Construction Equipment Market Size - By Product (Earth Moving & Road Building Equipment, Material Handling & Cranes, Concrete Equipment [Concrete Pumps, Crushers, Transit Mixers, Asphalt Pavers, Batching Plants]), & Forecast, 2024 – 2032

Construction Equipment Market Size

Construction Equipment Market was valued at USD 171.1 billion in 2023 and is estimated to exhibit 6% CAGR between 2024 and 2032, driven by the continuous advancements in technology by leading companies. These technological innovations are revolutionizing the construction industry, enhancing efficiency, productivity, and safety across various construction projects. Companies are investing heavily in research and development to introduce cutting-edge equipment equipped with advanced features such as GPS tracking, telematics, and autonomous capabilities. These innovations streamline construction processes while offering cost savings and environmental benefits.

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One of the primary drivers propelling growth in the construction equipment market is the increasing demand for construction equipment rental services. Construction equipment rental has emerged as a preferred option for many construction companies and contractors due to its cost-effectiveness, flexibility, and reduced upfront investment. Renting construction equipment allows businesses to access a wide range of machinery without the burden of ownership, enabling them to scale their operations according to project needs while minimizing financial risks. Furthermore, the expanding construction equipment aftermarket is another driver propelling the industry growth.

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Rapid technological upgrades, including telematics, GPS tracking, and automation, are revolutionizing the construction equipment market. These innovations improve equipment performance, enhance safety features, and increase operational efficiency. Contractors and construction companies are increasingly adopting technologically advanced machinery to optimize project timelines, reduce costs, and minimize downtime. As a result, there is a growing demand for modern construction equipment equipped with cutting-edge technology.

The construction equipment market faces several restraints that impact its growth and development. One significant challenge is the high cost associated with acquiring and maintaining construction machinery. The initial investment required for purchasing heavy equipment, coupled with ongoing expenses for maintenance, repairs, and operation, can pose financial barriers for contractors and construction companies, especially smaller firms with limited budgets. Moreover, the cyclical nature of the construction industry, influenced by factors like economic downturns and geopolitical instability, can lead to fluctuations in demand for construction equipment, creating uncertainties for manufacturers and suppliers. Overcoming these restraints requires innovative strategies, cost-effective solutions, and adaptability to market dynamics.

Construction Equipment Market Trends

The construction equipment industry is witnessing notable trends driven by increasing collaborations and awareness between educational institutions and companies. Educational institutions, including universities and vocational schools, are partnering with construction equipment manufacturers and industry players to develop specialized training programs and curricula tailored to the needs of the sector. These collaborations aim to bridge the skills gap in the workforce by providing students with hands-on training and technical expertise in operating and maintaining construction machinery. Simultaneously, companies are leveraging these partnerships to foster talent pipelines, recruit skilled graduates, and promote innovation in the industry.

Construction Equipment Market Analysis

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Based on product, the earthmoving & roadbuilding equipment segment was worth over USD 90 billion in 2023, driven by earthmoving & roadbuilding equipment. Earthmoving equipment such as excavator, bulldozers, and loaders are essential for tasks like excavation, grading, and land clearing, vital for constructing roads, bridges, and buildings. Roadbuilding equipment, including asphalt pavers and compactors, plays a crucial role in constructing and maintaining transportation networks. As urbanization and population growth drive the need for infrastructure development, the demand for earthmoving and roadbuilding equipment remains robust. Contractors and construction companies rely on these specialized machines to efficiently complete projects, contributing to the growth of the construction equipment market.

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Based on the earthmoving & roadbuilding equipment, the backhoe segment is anticipated to register a CAGR of over 5% from 2024 to 2032. Due to their versatility and multifunctionality. Backhoes are highly versatile machines that can perform multiple tasks, including excavation, trenching, loading, lifting, and material handling. This multifunctionality makes backhoes indispensable on construction sites where space and maneuverability are limited. Backhoes offer operational efficiency by combining the capabilities of both a loader and an excavator in a single machine. This reduces the need for multiple pieces of equipment on a job site, saving time, labor costs, and space.

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Asia Pacific region dominated the global construction equipment market with a major share of over 45% in 2023. Rapid urbanization, population growth, and infrastructure development projects fuel the need for construction machinery across countries like China, India, and Southeast Asian nations. Government investments in infrastructure, including transportation, energy, and residential sectors, further propel demand. Besides, rising industrialization and commercial construction activities contribute to the market growth. With emerging economies prioritizing development agendas, the demand for construction equipment in the Asia Pacific region continues to surge, making it a pivotal market for manufacturers and suppliers seeking opportunities for expansion and growth.
Construction Equipment Market Share

Komatsu, Ltd., XCMG, and Caterpillar, Inc. held significant market share of over 28% market share in 2023. These leading companies drive demand through strategic efforts tailored to this sector. They continuously innovate and introduce advanced machinery equipped with cutting-edge technology to enhance productivity, safety, and efficiency on construction sites. These companies invest in research and development, focusing on improving equipment performance, durability, and sustainability.

Moreover, they offer comprehensive solutions, including aftermarket services, financing options, and training programs, to meet evolving customer needs. By understanding market trends, collaborating with stakeholders, and providing value-added services, leading companies play a pivotal role in shaping and sustaining demand in global market.

Construction Equipment Market Companies

Major players operating in the construction equipment industry are

• Caterpillar, Inc.
• CNH Industrial
• Deere & Co.
• Doosan Group
• Hitachi Construction Machinery
• Komatsu, Ltd.
• Liebherr Group
• Sany Group
• Terex Corporation
• Volvo CE
• XCMG

Construction Equipment Industry News

• In March 2024, Hitachi Construction Machinery (Europe) NV (HCME), a renowned construction equipment manufacturer, joined forces with ShareMat, a leading provider of professional software and Fleet Management Systems (FMS) for construction equipment, to establish a strategic collaboration in France.
• In February 2024, CASE Construction Equipment, a CNH brand, broadened its footprint in Rajasthan by partnering with a new dealer, RDR Techsol, in Jaipur. This dealership will showcase CASE's diverse product lineup in India and ensure extensive assistance for post-sales service and spare parts.
• In December 2023, Ammann Group and Volvo CE finalized an agreement in which the Ammann Group will acquire Volvo CE’s global ABG Paver Business, including ABG, located in Germany. This mutually beneficial agreement enhanced the businesses of both companies.

with estimates & forecasts in terms of revenue (USD Billion) and shipment (Units) from 2021 to 2032, for the following segments

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Market, By Product

• Earthmoving & roadbuilding equipment
  • Backhoe
  • Excavator
  • Loader
  • Compaction equipment
  • Others
• Material handling and cranes
  • Storage and handling equipment
  • Engineered systems
  • Industrial trucks
  • Bulk material handling equipment
• Concrete equipment
  • Concrete pumps
  • Crusher
  • Transit mixers
  • Asphalt pavers
  • Batching plants

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA