Construction Equipment Market Regional Analysis

What makes Asia Pacific the Top Market for Construction Equipment in 2024?

Asia Pacific became the leading construction equipment market in 2024, fueled by increasing urbanization, growing mega infrastructure programs, and robust local manufacturing capacity. Our insights show that regional governments are investing aggressively in smart cities, transportation corridors, and green infrastructure, resulting in sustained demand for sophisticated machinery. Further, the region has the advantage of having global and local producers who are incorporating electric and autonomous technologies. Strategic public-private collaborations and enabling regulatory systems are also driving the modernization of construction fleets, providing Asia Pacific with a competitive advantage in the global construction equipment market.

China Construction Equipment Market

China's market is also seeing significant growth, driven by outbound investment strategy and regional infrastructure plans. In February 2025, Chinese OEM LiuGong unveiled a new assembly facility in Kenya to cater to multibillion-dollar East African projects, showcasing China's position in global infrastructure export and equipment distribution. This action emphasizes China's double advantage—high domestic demand and strategic overseas expansion. The robust state support for manufacturing innovation, particularly in electric and intelligent machinery, is also assisting Chinese players in dominating both domestically and internationally.

India Construction Equipment Market

In India, the market for construction equipment is picking up pace due to rising infrastructure needs and strategic regional collaborations. Volvo CE partnered with Time Equipment Pvt. Ltd in April 2025, to cater to the North India market, an indicator of increased OEM interest in India's changing scenario. With the government speeding up infra development under PM Gati Shakti and Bharatmala, construction equipment demand will witness a growth. Additionally, expanding urban housing developments, road networks, and industrial corridors are spurring domestic production and foreign investment in construction equipment.

Japan Construction Equipment Market

Japan's market is undergoing a shift with the adoption of electrification and precision technology. In May 2024, Volvo CE launched the EC230 Electric, Asia's first 20-ton mid-size electric excavator, in Japan—a nation where this tonnage class leads demand. The transition marks Japan's move toward low-emission construction equipment in line with its carbon neutrality agenda. The focus of the country on automation, compact urban building solutions, and eco-friendly machinery is driving electric and smart equipment demand, setting Japan at the forefront of sustainable construction innovation across Asia.

How do Trends Suggest Significant Growth for Construction Equipment in North America?

North America is experiencing a strong growth in the construction equipment market share due to significant investments in residential infrastructure, smart city development, and replacement of old machinery with low-emission and autonomous equipment. Regional trends reflect growing use of electric and hybrid construction equipment, especially due to strict emission controls and growing labor shortages. Innovations of construction equipment, coupled with robust public and private infrastructure investment, are likely to drive tremendous growth in the region through 2032.

The US Construction Equipment Market

The United States construction industry is supported by a combined yearly expenditure/gross output of USD 2.2 trillion in 2024, accounting for 4.5% of the national GDP. With around 1.6 million new residential buildings constructed every year, residential construction remains a prime growth driver. The American market is also helped by big-ticket federal infrastructure initiatives and city renewal projects. Additionally, contractors are increasingly adopting digitalized and autonomous equipment to address labor productivity objectives. Consequently, the U.S. construction equipment market is anticipated to grow at a CAGR of 3.8% during the forecast period.

Canada Construction Equipment Market

In Canada, the construction equipment market growth is picking up pace because of continuous capital investments and growing urbanization. Up to February 2025, investment in building construction stood at USD 22.4 billion, a 1.5% monthly growth. Additionally, capital spending on non-residential construction grew by 5.6% against last year, indicating heavy demand in industrial and commercial projects. The Canadian government's emphasis on renewal of infrastructure, residential expansion, and carbon-neutral construction practices is promoting the uptake of contemporary, low-emission equipment. These trends indicate a positive growth pattern for Canadian construction equipment manufacturers.

What are the Opportunities for Construction Equipment in the Europe Region?

Europe offers selective but significant opportunities for construction equipment market growth, most specifically in civil infrastructure, green building retrofits, and equipment electrification. The EU's initiative towards carbon neutrality and the Renovation Wave strategy are propelling demand for low-emission, electric, and hybrid construction equipment. Furthermore, cross-border energy and transport infrastructure projects within the Connecting Europe Facility (CEF) and the EU Recovery Fund are driving public sector investment, specifically in renewable installations, road, and rail—building high momentum for the adoption of specialized and compact construction equipment.

UK Construction Equipment Market

The UK construction equipment market is experiencing short-term stagnation, as overall construction output registered minimalist growth during Q1 2025 against the last quarter. The rise in new work by 0.9% was counterbalanced by a 1.2% decline in repair and maintenance, an indication of a sectoral imbalance. Slower infrastructure expenditure and uncertainty have curbed equipment demand.

Germany Construction Equipment Market

Germany's construction equipment market share is experiencing a mixed performance forecast in 2024. While building construction is expected to fall by 3.5%, civil engineering indicates a promising growth of 2.5% due to continued investment in digital and green infrastructure. Nevertheless, 68% of companies identified energy and raw material costs as major risks, which are likely to limit the purchase of equipment. The transition towards electrified and efficient construction equipment is still a promising niche within Germany's green transformation agenda in progress.

France Construction Equipment Market

France continues to present targeted opportunities for construction equipment market demand, particularly for urban regeneration, railway development, and energy-efficient retrofitting initiatives. State-backed initiatives like the France Relance stimulus package are directing investments towards transport infrastructure and environmental modernization. The building industry is also reaping demand for smaller and electric machinery appropriate for high-density urban environments such as Paris and Lyon.