With a market share of **** percent, Caterpillar was the leading construction manufacturer worldwide in 2024. Japan's Komatsu was ranked second that year with a market share of **** percent. China's XCMG ranked third with a share of *** percent.

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 GCC Construction Machinery Market Report is Segmented by Machinery Type (Cranes, Excavators, Loaders and Backhoes, and More), Propulsion Type (Internal Combustion Engine and Electric/Hybrid), Application Type (Concrete Construction Equipment, Road Construction Equipment, and More), End-User (Infrastructure, Commercial, and More), and Country. The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

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. .

Construction equipment producers have faced significant volatility in recent years, largely driven by the performance of various branches of the construction space, including residential, industrial and infrastructure. Unfavorable macroeconomic conditions in 2020 led to a slowdown in nonresidential construction activity, as remote working practices became the norm, foot traffic at brick-and-mortar stores weakened and demand for manufactured goods weakened. However, during this time, the residential sector boomed as near-zero interest rates and the flexibility offered by remote working encouraged consumers to purchase or build homes, boosting demand for construction equipment. As the economy began to recover, the nonresidential sector slowly followed. However, elevated inflationary pressures and heightened consumer uncertainty placed downward pressure on demand from the residential sector, contributing to revenue losses in 2023. During this time, steel prices directly impacted revenue, a highly volatile commodity that squeezed producers' profit. These trends have contributed to revenue growing at an estimated CAGR of 3.1% to $43.5 billion through 2025, including a 0.9% gain that year alone. Domestic producers face significant competition from foreign manufacturers, which is largely driven by consumer preferences favoring foreign producers and other cost-advantage measures. Imports have been satisfying a growing share of domestic demand as elevated inflation makes consumers more price-sensitive. Similarly, the recent appreciation of the US dollar has made imported machinery comparatively more affordable, further boosting demand for imports. On the other hand, exports have been accounting for a smaller share of revenue, with a strong dollar making them less competitive overseas, pushing domestic producers to focus on serving their domestic markets. Looking ahead, construction machinery manufacturers will continue to enjoy solid growth. Expected interest rate cuts will boost residential and commercial construction as developers capitalize on favorable borrowing conditions. The market for multifamily housing remains robust, driven by younger demographics' demands, while government initiatives push for greener construction practices. The depreciation of the dollar will make US machinery more competitive abroad, fostering export growth. Similarly, domestic construction companies will seek domestic construction machinery manufacturers’ products as foreign products become more expensive. Industry revenue is forecast to climb at a CAGR of 1.6% to $48.2 billion through the end of 2030.

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

The global compact construction equipment market is projected to grow at a CAGR of 3.1%, reaching USD 48.4 billion by 2035. The increasing demand for versatile, fuel-efficient, and technologically advanced compact machinery is driving market expansion.

Industry Landscape

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.

With a market share of **** percent, Asia was the leading region in the global construction equipment market. North America ranked second, followed by Europe.

India Construction Equipment Market is Segmented by Equipment Type (Earthmoving Equipment, Road Construction Equipment, Material Handling Equipment, Concrete Equipment, and Material Processing and Crushing Equipment), by Drive Type (Conventional Hydraulic / Diesel, and More), by End-User Industry, by Power Output Rating, by Ownership Model, and Region. The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

China is one of the largest manufacturing countries and consumers of construction equipment in the world. Revenue for the Construction Equipment Manufacturing industry is expected to decrease at an annualized 9.7% over the five years through 2025, to $46.1 billion. The industry has developed rapidly in the past few years. Industry profit is expected to total 5.6% of revenue in 2025. In the past few years, due to the continuous development of technology, the added value of the industry's products has increased, thus boosting the profit margin. However, the market size of the industry is large, but the competition is also fierce. In order to cope with fierce market competition, industry leading companies have to participate in price war, which further squeezed the industry profit margins. The Government encourages the development of small and medium-sized enterprises, and helps them introduce new production technology and financial support. The number of enterprises increases by 1.7% on average over the five years through 2025. To increase market share and improve competitiveness, large enterprises actively expand overseas markets. The exports have grown rapidly in the past few years, mainly due to technological advances and the increase in construction projects with foreign cooperation. Industry exports are expected to grow at a CAGR of 25.3% over the past five years through 2025, with share of industry revenue increasing from 7.3% in 2020 to 37.3% in 2025. Due to the continuous innovation of manufacturing technology of domestic enterprises, the industry's dependence on competing imports is lower. Over the past five years, the annualized rate of imports has declined by 8.6%. Over the next five years, multiple factors, including the renewal of urban underground pipeline networks, the renovation of old residential communities, and the construction of smart city infrastructure, and implementation of national strategic projects, will continue to provide baseline demand for construction equipment. Industry revenue is expected to increase an annualized 12.0% over the five years through 2030 to total $81.1 billion.

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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.

See How Construction Equipment Market Demand is Rising in APAC Request Free Sample

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

Smart Construction Equipment Market size is estimated to reach over USD 46.45 Billion by 2032 from a value of USD 18.95 Billion in 2024 and is projected to grow by USD 20.86 Billion in 2025, growing at a CAGR of 11.9% from 2025 to 2032.

The global market size of Construction Equipment & Heavy Equipment is $XX million in 2018 with XX CAGR from 2014 to 2018, and it is expected to reach $XX million by the end of 2024 with a CAGR of XX% from 2019 to 2024.
Global Construction Equipment & Heavy Equipment Market Report 2019 - Market Size, Share, Price, Trend and Forecast is a professional and in-depth study on the current state of the global Construction Equipment & Heavy Equipment industry. The key insights of the report:
1.The report provides key statistics on the market status of the Construction Equipment & Heavy Equipment manufacturers and is a valuable source of guidance and direction for companies and individuals interested in the industry.
2.The report provides a basic overview of the industry including its definition, applications and manufacturing technology.
3.The report presents the company profile, product specifications, capacity, production value, and 2013-2018 market shares for key vendors.
4.The total market is further divided by company, by country, and by application/type for the competitive landscape analysis.
5.The report estimates 2019-2024 market development trends of Construction Equipment & Heavy Equipment industry.
6.Analysis of upstream raw materials, downstream demand, and current market dynamics is also carried out
7.The report makes some important proposals for a new project of Construction Equipment & Heavy Equipment Industry before evaluating its feasibility.
There are 4 key segments covered in this report: competitor segment, product type segment, end use/application segment and geography segment.
For competitor segment, the report includes global key players of Construction Equipment & Heavy Equipment as well as some small players.
The information for each competitor includes:
* Company Profile
* Main Business Information
* SWOT Analysis
* Sales, Revenue, Price and Gross Margin
* Market Share

For product type segment, this report listed main product type of Construction Equipment & Heavy Equipment market
* Product Type I
* Product Type II
* Product Type III

For end use/application segment, this report focuses on the status and outlook for key applications. End users sre also listed.
* Application I
* Application II
* Application III

For geography segment, regional supply, application-wise and type-wise demand, major players, price is presented from 2013 to 2023. This report covers following regions:
* North America
* South America
* Asia & Pacific
* Europe
* MEA (Middle East and Africa)
The key countries in each region are taken into consideration as well, such as United States, China, Japan, India, Korea, ASEAN, Germany, France, UK, Italy, Spain, CIS, and Brazil etc.

Reasons to Purchase this Report:
* Analyzing the outlook of the market with the recent trends and SWOT analysis
* Market dynamics scenario, along with growth opportunities of the market in the years to come
* Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
* Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
* Market value (USD Million) and volume (Units Million) data for each segment and sub-segment
* Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
* Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
* 1-year analyst support, along with the data support in excel format.
We also can offer customized report to fulfill special requirements of our clients. Regional and Countries report can be provided as well.

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.

The global construction equipment market is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 6.00% from 2025 to 2033. While the exact market size in 2025 is not provided, considering a typical market size for this sector and a CAGR of 6%, we can reasonably estimate the 2025 market value to be around $200 billion USD. This growth is fueled by several key factors. Increased infrastructure development globally, particularly in emerging economies experiencing rapid urbanization, is a significant driver. Furthermore, the ongoing adoption of technologically advanced equipment, such as automated and digitally connected machinery, boosts productivity and efficiency, encouraging market expansion. Government initiatives aimed at improving infrastructure and supporting sustainable construction practices are also contributing to this positive trajectory. However, the market faces certain challenges. Fluctuations in commodity prices, particularly steel and other raw materials crucial for equipment manufacturing, can impact production costs and profitability. Supply chain disruptions, exacerbated by geopolitical events, also pose a significant risk. Moreover, stringent environmental regulations are pushing manufacturers to develop more eco-friendly equipment, necessitating substantial investments in research and development. Despite these headwinds, the long-term outlook for the construction equipment market remains positive, driven by the persistent need for infrastructure development worldwide and the continuous innovation within the industry. Leading players like XCMG, Kobelco, Deere, Zoomlion, Liebherr, Hitachi, Sany, Volvo, Caterpillar, Komatsu, CNH Industrial, and Terex are actively shaping this market through technological advancements and strategic expansion. Key drivers for this market are: Automotive Industry Continues to Witness Steady Growth in Vehicle Production, Growing Awareness of Air Pollution and Health Concerns. Potential restraints include: Shift towards Disposable Filters. Notable trends are: Crane is Expected to be the Largest Segment.

The Europe Construction Equipment Market is experiencing robust growth, projected to reach €50.92 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 6.96% from 2025 to 2033. This expansion is fueled by several key factors. Increased infrastructure development projects across European nations, driven by both public and private investment, are a significant driver. The ongoing push for sustainable construction practices, including the adoption of electrification and automation in equipment, is further stimulating market growth. Rising urbanization and the need for efficient construction solutions in densely populated areas contribute to this positive trend. However, challenges remain, primarily related to supply chain disruptions and fluctuations in raw material prices, which can impact production costs and overall market stability. Furthermore, stringent environmental regulations are increasingly influencing the design and operation of construction equipment, potentially creating both opportunities and constraints for market players. The competitive landscape is shaped by major global players such as Manitou Group, JCB Limited, Deere & Company, and Caterpillar Inc., who are constantly innovating to meet evolving market demands and maintain their market share. The market is segmented based on equipment type (e.g., excavators, loaders, cranes), application (e.g., building construction, infrastructure development), and end-user (e.g., construction companies, rental agencies). The continued focus on technological advancements and sustainable practices will be crucial for manufacturers to sustain growth in this dynamic market. The forecast period (2025-2033) anticipates continued growth, driven by sustained infrastructure investment and technological innovations. Key market segments within Europe show varied growth trajectories, with the infrastructure segment projected to show the most significant expansion due to large-scale government projects and private investments in transportation and energy infrastructure. The adoption of digital technologies like IoT and AI in construction equipment is enhancing efficiency and productivity, leading to a higher demand for technologically advanced equipment. This, coupled with a rising focus on reducing carbon emissions in construction activities, presents opportunities for the development and adoption of eco-friendly construction machinery. However, potential economic downturns or geopolitical instability could impact market growth. Continuous monitoring of macroeconomic factors and evolving regulatory landscapes will be crucial for accurate forecasting and strategic decision-making within the European Construction Equipment Market. Key drivers for this market are: Growing Investments in Infrastructure Deployment. Potential restraints include: Rapid Expansion of Construction Equipment Rental Services Across the Region. Notable trends are: The Electric Drive Type is Expected to Drive the Growth of the Market.

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...

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.