Earthmoving Equipment Market Size, Share & Industry Analysis, By Equipment Type (Excavators, Loaders, Dump Trucks and Others), By Industry (Construction, Mining, Agriculture & Forestry and Others) and Regional Forecast, 2019-2032

The global earthmoving equipment market size was valued at USD 69.85 billion in 2018 and is projected to reach USD 97.70 billion by the end of 2032, exhibiting a CAGR of 2.3% during the forecast period. Asia Pacific dominated the earthmoving equipment market with a market share of 38.38% in 2018.

Growth of earth moving equipment is being driven by the demand of excavators, loaders, dump trucks across the construction and mining sectors. Earth moving machinery include heavy machineries that are used for excavating, grading rock and soil, etc. Generally, these equipment is considered to be an important resource for quarrying and demolishing activities, which are expected to grow with the industrial development. Therefore, the Earthmoving equipment market growth is expected to accelerate in the forthcoming years.

Moreover, rental services are nowadays gaining more traction across the market. The local companies and SMEs likely prefer the rental service business in order to establish their business and generate revenue from the small, medium and large contractors. Profits can also be accrued from large construction firms engaged primarily in sectors such as general infrastructure, oil and gas, utility and electrical, etc. Furthermore, in markets where equipment rental is just being adopted, rates of expansion in certain rental sectors are truly remarkable, and United States is one such economy witnessing the result.

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Important to this, demand for infrastructure development is anticipated to increase over the forecast period across the developed and the developing countries. Furthermore, globalization, urbanization, and population growth are also considered to be the driving factors for growth in infrastructure. Nowadays, it is also being observed that governments across the developed and developing countries are striving hard to develop infrastructure. For instance, in February 2018, the government of the United States announced its plan to develop the infrastructure of the country such as bridges, new roads, highways, railways and waterways. It has also promised to invest around USD 1.5 trillion for undertaking this plan for repairing and upgradation. As a result, these Earthmoving equipment market trends are expected to drive the market.

MARKET DRIVERS

“Emphasis On Adopting Robust Strategies by Key Players is Influencing the Growth of the Market”

The earthmoving machinery market growth across the globe is dominated by the players such as Caterpillar, Hitachi, Komatsu, Volvo Group, and SANY America. Considering the demands of the end-users, these companies are indulged in incorporating various business strategies that are used to enhance the customer experience.

Currently, it has been observed that the end-users across the developing countries, frequently prioritize on price in making investment decisions, while customers in developed economies generally prefer the productivity and other performance criteria to lower owning and operating costs over the lifetime of the machine.

In order to target the developed and the developing economies, these companies are emphasizing on developing products in accordance with customer-driven innovations that would enable the manufacturers to compete in the Earthmoving equipment market.

The major strategies that the OEMs inculcate for uplifting the production and sales of the construction equipment are as follows –

• Developing next-generation machinery


• Investing in Operational Excellence


• Offer aftermarket services

Owing to the manufactures implicit efforts to reach out the maximum end-users across North America, the impact of this driver is anticipated to be high over the long-term period.

“Growing Demand for Excavators is Anticipated to Drive the Market Growth”

Growth of the earth moving equipment market is considered to be an ongoing trend and is expected to remain the same for the forecast period. Across the earthmoving equipment, excavators are gaining maximum importance and held the maximum share in the construction equipment market. The use of excavators is growing exponentially owing to its demand in the mining, quarrying, demolition operations.

Nowadays, end-use industries across the globe are demanding more efficient, technologically upgraded equipment for improving efficiency in construction activities. Adoption of upgraded excavators reduces the labor cost, tracking of the work done in every stage of the process, and reduction in operational costs are the factors driving the Earthmoving equipment market trends, thereby accelerating the uptake of excavators. Among the various types of excavators, crawler excavators are the most trending and majorly demanded type, owing to its higher capacity to carry weights and greater applicability in muddy conditions. As a result, to meet the demand for safer and faster removal of debris, excavators are the trending equipment for digging procedure that makes it much easier and safer.

MARKET RESTRAINT

“Increasing Environmental Damage Caused by Construction Equipment May Limit Growth of the Market”

Construction equipment is considered to be a major source for the ozone precursor emissions in the air. This equipment emits volatile organic compounds (VOC), nitrogen oxides (NOx), and carbon monoxide (CO) that adversely affect the environment. The emissions generated by the construction equipment results in the environmental imbalance across the urban and the rural areas. Besides, large mining sites can also be a source of significant construction equipment emissions. For example, recently it was observed that in San Antonio, Texas, emissions from the construction equipment generated 8.7 tons of NOx per day. Thus, this could emerge as major roadblock in the rise of the Earthmoving equipment market.

In addition, location of the construction equipment has a significant impact on the pollutants measurement at the construction and the mining sites; therefore, it is necessary to monitor and reduce construction equipment emissions. However, to attain control over the emissions, local department of transportation, utility companies, government agencies, and private companies collaboratively initiated to collect data on the number of equipment and construction project locations.

Similarly, residential building permits, commercial building permits, and demolition permits were collected to geo-code construction emissions by adopting various software technology that can monitor the emission substrates. Likewise, developed economies are taking active steps to strengthen exhaust emission laws for construction machinery, and energy efficiency improvement that can play a vital role in preventing global warming. These laws have been imposed by the federal, state, and international environmental associations on manufacturers in order to govern the use, transport, and disposal of substances and control of emissions.

SEGMENTATION

By Equipment Type Analysis

“Excavators are Anticipated to Grow at a Higher CAGR During the Forecast Period”

Based on equipment type, the market is classified into excavators, loaders, dump trucks, and others which include motor graders, dumpers etc. Among these, excavators are anticipated to grow exponentially over the forecast period, owing to their demand across the industrial, residential, and commercial sectors. Additionally, the rental services for the excavators are also anticipated to spur the Earthmoving equipment market revenue. Apart from that, a shift from conventional excavators to the automated excavators is being observed, as technologically driven equipment are more efficient than the traditional ones. Among the types of excavators, crawler excavators are anticipated to dominate the market, whereas mini excavator and wheeled excavators are anticipated to grow at a considerable rate over the forecast period.

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Loaders held the second highest market share in 2018, during the forecast period, owing to the growth of the mining sites and construction industry. Backhoe loaders and wheeled loaders are expected to grow at a significant growth rate owing to their rising demand.

Dump trucks and other types of equipment such as motor graders and dumpers are projected to have moderate growth rate over the forecast period.

By Industry Analysis

“Construction Sector is Projected to Hold the Highest Market Share During the Forecast Period.”

Based on industry, the market is segmented into construction, mining, agriculture & forestry, and others which include oil & gas etc. The growth of the construction industry segment is attributable to the rapid rate of infrastructure development across the globe. With the development of infrastructure, the manufacturers of the Earthmoving equipment have tremendous opportunity to increase its revenue as this equipment has a vital role in these activities. Use of excavators, loaders, and other construction equipment will witness a significant growth that will likely create golden opportunities during the forecast period.

Following construction, mining is anticipated to grow at a substantial rate, owing to the growth of industrialization and the heavy engagement of the investors across the mining industry.  Agriculture and forestry industry is anticipated to have a moderate growth rate for the Earthmoving equipment market growth.

REGIONAL ANALYSIS

Revenue generated from the sale of the Earthmoving equipment across the North America, Europe, Asia Pacific, Middle-East Africa and Latin America is significantly increasing the market value.

Asia Pacific held the highest share in this market in terms of revenue owing to the growth of the construction and mining industry in the region. Also, rising demand for infrastructural development across the developing countries such as China and India is expected to stimulate the demand for Earthmoving equipment in the forecast years. Additionally, increasing initiatives and heavy investments by governments for building roads, bridges, tunnels etc. is influencing the demand of Earthmoving equipment.

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Following Asia-Pacific, North America is anticipated to hold a substantial section of the Earthmoving equipment market share. Strong presence of prominent companies such as Caterpillar, Komatsu, Hitachi, Liebherr, and SANY America is aiding the growth of the market in the region. Additionally, the implicit efforts of these companies regarding technological developments, strategic partnerships, acquisitions, and focus on the aftermarket services are also projected to influence the market potential in North America.

Europe is also anticipated to have a substantial growth owing to the increase in the machinery equipment across countries such as Germany, Italy etc. Several government initiatives and stringent rules and regulations are expected to be the major factors enhancing the growth in this region.

The Middle East and Africa and Latin America are expected to steady growth rate over the forecast for the market.

INDUSTRY KEY PLAYERS

“Well-Established Players are Anticipated to Dominate the Market”

Prominent players such as Caterpillar, Hitachi, Komatsu, Volvo Group, Liebherr dominate the market, covering around 45-55% of the Earthmoving equipment market share. The dominance is due to their strong customer base of these companies in North America as well as the increasing graph of the investment rates for product development. Furthermore, the companies are also indulged in transforming the traditional equipment into next-gen machines that are acquainted with advanced technology such as connected IoT, automation, etc. Additionally, these companies are expanding their services beyond their conventional set up at present in order to deliver value to customers throughout the lifecycle of their products by providing digital solutions.

Apart from this, these companies are acquiring other small and medium based companies that are involved in rental based services or product distribution services in order to expand its presence across the different parts on North America, says the Earthmoving equipment market analysis. For example, Caterpillar acquires Kemper Valve & Fittings Corp. in order to expand its service offerings. In addition to expanded offerings, the company also aims to improve customer loyalty, cost structure, reliability, quality, and delivery performance.

List of Key Companies Profiled:

• AB Volvo


• Caterpillar Inc.


• Komatsu Ltd


• Doosan Infracore Co. Ltd


• Hitachi Construction Machinery Co. Ltd


• J.C. Bamford Excavators Limited


• Liebherr Group


• CNH Industrial N.V


• Hyundai Heavy Industries Co. Ltd


• Terex Corporation


• SANY America

INDUSTRY DEVELOPMENT:

• In July 2021, The EC550E and EC530E are two new excavators launched by AB Volvo, with these models the company has entered in 50-ton class for excavators. These excavators feature digging and lifting powers often found in 60-ton machines, providing contractors with the capabilities they need to thrive in heavy-duty digging, mass excavation, and large-scale site preparation.


•  In May 2021, Liebherr group introduced the T 274, a class-leading 305 t / 336 tons haul truck & extended its product offering. It's a solid 305-tonne machine with short cycle durations, high output rates, low fuel consumption, and cheap cost per tonne.


• In April 2021, Komatsu Ltd. introduced new Komatsu PC5500-11, manufactured productivity, precision & durability. Its a twin-engine PC5500-11 excavator, which weighs 533-552 MT (588-608 st) depending on configuration, is a tough excavator with a mix of robust construction and modern technology that matches vehicles weighing 150-240 ST.


• In March 2021, Doosan Infracore introduced superlarge 100-ton excavator model. The product is a premium model that incorporates the newest technology and performance characteristics from Doosan Infracore. It is the company's first model to be released as part of its global platform strategy.

REPORT COVERAGE

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The report presents a comprehensive assessment of the global market by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views. Furthermore, the report offers a detailed analysis and information as per market segments, helping our readers to get a comprehensive overview of the Earthmoving equipment market. 

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