The Europe Heavy Construction Equipment Market Report is Segmented by Machinery Type (Cranes, Telescopic Handling, Excavators, Loaders and Backhoes, Motor Graders, and Other Machinery Types), Drive Type (IC Engines and Electric and Hybrid), and Country (Germany, United Kingdom, France, Russia, Spain, and Rest of Europe). The Report Offers Market Size and Forecasts for European Construction Equipment in Value (USD) for all the Abovementioned Segments.

The Europe Used Construction Machinery Market is segmented by Machinery Type (Crane, Telescopic Handlers, Excavator, Loader & Backhoe, Motor Grader), Drive Type (IC Engines and Hybrid), and by Country (Germany, United Kingdom, Italy, France and Rest of Europe). The Market Size and Forecast of Europe Used Construction Machinery Market in value (USD billion) for the above-mentioned segments.

Germany was the country in Europe with the highest share of construction equipment sales from 2017 to 2023. Throughout that period, the United Kingdom and France were the following European countries with the highest market share. Overall, the market share of most countries included in the list have remained stable.

The European construction equipment market was estimated at over 21.4 billion U.S. dollars in 2021. The market is expected to grow by a compound annual growth rate of about two percent between 2022 and 2027, reaching the size of some 24.5 billion U.S. dollars in 2027.

Europe Construction Equipment Market is projected to reach USD 72.14 billion by 2032, growing at a CAGR of 4.73% from 2024-2032.

The global heavy construction equipment market, valued at $187.31 billion in 2025, is projected to experience robust growth, driven by a compound annual growth rate (CAGR) of 4.49% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, substantial investments in infrastructure development globally, particularly in emerging economies like India and China within the APAC region, are creating significant demand for earthmoving equipment, heavy construction vehicles, and material handling equipment. Secondly, the ongoing urbanization trend and increasing construction of residential, commercial, and industrial buildings are further boosting market growth. Technological advancements, such as the incorporation of automation, telematics, and emission reduction technologies in heavy equipment, are also contributing to market expansion. Finally, government initiatives promoting sustainable construction practices and infrastructure modernization projects across North America and Europe are creating favorable market conditions. However, challenges such as fluctuating raw material prices, supply chain disruptions, and stringent emission regulations can pose restraints to growth. The market segmentation reveals a significant share held by earthmoving equipment, followed by material handling equipment and heavy construction vehicles. Leading companies such as Caterpillar, Komatsu, and Volvo are leveraging their strong brand recognition, technological expertise, and extensive distribution networks to maintain a competitive edge. Their strategies include strategic partnerships, mergers and acquisitions, and continuous product innovation to meet evolving market demands and cater to specific regional needs. The APAC region, particularly China and India, represents a significant market share due to rapid infrastructure development and industrialization, while North America and Europe maintain substantial contributions fueled by ongoing construction activities and infrastructure upgrades. The market's competitive landscape is intense, necessitating strategic investments in research and development and efficient supply chain management to ensure profitability and market share.

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Europe Construction Equipment Market Size 2025-2029

The Europe construction equipment market size is forecast to increase by USD 7.1 billion at a CAGR of 3.3% between 2024 and 2029.

The market is experiencing significant growth due to various driving factors. One of the key trends is the increasing government infrastructure investments, which are leading to an uptick in demand for construction equipment. Another trend is the rising preference for electric construction equipment, as there is a growing awareness of the environmental benefits and cost savings associated with their use. Urbanization and transportation development have driven the demand for earth moving equipment, including excavators, loaders, and backhoes, as well as cranes and telescopic handling solutions. However, the high cost of construction equipment remains a challenge for market growth. Despite this, the market is expected to continue expanding due to these and other factors. The market analysis report provides a comprehensive study of these trends and the challenges they present, offering valuable insights for stakeholders in the construction industry.

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

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The construction machinery market encompasses a diverse range of equipment used in various sectors, including infrastructure projects, transportation, and the housing industry. This market exhibits strong growth due to increasing demand for efficient and technologically advanced solutions. Green city projects and emission norms are driving the adoption of automation, AI-driven analytics, IoT, augmented reality, and virtual reality in construction machinery. Cranes, telescopic handling equipment, loaders and backhoes, motor graders, and earthmoving machinery are among the key product categories. IC engines continue to dominate the market, with OEMs investing in engine technologies such as diesel particulate filters and AI-based twin technology.
Light-duty vehicles, non-road mobile machinery, inland waterway vessels, railroad engines, and off-road recreational vehicles are also part of this market. The construction machinery market is expected to continue its expansion, driven by the increasing need for efficient and sustainable infrastructure development.

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 billion' 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

    Germany
    UK
    France
    Italy

By Application Insights

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

The market has experienced notable growth due to the expanding infrastructure and housing sectors. Infrastructure projects, such as the Nord Stream 2 pipelines construction in Germany, necessitate the utilization of specialized machinery like cranes, excavators, and concrete pumps. The transportation sector's modernization, with a focus on electric and hybrid vehicles, has influenced the demand for IC engine alternatives, such as Mack Trucks and OEMs' AI-based twin technology. Sustainability goals have led to the adoption of electric vehicles, compact electric excavators, and electric road rollers.

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Market Dynamics

Our market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of Europe Construction Equipment Market?

Increasing government infrastructure investments is the key driver of the market.

The market is experiencing growth due to large-scale infrastructure projects funded by the European Union (EU) and various national governments. These initiatives aim to develop renewable energy projects, modernize urban areas, and improve transportation networks, leading to increased demand for construction machinery. Earth moving equipment, including excavators, bulldozers, loaders, and cranes, are in high demand to support these projects. Strict emission and safety regulations in Europe are driving the need for the replacement and upgrade of outdated equipment with more efficient and eco-friendly alternatives. This trend will contribute to the market's expansion during the forecast

The Report Covers Heavy Construction Equipment Market is Segmented by Equipment Type (Cranes, Telescopic Handler, Excavator, Loaders and Backhoe, Motor Grader, and Other Machinery Types), by Drive Type (Hydraulic and Electric and Hybrid), and by Geography (North America, Europe, Asia-Pacific, and Rest of the World). The Report Offers Market Size and Forecasts for Construction Equipment in Value (USD Billion) for all the Above Segments.

This statistic gives the market size of the construction equipment and heavy equipment in Europe between 2018 and 2026. In 2026, the European construction equipment and heavy equipment market is expected to exceed 40 billion U.S. dollars.

Europe Heavy equipment auction market size is USD XX million in 2024 and will expand at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031.

The Pre-Owned Construction Equipment Market is segmented by product type (Crane, Telescopic Handler, Excavator, Material Handling Equipment, Loader and Backhoe, and Others), by drive type (Internal Combustion Engine, Electric, and Hybrid), and by Geography (North America, Europe, Asia-Pacific, and Rest of World). The market size and forecast in value (USD Billion) for all the above segments.

The used construction machinery market, valued at $92.76 billion in 2025, is projected to experience robust growth, driven by several key factors. Increasing infrastructure development globally, particularly in rapidly developing economies like India and China, fuels significant demand for cost-effective equipment. The rising adoption of sustainable construction practices also contributes to market expansion, as businesses seek to reduce their environmental footprint and operational costs by utilizing pre-owned machinery. Furthermore, fluctuations in new equipment prices and the need for quick project turnaround times are pushing businesses to explore the used machinery market as a viable alternative. This segment provides a balanced blend of affordability and functionality, making it attractive to contractors of all sizes. The market is segmented by product type (cranes, excavators, material handling equipment, and others), application (commercial, residential, infrastructure), and region, with APAC, North America, and Europe being dominant regions. Competition is intense, with both large multinational corporations and regional players vying for market share through competitive pricing, enhanced services, and strategic partnerships. However, challenges remain, including the inconsistent quality of used machinery, the need for reliable maintenance and repair services, and the potential environmental concerns associated with disposing of end-of-life equipment. The market's Compound Annual Growth Rate (CAGR) of 5.3% from 2025 to 2033 indicates a steady expansion. While the APAC region, particularly China and India, currently holds the largest market share due to massive infrastructure projects, North America and Europe are also significant contributors. The market's growth trajectory is expected to be influenced by government policies promoting infrastructure development, technological advancements in used equipment refurbishment and maintenance, and the increasing adoption of digital platforms facilitating equipment trading and rental. Companies are adopting diverse strategies to enhance their competitive edge, including expanding their service networks, investing in technology to improve equipment quality assurance, and focusing on sustainable practices. Successful players will need to navigate the challenges of maintaining consistent equipment quality and addressing environmental sustainability concerns to capitalize on this growing market opportunity.

During 2021, almost all submarkets of the European market for light and heavy construction equipment experienced a positive development. The light compaction equipment sales experienced a positive change during this period, with a growth rate of 24 percent.

China is expected to account for more than 20 percent of the global construction equipment market in 2027. That year, about 270,000 units are expected to be sold in China. Globally, some 1.1 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 size and share of the market is categorized based on Type (Heavy Earthmoving, Lifting & Material Handling, Heavy Construction Vehicles, Others) and Application (Infrastructure, Construction, Mining, Manufacturing, Oil & Gas, Others) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

The global tracked excavators market is experiencing robust growth, driven by the increasing demand for infrastructure development projects worldwide, particularly in emerging economies. The rising urbanization and industrialization rates necessitate efficient earthmoving equipment, fueling the demand for tracked excavators across various applications, including construction, mining, and demolition. Technological advancements, such as the integration of advanced technologies like automation, telematics, and improved fuel efficiency, are further propelling market expansion. While the market faced some temporary headwinds during the recent global economic slowdown, the long-term outlook remains positive, indicating sustained growth throughout the forecast period (2025-2033). Major players like Caterpillar, Komatsu, Hitachi Construction Machinery, Volvo Construction Equipment, and XCMG are actively engaged in product innovation and strategic partnerships to capture market share. Regional variations exist, with North America and Asia-Pacific exhibiting strong growth due to significant infrastructure investment and robust construction activities. However, factors like fluctuating raw material prices and stringent emission regulations pose potential challenges to market growth. The market is segmented by type (e.g., mini, midi, heavy-duty) and application (e.g., construction, mining), allowing for a granular understanding of specific growth drivers within these segments. Looking ahead, the market is expected to benefit from increasing government spending on infrastructure projects, coupled with advancements in sustainable construction practices, which will further fuel demand for more efficient and environmentally friendly tracked excavators. The market's future trajectory depends heavily on the global economic climate and the pace of infrastructure development. While geopolitical uncertainty and supply chain disruptions could pose short-term risks, the inherent demand for efficient earthmoving equipment ensures the market's resilience. Competition among leading manufacturers is intense, leading to continuous innovation in terms of features, performance, and cost-effectiveness. The adoption of digital technologies and data analytics is also transforming the industry, providing better insights into equipment usage, maintenance, and overall operational efficiency. Consequently, the tracked excavator market is poised for continued growth, driven by an interplay of technological advancements, robust infrastructure development, and the increasing adoption of sustainable construction practices. This growth will be further supported by the industry's continued focus on enhancing operator safety and productivity.

The Report Covers Europe’s Construction Machinery Rental Market. It is Segmented by Machinery Type (Cranes, Telescopic Handlers, Excavators, Loaders, Motor Graders, Road Construction Equipment, and Other Machinery Types), Drive Type (Hydraulic and Hybrid), Application (Building Construction, Road Construction, and Other Applications), and Geography (Germany, United Kingdom, France, Spain, Italy, and Rest of Europe). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

The machinery rental revenue is forecast to drop at a compound annual rate of 4.5% over the five years through 2024 to €139.2 billion, including an estimated decline of 1.8% in 2024. The machinery rental market faces increasing challenges, including slower economic growth and tighter monetary policy. For example, Germany's residential housing sector is seeing a drop in apartment building permits. However, a surge in green construction investments in Nordic nations like Sweden and Denmark promises to offset this slump. Significant infrastructure projects across Europe, driven by public sector strategies post-COVID-19 restrictions, offer lucrative opportunities for equipment rental businesses. For instance, Sunbelt Rentals secured a contract to supply machinery for the UK's HS2 project, demonstrating that large-scale projects can drive industry profit despite current market trends.

An increase in passenger traffic at European airports is set to exceed pre-pandemic levels by 9.2% in 2027, according to ACI Europe, spurred on by growth in budget airlines like Vueling and French Bee. This is set to increase demand for improved ground support equipment due to an uptick in aircraft and faster flight turnarounds. Norway's intent to double power output by expanding offshore wind capacity also presents opportunities for boosted equipment rentals. These green energy projects are encouraging rental companies to invest in new construction equipment to maintain strong sales, reflecting industry trends of rising income and market expansion. The machinery rental revenue is forecast to grow at a compound annual rate of 3.8% over the five years through 2029 to €167.7 billion, while the average industry profit margin is expected to reach 22%.