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Construction Equipment Engines Market Size - By Type (Diesel Engines, Gasoline Engines), By Application (Excavator, Loaders, Compactors, Dump Truck, Bulldozers) & Forecast 2024 - 2032

  • Report ID: GMI7601
  • Published Date: Dec 2023
  • Report Format: PDF

Construction Equipment Engines Market Size

Construction Equipment Engines Market was valued at USD 25.5 billion in 2023 and is set to record more than 5% CAGR from 2024 and 2032. Environmental regulations and emission standards imposed by government and regulatory bodies have a significant impact on the market growth dynamics. Manufacturers need to comply with emission standards, such as those set by agencies like the Environmental Protection Agency (EPA) in the United States or the European Union's Stage V regulations. Compliance with these standards requires the development of engines with advanced emission control technologies, influencing the market landscape.
 

construction equipment engines market

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Economic instability, especially in the wake of events like financial crises or global recessions, can lead to reduced investments in construction projects. Businesses may delay or scale back construction activities, impacting the demand for new construction equipment engines, thus limiting market growth.
 

COVID-19 Impact

The construction equipment engines market experienced notable disruptions due to the COVID-19 pandemic. The global supply chain faced challenges, causing delays in manufacturing and distribution. Lockdowns and restrictions hindered construction projects, leading to reduced demand for new equipment. Uncertainties prompted cautious spending among businesses, impacting investment in machinery. Despite initial setbacks, the industry adapted by emphasizing technology, remote monitoring, and sustainable solutions, showcasing resilience and innovation amid the unprecedented challenges posed by the pandemic.
 

Construction Equipment Engines Market Trends

Electrification of construction equipment could be an emerging trend in the global market. As a result, electric construction equipment, including engines and power systems, is anticipated to become more prevalent. This shift is driven by the industry's growing emphasis on sustainability, lower operating costs, and increased interest in reducing carbon emissions.
 

Against this backdrop, in a proactive move to assist clients in navigating the shift towards a more sustainable, lower-carbon future, Caterpillar showcased four electric machine prototypes featuring battery technology at the Bauma exhibition in October 2022 in Munich, Germany. Among these prototypes are the 301.9 mini excavator, 320 medium excavator, 950 GC medium wheel loader, and 906 compact wheel loader. These machines utilize Caterpillar's battery prototypes and are equipped with an onboard AC charger, with plans to provide an offboard DC fast charging alternative.
 

Construction Equipment Engines Market Analysis

Global Construction Equipment Engines Market Size, By Type, 2022 – 2032, (USD Billion)

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The diesel engines segment accounted for over 75% market share in 2023. The demand for diesel construction equipment engines is primarily driven by their robust power output, fuel efficiency, and durability. Diesel engines offer high torque and efficiency, making them well-suited for heavy-duty applications in the construction industry, where substantial power is essential for tasks such as excavation and lifting. Additionally, diesel engines are known for their reliability and longevity, requiring less frequent maintenance. Despite the growing interest in alternative fuels, the well-established performance attributes of diesel engines continue to make them a preferred choice for construction equipment that demands power, efficiency, and endurance.
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Global Construction Equipment Engines Market Share (%), By Application, 2023

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Based on application, the market is categorized into excavator, loaders, compactors, dump truck, bulldozers, and others. The excavator segment held a market share of around 30% in 2023. The adoption of construction equipment engines in excavator applications is propelled by their essential features such as high horsepower, torque, and efficiency. Excavators demand robust power for tasks like digging and lifting, and modern engines offer the requisite strength and performance. As construction projects globally intensify, the demand for excavators equipped with efficient and powerful engines continues to grow, driving the widespread adoption of construction equipment engines in excavator applications.
 

China Construction Equipment Engines Market Size, 2022 -2032, (USD Billion)

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Asia Pacific region captured nearly 40% share of the construction equipment engines market in 2023, due to rapid urbanization and infrastructure development projects in countries like China and India. Governments' increased investments in large-scale construction initiatives further boost the market. Additionally, the expanding manufacturing and industrial sectors in the region require heavy machinery, propelling the need for reliable engines. Furthermore, a rising emphasis on sustainable practices encourages the adoption of advanced and environmentally friendly engine technologies. The collective impact of these factors creates a favorable environment, fostering the healthy growth of the construction equipment engines industry in Asia Pacific.
 

Construction Equipment Engines Market Share

Caterpillar, Kubota and Weichai dominate the construction equipment engines industry. These players are employing various strategies to fortify their market presence. Caterpillar has a strong global presence, and its strategy often involves expanding into emerging markets to capitalize on growing construction activities.
 

Kubota is known for its compact and efficient engines, especially in the compact construction equipment segment. Weichai collaborates with other companies and institutions to leverage external expertise and technologies. Such collaborations can lead to advancements in engine technology, especially in areas like emissions control and fuel efficiency.
 

Construction Equipment Engines Market Companies

Major players operating in the construction equipment engines industy are:

  • Caterpillar
  • DEUTZ
  • MAN
  • Honda
  • John Deere
  • Kubota
  • Volvo Penta
  • Weichai
  • Yanmar
  • Yuchai
     

Construction Equipment Engines Industry News

  • In May 2023, Komatsu introduced a conceptual machine for a medium-sized hydraulic excavator, integrating a hydrogen fuel cell with key components developed in-house. Building on the Proof of Concept (PoC) tests initiated in May 2023, Komatsu aims to expedite its endeavors towards the commercial manufacturing of medium-sized and large construction equipment driven by hydrogen fuel cells in the coming years.
     

This construction equipment engines market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) and Shipments (Units) from 2018 to 2032, for the following segments:

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Market, By Type

  • Diesel Engines
  • Gasoline Engines

Market, By Application

  • Excavator
  • Loaders
  • Compactors
  • Dump Truck
  • Bulldozers
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Southeast Asia 
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • South Africa
    • UAE
    • Saudi Arabia

 

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market size of construction equipment engines was worth USD 25.5 billion in 2022 and is expected to register over 5% CAGR through 2032, due to the increasing stringent environmental regulations and emission standards imposed by government and regulatory bodies worldwide.
The diesel engines type segment held over 75% share of the construction equipment engines industry in 2023 and is expected to register appreciable CAGR from 2024 to 2032, owing to their robust power output, fuel efficiency, and durability.
Asia Pacific held over 40% share of the construction equipment engines market in 2023 and is expected to register commendable CAGR from 2024-2032, due to rapid urbanization and infrastructure development projects in the region.
Caterpillar, DEUTZ, MAN, Honda, John Deere, Kubota, Volvo Penta, Weichai, Yanmar, and Yuchai are some of the major construction equipment engines companies worldwide.

Construction Equipment Engines Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 20
  • Tables & Figures: 221
  • Countries covered: 21
  • Pages: 250
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