Construction Equipment Market (2026 - 2033) Size, Share & Trends Analysis Report By Product (Earth Moving Machinery, Material Handling Machinery, Concrete & Road Construction Machinery), By Equipment Type, By Propulsion Type, By Power Output, By Engine Capacity, By Region, And Segment Forecasts

Construction Equipment Market Summary

The global construction equipment market size was valued at USD 242.17 billion in 2025 and is projected to reach USD 471.25 billion by 2033, growing at a CAGR of 8.7% from 2026 to 2033. Rapid urbanization in developing countries, coupled with increasing government focus on upgrading the existing infrastructure, is expected to surge construction activities, which in turn is increasing demand for excavators, loaders, dump trucks, etc., for construction work.

Thus, increasing infrastructure development activities across the globe is anticipated to increase demand for earthmoving and material handling equipment, thereby driving the growth of the global construction equipment market.

Increasing government spending on upgrading the present infrastructure is responsible for increasing construction activities in developing countries. A country such as India is highly focused on enhancing the road infrastructure to facilitate the flawless transportation of resources. For instance, in June 2022, the Indian Minister of Road Transport and Highways announced the opening of 15 new national highway projects worth USD 1.7 billion in Patna and Hajipur in Bihar. For instance, in March 2023, the government of Singapore announced that it would commence the construction of new terminal 5 (T5) at Changi Airport in 2025. The T5 addition to the existing airport is focused on lowering the air passenger traffic at Changi Airport. This increasing road construction activity is increasing demand for material handling and road construction equipment, such as forklifts, pavers, dozers, etc., further supporting the growth of the global construction equipment market.

Technological integration with construction equipment is expected to favor market growth over the forecast period. OEMs have capitalized on this as an opportunity to launch new products and expand their customer base in the construction equipment market. For instance, in January 2023, John Deere announced the launch of farming and building equipment powered by batteries. The company states that when John Deere released new farming and building technologies, factors such as a growing population, dwindling amounts of arable land, and rising greenhouse gas emissions were all considered.

The high cost of product and contractor inclination towards adopting rental equipment are some significant factors expected to hamper the growth of the global construction equipment market. Contractors are inclined towards renting the construction equipment for the specified project's timeline, against being in charge of vehicle ownership. Construction equipment ownership ties up a significant amount of capital, impacting other business operations.

Product Insights

The material handling machinery segment dominated the market, accounting for 40.5% in 2025. The material handling machinery segment growth can be attributed to factors such as the rapid industrialization and rising demand for automation in material handling machinery. In developed countries, completely automated industrial facilities have been established because of growing automation adoption and ongoing technological advancements in the market. It is expected that the demand for material handling equipment will grow due to the ongoing modernization of industrial infrastructures and facilities to increase their production capacity.

The earthmoving machinery is expected to register a considerable growth rate over the forecast period. The construction sector's growth, both in developed and emerging economies, has significantly contributed to the earthmoving machinery demand. Increasing investments in residential, commercial, and industrial construction projects necessitate the use of heavy machinery. Earthmoving equipment facilitates tasks like excavation, grading, and material handling, enabling efficient and timely completion of construction projects.

Propulsion Type Insights

The ICE segment accounted for the largest market revenue share in 2025. ICE generates power using a combustion engine and transfers it to the wheels through a transmission system. These vehicles come equipped with sturdy internal combustion engines capable of delivering substantial torque and horsepower, enabling them to efficiently handle demanding tasks. The power provided by ICE machinery empowers them to tackle heavy loads, operate in rugged terrains, and accomplish tasks that demand substantial force and endurance.

The electric construction equipment is anticipated to register the highest CAGR over the forecast period. In contrast to diesel or gasoline-powered construction equipment, electric-based machinery offers significant advantages in terms of lower operating expenses. They necessitate minimal maintenance, and the cost of electricity is generally lower compared to diesel or gasoline. As a result, this factor is anticipated to be a driving force in the market in the coming years. Moreover, governments globally are implementing regulations and providing incentives to promote the widespread adoption of electric construction equipment. For instance, the European Union has made it mandatory for OEMs to install essential ADAS functions, such as cruise control and lane departure warning systems on heavy equipment.

Power Output Insights

The <100 HP segment accounted for the largest market share in 2025. <100 HP construction equipment, including mini-excavators, compact wheel loaders, skid steer loaders, and compact track loaders, offers exceptional versatility and maneuverability. Rising use of compact construction equipment in emerging economies such as the Asia Pacific, Latin America, and Africa is further anticipated to drive the demand for the market over the forecast period. Infrastructure development, urbanization, and small-scale construction projects have increased the demand for cost-effective, compact, and versatile machinery. Advancements in technology, including operator comfort, improved powertrain efficiency, and automation, are also contributing to the segment’s growth.

The 101-200 HP segment is expected to register the highest growth rate over the forecast period. These machines, such as excavators, bulldozers, loaders, and graders, are essential for heavy-duty tasks. Machines in the 101-200 HP range often feature designs that prioritize serviceability, allowing easy access to critical components for maintenance and repairs. Efficient maintenance processes and readily available spare parts contribute to minimizing downtime and maximizing productivity.

Equipment Type Insights

The heavy construction equipment segment accounted for the largest market share in 2025. The segment's growth is driven by large-scale infrastructure development and government capital-expenditure programs. National investments in highways, metros, airports, rail corridors, renewable-energy installations, and industrial zones continue to expand the demand for excavators, loaders, bulldozers, cranes, and other high-capacity equipment. In emerging economies, urbanization and industrial expansion are accelerating the demand for heavy machinery that can handle large volumes of earthmoving and material handling activities.

The compact construction equipment segment is anticipated to grow at a significant CAGR over the forecast period. The segment's growth is attributed to rising demand for equipment that provides mobility, versatility, and lower operating costs in urban and space-constrained project environments. Compact excavators, skid-steer loaders, mini loaders, and compact track loaders are increasingly used in residential construction, landscaping, utility works, facility management, and small- to mid-scale commercial projects. As urban redevelopment and city-center infrastructure upgrades accelerate, contractors prefer compact machines for their ability to operate efficiently in tight spaces while minimizing disruption to surrounding structures and public areas.

Engine Capacity Insights

Upto 250 HP accounted for the largest market share in 2025. These mid-range machines offer an ideal balance between performance and maneuverability, making them highly effective in confined job sites and variable terrain. Contractors increasingly favor this segment for its versatility, as equipment under 250 HP can handle a broad range of tasks-from grading and earthmoving to material handling-without the higher ownership and operational costs of heavier-duty machinery. Moreover, the integration of advanced technologies such as telematics, fuel-efficient engines, and operator-assist features is further boosting adoption, especially among small to mid-sized construction firms looking to improve productivity while meeting regulatory standards.

The 250-500 HP segment is anticipated to grow at a significant CAGR over the forecast period. Equipment in this range, such as large wheel loaders, motor graders, and high-capacity dozers, offers the power required for intensive operations like bulk earthmoving, deep excavation, and material transport over extended periods. This segment is favored by large contractors and fleet operators seeking a blend of durability, productivity, and advanced control systems that enhance efficiency on complex job sites. Increasing adoption of smart technologies, including GPS-based machine control, automation, and remote diagnostics, is transforming these machines into precision tools that reduce rework, fuel consumption, and labor costs.

Regional Insights

The North America construction equipment market was identified as a lucrative region in 2025.One of the key drivers of the rising demand for construction equipment is the rapid development of smart cities in North America. Government programs such as the Smart Cities Project beneath the U.S. Economic Development Program support the regional construction equipment growth. Technologically advanced construction tools, such as earthmoving, roadbuilding, and material-handling machinery, are increasingly used in the region to develop smart cities efficiently.

U.S. Construction Equipment Market Trends

The U.S. construction equipment industry held a dominant position in 2025. The growth of construction equipment is ascribed to Due to the increasing investments by manufacturers and suppliers in installing automated equipment in manufacturing facilities and warehouses, the U.S. construction equipment industry is expected to see significant growth. The rise of e-commerce businesses has significantly increased the size of the regional market. Major companies such as Amazon and eBay spend a lot of money building warehouses to store their inventory.

The construction equipment industry in Canada is projected to grow due to significant investment in smart grids and smart meters, coupled with the rising awareness regarding greenhouse emissions. The government has launched a smart grid program that addresses the major infrastructure development achieving its goals for an energy framework based on clean energy growth.

Asia Pacific Construction Equipment Market Trends

The Asia Pacific construction equipment market accounted for a share of 44.9% of the global revenue in 2025. Manufacturers in the Asia Pacific construction equipment market is responding to the situation by offering a wide range of construction equipment models suitable for the diverse construction needs in the region. The strong emphasis on infrastructure development and the need for efficient and adaptable construction machinery are among the other significant drivers driving the growth of the Asia Pacific construction equipment market.

The construction equipment market in China is projected to grow at a significant CAR from 2026 to 2033. Additionally, the recent Regional Comprehensive Economic Partnership (RCEP) free trade agreement of China with Asia Pacific countries, including Japan, South Korea, Australia, and other smaller Southeast Asian countries, is expected to develop advanced transport infrastructure activities in the region, thereby driving the demand for construction equipment.

The construction equipment market in India held a substantial share in 2025. The equipment growth can be attributed to the factors such as the improved economic conditions, greater private sector investment, and the development of residential and commercial infrastructure in the country. The construction of roads, railroad lines, airports, and other infrastructure has received significant funding from the U.S. government, necessitating the use of loaders, excavators, and other heavy machinery.

The construction equipment market in Japan is experiencing an increase in the use of forklifts and telescopic handlers due to factors such as technological advancements in telescopic handlers and electrification of construction equipment. Furthermore, government initiatives to boost infrastructure spending, especially related to disaster-resilient structures, have also contributed to the equipment growth in Japan.

The growing demand for construction equipment market in Australia is closely linked to the nation's commitment to investing in infrastructure development and natural resource exploration. This strategic alignment positions loaders as essential equipment for undertaking various tasks, thereby driving the growth of the market.

Europe Construction Equipment Market Trends

The Europe construction equipment market held a significant share in 2025. The European Union and individual countries invest heavily in infrastructure development, leading to increased construction activities and the need for specialized machinery. Investments in infrastructure projects create a favourable opportunity for construction equipment manufacturers and suppliers. Additionally, Europe is experiencing rapid urbanization, with an increasing number of people migrating to cities. Urban development projects, including residential and commercial construction, require a wide range of construction equipment. The need to accommodate the growing population, coupled with the revitalization of existing urban areas, drives the demand for construction equipment.

The construction equipment market in the UK is ascribed to factors such as the growing government spending under the UK’s “Net Zero Strategy" plans and "Build Back Greener". Through substantial investments in infrastructure, expertise, and innovation, the government's growth strategy, "Build Back Better," has assisted in the economic growth.

The construction equipment market in Germany is expected to grow rapidly from 2026 to 2033. In Germany, rising government investment in public infrastructure projects & 'Green Infrastructure Strategy' is anticipated to spur the growth of the construction equipment market. The German government under the federal ministry for housing, urban development, and building aimed at increasing the construction of homes.

The construction equipment market in France is projected to grow owing to the growing renewable energy projects, such as wind farms and solar installation requires construction machinery for site preparation, foundation work, and installation.

Key Construction Equipment Company Insights

Some of the key companies operating in the market include Caterpillar, Inc., Deere & Company, Sany Heavy Industry Co., Ltd., Komatsu Ltd., and Volvo Construction Equipment AB.

• Caterpillar Inc. is a manufacturer of construction equipment, renowned for its durable machinery that powers global infrastructure projects. The company produces a vast array of products, including excavators, wheel loaders, bulldozers, backhoe loaders, motor graders, and off-highway trucks, all tailored for construction applications. It has operations spanning 193 countries through an extensive dealer network.

• Deere & Company, commonly known as John Deere, is a provider of construction equipment through its robust lineup of machinery designed for earthmoving, grading, and material handling tasks. Headquartered in Moline, Illinois, the company leverages its agricultural heritage to produce reliable construction products, including backhoe loaders, compact track loaders, excavators, dozers, motor graders, articulated dump trucks, and skid steers.

Recent Developments

• In April 2025, Case Construction Equipment has launched five new machines, including two compact wheel loaders (one electric), two motor graders, and a small articulated loader with a telescopic boom. The new 421G compact wheel loader offers high breakout forces and enhanced hydraulic features for tough construction tasks, while the CL36EV electric model provides a quiet, emissions-free option for environmentally sensitive jobsites. Case's upgraded M Series dozers and D Series motor graders now come with advanced electrohydraulic controls and factory-fit blade technology for improved grading precision. The SL27 TR small articulated loader features extended reach and versatile attachment compatibility, ideal for tight spaces.

• In February 2024, John Deere launched one of its largest product launches in its 187-year history at the Commodity Classic tradeshow in Houston, Texas. The company introduced autonomy-ready high-horsepower 9RX series tractors, including an industry-leading 830 horsepower model. It also launched the new C-Series air carts designed to enhance seeding-time productivity, quality, and accuracy. The Hagie STS sprayers were upgraded with factory-installed, AI-enabled See & Spray Premium weed sensing technology. Additionally, John Deere revealed the S7 Series combines, which featured fuel-efficient engines, advanced automation, and improved grain and residue-handling systems.

Construction Equipment Market Report Scope

Global Construction Equipment Market Report Segmentation

The report forecasts revenue growth at global, regional, and at country level and provides an analysis on the latest trends in each of the sub-segments from 2021 to 2030. For this study, Grand View Research has segmented the global construction equipment market report on the basis of product, equipment type, propulsion type, power output, engine capacity, and region.

• Product Outlook (Revenue, USD Million, 2021 - 2033)

  • Earth Moving Machinery

    • Excavators

      • Wheel

      • Crawler

    • Loaders

      • Backhoe Loaders

      • Skid Steer Loaders

      • Crawler/Track Loaders

      • Wheeled Loaders

    • Dump Trucks

    • Moto Graders

    • Dozers

      • Wheel

      • Crawler

  • Material Handling Machinery

    • Crawler Cranes

    • Trailer Mounted Cranes

    • Truck Mounted Cranes

    • Forklift

  • Concrete and Road Construction Machinery

    • Concrete Mixer & Pavers

    • Construction Pumps

    • Others

• Equipment Type Outlook (Revenue, USD Million, 2021 - 2033)

  • Heavy Construction Equipment

  • Compact Construction Equipment

• Propulsion Type Outlook (Revenue, USD Million, 2021 - 2033)

  • ICE

  • Electric

  • CNG/LNG

• Engine Capacity Outlook (Revenue, USD Million, 2021 - 2033)

  • Up to 250 HP

  • 250-500 HP

  • More than 500 HP

• Power Output Outlook (Revenue, USD Million, 2021 - 2033)

  • <100 HP

  • 101-200 HP

  • 201-400 HP

  • >401 HP

• Region Outlook (Revenue, USD Million, 2021 - 2033)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Argentina

  • Middle East & Africa (MEA)

    • Saudi Arabia

    • U.A.E.

    • South Africa