The global construction equipment market was valued at USD 207.14 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 8.4% from 2024 to 2030. The rise in urbanization across developing nations, along with increasing government initiatives to modernize existing infrastructure, is driving a surge in construction activity. This, in turn, is fueling demand for machinery such as excavators, loaders, and dump trucks. As infrastructure development accelerates worldwide, demand for earthmoving and material handling equipment is projected to grow, further propelling the expansion of the global construction equipment market.

Governments in developing countries are allocating more funds toward infrastructure upgrades, which is boosting construction activities. For example, India has been actively improving its road network to ensure smooth transportation of resources. In June 2022, the Indian Minister of Road Transport and Highways announced 15 new national highway projects valued at USD 1.7 billion in Patna and Hajipur, Bihar. Similarly, in March 2023, Singapore’s government revealed plans to begin construction on the new Terminal 5 (T5) at Changi Airport in 2025. The T5 expansion aims to alleviate congestion at the current airport. These infrastructure projects are increasing demand for road construction and material handling equipment, such as forklifts, pavers, and dozers, thereby reinforcing the global market’s growth.

The integration of advanced technologies into construction equipment is expected to further boost market growth during the forecast period. Original equipment manufacturers (OEMs) are leveraging this trend to introduce innovative products and attract more customers. For instance, in January 2023, John Deere launched new battery-powered agricultural and construction machinery. The company cited factors such as population growth, reduced availability of arable land, and rising greenhouse gas emissions as key considerations behind these technological advancements.

However, the high cost of construction equipment and the growing preference among contractors for rental solutions are anticipated to hinder market growth. Many contractors opt to rent equipment for specific project durations rather than invest in ownership, which often ties up significant capital and affects other operational areas.

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Regional Insights

In 2023, the North American construction equipment market was valued at USD 40.61 billion. A major contributor to rising equipment demand in the region is the rapid development of smart cities. Initiatives such as the Smart Cities Project under the U.S. Economic Development Program are driving regional growth. Advanced machinery for earthmoving, road building, and material handling is being increasingly adopted to support these urban development projects.

Key Players in the Construction Equipment Market

The following leading companies dominate the construction equipment sector and shape industry trends. Their financials, strategies, and product portfolios help map the supply network:

  • Caterpillar, Inc
  • CNH Industrial America LLC
  • Deere & Company
  • Doosan Corporation
  • Escorts Limited
  • Hitachi Construction Machinery Co., Ltd.
  • Hyundai Construction Equipment Co., Ltd.
  • J C Bamford Excavators Ltd.
  • Komatsu Ltd.
  • KUBOTA Corporation
  • LIEBHERR
  • MANITOU Group
  • SANY Group
  • Terex Corporation
  • AB Volvo
  • Wacker Neuson SE
  • XCMG Group
  • Zoomlion Heavy Industry Science & Technology Co., Ltd.

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