Construction Equipment Market Size, Share & Trends Analysis Report By Product (Earth Moving Machinery, Machine Handling Machinery, Concrete And Road Construction Machinery), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global construction equipment market size was valued at USD 183.48 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 8.3% from 2023 to 2030. The worldwide rise in construction activity is anticipated to drive the demand for construction equipment. Supportive government programs like stimulus packages and lower housing costs that encouraged people to buy new homes are major factors anticipated to fuel market expansion during the forecast period. But over the next few years, the construction equipment market growth is projected to be hampered by supply chain and inventory issues as well as a shortage of semiconductors.

The COVID-19 outbreak had a negative impact on construction activity in 2020. The rapid spread of COVID-19 infections caused an abrupt downturn in construction activities due to a temporary lockdown worldwide. The OEMs experienced supply chain disruptions and temporary shutdowns of dealer stores that halted new purchases. However, in 2021, there was a sudden increase in demand for construction equipment due to the resumption of construction activity for new projects. Lower housing rates further boosted the demand for residential sectors, which further elevated the construction equipment demand. Considering the current market dynamics that include market uncertainty due to the rising number of COVID-19 infections due to the new variant Omicron, the high prices of steel and aluminum, and semiconductor shortages, the construction equipment market is also expected to witness a slowdown in construction equipment sales over the next few quarters of 2022.

Over the next few years, new revenue streams for the OEMs are anticipated to be generated by the growing use of electric construction equipment. These tools are battery-powered and have a number of benefits, including less maintenance requirements, less noise and vibration, and improved operator ease for field laborers. They are still in their nascent stage but are anticipated to grow over the forecast period. Wheel loaders and tiny electric excavators have already been commercialized by OEMs such as Caterpillar, AB Volvo, and Komatsu. However, the high initial upfront cost is expected to be one of the bottlenecks for its adoption during the forecast period.

An increase in construction investment throughout the world is one of the long-term factors anticipated to propel sales of the construction equipment market during the forecast period. Building investment in the United States has significantly increased during the last few years. Similar to this, it is anticipated that multi-family dwelling development projects beginning in Q3 2021 will propel construction equipment market expansion in Europe. These initiatives include the mixed-use developments ZAC Campus Grand Parc (France), Milanosesto Complex (Italy), Camden Goods Yard (UK), Viadux (UK), and Sackville Road Residential Community (UK). Market expansion is also anticipated to be accelerated by government initiatives to replace aging public infrastructure, including railway tunnels, port extensions, and an undersea tunnel connecting important European states.

The growing population in Asia Pacific countries, notably China, India, and South Asian countries is creating the need for better infrastructure such as houses, schools, hospitals, stadiums, government buildings, and airports. Also, the demand for construction equipment is increasing in the residential construction sector owing to lower housing rates and rapid urbanization in China and India. Additionally, an increase in the number of favorable government policies aimed to encourage the Public-Private Partnership (PPP) model is also expected to bode well for the growth of the construction equipment market over the forecast period.

Product Type Insights

The earthmoving machinery segment dominated the market and accounted for the largest revenue share of over 47% in 2022. The excavators sub-segment is projected to expand at a moderate CAGR during the forecast period owing to the increase in infrastructure projects around the world and the use of traditional heavy-duty excavators by construction companies to build highways and dams. The material handling equipment segment is expected to register a 4% CAGR over the forecast period. It is ascribed to an increase in demand for crawler cranes to construct non-residential sectors, notably in industrial, manufacturing, and commercial building sectors.

The material handling machinery is anticipated to grow at a CAGR of 12.1% throughout the forecast period. The sub-segment forklift is thriving in the e-commerce industry leading to an increase in the number of warehouses and the need to efficiently manage the supply chain in warehouses. Moreover, warehouse owners focus on increasing transparency, lowering operational costs, and enhancing productivity within the warehouse and operational plants. These aspects are expected to increase demand for forklifts such as stand-up riders and narrow-aisle forklifts that offer high operation accuracy and better navigation in narrow aisles, tiers, and mezzanines.

Regional Insights

Asia Pacific dominated the construction equipment market and accounted for the largest revenue share of over 45.77% in 2022 and is expected to register a CAGR of over 9.2% from 2023 to 2030. The market growth is primarily ascribed to favorable government policies to boost infrastructure projects across emerging economies such as India, China, and Southeast Asian countries.

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. The deal was tactical for China for strengthening its regional economic bonds to divert from the after-effects of the U.S.-China trade war.

Key Companies & Market Share Insights

The market is highly competitive with key players such as Caterpillar, Komatsu, Deere and Company, Sany Heavy Industries, Volvo AB, and Hitachi Construction Ltd. Currently, OEMs are dealing with numerous short-term challenges such as lack of skilled employees, high raw material prices, and shortage of semiconductor components. As a result, OEMs are expecting supply and logistic delays resulting in lower new construction equipment sales over the next few quarters of 2022. Going forward, practically all major market players will concentrate on finding ways to offer affordable and environmentally friendly equipment as a core component of their product lines

Over the next few years, OEMs are presumed to adopt organic and inorganic growth approaches through joint ventures, partnerships, and mergers and acquisitions, which further help the vendors increase their customer base and strengthen their foothold in the market. For instance, In January 2021, Honda Motor Co., Ltd. and Komatsu Ltd. signed a joint development agreement. The deal was centered on building a battery-sharing system using Honda's Mobile Power Pack (MPP) batteries for usage by various construction equipment and other civil engineering and construction equipment industries, as well as electrifying Komatsu's PCO1 mini excavators. Some of the prominent players operating in the construction equipment market are:

• Caterpillar

• CNH Industrial N.V.

• Doosan Corporation

• Escorts Limited

• Hitachi Construction Machinery Co., Ltd.

• Hyundai Construction Equipment Co., Ltd.

• J C Bamford Excavators Ltd.

• Deere & Company.

• Kobelco Construction Machinery Co., Ltd.

• Komatsu Ltd.

• Liebherr-International AG

• Manitou BF

• HÄ°DROMEK

• Sany Heavy Industry Co., Ltd.

• Sumitomo Heavy Industries, Ltd.

• Terex Corporation

• Volvo AB

• Zoomlion Heavy Industry Science and Technology Co., Ltd

Construction Equipment Market Report Scope

Global Construction Equipment Market Report Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global construction equipment market report based on product type and region:

• Product Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Earth Moving Machinery

    • Excavator

    • Loader

    • Others

  • Material Handling Machinery

    • Crawler Cranes

    • Trailer Mounted Cranes

    • Truck Mounted Cranes

    • Forklift

  • Concrete and Road Construction Machinery

    • Concrete Mixer & Pavers

    • Construction Pumps

    • Others

• Region Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexicos

    • Argentina

  • Middle East & Africa

    • UAE

    • Kingdom of Saudi Arabia

    • South Africa