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Redding, California - May 3, 2024

Construction Equipment Market to be Worth Over $236.9 Billion by 2031

Construction Equipment Market Size, Share, Forecast, & Trends Analysis by Type (Material Handling, Earth Moving, Concrete and Road Construction, Others), Propulsion Type (ICE, Electric, Others), End User (Construction, Government, Private Contractor, Others), Geography - Global Forecast to 2031


Meticulous Research®—a leading global market research company, published a research report titled, ‘Construction Equipment Market by Type (Material Handling, Earth Moving, Concrete and Road Construction, Others), Propulsion Type (ICE, Electric, Others), End User (Construction, Government, Private Contractor, Others), Geography - Global Forecast to 2031.’

According to this latest publication from Meticulous Research®, the Construction equipment market is projected to reach over $236.9 billion by 2031, at a CAGR of 5.3% from 2024 to 2031. The growth of this market is driven by increasing government spending on construction and infrastructure development and the increasing need to enhance efficiency, productivity, and safety across construction projects. Furthermore, the increasing automation of construction equipment is expected to create market growth opportunities. However, stringent international trade policies and mandates, coupled with the high cost of construction equipment, may restrain market growth. Additionally, the lack of skilled equipment operators is a major challenge impacting the market’s growth.

Furthermore, the increasing demand for compact construction equipment and the rising adoption of electric construction equipment are prominent trends in the construction equipment market.

The construction equipment market is segmented by type, propulsion type, and end user. The study also evaluates industry competitors and analyzes the regional and country-level markets.

Based on type, the construction equipment market is broadly segmented into material handling equipment, concrete and road construction equipment, earth-moving equipment, and other construction equipment. In 2024, the material handling equipment segment is expected to account for the largest share of 40.0% of the construction equipment market. This segment’s large market share can be attributed to several factors, including the rapid pace of industrialization worldwide, ongoing modernization efforts in industrial infrastructures & facilities to augment production capacity, and the increasing demand for material handling equipment to facilitate smooth material movement, reduce reliance on manual labor, and enhance overall productivity. Moreover, market players' rising focus on product launches and enhancement contributes to the segment’s growth. For instance, in October 2023, Hyundai Construction Equipment India strengthened its position in the infrastructure, mining, and material handling industry by launching multiple products, including four excavator models, two forklift models, and two-wheel loaders.

However, the earth-moving equipment segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by increasing investments in residential, commercial, and industrial construction projects and the rising demand for earth-moving equipment for various purposes, including laying foundations, grading soil, removing dirt & rocks, digging trenches, and conducting demolition works. This increase in demand has prompted partnerships among various market players to expand their offerings. For instance, in January 2022, CanLift Equipment Ltd. (Canada) expanded its product line for construction machinery equipment through a strategic partnership with Xuzhou Construction Machinery Group Co., Ltd (China). This partnership aimed to enhance the sales of earth-moving equipment in Ontario.

Based on propulsion type, the construction equipment market is segmented into ICE, electric, and CNG/LNG. In 2024, the ICE segment is expected to account for the largest share of 53.0% of the construction equipment market. This segment’s large market share can be attributed to several factors, including the ease of use and high power-to-weight ratio offered by ICE construction equipment, the lower cost of ICE construction equipment compared to electric alternatives, and the increasing initiatives by market players to expand their product portfolios. For instance, in January 2023, Crown Equipment Corporation (U.S.) expanded its lift truck portfolio by launching IC and electric counterbalance forklifts capable of carrying up to 5.5 tons.

However, the electric segment is projected to register the highest CAGR during the forecast period. The growth of this segment can be attributed to the benefits offered by electric construction equipment, including lower operating expenses and minimal maintenance requirements. Additionally, supportive government initiatives aimed at promoting the adoption of electric construction equipment and the rising focus of market players on product launches and enhancement contribute to the growth of this segment. For instance, in February 2023, Action Construction Equipment Ltd. (India) announced the launch of its electric crane with a lifting capacity of 180 tons.

Based on end user, the construction equipment market is segmented into construction companies, government agencies, private contractors, aerospace & defense companies, mining companies, and other end users. In 2024, the construction companies segment is expected to account for the largest share of 55.0% of the construction equipment market. This segment’s large market share can be attributed to the increasing investments in infrastructure development globally, the growing adoption of advanced equipment by construction companies to enhance the speed and efficiency of construction projects, and the shortage of labor in the construction sector.

Moreover, the construction companies segment is projected to register the highest CAGR during the forecast period. The growth of this segment can be attributed to the increasing investments by leading companies in developing advanced construction equipment. For instance, in September 2023, Skanska (Sweden), a prominent construction and development firm, initiated a pilot project involving a zero-emissions electric excavator on the Los Angeles Metro’s Purple (D Line) Extension Transit Project. The Volvo EC230, the largest electric excavator of its kind, is specifically designed to match the capabilities of a diesel excavator.

Based on geography, the construction equipment market is segmented into North America, Asia-Pacific, Europe, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of 45.0% of the construction equipment market. Asia-Pacific’s significant market share can be attributed to the increasing investments in construction projects, a rising focus on sustainability, efficiency, and safety within the construction industry, rapid growth in the real estate sector, and the expansion of rail and road infrastructure across the APAC region.

Moreover, the market in Asia-Pacific is projected to register the highest CAGR of 7.0% during the forecast period. The growth of this regional market can be attributed to the increasing demand for sustainable construction equipment and the rising initiatives by key market players to expand their presence in the region. For instance, in July 2023, Volvo Construction Equipment (Volvo CE) (Sweden) established a dealership in Kuching, Sarawak, located on the island of Borneo, to cater to the rising demand from Malaysian customers.

Key Players:

The key players operating in the construction equipment market are Caterpillar (U.S.), CNH Industrial N.V. (U.K.), Deere & Company (U.S.), Doosan Corporation (South Korea), Hitachi Construction Machinery Co., Ltd. (Japan), J C Bamford Excavators Ltd. (U.K.), Komatsu Ltd. (Japan), KUBOTA Corporation (Japan), LIEBHERR (Switzerland), Volvo Group (Sweden), SANY Group (China), MANITOU Group (France), Wacker Neuson SE (Germany), Terex Corporation (U.S.), and Hyundai Construction Equipment Co., Ltd. (South Korea).

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Key questions answered in the report-

  • Which are the high-growth market segments based on type, propulsion type, and end user?
  • What was the historical market size for construction equipment?
  • What are the market forecasts and estimates for the period 2024–2031?
  • What are the major drivers, restraints, and opportunities in the construction equipment market?
  • Who are the major players, and what shares do they hold in the construction equipment market?
  • What is the competitive landscape like?
  • What are the recent developments in the construction equipment market?
  • What are the different strategies adopted by the major players in the construction equipment market?
  • What are the key geographic trends, and which are the high-growth countries?
  • Who are the local emerging players in the construction equipment market, and how do they compete with other players?

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