The Canada Construction Equipment Market Report is Segmented by Machinery Type (Crawler Excavators and More), Propulsion (Internal Combustion Engine and More), End-User Industry (Construction and Infrastructure and More), Application (Excavation and Earth-Moving and More), and Province. The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

Canada's construction equipment market was valued at 75,709 units and is forecasted will reach 97,274 units by 2029, growing at a CAGR of 4.27% during 2024-2029. Canada's earthmoving equipment market is projected to witness robust growth during the forecasted period

Discover the booming Canada construction equipment market! This in-depth analysis reveals a $3.2 billion market projected to grow at a 7.3% CAGR through 2033, driven by infrastructure projects & technological advancements. Learn about key players, market segments, and future trends. Recent developments include: June 2023: LiuGong introduced the 856H-E MAX Wheel Loader, which is part of the company's range of electric construction., April 2022: Doosan Infracore North America introduced four next-generation -7-series mini excavators in Canada. Four excavator models include the zero-tail swing DX27Z-7, DX35Z-7, and DX50Z-7, as well as the reduced tail swing DX55R-7.. Key drivers for this market are: Growing Infrastructure Activities Across the Country. Potential restraints include: Rapid Expansion of Construction Equipment Rental Industry. Notable trends are: Growing Infrastructure development.

The health of the construction sector varies significantly based on factors such as macroeconomic conditions, interest rates, foreign demand and public investment, making construction machinery producers susceptible to considerable revenue volatility. During the early stages of the 2020 pandemic, demand for new equipment slowed sharply, primarily due to weaker nonresidential construction activity. The Bank of Canada responded by cutting interest rates to stimulate the economy, leading to a revenue boom in 2021. Although rates began to rise in 2022, the recovering construction sector sustained revenue and profit gains, although at a slower pace. As macroeconomic conditions improved, interest rates started to fall in 2024. Although lower rates typically support construction activity, an extended period of high rates limited revenue growth, resulting in relatively small changes in revenue in 2024 and 2025. Construction machinery producers have benefited from public sector infrastructure initiatives. Government investment in projects such as roads, bridges and energy and manufacturing facilities supports demand for construction companies, which rely heavily on machinery. Higher commodity prices have boosted machinery demand from the mining, agriculture and forestry sectors, driving machinery sales. Overall, these factors are set to cause revenue to strengthen at a CAGR of 8.3% to $3.9 billion by the end of 2025, including a 0.5% gain in that year. Canadian producers continue to face significant competition from the international market. The Canadian dollar’s recent depreciation has boosted the value of exports, supporting revenue gains. Despite this, imported equipment satisfies more than 80.0% of domestic demand, while exports generate over half of producers’ revenue, making the sector highly sensitive to global macroeconomics and construction trends. Strong import competition also limits manufacturers’ ability to pass on fluctuating input costs, as offering competitive pricing remains key. Despite these trends, a strong domestic market has reduced import penetration and made exports a smaller share of revenue. Demand for new construction equipment is expected to continue growing, though at a slower pace. Public investment in infrastructure will be a key driver for manufacturers as large-scale projects require significant machinery. Producers will also benefit from ongoing construction activity in the US market, driven by demand from the residential sector and potential interest rate cuts by the Federal Reserve. While declining input prices will help producers remain competitive, significant price-based competition from foreign manufacturers, primarily from the United States, Japan and China, will limit profit gains. Producers will face some uncertainty over the coming years surrounding trade conditions. Revenue is set to grow at a CAGR of 1.1% to $4.2 billion through the end of 2030.

The Canada construction equipment market, valued at $3.20 billion in 2025, is projected to experience robust growth, driven by significant infrastructure development projects and a burgeoning construction sector. The 7.30% CAGR forecast for the period 2025-2033 indicates a substantial expansion, fueled by increasing urbanization, government initiatives focused on improving transportation networks and residential housing, and a growing demand for efficient and technologically advanced machinery. Key segments driving this growth include excavators, loaders and backhoes, and telescopic handlers, utilized across various construction applications, from residential to large-scale commercial projects. The shift towards environmentally friendly solutions is also influencing market trends, with a gradual increase in the adoption of electric and hybrid machinery, although internal combustion engine-powered equipment currently dominates. Competitive pressures from established players like Caterpillar, Komatsu, and Volvo, alongside the rise of regional manufacturers, contribute to market dynamism. Challenges such as fluctuating commodity prices, potential labor shortages, and the need to comply with stringent environmental regulations could influence market trajectory. However, ongoing government investments and a positive outlook for the broader Canadian economy are expected to offset these restraints, ensuring continued expansion of the construction equipment market in the coming years. The market's segmentation by machinery type reveals strong demand across various categories, reflecting the diversity of construction activities in Canada. Cranes are crucial for high-rise construction and infrastructure projects, while excavators, loaders, and backhoes dominate earthmoving and site preparation. The "other machinery types" segment encompasses specialized equipment reflecting niche market requirements. Similarly, the propulsion segmentation showcases a preference for internal combustion engines due to their established reliability and power output. However, the electric and hybrid segment is steadily gaining traction, driven by growing environmental awareness and government incentives promoting sustainable construction practices. Regional variations within Canada may exist, with urban centers exhibiting higher demand than less densely populated regions. Overall, the market presents attractive opportunities for both established players and emerging companies seeking to capitalize on the increasing demand for modern, efficient, and environmentally conscious construction equipment. Recent developments include: June 2023: LiuGong introduced the 856H-E MAX Wheel Loader, which is part of the company's range of electric construction., April 2022: Doosan Infracore North America introduced four next-generation -7-series mini excavators in Canada. Four excavator models include the zero-tail swing DX27Z-7, DX35Z-7, and DX50Z-7, as well as the reduced tail swing DX55R-7.. Key drivers for this market are: Growing Infrastructure Activities Across the Country. Potential restraints include: Growing Infrastructure Activities Across the Country. Notable trends are: Growing Infrastructure development.

Canada Construction Equipment Market size was valued at USD 3.2 Billion in 2024 and is expected to reach USD 5.7 Billion by 2032, growing at a CAGR of 7.4% from 2026 to 2032.

Canada Construction Equipment Market Drivers

Growing Infrastructure Spending: The Canadian government, in collaboration with provincial and territorial partners, is making substantial investments in infrastructure projects, including roads, bridges, public transit, and green infrastructure. These investments directly drive the demand for a wide range of construction equipment like excavators, bulldozers, graders, and asphalt pavers. Increased Residential and Commercial Construction: A growing population and urbanization continue to fuel the demand for residential, commercial, and industrial construction activities across Canada, necessitating the use of various construction equipment. Demand for Advanced Technology: There's a rising preference for technologically advanced equipment featuring telematics, automation, and data analytics for enhanced efficiency, productivity, and fleet management. Growing Adoption of Electric and Hybrid Equipment: The increasing focus on sustainable construction practices and stringent emission regulations are driving the demand for electric and hybrid construction equipment.

In Canada Heavy Construction Equipment Market, is projected to grow from USD 21.6 billion in 2025 to USD 3.1 billion by 2031, reflecting a CAGR of 8.1%

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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

Bonafide Research projects the Canada Earth Moving Construction Equipment market to achieve over 7% CAGR from 2024 to 2029. Population growth in Canada is a major factor propelling

Canada's Earth Moving Construction Equipment market exceeded USD 2.9 Billion in 2023, buoyed by ongoing infrastructure developments and government investments as significant trends

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Heavy Construction Equipment Market Size 2025-2029

The heavy construction equipment market size is forecast to increase by USD 49.7 billion at a CAGR of 4.6% between 2024 and 2029.

The market is experiencing significant growth, driven by increased investment in infrastructure projects worldwide. This trend is expected to continue, creating lucrative opportunities for market participants. Fuel alternatives, including diesel engines and hydraulic systems, are essential components of heavy construction machinery. The secondhand machine market is also expanding, providing an affordable alternative for companies seeking to acquire equipment without the high upfront costs of new machinery.
Strategic partnerships, innovation, and operational efficiency are essential for success in the market. However, challenges persist in the form of intense competition, increasing raw material prices, and regulatory compliance, which may impact profitability. Companies must navigate these challenges effectively to capitalize on the market's potential and maintain a competitive edge. Manufacturing processes incorporate advanced engineering and quality control measures, while supply chain efficiency is enhanced through fleet management and raw materials sourcing strategies. Technological advances, including the adoption of battery technology, telematics, and automation, are driving innovation and improving efficiency, safety, and sustainability in the industry.

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

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In the market, product lifecycle management plays a crucial role in ensuring optimal performance and longevity of machinery. Dealers maintain a robust network to provide site preparation services, monitoring systems, parts distribution, and project management solutions. Equipment financing options facilitate the acquisition of new machinery, while used equipment market participation offers cost-effective alternatives. Control valves, hydraulic pumps, and braking system components are essential components undergoing rigorous compliance testing to meet industry standards. Safety systems and operator interface design are increasingly prioritized for worksite logistics and demolition techniques.
Customer service, spare parts supply, and technical support are integral to maintaining a competitive edge. Certification bodies and training programs ensure adherence to safety and standards compliance, while field testing and compliance testing are critical aspects of the product development cycle. The integration of monitoring systems and technical support enhances overall equipment performance and reliability. Another key driver is the growing trend of construction equipment rentals, which offers flexibility and cost savings for businesses.

How is this Heavy Construction Equipment Industry segmented?

The heavy 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.

Type

  Earthmoving equipment
  Material handling equipment
  Heavy construction vehicles
  Others


Application

  Excavation and demolition
  Heavy lifting
  Material handling
  Tunneling
  Others


Propulsion

  ICE
  Electric


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The earthmoving equipment segment is estimated to witness significant growth during the forecast period. The market encompasses machinery utilized for carrying, digging, spreading, or moving earth and materials. Key equipment in this sector includes excavators, loaders, dozers, and motor graders. Operating costs are a significant consideration for businesses in this industry, making aftermarket parts essential for maintaining equipment and maximizing return on investment. Software solutions and IoT sensors enhance machine performance and efficiency, while electric motors and remote control capabilities offer environmental benefits and increased safety. Infrastructure projects, driven by both public and private investment, provide opportunities for growth. Rapid urbanization, particularly in developing countries like China and India, is increasing the demand for heavy construction equipment due to the emergence of megacities.

Safety regulations and rental services ensure accessibility to various businesses. Transmission systems, lifting capacity, GPS guidance, and emission standards are crucial performance metrics. Specialized tools, such as

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Construction Machinery Market Size 2025-2029

The construction machinery market size is forecast to increase by USD 39.8 billion, at a CAGR of 3.9% between 2024 and 2029.

The market is experiencing significant growth, driven by increased investment in infrastructure projects worldwide. This trend is expected to continue, creating ample opportunities for market participants. Another key driver is the growing trend of construction equipment rentals, which offers flexibility and cost savings for businesses. The secondhand machine industry is also expanding, providing an affordable alternative for small and medium-sized enterprises. However, the market faces challenges, including the high initial investment costs for new machinery and the increasing demand for energy-efficient and environmentally friendly equipment.
Additionally, the volatility of raw material prices and economic instability in certain regions pose significant risks. To capitalize on opportunities and navigate challenges effectively, companies must focus on innovation, cost efficiency, and sustainability. Investing in research and development of energy-efficient machinery and exploring rental business models can help businesses stay competitive and profitable in the evolving the market.

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

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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Compaction equipment and concrete mixers ensure optimal construction site conditions, while haul trucks and rental services offer flexibility for businesses. Lifting capacity and safety features are essential for motor graders and crawler tractors, and aftermarket parts and transmission systems ensure seamless operation. GPS guidance and maintenance schedules optimize productivity, and tire pressure monitoring enhances safety. Environmental impact is a growing concern, with hydraulic breakers and diesel engines adhering to emission standards. Hydraulic systems and safety features are essential for ensuring optimal performance and worker safety. A robust dealer network and operating weight specifications provide businesses with the necessary support and flexibility to meet their unique needs. Boom length and bucket capacity are essential considerations for various applications, and emission standards continue to evolve, driving innovation in the market.

How is this Construction Machinery Industry segmented?

The construction machinery 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.

Application

  Commercial
  Residential
  Infrastructure


Product

  Earthmoving machinery
  Material handling machinery
  Concrete and road construction machinery
  Others


End-user

  Public works
  Mining
  Oil and gas


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Application Insights

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

The market encompasses a range of equipment used in various applications, including terrain adaptation, material handling, heavy lifting, site preparation, road construction, and infrastructure development. Hydraulic fluid plays a crucial role in the smooth operation of these machines, while remote control technology enhances efficiency and safety. Lease agreements offer flexible financing options for businesses, enabling them to manage operating costs effectively. Payload capacity and lifting capacity are essential considerations for machines used in heavy lifting tasks, such as cranes and excavators. Ground engaging tools and undercarriage components require regular maintenance and replacement, contributing to the demand for wear parts and parts supply.

Waste management equipment, such as concrete mixers and compactors, are integral to the construction process. Engine power and fuel consumption are significant factors in the selection and operation of construction machinery. Environmental impact and safety features are increasingly important considerations, with emission standards and tire pressure monitoring systems becoming standard features. Autonomous systems and precision control technologies are driving innovation in the market, enabling increased productivity and efficiency. In the commercial segment, the construction of commercial buildings, such as offices, hotels, and schools, is expected to drive market growth. Infrastructure development projects, including road construction and soil stabilization, are also significant contribu

In Canada New, Pre-Owned, And Rental Construction Equipment Market is projected to grow from USD 111.8 billion in 2025 to USD 164.5 billion by 2031, at a CAGR of 6.6%

Canada Construction Equipment Market Size, Share, Trend & Market Analysis By Type, By Distribution Channel, By End User, Competition, Forecast & Opportunities.

Discover the booming Canadian metal fabrication equipment market! This in-depth analysis reveals a $1.5B CAD market in 2025, projected to grow at over 6% CAGR until 2033. Explore key drivers, trends, and restraints shaping this dynamic sector. Learn about leading companies and market segmentation. Recent developments include: February 2022: Arrow Machine and Fabrication Group of Guelph, Ontario, announced the acquisition of Steelcraft, a Kitchener, Ontario, steel design, engineering, and fabrication firm. This acquisition expands Arrow's global customer base and manufacturing footprint. It also further promotes the company's strategy of partnering with leading operator-run machining and fabrication organizations to leverage their collective capabilities, solve customer problems, and develop deeper supply chain interactions., January 2022: Ag Growth International Inc. (AGI) completed the acquisition of Eastern Fabricators, Prince Edward Island, Canada. Eastern specializes in the engineering, design, fabrication, and installation of stainless-steel equipment and systems for food processors. Eastern operates three facilities in Canada, with two in Prince Edward Island and one in Ontario.. Notable trends are: Construction Industry Offers Immense Demand for the Metal Fabrication Equipment.

In 2021, the machinery and equipment price index of the Canadian construction industry stood at ****** index points. This represents a slight decrease of some one percent compared with the previous year.

Canada Construction equipment Rental market Size, Share, Trend & Market Analysis By Type, By Distribution Channel, By End User, Competition, Forecast & Opportunities.

This statistic shows the revenue of the industry “Construction machinery manufacturing“ in Canada from 2012 to 2018, with a forecast to 2024. It is projected that the revenue of Construction machinery manufacturing in Canada will amount to approximately ******* million U.S. Dollars by 2024.

In 2020, the Canadian construction and industrial equipment rental market dropped to **** billion U.S. dollars in size. In comparison, the U.S. construction and industrial equipment rental market was sized at ** billion U.S. dollars in that year.

Canada Construction Equipment Tire Market focuses on the development of specialized tires designed for construction machinery.