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, 2022 - 2030

Report Overview

The global construction equipment market size was valued at USD 112.98 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 3.9% from 2022 to 2030. The worldwide rise in construction activity is anticipated to drive the demand for these equipment. Favorable government initiatives such as stimulus packages and lower housing rates that inclined consumers for new house purchases are key factors expected to drive market growth over the forecast period. However, supply chain and inventory concerns coupled with semiconductor shortages are likely to hinder the market growth over the next few years.

The rising popularity of electric construction equipment is expected to create new revenue streams for the OEMs over the next few years. These equipment are operated on batteries and offer various attributes such as lower maintenance, reduced noise, lesser vibration and provides greater convenience for laborers to operate on the field. They are currently at the nascent stage and are expected to gain momentum over the forecast period. OEMs such as AB Volvo, Caterpillar, and Komastu have already commercialized compact electric excavators and wheel loaders in the market. However, the high initial upfront cost is expected to be one of the bottlenecks for its adoption during the forecast period.

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 halted and new projects. Lower housing rates further boosted the demand for residential sectors, which further elevated the 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 market is also expected to witness a slowdown in equipment sales over the next few quarters of 2022.

Increasing construction spending worldwide is one of the long-term factors expected to drive sales in the market over the forecast period. The U.S. has witnessed significant growth in construction spending over the last few years. Similarly, in Europe, upcoming multi-family housing construction projects commenced in Q3 2021 which include Milanosesto Mixed-Use Complex (Italy), ZAC Campus Grand Parc Mixed-Use Development (France), Viadux Mixed-Use Community (U.K.), Camden Goods Yard Mixed-Use Community (U.K.), and Sackville Road Residential Community (U.K.) are also expected to drive the market growth. Government initiatives to modernize the aging public infrastructure such as port extension, an underwater tunnel connecting major European countries, and railway tunnels are also expected to drive the market growth.

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 Insights

The earthmoving machinery segment dominated the market with a revenue share of over 60% in 2021. The excavators sub-segment is projected to expand at a moderate CAGR during the forecast period on account of the booming infrastructure projects worldwide and the adoption of conventional heavy-duty excavators by builders and contractors for building dams and highways. 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.

A surge in the need to maintain existing civil infrastructures, notably high-rise buildings is expected to raise the demand for material handling machinery globally. The crawler cranes segment is expected to register a 5.8% CAGR over the forecast period owing to its compactness and ease of accessibility in small construction sites, especially in urban areas. The concrete and road construction machinery is expected to reach USD 39.10 billion by 2030. Increasing investment in road construction projects is expected to increase the demand for concrete and road construction machinery. For instance, in 2020, the U.S. government added USD 29 billion to the allocated funds for highway investments, which increased to USD 70 billion in 2020.

Regional Insights

Asia Pacific accounted for the largest revenue share of over 40% in 2021 and is expected to register a CAGR of over 4.0% from 2022 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 Middle East and Africa are anticipated to be emerging markets after the Asia Pacific, mainly due to the increasing Chinese investments to develop infrastructure in the region. North America is expected to register a CAGR of over 3.0% over the forecast period on the account of an increase in residential construction activity. According to the U.S. Census Bureau, construction spending witnessed a 5.8% increase in housing activity in January 2021, which created the demand for equipment in 2021. Furthermore, increasing rental penetration of earthmoving equipment, notably the mini-excavators and compact truck loaders, is expected to increase the need for new equipment among the rental companies in the next few quarters of 2022.

Key Companies & Market Share Insights

The market is highly competitive with key players such as Caterpillar, Komastu, 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. The focus for almost all key vendors in the market going forward will be to seek ways to provide cost-effective and eco-friendly equipment as an integral part of their product offerings.

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, Komatsu Ltd. entered into a joint development agreement with Honda Motor Co., Ltd. The agreement focused on electrifying Komatsu’s PCO1 micro excavators and establishing a battery-sharing system that used Honda’s Mobile Power Pack (MPP) batteries for use by different construction equipment and other civil engineering and construction equipment industries. Some of the prominent players operating in the global 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

Segments Covered in the Report

The report forecasts revenue growth at the 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 and region:

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Earth Moving Machinery

    • Excavator

    • Loader

    • Others

  • Material Handling Machinery

    • Crawler Cranes

    • Trailer Mounted Cranes

    • Truck Mounted Cranes

  • Concrete and Road Construction Machinery

    • Concrete Mixer & Pavers

    • Construction Pumps

    • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Rest of Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • Rest of Asia Pacific

  • Latin America

    • Brazil

    • Mexico

    • Rest of Latin America

  • Middle East & Africa