Construction Equipment Market Research Report: By Product (Earth-Moving Machinery, Material-Handling Machinery, Concrete & Road Construction Machinery), Propulsion Type (Internal Combustion Engine, Electric), Application (Industrial, Commercial, Residential), Power Output (<100 HP, 101–200 HP, 201–400 HP, >400 HP) - Global Industry Analysis and Growth Forecast to 2030

Market Overview

The global construction equipment market stood at ~$180 billion in 2020. The rapid urbanization leading to the increasing demand for housing and rising investments in infrastructure development across the globe are expected to propel the growth of the construction equipment market.

The COVID-19 pandemic forced governments all over the world to impose multiple lockdowns, which resulted in partial or fully closed manufacturing factories. Moreover, construction activities were halted in order to contain the spread of coronavirus, and, thus, many projects across the globe experienced a sudden break. Depending on the location of infrastructure projects, the nature of the impact varies. However, now, the situation in many countries is improving, and construction is restarting.

Earth Moving Machinery to Hold Largest Market Share in 2030

The earth moving machinery category is projected to hold the largest market share in the forecast period, based on product. This will mainly be because these machines offer a good grip on snow and in the mud. Moreover, these machines are rather important at construction sites because of their ability to perform a wide range of work, including laying foundations, grading soil, removing dirt and rocks, digging trenches, and carrying out demolition.

101–200 HP Category Dominate Market in 2020

The 101–200 horsepower (HP) category accounted for the majority share in 2020, based on power output. This was mainly due to the higher penetration of 101–200-HP construction equipment as its power-to-weight ratio is favorable and it offers better fuel economy and reduces the operating costs for construction equipment operators and contractors. Furthermore, a power range of 101–200 HP is suitable for the majority of projects, such as road, airport, and commercial construction projects. Thus, this category is expected to continue to dominate the market during the forecast period.

APAC to have Largest Market Size during Forecast Period

Asia-Pacific (APAC) is set to generate the highest revenue in the forecast period. Construction projects are the backbone for the development of any economy in the world. The rapidly increasing investments by governments are supporting construction activities in the region. Essentially, the rapid urbanization in major countries, such as China, Japan, India, and South Korea, is leading to the increasing demand for housing, thereby helping the construction equipment market advance.

Usage of Electric and Autonomous Equipment is a Key Construction Industry Trend

The trend of fully autonomous equipment in the industry isn’t a reality yet, but it is where the industry is eventually going. Autonomous equipment in the construction industry can offer benefits such as higher worker safety on site, increased productivity, and addressal of the problem of skilled labor shortage. For example, the D51i-24 and the D61i-24 dozers of Komatsu Ltd. have the ability to record terrain data as they move around a site. This data is further used by the system to make calculated decisions on whether it should cut and carry material, whether it should spread or fill that material, or whether it should finish grading.

Rapid Urbanization Leading to Increasing Demand for Housing Projects

The growing urbanization level in major countries across the globe is contributing toward the increase in employment opportunities, thus leading to a shift of people from non-urban to urban areas, especially in developing economies, such as China, India, and Brazil. The increasing population in such areas is raising the demand for housing, thus leading to the construction of new housing infrastructure, such as individual units and high-rise buildings. As per the World Bank Group, the urban population (out of the total population) in India was 27.7% in 2000, and it increased to 34.5% in 2019. Moreover, in developing countries, the continuous government support and heavy investments to modernize the public infrastructure are expected to drive the construction equipment market during the forecast period.

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Market Players Involved in Product Launches and Technological Advancements to Gain Significant Position

The global construction equipment market is consolidated in nature with the presence of players such as Caterpillar Inc., Hitachi Construction Machinery, Volvo Construction Equipment, Liebherr AG, Terex Corporation, Doosan Infracore, Joseph Cyril Bamford Excavators Ltd., Deere & Company, and Sany Heavy Industry Co. Ltd.

• In April 2019, Volvo Construction Equipment announced that in 2020, the company will start the launch of an electrically propelled range of wheel loaders (L20 to L28) and compact excavators (EC15 to EC27), effectively stopping the development of diesel engines for these models. The company says that the diesel engine remains the preferred power source for its larger machines, but electric propulsion and battery technology are proving particularly suited to Volvo’s smaller equipment.

Some Key Players in Construction Equipment Market Are:

Market Size Breakdown by Segments

The construction equipment market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.

Based on Product

• Earth-Moving Machinery
  • Excavators
  • Loaders
• Material-Handling Machinery
  • Crawler cranes
  • Trailer-mounted cranes
  • Truck-mounted cranes
• Concrete & Road Construction Machinery
  • Concrete mixers & pavers
  • Construction pumps

Based on Propulsion Type

• Internal Combustion Engine (ICE)
• Electric

Based on Application

• Industrial
• Commercial
• Residential

Based on Power Output

• <100 HP
• 101–200 HP
• 201–400 HP
• >400 HP

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific (APAC)
  • Japan
  • China
  • India
  • Australia
  • South Korea
• Latin America (LATAM)
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa

Market Segment Analysis of Countries

• Further breakdown of 16 listed countries will be provided as per below segmentation:
  • By product
  • By propulsion type
  • By application
  • By power output