USD 158.2 Billion
Report ID:
SQSG15F2012 |
Region:
Global |
Published Date: June, 2024
Pages:
165
|Tables:
211
|Figures:
80
Global Construction Equipment Market size was valued at USD 150.2 billion in 2022 and is poised to grow from USD 155.91 billion in 2023 to USD 210.11 billion by 2031, growing at a CAGR of 3.8% during the forecast period (2024-2031).
The factors influencing this growth include rapid urbanization in many parts of the developing world and increased focus by governments on improving existing structures. This surge is calling for the construction machinery referred to as excavators, loaders, and dump trucks among others. Therefore, it can be predicted that the global construction equipment market is going to grow much faster due to the increased development activities of infrastructure across the world which in turn would require earthmoving and material handling equipment. Higher expenditure by the government in improving current structures is fostering construction activities in emerging nations. For instance, India is currently pursuing an aggressive policy to improve its transport infrastructure to facilitate easy transportation of resources. In June 2022, the Indian Minister of Road Transport and Highways disclosed details of new national highway projects with strategic plans of 15 new projects which costs approximately USD 1.7 crore in Patna and Hajipur in Bihar. For instance, in March 2023, it was revealed that the government of Singapore has planned to start the construction of new Terminal 5 (T5) at Changi Airport from the year 2025. The integration of T5 is expected to help in eliminating the overcrowding of air passenger traffic at the airport. More construction projects especially roads have been undertaken to support the growing transport needs and therefore the increasing use of materials such as forklifts, pavers and dozers to support the construction process will help fuel the growth of the global construction equipment market.
Technological integration with the construction equipment is anticipated to see significant growth during the forecasted period. OEMs are eyeing this opportunity to enter the market with new products by diversifying their customer base in the construction equipment market. For instance, in January 2023, John Deere declared its new power farming and building equipment that runs on batteries. The company indicated that these new technologies were developed taking factors such as population growth, reduction in available and fertile land, and greenhouse gas emissions into perspective. There are various factors that a buyer looks for before investing in some construction equipment such as price, product quality, available options, and the company. Normally, the buyers sign long-term agreements with suppliers when it comes to construction equipment.
US Construction Equipment Market is poised to grow at a sustainable CAGR for the next forecast year.
Global Market Size
USD 158.2 Billion
Largest Segment
Heavy Construction Equipment
Fastest Growth
Compact Construction Equipment
Growth Rate
4.6% CAGR
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Global Construction Equipment Market is segmented by Equipment Type, Equipment Category, Propulsion Type, Power Output, Engine Capacity, Application, and region. Based on Equipment Type, the market can be segmented into Articulated Dump Trucks, Asphalt Finishers, Backhoe Loaders, Crawler Dozers, Crawler Excavators, Crawler Loaders, Mini Excavators, Motor Graders, Motor Scrapers, Rigid Dump Trucks, Road Rollers, Rough Terrain Lift Truck (RTLT) Masted, Rough Terrain Lift Truck (RTLT) Telescopic, Skid-Steer Loaders, Wheeled Excavators, Wheeled Loaders <80 HP, Wheeled Loaders >80 HP, Compactors, Pick and Carry Cranes. Based on Equipment Category, the market is segmented into Earthmoving Equipment, Material Handling Equipment, Heavy Construction Equipment, Others. Based on Propulsion Type, the market is segmented into Diesel, CNG/LNG/RNG. Based on power output, the market is segmented into <100HP, 101-200HP, 201-400HP, >400 HP. Based on engine capacity, the market is segmented <5L, 5-10L, >10L. Based on application, the market is segmented Commercial, Residential, Infrastructure. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Analysis by Product
The material handling machinery segment was the largest for the market, holding a share of 38.5% in 2023. This growth is because of growth in industrialization and the growing need for automation in handling materials in industries. Thus, the implementation of fully automated industrial facilities in developed countries has increased since the general trend is the growth of the automation rate and the constant introduction of innovations. The market for material handling equipment is likely to grow in the future as there exists a continued trend of upgrading manufacturing and handling structures to increase production potential.
The earthmoving machinery segment is anticipated to register robust growth over the forecast period. This has favored the earthmoving machinery market through the enhancement of construction industry for both developing and developed countries. There is increased demand and spending in construction and development of residential, commercial, and industrial building construction projects that demand use of heavy equipment. Construction equipment, especially for earthwork helps in efficient and fast completion of constructional work such as excavation and grading.
Analysis by Power Output
The <100 HP segment was the largest in the market in 2023. This segment is comprised of mini-excavators, compact wheeled loaders, skid steers, and compact track vehicles which are highly maneuverable machines. The growing popularity of compact construction equipment for infrastructure and construction projects in the Asia Pacific, Latin America, and African region will spur the market in the future period. Increase of infrastructure development, expansion of urban construction, and construction of small and medium-sized buildings have increased the demand for efficient, portable, and multifunctional equipment. Technology factors include: the increasing comfort of the operator, better power train technologies, and increasing automation which also increases the growth of the segment.
The 101-200 HP segment is expected to hold the maximum growth rate during the forecast period. These are constructions that include but are not limited to excavators, bulldozers, loaders, and graders relevant to exercising hefty operations. In many cases, 101-200 HP machines are regarded as service-friendly, which means they are equipped with features that offer unrestricted access to various components for maintenance purposes. Organized maintenance procedures and spare parts are available to reduce time and loss which enhances productivity.
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Asia Pacific is the largest market region for construction equipment, and its leaders are China, Japan, and India. The expansion of the Chinese market was mainly due to public expenditure in 2020, which led to the growth of more than 2 times in the next two years. In 2022 however, there is a sudden drop in the sales, probably due to the stabilization of the market towards the 2019 levels. Therefore, the market is expected to decline throughout the year and beyond and is expected to be at a 3.4% decline in 2023. A slow progressive improvement is expected in 2024, driven exclusively by the growth of demand for small-sized equipment and the enhancement of housing construction for residents. On the other hand, the demand for construction equipment in Japan is anticipated to rise because of increased infrastructural development resulting from government efforts in reconstructing buildings that were destroyed by natural disasters like earthquake and tsunamis.
The North America construction equipment market is projected to grow at a CAGR of 3% during the forecast period. One of the defining factors for increasing demand of construction equipment in this region is the increasing development of smart cities. Current governmental schemes such as Smart Cities Project under the U. S. Economic Development Program have propelled the growth of the regional construction equipment market. As the construction of smart cities gains momentum in North America, the use of earthmoving, roadbuilding, as well as material-handling and other construction tools is crucial to the development of smart cities.
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Construction Equipment Market Driver
Increasing demand for infrastructure facilities and need for small construction machines
Increased demand for technologically advanced and fuel-efficient construction equipment
Restraints
Regulations and international trade policies
Limited battery capacity in electric construction equipment
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The global construction equipment market is experiencing significant growth driven by the increasing demand for technologically advanced, fuel-efficient machinery. The companies are focused on innovation and incorporating ICT and IoT technologies into their products to enhance efficiency and meet environmental standards. Additionally, regional players are emerging, particularly in Asia-Pacific and Europe, where infrastructure development is booming. Competitive strategies among these companies involve expanding product portfolios, forming strategic partnerships, and investing in R&D to cater to evolving consumer needs and regulatory requirements. The competitive landscape is characterized by a blend of global giants and regional contenders striving to capitalize on market opportunities and overcome trade barriers.
Construction Equipment Market Top Player’s Company Profiles
Recent Developments
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
According to our analysis, the Increasing Use of large cranes for construction dominated the global Construction Equipment Market in 2021 and is expected to maintain its dominance throughout the forecast period. In 2021, the Asia Pacific dominated the global Construction Equipment Market owing to the region's increase in online stores and government spending on construction.
Report Metric | Details |
---|---|
Market size value in 2022 | USD 150.2 billion |
Market size value in 2031 | USD 210.11 billion |
Growth Rate | 3.8% |
Base year | 2023 |
Forecast period | 2024-2031 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
For the Construction Equipment Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Construction Equipment Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Construction Equipment Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Construction Equipment Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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Report ID: SQSG15F2012
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