, and requirements in varied applications. Thus, increasing demand for excavation processes at construction sites for safe and easy operation is the major factor for the growing demand for construction machinery.

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Construction Equipment Market Growth Factors

Emphasis of Key Players on Adopting Robust Strategies is Propelling Market Growth 

The construction machinery market globally is dominated by players such as Caterpillar, Hitachi, Komatsu, Volvo Group, and SANY Group. Considering the demands of the end-users, these companies are indulged in incorporating various business strategies to enhance the customer experience. Currently, it has been observed that end-users across developing countries frequently prioritize product price for making investment decisions, while customers in developed economies generally prefer productivity and other performance criteria to lower the lifetime operating costs of the machine.

The development of next-generation machinery, investment in operational excellence, and delivery of aftermarket services are major strategies that the OEMs inculcate for boosting the production and sales of the construction machinery.

RESTRAINING FACTORS

Large Scale Usage of Construction Machinery Results in Environmental Imbalance, Which May Hinder Market Growth

Construction machinery is considered to be the major source of ozone precursor emissions in the air. These equipment emit Volatile Organic Compounds (VOC), Nitrogen Oxides (NOx), and Carbon Monoxide (CO) that affect the environment. The emissions generated by the construction machinery result in the environmental imbalance across the urban and the rural areas. Besides, large mining sites can also be a source of significant construction machinery emissions.

Thus, the environmental imbalances caused by construction machinery, such as greenhouse gas emissions, noise pollution, and habitat degradation, are increasingly leading to stricter regulation and higher operating costs, public opposition, and a shift toward cleaner technologies. These factors are creating challenges for the global market, as they can lead to delays in project approvals, increased compliance costs, and a gradual transition away from traditional machinery, ultimately restraining the construction equipment market growth.

Construction Equipment Market Segmentation Analysis

By Equipment Type Analysis

Earthmoving Equipment Segment Dominates Due to Diversified Applications

Based on construction equipment type, the market is segmented into earthmoving equipment, material handling equipment & cranes, concrete equipment, road building equipment, civil engineering equipment, crushing and screening equipment, and other equipment.

The earthmoving equipment segment dominates the global market, holding the largest construction equipment market share. This segment includes machinery such as excavators, loaders, and bulldozers, which are essential for a wide range of construction activities. The high demand for earthmoving equipment is driven by increasing construction activities, infrastructure development, and urbanization, particularly in emerging economies.

The material handling equipment & cranes segment is projected to exhibit the highest CAGR during the forecast period. This segment includes equipment such as cranes, forklifts, and conveyors, which are critical for lifting, moving, and transporting heavy materials on construction sites. The rising adoption of advanced material handling solutions and the growing emphasis on construction safety and efficiency are key factors driving the rapid growth of this segment. In addition, the increasing number of large-scale infrastructure projects and the expansion of the logistics and warehousing sectors contribute to the accelerated demand for material handling equipment & cranes, positioning them as the fastest-growing segment in the market.

The concrete equipment segment, comprising machinery such as concrete mixers, pumps, and batching plants, plays a vital role in the construction industry. This equipment is essential for producing and transporting concrete, a fundamental material in most construction projects. Road building equipment, including machines such as pavers, compactors, and asphalt mixers, is crucial for the construction and maintenance of roads and highways. The segment is witnessing moderate growth, driven by government initiatives to improve and expand road infrastructure, especially in developing regions.

The civil engineering equipment segment encompasses a wide range of machinery used in large-scale infrastructure projects, such as bridges, tunnels, and dams. This segment is essential for the development of complex structures that require specialized construction techniques. While the market share of civil engineering equipment is relatively smaller compared to other segments, it remains a critical component of the construction industry, particularly in regions with ongoing mega infrastructure projects.

By Application Analysis

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Residential Segment Led Driven by Growing Housing Demand

Based on application, the market is segmented into residential, commercial, and industrial.

The residential segment accounted for the largest market share in the global construction machinery market in 2023. This segment encompasses the construction of housing units, including single-family homes, apartments, and residential complexes. The dominance of this segment is driven by the increasing demand for housing due to population growth, urbanization, and rising living standards, particularly in emerging markets. Government initiatives focused on affordable housing and infrastructure development, such as smart cities and sustainable urban planning, further boost the demand for construction equipment in the residential sector.

The industrial segment is projected to exhibit the highest CAGR over the forecast period. This segment includes the construction of factories, warehouses, manufacturing plants, and other industrial facilities. The rapid growth of this segment is driven by the expansion of the manufacturing and logistics sectors, particularly in developing regions where industrialization is accelerating. The increasing adoption of advanced manufacturing technologies and the need for modernized industrial facilities to support production and distribution also contribute to the robust growth of the industrial segment.

The commercial segment, which includes the construction of office buildings, retail spaces, hotels, and other commercial properties, plays a significant role in the construction machinery market. While it does not hold the largest market share, it is a critical segment driven by economic growth, business expansion, and increasing investments in commercial infrastructure.

REGIONAL INSIGHTS

In terms of geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.

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Asia Pacific holds the largest market share and is expected to hold the highest CAGR in the global construction machinery market during the study period. The region's dominance is driven by rapid urbanization, industrialization, and infrastructure development, particularly in China and India. Government initiatives aimed at improving infrastructure, such as the Belt and Road Initiative in China and smart city projects in India, are key growth drivers. The region's booming construction sector, coupled with increasing investments in transportation networks, commercial real estate, and residential housing, fuels the demand for a wide range of construction machinery. Asia Pacific’s market is also characterized by the presence of both global and local manufacturers, offering a diverse range of equipment to meet the varying needs of the region.

China is the largest market for construction machinery in Asia Pacific and plays a pivotal role in the global market. The country's dominance is driven by its rapid urbanization, extensive infrastructure projects, and strong industrial growth. The Chinese government's focus on large-scale infrastructure initiatives, such as the Belt and Road Initiative and the development of smart cities, significantly boosts the demand for construction machinery. China's construction machinery market is characterized by a high level of domestic production, with numerous local manufacturers competing alongside global giants. In addition, the increasing adoption of digital technologies, such as telematics and automation, is transforming the landscape of the construction machinery market in China.

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North America’s construction machinery market is characterized by steady growth, driven by the ongoing development of infrastructure and urbanization across the U.S. and Canada. The market benefits from significant government investments in infrastructure projects, including highways, bridges, and public transportation systems. In addition, the push for sustainable and smart city initiatives further fuels demand for advanced construction machinery.

Europe’s construction machinery market is stable, with a strong emphasis on sustainability and energy efficiency. The region's commitment to reducing carbon emissions and promoting green building practices drives the demand for environmentally friendly construction machinery.

The construction machinery market in the Middle East & Africa is experiencing moderate growth, driven by significant infrastructure projects, particularly in the GCC countries. The region is witnessing large-scale construction activities related to urban development, tourism, and energy projects. Saudi Arabia and the UAE are investing heavily in mega-projects, such as NEOM, which boost the demand for construction machinery. While in Africa, growth is supported by increasing investments in transportation infrastructure, mining, and energy projects.

Latin America’s construction machinery market is gradually recovering from economic downturns, with growth driven by infrastructure development and urbanization. Brazil and Mexico are the largest markets in the region, supported by government initiatives to improve transportation networks, energy infrastructure, and housing. The region also benefits from the expansion of mining and agriculture sectors, which drive the demand for specialized construction machinery.

KEY INDUSTRY PLAYERS

Key Players are Investing Heavily in R&D to Enhance Their Product Offerings

Top construction equipment manufacturers are distinguished by their ability to innovate, produce high-quality and durable machinery, and maintain a strong global presence. These companies invest heavily in research and development to introduce advanced technologies such as automation, telematics, and eco-friendly solutions that enhance equipment efficiency and reduce environmental impact. They typically offer a wide range of products to cater to diverse construction needs, including earthmoving, material handling, and specialized equipment for various applications. Leading manufacturers also emphasize strong after-sales support, providing extensive service networks, training, and spare parts availability to ensure optimal equipment performance and customer satisfaction. In addition, these companies often have strategic partnerships and joint ventures that enable them to expand their market reach and adapt to regional demands effectively.

List of Top Construction Equipment Companies:

• AB Volvo (Sweden)


• Caterpillar Inc. (U.S.)


• Komatsu Ltd. (Japan)


• Doosan Corporation (South Korea)


• Hitachi Construction Machinery Co., Ltd. (Japan)


• J.C. Bamford Excavators Limited (U.K.)


• Liebherr Group (Switzerland)


• CNH Industrial N.V. (U.K.)


• Hyundai Construction Equipment Co., Ltd. (South Korea)


• SANY GROUP (China)

KEY INDUSTRY DEVELOPMENTS:

• June 2024: Action Construction Equipment signed a MoU with the Bank of Baroda to offer tailored financing options for construction equipment businesses, startups, and entrepreneurs across India.


• May 2024: Volvo CE launched the largest electric excavator, EC230, at the Japan CSPI-Expo. It was the first commercial introduction of the EC230 Electric to Asia, followed by North America and select European markets.


• March 2024: Sumitomo Corporation acquired 100% of the assets and operations of Trench Shore Rentals, Inc., a construction equipment rental company in the U.S., to expand its presence in North America.


• June 2022: Komatsu Ltd. and Cummins Inc. (U.S.) teamed up to create zero-emission haulage equipment. Their initial focus will be on zero-emission power technologies, particularly hydrogen fuel cell solutions designed for use in large mining haul trucks.


• June 2022: Liebherr Australia and Fortescue (Australia) joined forces with the aim of incorporating zero-emission power systems technologies in their mining haul tracks. The partnership will leverage Liebherr’s top-notch equipment and technology, along with FFI’s proficiency in green technologies, to produce mining equipment that emits zero pollutants.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as prominent companies, product types, and leading applications of the product. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

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Report Scope & Segmentation