Construction Equipment Market (2025-2032)
The Construction Equipment Market is expected to reach over $236.9 billion by 2032, at a CAGR of 5.3% from 2025 to 2032.
- Published
- May 2024
- Pages
- 250
- Format
- PDF + Excel
- Report ID
- MROTH - 1041164
- Base year
- 2024
- 2032 · FORECAST
- $236.9B
- 2032
- $236.9B
- CAGR 2025–2032
- 5.3%
2024 baseline · 2025–2032 forecast at 5.3% CAGR · hover a bar for the value
Key highlights
By Type: in 2025, the Material Handling Equipment Segment to Dominate the Construction Equipment Market
By Propulsion Type: in 2025, the ICE Segment to Dominate the Construction Equipment Market
By End User: in 2025, the Construction Companies Segment to Dominate the Construction Equipment Market
Report summary
| Particulars | Details |
|---|---|
| Number of Pages | 250 |
| Format | |
| Forecast Period | 2025–2032 |
| Base Year | 2024 |
| CAGR | 5.3% |
| Market Size (Value) | Over USD 236.9 Billion by 2032 |
| Segments Covered | By Type · Material Handling Equipment · Forklifts · Cranes · Conveyors · Hoists · Other Material Handling Equipment · Concrete and Road Construction Equipment · Concrete Mixer & Pavers · Construction Pumps · Road Rollers · Other Concrete and Road Construction Equipment · Earth-moving Equipment · Excavators · Loaders · Backhoe Loaders · Skid Steer Loaders · Crawler/Track Loaders · Wheeled Loaders · Motor Graders · Bulldozers · Trencher · Motor Scrapers · Other Earth-moving Equipment · Other Construction Equipment · By Propulsion Type · Injection ICE · Electric · CNG/LNG · By End User · Construction Companies · Government Agencies · Private Contractors · Aerospace & Defense Companies · Mining Companies · Other End Users |
| Countries Covered | North America (U.S., Canada), Europe (Germany, U.K., France, Italy, Spain, Switzerland, Netherlands, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Singapore, Malaysia, and Rest of Asia-Pacific), Latin America (Brazil, Mexico, and Rest of Latin America), and Middle East & Africa (UAE, Israel, Rest of Middle East & Africa) |
| Key Companies | 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) |
Report overview
Segments covered: type, propulsion type, end user. Regions: North America, Europe, Asia-Pacific, Latin America, Middle East & Africa.
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 in 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.
Report infographic
Market dynamics
4 factors across 3 forcesIncreasing Government Spending on Construction and Infrastructure Development
Increasing government spending on upgrading existing infrastructure is driving construction activities in developing countries. The infrastructure sector plays a crucial role in driving a country's economic growth and overall development. Governments worldwide are prioritizing infrastructure needs and implementing various schemes and policies to address them. For instance, in March 2024, the Singaporean government announced plans to commence construction of the new Terminal 5 (T5) at Changi Airport in 2025. Similarly, in June 2022, the Indian Minister of Road Transport and Highways announced the inauguration of 15 new national highway projects worth USD 1.7 billion in Patna and Hajipur, Bihar. Therefore, the increase in construction activities is driving the demand for material handling and road construction equipment such as forklifts, pavers, and dozers, thereby further supporting the growth of the construction equipment market.
Table of contents
11 chapters · 126 sections · 250 pages · click to expandSegmental analysis
| Segment | Largest share (2025) | Fastest growth (2025–2032) |
|---|---|---|
| By Type | Material Handling Equipment | Earth-moving equipment |
| By Propulsion Type | ICE | Electric |
| By End User | Construction Companies | Construction companies |
By Type
- 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 2024, 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.
By Propulsion Type
- The ICE Segment to Dominate the Construction Equipment Market
- 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 2024, 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 2024, Action Construction Equipment Ltd. (India) announced the launch of its electric crane with a lifting capacity of 180 tons.
By End User
- 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 2024, 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.
Geographic analysis
Asia-Pacific
Largest shareIn 2025, 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 2024, 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.
Competitive landscape
- October 2024
CASE Construction Equipment (Italy) launched a lineup of small articulated loaders and mini-track loaders, providing small contractors with construction-grade power to tackle more jobs with less manual labor.
- May 2024
Caterpillar (U.S.) launched the enhanced Cat D10 Dozer, specifically engineered for demanding construction environments and challenging job sites. This dozer features a load-sensing hydraulic system and a stator clutch torque converter, ensuring efficient power transmission to the ground.
- June 2024
Caterpillar (U.S.) unveiled the new 995 Wheel Loader, with a 19% increase in capacity compared to its predecessor. Additionally, it promises up to a 13% reduction in hourly fuel consumption and delivers an additional 8% efficiency gain.
- June 2022
Komatsu Ltd. (Japan) collaborated with Cummins Inc. (U.S.) to develop zero-emission haulage equipment, leveraging their longstanding partnership in diesel engine technology across various mining and construction equipment.
- March 2021
Hitachi Construction Machinery Co., Ltd. (Japan) launched the ZW220-7, a Stage V-compliant wheel loader. Weighing between 18,190-19,450kg and boasting a net power of 157kW (210hp), the ZW220-7 offers a heaped bucket capacity (ISO) ranging from 2.8 to 10.0 cubic meters.
- 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.)
- Hyundai Construction Equipment Co., Ltd. · South Korea
Frequently asked questions
This study focuses on market assessment and opportunity analysis by analyzing the sales of construction equipment across various regions and countries. This study also offers a competitive analysis of the construction equipment market based on an extensive assessment of the leading players' product portfolios, geographic presence, and key growth strategies.
Cite this report
Meticulous Research. (2024). Construction Equipment Market - Global Opportunity Analysis and Industry Forecast (2025-2032) (Report No. MROTH - 1041164). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/construction-equipment-market-5847