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 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.

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.

Europe Construction Equipment Market size will be USD 45375.36 million in 2024 and will expand at a compound annual growth rate (CAGR) of 3.5% from 2024 to 2031.

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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 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.

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.

TheEurope Construction Equipment Marketis valued atUSD 181 billion. This market is driven primarily by large-scale infrastructure projects across the region, such as road development, airport expansion, and public transportation upgrades. Government initiatives promoting sustainable urban development and the construction sector's transition toward green and energy-efficient machinery have fueled demand for advanced construction equipment.

Europe Construction Equipment Rental Market Report is Segmented by Machinery Type (Crane, Telescopic Handlers, Excavators, Loaders, Motor Graders, Road Construction Equipment, and Others), Drive Type (Hydraulic and Hybrid), Application (Building Construction, Road Construction, and Others), and Country (Germany, United Kingdom, France, Italy, Spain and Rest of Europe). The Report Offers the Market Size and Forecast of Value (USD) for all the Above Segments.

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 Europe construction material handling machinery market was valued at USD 55.5 billion in 2024 and is projected to grow at a CAGR of 5.1% from 2024 to 2030.

By Machinery Type:The market is segmented by machinery type into earthmoving machinery, material handling machinery, and concrete and road construction machinery. In 2023, earthmoving machinery dominates this segment due to its widespread use in foundational infrastructure projects such as roads, bridges, and residential developments. Excavators and loaders are particularly in demand due to their versatility and efficiency in various construction applications. Europe Construction Equipment Market Segmentation The European Union's Recovery and Resilience Facility (RRF) allocated 672.5 billion in 2024 to member states for infrastructure development and sustainable projects, a portion of which targets the construction sector. For example, Spain alone is receiving 80 billion from the fund, with a significant focus on green infrastructure projects, which will drive demand for construction equipment in sectors like energy, transportation, and housing.

Construction equipment sales in Europe increased continuously and reached a peak in 2019. After the coronavirus (COVID-19) pandemic hit, the industry experienced a sharp decline in 2020. It is forecasted that sales figures in this market will surpass its 2019 level by 2022.

The European construction equipment market was valued at USD 50.92 million in 2025 and is projected to grow at a CAGR of 6.96% over the forecast period (2025-2033). The growth of the market can be attributed to factors such as increasing construction activities, rising demand for efficient and advanced machinery, and favorable government policies and regulations. The market is segmented into machinery type and drive type, with key players including Manitou Group, JCB Limited, Deere & Company, Sandvik Group, and Liebherr Group. The construction equipment market in Europe has witnessed significant growth in recent years, driven by the increasing demand for new and advanced construction technologies. The rapid urbanization and industrialization across the region have led to a surge in construction activities, which has fueled the demand for construction equipment. Moreover, the rising focus on sustainable and energy-efficient construction practices has encouraged the adoption of advanced machinery that meets these requirements. Favorable government policies and regulations promoting green construction and infrastructure development have further supported the market's growth. The market is expected to continue expanding over the forecast period with the increasing adoption of technologically advanced equipment and the rising demand for efficient and sustainable construction solutions. 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.

The market is consolidated among key players, including multinational corporations and specialized regional manufacturers. This consolidation is driven by the growing demand for specialized equipment and innovations in sustainable machinery technologies. Europe Construction Equipment Market Competitive Landscape By Drive Type:The market is also segmented by drive type into internal combustion engine (IC Engine) and electric and hybrid models. IC engines remain the dominant segment in 2023, largely because of their established usage and extensive distribution networks. However, electric and hybrid models are steadily gaining traction as regulatory pressures push for reduced emissions and sustainability in the construction sector. By Machinery Type:The market is segmented by machinery type into earthmoving machinery, material handling machinery, and concrete and road construction machinery. In 2023, earthmoving machinery dominates this segment due to its widespread use in foundational infrastructure projects such as roads, bridges, and residential developments. Excavators and loaders are particularly in demand due to their versatility and efficiency in various construction applications. Europe Construction Equipment Market Segmentation The European Union's Recovery and Resilience Facility (RRF) allocated 672.5 billion in 2024 to member states for infrastructure development and sustainable projects, a portion of which targets the construction sector. For example, Spain alone is receiving 80 billion from the fund, with a significant focus on green infrastructure projects, which will drive demand for construction equipment in sectors like energy, transportation, and housing.

Over the upcoming decade, the size of the global construction equipment rental market is expected to increase to almost 140 billion U.S. dollars by 2027. The European construction equipment rental market is forecasted to generate over 28 billion U.S. dollars in that year.

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 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.

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.