Construction Machinery Market Size 2024-2028

The construction machinery market size is forecast to increase by USD 37.3 billion at a CAGR of 3.78% between 2023 and 2028. The growth of the market depends on several factors, including the increased investment in infrastructure, the expanding manufacturing and distribution facilities, and the new product launches. The market is witnessing strong expansion, fueled by growing investments in infrastructure and environmentally friendly initiatives in response to urbanization trends. Governments globally are dedicating significant funds to enhance road infrastructure and support large-scale projects such as the 2022 FIFA World Cup in Qatar, which is driving construction activity in the off-highway sector. This uptick in demand coincides with a transition toward autonomous and electric construction equipment, utilizing advancements like autonomous vehicle tech and lithium-ion batteries. Rental firms are progressively embracing economical machinery and battery-operated equipment to address changing needs while managing regulatory requirements. Our report examines historic data from 2018 - 2022, besides analyzing the current and forecasts market scenario.

Market Forecasting and Size

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Market Dynamics

The market is undergoing significant transformation amidst trends like urbanization and sustainable green projects. Oxford Economics forecasts growth, spurred by shifts in international trade policies favoring autonomous construction equipment and electric construction equipment powered by lithium-ion batteries. This marks a departure from traditional hydraulic and mechanical vehicles, with dump trucks and excavators leading the charge. Renting or leasing of construction equipment gains traction, driven by regulatory pressures and the need for cost-effective machines. Rental companies are embracing digitalization to offer a diverse fleet including loaders and earthmoving equipment for infrastructure projects like mega corridor projects. Technological integration is evident in offerings from industry leaders like John Deere, with a shift towards battery-powered equipment and autonomous vehicle technology shaping the future of the off-highway industry. In the realm of construction machinery, innovation is pivotal across various sectors. From drilling holes for foundations to concrete and paving applications, the industry drives progress in infrastructure development. The Road construction machinery market and advancements in Crane and construction machinery underscore efficiency gains. These developments extend to the Forestry industry, Waste management industry, and Municipal services industry, enhancing operations with both traditional equipment and modern technology. Emphasis on Equipment efficiency ensures optimal performance, addressing diverse needs from urban settings to remote construction sites. As the sector evolves, sustainability and productivity remain central, shaping the future of global infrastructure. 

Key Market Driver

The market is experiencing robust market growth analysis, driven by increased investment in infrastructure and sustainable green projects amidst urbanization trends. Governments worldwide are allocating substantial funds to develop road infrastructure and facilitate mega corridor projects like the 2022 FIFA World Cup in Qatar, boosting construction activity in the off-highway industry. This surge in demand is accompanied by a shift towards autonomous construction equipment and electric construction equipment, leveraging technologies like autonomous vehicle technology and lithium-ion batteries.

Moreover, rental companies are increasingly adopting cost-effective machines and battery-powered equipment to meet evolving demands while navigating regulatory pressures. Digitalization and technological integration are further enhancing efficiency in excavators, loaders, and other earthmoving and material handling equipment, driving market expansion. As international trade policies evolve, the market anticipates continued growth in international trade and technological innovation, with companies like John Deere leading the charge in automation and hybrid vehicles.

Significant Market Trends

The growing trend of construction equipment rentals is a primary trend for supporting the market share growth. The global market has high penetration in the developed countries of Europe, MEA, and North America. This trend of renting construction machinery is rapidly gaining momentum in developing countries as well. The growing infrastructure spending in Asia is fueling construction activities in the region, which will drive the construction machinery rental market in the region during the forecast period.

Moreover, it can be leased to a mining or construction company for a specific time period, and after the completion of a project, it can be leased to another company. Thus, the steady growth of the global market is anticipated to limit the growth of the market in focus. The vendors in the market are aligning their business operations and handing over some of their facilities as a part of their business strategy to achieve optimum benefits. Such factors will increase the market growth during the forecast period..

Major Market Challenge

The growing secondhand machine market will be a major challenge for the market during the forecast period. Several manufacturing and mining industries in the US and Europe, especially in countries such as Romania and Germany, were closed because of high labor costs and strict pollution laws. This has resulted in the increased availability of secondhand machines. Furthermore, many Asian contractors and mining companies are eager to buy secondhand European construction machinery, such as excavators, at low prices. By using secondhand machines, contractors can control their capital investments as these machines are available at affordable prices.

Moreover, small manufacturers find it challenging to buy new European machines due to their high costs. Once refurbished and reconditioned, these machines become as good as new ones. Therefore, the growing secondhand machine market will limit the demand for new machinery.

Market Segmentation

The market plays a critical role in global infrastructure, spanning drilling for foundations, concrete applications, and paving. Technological advancements drive optimized performance, reducing charging times and enhancing connectivity within the construction equipment ecosystem. Component suppliers innovate assembly lines to meet the demands of the market and crane efficiency. From forestry to waste management and municipal services, traditional and automated equipment boost productivity for building and construction sectors. With a focus on sustainability, fuel-efficient machinery lowers operational costs while IoT integration monitors equipment in residential and public infrastructure projects. Challenges like environmental imbalance and regulatory compliance shape the sector’s future alongside advancements in energy efficiency and safety standards.

By Application

The market share growth by the commercial segment will be significant during the forecast period. The commercial segment consists of commercial buildings, such as shops, hotels, restaurants, office spaces, industrial buildings, schools, and hospitals. This segment is expected to grow as both developed and developing economies are likely to invest heavily in this market research and growth during the forecast period.

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The commercial segment was valued at USD 73.20 billion in 2018. Growth in the commercial segment will accelerate the growth of the global construction equipment market during the forecast period. The emergence of multinational companies has led to a rise in the number of employees and office spaces globally. Moreover, the rising number of technological and business parks is triggering the demand in commercial spaces, which is expected to increase further during the forecast period. 

Regional Analysis

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APAC is estimated to contribute 42% to the growth during the forecast year.  Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Growing construction activity in emerging countries such as India, Afghanistan, and Bangladesh, attributes to the growth of the construction equipment market in APAC. The construction market is expected to grow steadily in APAC during the forecast period, generating demand for new infrastructures to provide residential and commercial spaces for the growing urban population. On the other hand, emerging economies are experiencing huge growth in both commercial and residential construction.

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

AB Volvo - The company offers construction machinery such as Compact excavators, Crawler excavators, Wheeled excavators, Compact wheel loaders, and Pavers.

We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:

AB Volvo, Caterpillar Inc., CNH Industrial NV, Deere and Co., Doosan Bobcat Inc., Hitachi Ltd., Hyundai Motor Co., J C Bamford Excavators Ltd., Kawasaki Heavy Industries Ltd., Kobe Steel Ltd., Komatsu Ltd., Liebherr International Deutschland GmbH, Linamar Corp., Manitou BF SA, Sany Group, Tadano Ltd., Terex Corp., Xuzhou Construction Machinery Group Co. Ltd., Yanmar Holdings Co. Ltd., and Zoomlion Heavy Industry Science and Technology Co. Ltd.

Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

You may also be interested in:

Heavy Construction Equipment Market - Heavy Construction Equipment Market by Type and Geography - Forecast and Analysis
Construction Equipment Market by in APAC - Construction Equipment Market by in APAC Product, and Application - Forecast and Analysis 
Construction Equipment Rental Market - Construction Equipment Rental Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, UK, China, Japan, France - Size and Forecast

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Application Outlook 
  • Commercial
  • Residential
  • Infrastructure
• Product Outlook 
  • Earthmoving machinery
  • Material handling machinery
  • Concrete and road construction machinery
  • Others
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is pivotal in supporting global infrastructure development and addressing environmental concerns. Key sectors include heavy machinery for lifting containers, drilling for infrastructure projects, and concrete applications. Telematics and e-call services optimize operational efficiency amid challenges like limited battery capacity and charging times. Technological upgrades in crane and drilling equipment enhance performance and meet stringent regulations on emissions like nitrogen oxides (NOx) and volatile organic compounds (VOC). The market spans equipment for road construction, forestry, waste management, and municipal services, crucial for both traditional and automated operations. With advancements in IoT and fuel-efficient machinery, the sector continues to innovate, supporting residential, public, and industrial infrastructure projects worldwide.

Moreover, the market is witnessing dynamic growth, driven by advancements in autonomous vehicle technology and the demand for cost-effective machines. From dump trucks to crawler dozers, the industry is embracing electric and hybrid vehicles for enhanced efficiency and reduced emissions. Battery-powered equipment and electric construction equipment are gaining traction, facilitating the electrification of construction equipment. This trend aligns with the push for sustainability in sectors like earthmoving and material handling equipment, essential for projects ranging from dams to high-rise cooperative projects. Backhoe loader, compactors, concrete mixer truck, construction projects, earth moving, excavation & mining, forklifts, front loaders, and grader are some of the equipment used in such projects. Additionally, public-private partnerships (PPP) and overseas investments fuel infrastructure development, including port extensions and railway tunnels. The market also sees innovations like autonomous trucks and mini excavators, driving new product launch activity and renting or leasing of construction equipment. Amidst these developments, Oxford Economics tracks net crane count and forecasts growth for the construction industry.

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What are the Key Data Covered in this Market Forecast Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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