Construction Equipment Market Overview

The global construction equipment market was valued at USD 207.14 billion in 2023 and is projected to reach USD 363.23 billion by 2030, growing at a compound annual growth rate (CAGR) of 8.4% from 2024 to 2030. The rising pace of urbanization in developing regions, along with increased government investments in infrastructure modernization, is fueling demand for construction machinery such as excavators, loaders, dump trucks, and more.

Growing infrastructure development activities worldwide are significantly driving demand for earthmoving and material handling equipment, thereby contributing to the overall expansion of the construction equipment market. Governments in developing countries are increasing their infrastructure budgets to support large-scale construction projects. For instance, in June 2022, the Indian Ministry of Road Transport and Highways announced 15 new national highway projects worth USD 1.7 billion in Patna and Hajipur, Bihar.

Similarly, in March 2023, the Singaporean government declared plans to begin construction of Terminal 5 (T5) at Changi Airport by 2025. This expansion aims to manage increasing air passenger traffic, contributing to higher demand for road construction and material handling equipment such as forklifts, pavers, and dozers.

Technological advancements in construction machinery are expected to further support market growth over the forecast period. Original Equipment Manufacturers (OEMs) are introducing innovative and eco-friendly solutions to gain a competitive edge. For example, in January 2023, John Deere launched battery-powered farming and construction equipment. The company developed these technologies in response to growing population demands, limited arable land, and the need to reduce greenhouse gas emissions.

However, the high cost of equipment ownership and the rising preference for rental solutions are expected to restrain market growth. Contractors are increasingly opting to rent machinery for specific project durations rather than purchasing, which helps them reduce capital expenditure and improve operational flexibility.

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Key Market Trends & Insights

• In 2023, the Asia Pacific region accounted for 43.8% of global market revenue, making it the largest regional market.
• China's construction equipment market is expected to grow at a CAGR of 10.9% from 2024 to 2030.
• By product, the material handling machinery segment led the market with a 38.5% share in 2023.
• Based on propulsion type, the Internal Combustion Engine (ICE) segment generated the highest revenue in 2023.
• In terms of power output, the <100 HP segment captured the largest market share in 2023.

Market Size & Forecast

• 2023 Market Size: USD 207.14 billion
• 2030 Projected Market Size: USD 363.23 billion
• CAGR (2024–2030): 8.4%
• Largest Regional Market (2023): Asia Pacific

Competitive Landscape & Company Insights

The market is dominated by major players who are investing in innovation and expanding their product portfolios to maintain a competitive edge. Key players include Caterpillar, Inc., Deere & Company, Sany Heavy Industry Co., Ltd., Komatsu Ltd., and Volvo Construction Equipment AB.

• Caterpillar, Inc. offers a wide range of machinery including dozers, loaders, and excavators, known for their durability and advanced features.
• Deere & Company invests heavily in R&D, introducing cutting-edge technologies to stay competitive in the market.

Emerging players such as Hyundai Construction Equipment Co., Ltd., HİDROMEK, and Kobelco Construction Machinery Co., Ltd. are also gaining traction:

• Hyundai Construction Equipment Co., Ltd. manufactures various machines including excavators, backhoe loaders, wheel loaders, and forklifts, and also produces heavy machinery like cranes, pavers, and bulldozers.
• HİDROMEK, based in Turkey, manufactures excavators, motor graders, wheel loaders, and soil compactors, and also provides used machinery and after-sales services.

Leading Companies in the Construction Equipment Market:

• Caterpillar, Inc.
• 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
• AB Volvo
• Wacker Neuson SE
• XCMG Group
• Zoomlion Heavy Industry Science & Technology Co., Ltd.

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Conclusion

The global construction equipment market is poised for substantial growth, projected to reach USD 363.23 billion by 2030, driven by robust infrastructure development initiatives, rapid urbanization, and increasing government investments, especially in developing regions. While high equipment costs and the growing trend of equipment rental may pose challenges, technological innovation and the push for sustainable construction solutions are creating significant opportunities. With major players expanding their portfolios and new entrants offering competitive technologies, the market is expected to remain dynamic and highly competitive over the coming years.