The global construction equipment market size 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. This strong growth outlook is largely driven by rapid urbanization in developing nations and the increasing emphasis by governments on enhancing and modernizing existing infrastructure. As construction activity rises, the need for machinery such as excavators, loaders, dump trucks, and other essential construction equipment continues to grow.

Consequently, the surge in infrastructure development projects worldwide is expected to significantly boost the demand for earthmoving and material-handling equipment, thereby fueling the broader construction equipment market. Governments in emerging economies are particularly active in investing in infrastructure upgrades, leading to a notable rise in construction-related operations. For example, India has placed strong focus on improving its road network to support smoother transportation of goods and resources. In June 2022, the Indian Minister of Road Transport and Highways announced the launch of 15 new national highway projects valued at USD 1.7 billion in Patna and Hajipur, Bihar—demonstrating the country's commitment to large-scale infrastructure expansion.

Similarly, in March 2023, the government of Singapore revealed plans to begin construction of the new Terminal 5 (T5) at Changi Airport by 2025. The addition of T5 aims to ease air passenger traffic at the existing airport facilities. Such major developments in road and airport construction are generating increased demand for material-handling and road construction machinery, including forklifts, pavers, dozers, and other specialized equipment. These ongoing global infrastructure initiatives are expected to continue strengthening the growth trajectory of the construction equipment market over the coming years.

Key Market Trends & Insights:

• The Asia Pacific construction equipment market accounted for 43.8% of global revenue in 2023, making it the leading regional market. This dominance is driven by rapid infrastructure development, expanding urban populations, and significant government investments in transportation, housing, and industrial projects across countries such as China, India, Japan, and Southeast Asian nations. The region’s growing construction activities continue to create sustained demand for a wide range of construction machinery.

• In China specifically, the construction equipment market is projected to grow at a strong CAGR of 10.9% from 2024 to 2030. This robust growth outlook is supported by large-scale infrastructure initiatives, ongoing urban redevelopment projects, smart city development, and government-backed investments aimed at modernizing public infrastructure. China’s rapidly expanding road networks, railway upgrades, and commercial construction activities further enhance the demand for advanced construction equipment.

• Based on product type, the material handling machinery segment led the market, accounting for 38.5% in 2023. This segment includes equipment such as cranes, forklifts, and conveyors, which are essential for lifting, transporting, and handling heavy materials on job sites. The rise in logistics, warehousing, and large construction projects has significantly contributed to the segment’s leading position.

• By propulsion type, the internal combustion engine (ICE) segment accounted for the largest market revenue share in 2023. ICE-powered equipment remains widely preferred due to its high power output, reliability, and ability to operate efficiently in demanding construction environments, especially in regions where electric alternatives are still evolving.

• Based on power output, the <100 HP segment held the largest market share in 2023. Equipment within this power range is commonly used for compact construction tasks, urban infrastructure development, small-scale earthmoving activities, and landscaping. Their versatility, ease of operation, and suitability for confined workspaces contribute significantly to their high demand across both developed and developing markets.

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Market Size & Forecast:

• 2023 Market Size: USD 207.14 billion

• 2030 Projected Market Size: USD 363.23 billion

• CAGR (2024-2030): 8.4%

• Asia Pacific: Largest market in 2023

Key Companies & Market Share Insights:

Some of the key players operating in the construction equipment market include Caterpillar, Inc., Deere & Company, Sany Heavy Industry Co., Ltd., Komatsu Ltd., and Volvo Construction Equipment AB. These companies hold strong positions globally due to their extensive product portfolios, technological innovations, and long-standing market presence.

• Caterpillar, Inc. provides a wide and diverse range of construction equipment, such as dozers, loaders, excavators, and several other machinery types. The company’s equipment lineup is widely recognized for its high performance, long operational life, and advanced features that support efficiency and reliability on construction sites.

• Deere & Company makes significant investments in research and development, enabling the company to introduce cutting-edge technologies and modern functionalities in its construction machinery. These technological enhancements strengthen Deere & Company’s ability to remain competitive and address evolving customer demands.

• In addition to established brands, companies such as Hyundai Construction Equipment Co., Ltd., HİDROMEK, and Kobelco Construction Machinery Co. Ltd. are emerging as notable participants in the construction equipment market, expanding their reach and product offerings.

• Hyundai Construction Equipment Co., Ltd. manufactures a broad array of machinery covering both construction and material-handling categories. Its portfolio includes excavators, backhoe loaders, wheel loaders, forklifts, and skid loaders. The company also produces heavy machinery such as concrete mixers, bulldozers, cranes, pavers, dredging machines, and power shovels, all of which are essential to various construction operations.

• HİDROMEK, based in Turkey, specializes in the production of construction machinery and offers a variety of equipment, including hydraulic excavators, backhoe loaders, motor graders, wheel loaders, and soil compactors. In addition to manufacturing new equipment, the company also supports customers through used machinery sales and comprehensive after-sales service solutions.

Key Players

• 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 strong growth over the forecast period, fueled by accelerated infrastructure development, urbanization, and rising construction activity worldwide. Demand is being driven by both material-handling and earthmoving machinery, reflecting expanding needs in commercial, residential, and public-works projects. The dominance of the Asia-Pacific region underscores shifting growth centers toward emerging economies with significant infrastructure investments. Meanwhile, evolving trends — such as increasing adoption of compact and versatile machines, and a gradual shift toward electric and technologically advanced equipment — suggest that the industry is adapting to efficiency, sustainability, and cost pressures.