USD 158.2 Billion
Global Construction Equipment Market Size, Share, Growth Analysis, By Equipment type(Heavy construction equipment, Compact construction equipment), By Application(Excavation and Mining, Earth Moving), By End-User(Construction and Infrastructure, Oil and gas), By End-User(Construction and Infrastructure, Oil and gas) - Industry Forecast 2024-2031
Report ID:
SQSG15F2012 |
Region:
Global |
Published Date: April, 2024
Pages:
165
|
Tables:
118 |
Figures:
77
Global Construction Equipment Market Insights
Global Construction Equipment Market size was valued at USD 158.2 Billion in 2022 and is poised to grow from USD 165.48 Billion in 2023 to USD 237.13 Billion by 2031, at a CAGR of 4.6% during the forecast period (2024-2031).
The Construction Equipment market encompasses a wide range of machinery and tools used in construction projects, from large-scale infrastructure developments to residential and commercial buildings. This market includes equipment such as excavators, loaders, bulldozers, cranes, and concrete mixers, among others. These machines play a crucial role in various stages of construction, including earthmoving, material handling, demolition, and concrete pouring. The market is driven by the global construction industry, which is experiencing steady growth due to urbanization, population growth, and infrastructure development. Rising demand for new residential buildings, commercial spaces, roads, bridges, and other infrastructure projects is fuelling the need for construction equipment worldwide.
Several factors are shaping the Construction Equipment market. Firstly, technological advancements are driving innovation, leading to the development of smarter, more efficient, and environmentally friendly machinery. Equipment with features such as GPS tracking, telematics, and autonomous operation is becoming more prevalent, improving productivity and safety on construction sites. Secondly, the emphasis on sustainability and green construction practices is influencing the market, with a growing demand for equipment that reduces emissions and minimizes environmental impact. Thirdly, emerging markets, particularly in Asia-Pacific and Latin America, are experiencing rapid urbanization and infrastructure development, creating significant opportunities for the construction equipment market. Additionally, rental services for construction equipment are gaining popularity, offering flexibility and cost savings to construction companies. However, challenges such as high initial investment costs, fluctuating raw material prices, and regulatory hurdles in certain regions can hinder market growth. Overall, the Construction Equipment market is dynamic and evolving, driven by technological advancements, sustainability initiatives, urbanization trends, and infrastructure development projects worldwide.
US Construction Equipment Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Heavy Construction Equipment
Fastest Growth
Compact Construction Equipment
Growth Rate
4.6% CAGR
Global Construction Equipment Market ($ Bn)
Country Share for Asia Pacific Region (%)
Global Construction Equipment Market By Equipment Type ($ Bn)
Global Construction Equipment Market By Equipment Type (%)
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Global Construction Equipment Market Segmental Analysis
The global construction equipment market is segmented based on Equipment Type, Application, End-User and Region. Based on Equipment type the market is further sub-segmented into heavy construction equipment, compact construction equipment and light construction equipment. Based on Application, the market is segregated into Excavation & mining, earth moving, lifting and material handling, and others. Based on End-User the market is segregated into construction and infrastructure, oil and gas, mining, and others. Based on region the market is diving into North America, Europe, Latin America, Asia Pacific and Middle East Asia.
Construction Equipment Market Analysis By Equipment Type
Among the three segments, Heavy Construction Equipment dominates due to its pivotal role in large-scale infrastructure projects such as roads, bridges, dams, and power plants. These projects demand substantial earthmoving, lifting, and material handling capabilities, which align with the strengths of heavy equipment. Additionally, the heavy construction equipment market is well-established, boasting a large installed base of machinery. Many construction companies already own and depend on heavy equipment for their core operations, highlighting the segment's dominance in the market.
Compact Construction Equipment emerges as the fastest-growing segment in the market due to several key factors. Firstly, increasing urbanization and renovation projects in developed economies drive demand for compact equipment, known for its manoeuvrability and efficiency in tight spaces. Secondly, stricter environmental regulations favour compact equipment, which typically boasts lower emission levels compared to heavy machinery. Thirdly, the versatility and cost-effectiveness of compact equipment appeal to construction companies, offering a practical solution for various tasks without the need for larger machinery. Lastly, the growing construction activity in developing economies further boosts the popularity of compact equipment, valued for its affordability and suitability for smaller-scale projects.
Construction Equipment Market Analysis By Application
In the application sector, Excavation & Mining Equipment emerges as the dominant segment due to several key factors. Firstly, the role of excavation and mining equipment is pivotal in large-scale projects such as building foundations, mineral extraction, and tunnel construction, necessitating substantial excavation capabilities. Secondly, this sector represents a well-established market with a high upfront investment in machinery, like heavy construction equipment. Many construction companies heavily rely on excavation & mining equipment for their core operations, considering them indispensable for the groundwork and material extraction needed in various projects.
Earthmoving Equipment emerges as the fastest-growing segment due to several key factors. Firstly, the surge in infrastructure projects such as road construction, land development, and landscaping drives demand for earthmoving equipment, capable of efficiently handling large-scale earthwork and material movement. Secondly, the versatility of earthmoving equipment, including excavators, loaders, and graders, caters to diverse tasks within construction sites, enhancing their value. Lastly, technological advancements in earthmoving equipment, leading to more efficient and fuel-saving models, coupled with growing environmental concerns, make them attractive options for construction companies looking to improve efficiency and sustainability.
Global Construction Equipment Market By Equipment Type, 2022 (%)
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Global Construction Equipment Market Regional Insights
During the forecast period, Asia Pacific is expected to gain market dominance and hold the greatest share. The advent of online retail stores, the availability of machines for rent, increased government spending on infrastructure development, and an increase in capital investments are all expected to contribute to the region's growth. The Chinese government is also investing in renewable energy, public infrastructure, and residential development projects, which is driving up the demand for construction equipment.
Due to the large number of growing market competitors producing technologically advanced construction equipment, China is predicted to have the largest market share. With increasing public-private partnerships, the Chinese government has been heavily investing in rural construction operations for rapid urbanization, which is likely to increase the demand for construction equipment. The One Belt One Road project and the 21st century Maritime Silk Road, which would cost about US$ 4 trillion, were the Chinese government's goals in order to increase land and waterway connectivity. Due to factors including rising demand for new housing units, rising employment levels, etc., Europe generated significant revenue and is predicted to continue growing. Additionally, due to Germany being the location of Europe's best-performing machine and equipment sector, Europe is expected to have a sizable possibility to grow during the projected period. Additionally, because of the sudden spread and persistent effects of COVID-19 across these nations, European nations like Italy and Spain are predicted to experience poor growth in 2021.
The expansion of this market in North America is being aided by the notable businesses Caterpillar and Sany America. Additionally, it is expected that these businesses' overt activities in the areas of technological advancements, strategic alliances, acquisitions, and aftermarket services will have an impact on the market potential in North America. In addition, the Gulf Council Corporation has the largest market share in the Middle East and Africa as a result of the growth of significant infrastructure projects throughout the GCC nations. However, the COVID-19 pandemic has had a significant impact on these nations, which has resulted in fewer building projects being undertaken. As a result, the Saudi Vision 2028 initiative is expected to go more slowly in these nations. Similar to this, Latin America's construction industry has experienced consistent growth over the past few years as a result of modest infrastructure spending. However, the COVID-19 pandemic has forced the equipment producers in Brazil and Colombia to halt operations. Due to the coronavirus, more than 1,900 housing projects in Colombia have been shut down, slowing down the pace of new buildings.
Global Construction Equipment Market By Region, 2024-2031
- Largest
- Fastest
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Global Construction Equipment Market Dynamics
Construction Equipment Market Driver
Use of Modern Construction Equipment Will Promote Growth
- Rise in large-scale construction projects: The construction of mega projects such as dams, airports, and commercial complexes demands a diverse array of heavy construction equipment. These projects require machinery specialized in excavation, earthmoving, and material handling to efficiently manage the massive scale of work involved. As a result, the demand for heavy construction equipment is on the rise, driving growth in the construction equipment market. These robust machines are indispensable for the successful execution of mega projects, highlighting their essential role in the construction industry's ongoing development and expansion.
Increasing investments in Construction and Infrastructure development:
- The development of the construction industry is being aided by significant investments being made by the public and private sectors around the world in the building of new homes, businesses, and public infrastructure. The Institute of Civil Engineers predicts that the growth of infrastructure in the United States, China, and India would propel the global construction market to approximately US$ 8 trillion by the end of 2028. Growing urbanization demand for residential infrastructure, especially in Asia and Latin America, is boosting the market for construction equipment. Governments across the globe are investing in new initiatives to construct smart cities. According to United Nations around 70%of the world's population will be living in smart cities by 2050.
Construction Equipment Market Restraint
High upfront costs:
- Construction equipment, especially heavy machinery, requires substantial upfront investment, presenting a challenge for smaller construction firms or those with constrained budgets. The high cost of purchasing equipment can serve as a barrier to entry into the market, limiting access to advanced machinery. While leasing or renting equipment is an alternative, it often comes with added operational costs that can strain budgets over time. This financial hurdle poses a dilemma for construction companies, weighing the benefits of owning equipment against the financial constraints of upfront investments or ongoing leasing expenses.
Stringent emission regulations:
- Stricter environmental regulations pose a significant challenge for the construction equipment industry. As governments worldwide intensify efforts to reduce emissions and mitigate environmental impact, construction equipment manufacturers and users face the pressure to comply with stringent standards. These regulations often require the development and adoption of cleaner, more fuel-efficient technologies, adding complexity and costs to equipment design and operations. Meeting these requirements can be a considerable challenge for the industry, impacting product development timelines, operational practices, and overall competitiveness in the market.
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Global Construction Equipment Market Competitive Landscape
The top market participants have a wide geographic reach and a wide range of products to meet a variety of consumer wants. Industry players are spending a lot of money on R&D in order to introduce new equipment and increase their profitability in this potential market. For example, Caterpillar introduced the New CAT 816 Soil Compactor in April 2021 with enhanced airflow technology to minimize cleaning and maintenance. This model's radial air filter has a four-times longer lifespan than the earlier ones. This element helps the business keep a solid grip on the market.
Construction Equipment Market Top Player’s Company Profiles
- Caterpillar Inc.
- Komatsu Ltd.
- Hitachi Construction Machinery Co., Ltd.
- Liebherr Group
- Volvo Construction Equipment
- Terex Corporation
- Doosan Infracore Co., Ltd.
- CNH Industrial N.V.
- JCB Ltd.
- Sany Heavy Industry Co., Ltd.
- Hyundai Construction Equipment Co., Ltd.
- Zoomlion Heavy Industry Science and Technology Co., Ltd.
- XCMG Group
- Kobelco Construction Machinery Co., Ltd.
- Wacker Neuson SE
- Manitou Group
- BOMAG GmbH
- Atlas Copco AB
- Bell Equipment Limited
- Deere & Company
Construction Equipment Market Recent Development
- In June 2023, Caterpillar launched the new 995 Wheel Loader, boasting a significant increase in fuel efficiency and offering a more sustainable solution (exact date unavailable from press releases). They are also actively involved in developing autonomous haul trucks
- In June 2023, Deere & Company introduced the latest 85 P-Tier and 510 P-Tier excavator models as part of their current generation lineup.
- In June 2022, Komatsu Ltd. and Cummins Inc. companies collaborated to develop zero-emission haulage equipment, signifying a push towards cleaner construction solutions
Global Construction Equipment Key Market Trends
- Construction equipment companies are increasingly prioritizing environmental friendliness in response to the industry's significant contribution to greenhouse gas emissions and air pollution. With regulations tightening around emissions standards, there is a growing demand for cleaner technologies and eco-friendly practices within the sector. Companies are investing in research and development to innovate greener solutions, such as electric and hybrid machinery, to reduce carbon footprints. This shift towards eco-friendliness not only aligns with regulatory requirements but also meets the rising demand from environmentally conscious consumers and businesses seeking sustainable construction practices.
Global Construction Equipment Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
According to our analysis, the Increasing Use of large cranes for construction dominated the global Construction Equipment Market in 2021 and is expected to maintain its dominance throughout the forecast period. In 2021, the Asia Pacific dominated the global Construction Equipment Market owing to the region's increase in online stores and government spending on construction.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 158.2 Billion |
| Market size value in 2031 | USD 237.13 Billion |
| Growth Rate | 4.6% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Construction Equipment Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Construction Equipment Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Construction Equipment Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Construction Equipment Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Construction Equipment Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Construction Equipment Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Construction Equipment Market Report Snapshots
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