Construction Equipment Market Size, Share, Growth Analysis, By Equipment Type(Articulated Dump Trucks, Asphalt Finishers, Backhoe Loaders, Crawler Dozers), By Equipment Category(Earthmoving Equipment, Material Handling Equipment, Heavy Construction Equipment, Others), By Propulsion Type(Diesel, CNG/LNG/RNG), By Power Output(<100HP, 101-200HP, 201-400HP, >400 HP), By Engine Capacity(<5L, 5-10L, >10L), By Application(Commercial, Residential, Infrastructure), By Region - Industry Forecast 2024-2031

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.