The Construction Equipment Market Report is Segmented by Equipment Type (Earthmoving, and More), Propulsion Type (Internal Combustion (Diesel & CNG/LNG), and More), Equipment Size/Weight (Heavy (Above 11 Tons), and More), Power Output (Up To 250 HP, and More), Application (Infrastructure, and More), Sales Channel (New Equipment, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

China is expected to account for more than ** percent of the global construction equipment market in 2027. That year, about ******* units are expected to be sold in China. Globally, some *** million units of construction equipment are forecast to be sold in 2027. Global construction equipment market size forecast China, North America, and Europe were the largest markets for construction equipment in 2022. While these markets will likely have to face challenges, India is expected to emerge as a growth driver in the coming years. In emerging markets such as India, increasingly affluent consumers are predicted to drive demand for larger residential structures and developments in infrastructure, while some experts also see bullish trends in industrial countries, where construction activity is expected to increase to fix aging infrastructure. Construction equipment definition The term construction equipment refers to machinery designed for executing construction tasks. Crawler dozers, crawler excavators, aerial work platforms and wheel loaders rank among the most important product categories in this industry. The leading manufacturers of construction equipment include Caterpillar of the United States, Sweden’s Volvo, Komatsu and Hitachi of Japan, as well as Switzerland’s Liebherr. XCMG and SANY are among China’s leading manufacturers of heavy machinery.

The Used Construction Equipment Market Report is Segmented by Product Type (Crane, Telescopic Handler, and More), Drive Type (Internal Combustion Engine, and More), End-Use Industry (Construction and Infrastructure, Mining and Quarrying, and More), Sales Channel (Dealer/Broker, Auction, and More), and Geography (North America, South America, and More). The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

The heavy construction equipment market size attained a value of USD 203.62 Billion in 2024. The market is expected to grow at a CAGR of 6.20% during the forecast period of 2025-2034. By 2034, the market is expected to reach USD 371.59 Billion.

The heavy construction equipment market revenue is surging with rapid digitalization and higher adoption of data analytics. As companies embrace data-driven decision-making, the demand for smart and connected heavy machinery rises while encouraging manufacturers to integrate digital solutions into their equipment offerings. For instance, in June 2025, Desi Machines launched a digital platform for simplifying discovery, comparison, purchase, financing, and insurance of construction, earthmoving, mining, and heavy engineering equipment in India. This digital transformation is reshaping the industry’s competitive landscape and accelerating overall market growth.

Integration of GPS, IoT, and telematics is transforming fleet management and predictive maintenance. Equipment with real-time monitoring reduces downtime while optimizing utilization and operational efficiency. In January 2025, CASE launched myCASE Construction, a telematics app offering real-time machine tracking, fuel efficiency monitoring, and remote diagnostics to optimize fleet performance and reduce downtime. These smart systems also enable remote diagnostics, improving serviceability and lowering total cost of ownership.

U.S. Heavy Duty Construction Equipment Market is estimated at USD 82.9 Mn in 2025 and is expected to expand at CAGR of 5.8%, reaching USD 123.0 Mn by 2032.

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Construction Equipment Market Size 2025-2029

The construction equipment market size is valued to increase USD 34 billion, at a CAGR of 4.3% from 2024 to 2029. Rising number of new construction equipment launches will drive the construction equipment market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 47% growth during the forecast period.
By Product - Owned equipment segment was valued at USD 81.60 billion in 2023
By Application - Residential segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 43.03 billion
Market Future Opportunities: USD 34.00 billion
CAGR from 2024 to 2029 : 4.3%

Market Summary

The market encompasses a dynamic and ever-evolving landscape of core technologies and applications, service types, and product categories. With the rise of advanced technologies such as automation, IoT, and AI, construction equipment is becoming increasingly sophisticated, enhancing productivity and efficiency. The adoption of electric construction equipment is on the rise, driven by growing environmental concerns and the need for sustainable solutions. However, high initial costs and maintenance expenses remain significant challenges. According to recent reports, electric construction equipment is expected to account for over 15% of the market share by 2027.
Despite these challenges, the market continues to unfold with new opportunities, including the increasing demand for rental services and the growing popularity of modular construction. Regions such as Asia Pacific and Europe are witnessing significant growth, driven by increasing infrastructure development and urbanization.

What will be the Size of the Construction Equipment Market during the forecast period?

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How is the Construction Equipment Market Segmented?

The construction equipment industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Owned equipment
  Rented equipment
  Leased equipment


Application

  Residential
  Infrastructure
  Commercial


Type

  Earthmoving equipment
  Material handling equipment
  Road construction equipment
  Concrete equipment
  Others


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Product Insights

The owned equipment segment is estimated to witness significant growth during the forecast period.

The market encompasses a vast array of machinery and vehicles, with the owned equipment segment being a significant contributor. This segment includes excavators, loaders, skid steers, and other small machinery, as well as trucks, trailers, and specialized construction vehicles. Owned equipment is typically purchased outright by construction companies, contractors, or end-users, leading to extensive usage and maintenance. Key components of owned construction equipment include material handling systems, heavy-duty engines, power transmission, construction software, hydraulic systems, telematics integration, digital dashboards, ground pressure control, and off-road mobility.

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The Owned equipment segment was valued at USD 81.60 billion in 2019 and showed a gradual increase during the forecast period.

Emphasis on operator safety, noise reduction, remote diagnostics, and load capacity is increasing, with advancements in engine performance, machine durability, GPS integration, automation features, structural integrity, data acquisition, vibration dampening, component lifespan, precision control, wear resistance, thermal management, maintenance scheduling, electrification systems, and excavator technology.

Crane mechanisms and safety protocols are also essential, with control algorithms optimizing lifting capacity and fuel efficiency while sensor networks ensure continuous performance monitoring.

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Regional Analysis

APAC is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in Asia-Pacific (APAC) is experiencing significant growth, driven by expanding construction activities in emerging countries like India, Afghanistan, and Bangladesh. This region is expected to maintain a steady growth trajectory during the forecast period, fueling the demand for new infrastructure projects to accommodate the incre

The Middle East Construction Equipment market was valued at USD 16,110 million in 2024 and is projected to reach USD 21,178 million by 2030 with a CAGR of 4.95%. In terms of volume, the market recorded 63,048 units in 2023, expected to reach 76,222 units by 2030 at a CAGR of 3.2%.

The Construction Equipment Market size was valued at USD 223.56 billion in 2023 and is projected to reach USD 393.19 billion by 2032, exhibiting a CAGR of 8.4 % during the forecasts period. Recent developments include: In November 2023, Komatsu Ltd. through its subsidiary, Komatsu America Corp. agreed to acquire American Battery Solutions, Inc., a battery manufacturer based in the U.S. The acquisition of American Battery Solutions, Inc. would allow Komatsu Ltd. to manufacture and develop its own battery-operated mining and construction equipment by integrating American Battery Solutions, Inc.’s battery technology with Komatsu Ltd.’s expertise. , In October 2023, CASE Construction Equipment, a brand of CNH Industrial N.V., launched a lineup of small articulated loaders and mini track loaders, providing small contractors with construction-grade power to tackle more jobs with less manual labor. , In May 2023, Caterpillar Inc. unveiled the updated Cat D10 Dozer designed for tough construction environments and challenging job sites. The dozer incorporates a load-sensing hydraulics and stator clutch torque converter to effectively transmit power to the ground. , In May 2023, Hitachi Construction Machinery Co., Ltd. launched ZAXIS-7 compact excavators designed to enhance task efficiency on urban work sites. The company also launched ZX75US-7 model that featured an ultra-short-tail swing radius, which allowed access to small spaces. In addition, the ZX85USB-7 model, with its swing boom and ultra-short-tail swing radius, enabled productive excavation near walls and guardrails. .

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Europe Construction Equipment Market Size 2025-2029

The construction equipment market size in Europe is forecast to increase by USD 6.91 billion at a CAGR of 3.9% between 2024 and 2029.

The European construction equipment market is experiencing significant growth, driven by increasing government infrastructure investments and the rising demand for electric construction equipment. These trends are shaping the industry landscape, with electric equipment gaining traction due to its environmental benefits and cost savings over time. The construction equipment landscape is further shaped by the ongoing development of green city projects and the integration of steel and real estate investments. However, the high cost associated with purchasing and maintaining construction equipment remains a challenge for market participants.


As governments continue to invest in infrastructure projects and the push for sustainability intensifies, the European construction equipment market is poised for continued growth. Companies in this sector must navigate these trends and address cost concerns to remain competitive and capture market share. Urban expansion, including high-rise apartments, is driving the use of concrete mixer, motor grader, and loaders and backhoe combinations for efficient site preparation.

What will be the Size of the Market During the Forecast Period?

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The European construction equipment market encompasses various sectors, including IoT-enabled light-duty vehicles, telescopic handling solutions, and OEMs specializing in construction machinery and non-road mobile machinery. This dynamic industry embraces advanced technologies such as automation, AI-driven analytics, virtual reality, and augmented reality. Major players in this domain include Mack Trucks, focusing on IC engine technologies, and those developing AI-based twin technology for earthmoving machinery like excavators and loaders. The housing sector and infrastructure projects fuel market growth, with emission norms driving the adoption of diesel particulate filters and engine technologies. Inland waterway vessels and railroad engines also contribute to the market's diversity, while the transportation sector's increasing focus on green city projects further propels innovation.


Trends include the integration of telemetry data and real-time analytics, enabling predictive maintenance and optimization of telescopic handling and crane performance. Moreover, the market witnesses the emergence of autonomous machinery and AI-driven analytics in earthmoving machinery, excavators, and loaders and backhoes. The future of construction equipment lies in the seamless integration of technology and sustainability, ensuring efficient, cost-effective, and eco-friendly solutions for the industry.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Commercial
  Residential
  Infrastructure


Product

  Earthmoving equipment
  Material handling equipment
  Concrete equipment
  Road construction equipment
  Others


Fuel Type

  Diesel
  Gasoline
  Others


Engine Capacity

  Up to 250 HP
  250 to 500 HP
  More than 500 HP


Geography

  Europe

    France
    Germany
    Italy
    UK

By Application Insights

The commercial segment is estimated to witness significant growth during the forecast period. The European construction industry has witnessed substantial growth, leading to a heightened demand for construction equipment. This trend is driven by various factors, including urbanization, infrastructure development, and increased construction activity. Consequently, the market for construction machinery, including Truck Mounted Cranes, Compact electric excavators, and Earth moving equipment, has experienced significant growth. For instance, the construction of the Nord Stream 2 pipelines in Germany necessitated the use of specialized equipment such as cranes, excavators, and concrete pumps. Furthermore, the housing sector's recovery and the development of Green City Projects have fueled the demand for Construction machinery, Motor Graders, Concrete Mixers, and other equipment.

The European construction equipment market is experiencing significant growth, driven by increasing government infrastructure investments and the rising demand for electric construction equipment. Digitalization and automation have also influenced the market, with AI-driven analytics, IoT, and virtual reality technologies being integrated into various equipment types. The European construction industry's sustainability goals have led to the adoption of IC Engines, Diesel particulate filters, and other emission control te

The global market for heavy construction equipment is expected to increase continuously in the upcoming years based on a 2020 forecast. By 2030, this market is expected to be worth over *** billion U.S. dollars.

According to Cognitive Market Research, the global Construction Equipment market size is USD XX million in 2024 and will expand at a compound annual growth rate (CAGR) of XX % from 2025 to 2033. • North America held the major market of more than XX% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of XX % from 2025 to 2033. • Europe accounted for a share of over XX% of the global market size of USD XX million. • Asia Pacific held the market of around XX% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of XX % from 2025 to 2033. • Latin America market of more than XX% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of XX from 2025 to 2033. • Middle East and Africa held the major market of around XX% of the global revenue with a market size of USD XX million in 2024 and will grow at a compound annual growth rate (CAGR) of XX % from 2025 to 2033. Market Dynamics

Key Drivers

Building a Greener Futureis a Trends in Sustainable Construction Practices and thus driving this market 

The growing demand for sustainable and green construction practices significantly boosting the construction equipment market particularly in areas like electric heavy equipment and sustainable material handling. For instance, Companies like Caterpillar and Volvo have been developing electric excavators, loaders and compactors, which are designed to run on clean energy.

These machines produce zero emissions on-site, reduce noise pollution and lower operating costs over time, as electricity is cheaper than diesel fuel. While the initial investment may be higher, and there are still some challenges to overcome, the long-term savings and environmental benefits are undeniable. In 2025, the construction industry could see a more widespread adoption of fully electric machinery, with more charging infrastructure on construction sites and improved battery life that allows for longer work hours without interruption. The electrification of heavy machinery could change the industry more than any other sustainable effort in construction with global electric construction equipment market to grow xx% to XX billion in 2032

Also, sustainability in construction isn’t just about the machinery but how the energy is managed on the site for this Smart Energy Management system comes into play and become active part in construction projects in 2025. these systems incorporate IOT devices, sensors and data analytics to track energy consumption across the job site also providing insights that where efficiencies can be made.

Source- https://www.conexpoconagg.com/news/3-sustainable-construction-equipment-trends-for-20

Rapid Urbanization creating market oppurtunities in construction equipment market

Rapid urbanization directly creates market opportunities in the construction equipment industry because it fuels a surge in infrastructure, commercial, and residential construction projects. This increased demand for construction equipment is a direct result of the population shifts and economic growth associated with urbanization . A recent and compelling example of rapid urbanization driving a surge in construction equipment demand is the ongoing transformation of India's infrastructure sector. Between 2022 and 2024, the Indian construction equipment market experienced significant growth, with sales surpassing XX units in FY 2023–24, a substantial increase from the previous year. This surge is primarily attributed to the government's substantial investments in infrastructure development, including the National Infrastructure Pipeline (NIP), which has allocated over XX crore for projects such as highways, bridges, and urban transit systems. The rapid urbanization of cities like Pune, Bengaluru, and Hyderabad has further intensified the demand for construction equipment. These urban centers are undergoing extensive development to accommodate growing populations and economic activities. For instance, the expansion of the National Highways network, which increased by 59% from 91,287 km in 2013–14 to 144,634 km by November 2022, has necess...

Heavy Construction Equipment Market USD 344.05 billion Goldmine by 2034, Uncover how construction giants like Caterpillar & Volvo are dominating this infrastructure revolution

The compact construction equipment market is projected to grow from USD 35.6 billion in 2025 to USD 48.3 billion by 2035, at a CAGR of 3.1%. Track Loaders will dominate with a 28.0% market share, while excavation will lead the application segment with a 34.0% share.

Metric	Value
Market Value (2025)	USD 35.6 billion
Market Forecast Value (2035)	USD 48.2 billion
Forecast CAGR (2025 to 2035)	3.1%

Learn more about the Heavy Construction Equipment Market Report by Market Research Intellect, which stood at USD 160 billion in 2024 and is forecast to expand to USD 230 billion by 2033, growing at a CAGR of 5.2%.Discover how new strategies, rising investments, and top players are shaping the future.

The North American construction equipment market was estimated at almost **** billion U.S. dollars in 2021. The market is expected to grow by a compound annual growth rate of about *** percent between 2022 and 2027, reaching the size of some **** billion U.S. dollars in 2027.

Find detailed analysis in Market Research Intellect's Compact Construction Equipment Market Report, estimated at USD 12.5 billion in 2024 and forecasted to climb to USD 20.1 billion by 2033, reflecting a CAGR of 7.0%.Stay informed about adoption trends, evolving technologies, and key market participants.

Heavy Construction Equipment Market size was valued at USD 140.12 Billion in 2024 and is projected to reach USD 253.52 Billion by 2032, growing at a CAGR of 6.81% during the forecast period 2026 to 2032.Infrastructure Development: Large scale infrastructure development is the most significant driver of the heavy construction equipment market. Governments worldwide are investing trillions of dollars in modernizing and expanding infrastructure, including the construction of new roads, bridges, railways, airports, and seaports. These projects are essential for supporting economic growth, improving trade routes, and enhancing public safety. The sheer scale and complexity of these initiatives require a wide range of specialized heavy machinery, from excavators for earthmoving to cranes for structural work. These long term government and public private partnership projects provide a stable and continuous demand for a diverse portfolio of heavy equipment.

The global construction equipment market, a $123.79 billion industry in 2025, is poised for steady growth fueled by infrastructure development and urbanization. Explore key market trends, major players (Caterpillar, Komatsu, Sany), and regional insights in this comprehensive market analysis covering excavators, loaders, and more. Forecast to 2033.

The Market is valued at USD 1.3 Billion in 2025 and is projected to grow at a CAGR of 1.6% reaching USD 1.6 Billion in 2035. Changing infrastructure needs, net-zero carbon goals, and new residential development in prime markets are driving stable demand for smaller equipment with reduced noise and emissions.

Metric	Value
Industry Size (2025E)	USD 1.3 Billion
Industry Value (2035F)	USD 1.6 Billion
CAGR (2025 to 2035)	1.6%

City Wise Analysis

City	CAGR (2025 to 2035)
Greater London	1.4%

City	CAGR (2025 to 2035)
Scotland	1.5%

City	CAGR (2025 to 2035)
Wales	1.2%

City	CAGR (2025 to 2035)
Yorkshire and the Humber	1.3%

Competitive Outlook

Company Name	Estimated Market Share (%)
JCB Ltd. (UK)	25-30%
Kubota UK	15-20%
Takeuchi Mfg. UK Ltd.	10-15%
Hitachi Construction Machinery UK	5-10%
Other Companies	25-35%

The global construction equipment market is set to grow steadily, reaching USD 508.32 billion by 2034. Valued at USD 224.56 billion in 2024, the industry is expected to expand at a CAGR of 8.50% during the forecast period, driven by rising infrastructure projects and advanced machinery adoption.