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

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 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.  'Caterpillar Inc. (US) ', 'Komatsu Ltd. (Japan) ', 'Deere & Company (US) ', 'Hitachi Construction Machinery Co., Ltd. (Japan) ', 'xuzhou construction machinery group (China) ', 'SANY Group (China) ', 'AB Volvo (US) ', 'Zoomlion Heavy Industry Science &Technology Co., Ltd. (China) ', 'Wacker Neuson SE (Germany) ', 'Terex Corporation (US) ', 'MANITOU Group (France) ', 'Liebherr (Switzerland) ', 'KUBOTA Corporation (Japan) ', 'J C Bamford Excavators Ltd. (UK) ', 'Hyundai Construction Equipment Co., Ltd. (India) ', 'Escorts Limited (India) ', 'Doosan Corporation (south Korea) ', 'Deere & Company (US) ', 'CNH Industrial America LLC. (UK) ', 'Bell Equipment Limited (South Africa)  '

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. 

Government mandates on telematics and e-call services: Government mandates on telematics and e-call services are driving technological advancements in the construction equipment market, leading to the development of more optimized and reliable products. The off-highway industry is increasingly adopting autonomous operating technologies, which are particularly suited for construction activities due to their repetitive, physical, precise, and time-sensitive nature. This has led to a rising demand for automation in construction equipment. Manufacturers are now developing wireless, autonomous machinery that uses radio waves from other devices to facilitate communication, receive instructions, and report conditions. This technology enhances productivity, reduces unplanned maintenance, and improves safety. As a result, the growing adoption of autonomous construction equipment represents a significant business opportunity for the industry.

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.