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.
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.
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.
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
HİDROMEK
Sany Heavy Industry Co., Ltd.
Sumitomo Heavy Industries, Ltd.
Terex Corporation
Volvo AB
Zoomlion Heavy Industry Science and Technology Co., Ltd
Report Attribute |
Details |
Market size value in 2023 |
USD 198,000.3 million |
Revenue forecast in 2030 |
USD 346,236.6 million |
Growth rate |
CAGR of 8.3% from 2023 to 2030 |
Base year for estimation |
2022 |
Historical data |
2018 - 2021 |
Forecast period |
2023 - 2030 |
Quantitative units |
Revenue in USD Million and CAGR from 2023 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; MEA |
Country scope |
U.S.; Canada; U.K.; Germany; France; Italy; Spain; China; India; Japan; Australia; South Korea; Brazil; Mexico; Argentina; UAE; Kingdom of South Korea; South Africa |
Key companies profiled |
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; HİDROMEK; Sany Heavy Industry Co., Ltd.; Sumitomo Heavy Industries, Ltd.; Terex Corporation; Volvo AB; Zoomlion Heavy Industry Science; Technology Co., Ltd |
Customization scope |
Free report customization (equivalent to up to 8 analysts’ working days) with purchase. Addition or alteration to country, regional, and segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
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
b. The global construction equipment market size was estimated at USD 183,478.7 million in 2022 and is expected to reach USD 198,000.3 million in 2023.
b. The global construction equipment market is expected to grow at a compound annual growth rate of 8.3% from 2023 to 2030 to reach USD 346,236.6 million by 2030.
b. The Asia Pacific dominated the construction equipment market with a share of 47.4% in 2022. This is attributable to rising government funding for the development of advanced public infrastructure in the region.
b. Some key players operating in the construction equipment market include Caterpillar, Komastu, Deere and Company, Sany Heavy Industries, Volvo AB, and Hitachi Construction Ltd.
b. The construction equipment sales witnessed strong demand in 2022, owing to increased construction spending worldwide and order backlog that stalled in 2020 due to temporary lockdown imposed by various economies.
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COVID-19 outbreak has significantly impacted the construction industry. However, late-cycle construction equipment industry should continue to see considerable demand and benefit from ongoing infrastructure development. The Chinese construction industry faces a huge but temporary blow. The manufacturers are expected to overcome the first-quarter disruptions and essentially make up for the lost time in subsequent quarters. We are continuously monitoring the market dynamics and regulations and trying to assess the impact of COVID-19 on the construction equipment market. The report will account for COVID-19 as a key market contributor.
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