Construction Equipment Market Size, Share & Trends Analysis Report By Product (Earth Moving Machinery, Material Handling Machinery), By Propulsion Type (ICE, Electric, CNG/LNG), By Power Output, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global construction equipment market size was valued at USD 191.83 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 8.4% from 2023 to 2030. 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 market. According to GVR analysis globally, the sales of earthmoving machinery exceeded 717,000 units in 2022 and is projected to surpass 1,000,000 units by 2030.

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 in order to facilitate 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 Hajipur and Bihar. Likewise, in Mach 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 activities is increasing demand for material handling and road construction equipment such as forklift, paver, dozers, etc. further support the growth of global construction equipment market.

Moreover, contractors are focused on deploying advanced construction machinery to boost efficiency at construction locations, lowering the delays due to labor and decreasing pollution through construction equipment. These types of machinery are battery driven and equipped with solutions, such as telematics and Advanced Driver Assistance Systems (ADAS), that aid in improving the construction project output and lower the equipment impact on the environment.

The high cost of product and contractor inclination towards adopting rental equipment are some significant factors expected to hamper the growth of the global 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.

The rising population in Asia Pacific countries, notably India, China, and other countries, is creating the need for improved infrastructure such as stadiums, schools, houses, hospitals, government buildings, and airports. In addition, the demand for construction equipment is increasing in the residential construction sector due to lower housing rates and rapid urbanization in China and India.

Product Insights

The material handling machinery segment accounted for the largest revenue share, exceeding 36.0% in 2022. The forklift segment is thriving as the e-commerce industry is 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.

The earthmoving machinery is expected to register significant growth over the forecast period. The construction sector's growth, both in developed and emerging economies, has significantly contributed to the earthmoving machinery market. 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 led the largest market share of over 71.0% in 2022. 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 by 2020.

Power Output Insights

The <100 HP segment accounted for the largest market share of over 38.0% in 2022. <100 HP construction equipment, including mini-excavators, skid steer loaders, compact wheel loaders, and compact track loaders, offer exceptional versatility and maneuverability. The growth is due to the rising use of compact construction equipment in emerging economies like Asia Pacific, Latin America, and Africa. Urbanization, infrastructure development, and small-scale construction projects have increased the demand for versatile, cost-effective, and compact machinery. Advancements in technology, including improved powertrain efficiency, operator comfort, and automation, are also contributing to the segment’s growth.

Moreover, 101-200 HP is anticipated to register the highest CAGR 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.

Regional Insights

The Asia Pacific accounted for the largest revenue share of over 43.0% in 2022 and is expected to register a significant growth from 2023 to 2030. The construction equipment market growth is ascribed to favourable government policies to boost infrastructure projects across emerging economies such as China, India, 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 market demand.

However, Europe is expected to register a considerable growth over the forecast period. 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 market for construction equipment manufacturers and suppliers. In addition, 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.

Key Companies & Market Share Insights

The market is highly competitive with key players such as Caterpillar; Deere & Company; Doosan Corporation; Escorts Limited; Hitachi Construction Machinery Co., Ltd.; Hyundai Construction Equipment Co., Ltd.; J C Bamford Excavators Ltd.; Komatsu Ltd.; KUBOTA Corporation; LIEBHERR; SANY Group; Terex Corporation; Volvo CE; Wacker Neuson SE; XCMG Group. 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 expected 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 in the global construction equipment market include:

• Caterpillar

• CNH Industrial America LLC.

• Deere & Company

• Doosan Corporation

• Escorts Limited

• Hitachi Construction Machinery Co., Ltd.

• Hyundai Construction Equipment Co., Ltd.

• J C Bamford Excavators Ltd.

• Komatsu Ltd.

• KUBOTA Corporation

• LIEBHERR

• MANITOU Group

• SANY Group

• Terex Corporation

• Volvo CE

• Wacker Neuson SE

• XCMG Group

• Zoomlion Heavy Industry Science&Technology Co., Ltd.

Recent Developments

• In July 2023, Volvo Construction Equipment announced its plans to partner with LS Electric to implement solar panels and a Factory Energy Management Solution (FEMS) in its facility in Changwon, South Korea. Volvo committed to purchasing green electricity from 2024 to 2043, a span of 20 years. It is projected to deliver over 55 GWh of renewable energy annually. This initiative will enable the facility to limit approximately 21k tons of CO2 emissions a year. Further, by 2026, the site is anticipated to be running 100% renewable energy.

• In May 2023, John Deere expanded its offerings in Performance Tiering with the transition from L-Series to P-Tier for the Compact Wheel Loader models namely 244, 324, and 344. The new models are planned to be integrated with all the features of the L-Series and are aimed to introduce new productivity-enhancing functionalities, comprising standard ride control in base models, and alternative factory-equipped features, such as an option for auto-reversing fan.

• In May 2023, Hitachi Construction Machinery Co., Ltd. entered into a business alliance agreement with aptpod, Inc. to co-develop real-time digital twins for construction sites. These digital twins are planned to deploy aptpod’s high-speed IoT platform and will develop systems for automatic operation and remote control of construction machinery

• In May 2023, Hyundai Construction Equipment Europe announced its plans to launch the HX65A crawler model and HW65A wheeled excavator in order to strengthen the presence of the company in the compact machinery arena. The new machines are powered by Stage V Hyundai engines and are equipped with a spacious cab, improved serviceability, and standard proportional joysticks.

• In March 2023, John Deere unveiled new models of excavators and future-generation machines at the CONEXPO-CON/AGG 2023. The new models include the advanced 510 P-Tier and 85 P-Tier current-generation excavators. Additionally, the company also planned to unveil the first look of their exceptional future-generation excavators.

• In March 2023, Doosan Bobcat introduced two all-new concept loaders and a range of lineups of electric excavators. One of the concept loaders, the ‘RogueX,’ is an unmanned, cab-less loader and embodies the future technology that Doosan plans to devise. The company also unveiled a prototype of the all-electric first-in-the-world skid-steer loader ‘S7X’. The S7X has a maximum time of operation of over 8 hours and delivers top-notch performance when compared to similar diesel-powered loaders, and is nearly noise-less.

• In October 2022, Caterpillar announced the inclusion of four new battery electric machines in its portfolio of construction industries. The prototypes include the 320 medium excavator, 301.9 mini excavator, 906 compact wheel loader, and 950 GC medium wheel loader. These machines are equipped with an onboard AC charger. 

• In May 2022, Escorts Construction Equipment introduced India’s first Pick-n-Carry Hybrid Crane NXT13DC CNG with dual fuel (CNG & diesel) and Mono Chassis Safe Crane RC2522 with 25T lift capacity at the EXCON 2022, Bengaluru. The NXT13DC CNG Crane that is manufactured with indigenous research & development, aligned with the Make in India initiative is a pioneer in the series of green products. It delivers a low operating cost and rear deck utility for the convenient maneuverability of manpower and material from one site to another.

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 on the basis of product, propulsion type, power output, and region:

• Product Outlook (Volume, Units; Revenue, USD Million, 2018 - 2030)

  • Earth Moving Machinery

    • Excavators

    • Loaders

    • Dump Trucks

    • Moto Graders

    • Dozers

  • Material Handling Machinery

    • Crawler Cranes

    • Trailer Mounted Cranes

    • Truck Mounted Cranes

    • Forklift

  • Concrete & Road Construction Machinery

    • Concrete Mixer & Pavers

    • Construction Pumps

    • Others

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

  • ICE

  • Electric

  • CNG/LNG

• Power Output Outlook (Revenue, USD Million, 2018 - 2030)

  • <100 HP

  • 101-200 HP

  • 201-400 HP

  • >401 HP

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

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Argentina

    • Rest of Latin America

  • Middle East & Africa (MEA)

    • Saudi Arabia

    • U.A.E.

    • South Africa

    • Rest of MEA