Global Construction Equipment Market

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 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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FAQs

Global Construction Equipment Market size was valued at USD 103.93 billion in 2019 and is poised to grow from USD 108.4 billion in 2023 to USD 158.34 billion by 2031, growing at a CAGR of 4.3% in the forecast period (2024-2031).

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. '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'

Use of Modern Construction Equipment Will Promote Growth

On the international market, rental services are currently gaining more traction. The most populous and rising economies, including China and India, are expected to experience a surge in demand for rental service businesses throughout the projection period, according to the Construction Equipment Rental Association (CERA). The local and regional newcomers are likely to make a name for themselves in the rental service industry and generate significant profits from their local clientele. Large construction companies work mostly in the following industries to increase their profits: general infrastructure, oil and gas, utility and electrical, and commercial and residential development. In addition, since governmental projects demonstrate a larger preference for the rental usage of equipment, the growth of the construction equipment rental industry would be steadily increasing with enhanced budgetary allocations for infrastructure initiatives in emerging countries. Additionally, working with rental businesses is safer, more convenient, and more cost-effective for governments than purchasing their fleet of construction equipment.

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.

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 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. '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'

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.

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.

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. 

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Global Construction Equipment Market

Product ID: SQSG15F2012

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