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

Construction Equipment Market Driver

Increasing demand for infrastructure facilities and need for small construction machines 

• Increasing global infrastructure development and increasing demand for compact construction equipment are other growth factors. The construction industry is predicted to grow from USD 9 trillion in 2019 to USD 13 trillion by 2023, as estimated by Oxford Economics. 7 trillion in 2022 to USD 13 trillion in 2025 and USD 47 trillion in 2040 (Fig. New construction projects available in the market will reach $ 9 trillion by 2037 due to such countries as China, USA, India and others. This is due to factors such as new development projects in urban areas, growing population, new technologies, upgrading existing infrastructure and the emphasis of designers to create more environmentally friendly projects. The primary drivers of the growth in the construction equipment market include a growing new equipment sale, expanding construction projects, and planned investments in construction industries. 
• Similarly, in June 2022, the European Union committed to investing approximately USD 4. 4 billion for the development of transport infrastructure; the potential projects for development are to be chosen with the estimate of about 135. Beijing in the People’s Republic of China had 102 mega projects that were unveiled in the development plan for 2021 to 2025. Also in December 2021, the finance ministry in China released around 1.39 trillion yuan of special-purpose bonds for local governments to fund infrastructural projects in 2022. By the construction leadership council of the United Kingdom, planned investment has been identified to comprise of 700 projects and over 645 million US dollars. 7 billion under the National Infrastructure Pipeline. The upcoming investments and the rising number of construction activities in infrastructural development are expected to boost the demand for construction equipment in the period under consideration. 

Increased demand for technologically advanced and fuel-efficient construction equipment 

• Technological advancement in construction equipment as well as the preference for fuel-efficient equipment is a key driver to the market. Additional equipment does not only minimize the costs of labor and business operations but also helps to control the effectiveness of work at any stage. To cater for this demand, players in this industry have thus diversified their portfolios to embrace products, services and solutions based on ICTs and IoTs. Driven by the idea of providing innovative products that meet the requirements of customers and environmental impact, businesses are gaining increasingly many consumers. For example, Black Cat Civil, an Australia based firm has recently adopted Cat Next Gen excavator models that reflect the firm’s technology focused business strategy. 

Restraints 

Regulations and international trade policies  

• Government policies and international trade laws have the most influence on the construction equipment market as the rules and restrictions in one country may differ from one another regarding the production, sale, and export of the products in other countries. In the process of trade protection, countries put different kinds of import taxes to guard and support their producers and avoid traders’ malpractice. Such treaties involve the removal or lowering of tariffs with the aim of establishing FTZs or SMs or single markets as the case maybe while beneficial, they also intensify global competition. International relations significantly impact trade as disputes can lead to suspension/ imposition of trade partnerships/ barriers that can almost entirely threaten trade. Therefore, trade barriers on an international scale and legislation in certain zones present significant hurdles to the development and sales of the construction equipment industry, thus making it one of the largest challenges in the market. 

Limited battery capacity in electric construction equipment 

• A major problem that construction equipment owners experience is the possibility of limited battery capacity in electric equipment. Among the largest modules, battery mass and volume directly influence the mobility and productivity of the machine. Larger batteries provide a longer operating range, however, this also means the scooter has to carry them around, make turns and manoeuvre with more effort. Also, batteries are expensive, even though their cost continues to drop in recent years and is a critical factor that limits the adoption of renewable energy sources. Also, the charging duration may be quite long for electrical equipment, as it could take hours of charging to fully charge the battery depending on the battery capacity and charger output. This can be a limitation in the sense that it may lead to drawbacks when it comes to the use of electric construction equipment in construction sites, particularly when the construction takes long or is continuous.