Construction Equipment Market Size By Product (Earthmoving & Road Building Equipment [Backhoes, Excavators, Loaders, Compaction Equipment, Others], Material Handling & Cranes [Storage & Handling Equipment, Engineered Systems, Industrial Trucks, Bulk Material Handling Equipment], Concrete Equipment [Concrete Pumps, Crushers, Transit Mixers, Asphalt Pavers, Batching Plants]), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020-2026

Published Date: Jun 2020  |  Report ID: GMI2803  |  Authors: Preeti Wadhwani, Prasenjit Saha

Report Format: PDF   |   Pages: 250   |   Base Year: 2019

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Construction Equipment Market size exceeded USD 135 billion in 2019 and is estimated to grow at a CAGR of over 4% between 2020 and 2026. According to the market report, the rising number of building maintenance and reconstruction activities in several countries across the globe is augmenting the demand for construction equipment.

Construction Equipment Market

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Rapidly increasing government investment in the development of infrastructure is supporting the construction equipment industry growth. Market data shows that in 2019, the U.S. government invested USD 1 trillion for infrastructure construction in the country. The government also allocated USD 67 billion for refurbishment and maintenance of aging buildings. Moreover, the growing deployment of smart construction machine with IoT and sensor technologies for improved operational efficiency will augment the market growth.

Growing urbanization and industrialization is supporting the increase in employment opportunities. Accelerating population shift from rural to urban areas and high demand for robust infrastructure are driving the market growth of construction equipment. Additionally, increasing consumer disposable income is creating a demand for highly sophisticated residential and commercial infrastructure in the market.

This has led to a growing market trend of building refurbishment activities, proliferating the requirement for high-performance construction machinery. Several benefits offered by these machines, such as high reliability, safety, and flexibility, to attach extra tools are boosting their proliferation in the market.

Construction Equipment Market Size

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One of the major market factors challeging the market growth is the high market price of these machines. Budget constraints in small construction projects restrict the adoption of costly construction machines. Moreover, high repair & maintenance cost of the equipment is challenging the industry growth. However, in response to the growing market trend, OEMs are focusing on integrating sensor technologies for driver assistance and reduced equipment down-time. This factor is expected to drive the market over the forecast timeframe.

The construction equipment market is anticipated to witness a sluggish growth due to the outbreak of the COVID-19 health crisis in 2020. There has been a severe impact of the pandemic on construction owing to government enforced lockdowns and restrictions on people movement in several countries across the globe.

Disruption of supply chain and logistics are posing further industry challenges. Large infrastructure building projects have reached a complete halt due to the unavailability of labor and social distancing practices. Moreover, financial insecurities among construction equipment industry players will hamper the market size in 2020.

Construction Equipment Market Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: USD 135 Billion (2019)
Historical Data for: 2015 to 2019 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 4% 2026 Value Projection: USD 160 Billion (2026)
Pages: 250 Tables, Charts & Figures: 250
Geographies covered (16): U.S., Canada, UK, Germany, France, Italy, Russia, China, Japan, South Korea, India, Brazil, Mexico, Saudi Arabia, UAE, South Africa
Segments covered: Product
Companies covered (22): Caterpillar Inc., CNH Industrial, Doosan Group, Guangxi LiuGong Machinery Co. Ltd., Hitachi Construction Machinery Co. Ltd., J.C. Bamford Excavators Limited, John Deere, Kobelco Construction Machinery Co. Ltd., Komatsu Ltd., Liebherr group, Metso Corporation, Palfinger AG, Sany Group, Sumitomo Heavy Industries Ltd., Tadano Ltd., Terex Corporation, The Atlas Copco Group, The Manitowoc Company, Inc., Volvo Construction Equipment, Wacker Neuson, XCMG Group, Zoomlion Heavy Industry Science & Technology Co. Ltd
Growth Drivers:
  • Integration of advanced technologies in construction machinery
  • Increasing investments in infrastructure development across the globe
  • Rapidly growing construction projects in China and India
  • Rising demand for equipment rental in North America and Europe
  • Growing urbanization in North America and Europe
  • Rising number of infrastructural and industrial projects in Russia
  • Increasing implementation of Li-Fi in healthcare and education sectors in Europe
  • Growing number of maintenance and refurbishment activities in Japan
  • Rapid development of construction industry in BRIC countries
  • Recovering construction industry in Latin America
  • Growing investments in mining projects in Latin America and MEA
  • ing public private partnership projects in MEA
Pitfalls & Challenges:
  • Instability of application industries
  • Lack of skilled and qualified machinery operators
  • High initial costs of construction equipment
  • Fluctuating oil prices
  • High maintenance cost of construction equipment

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Public infrastructure construction driving the construction equipment revenue

Construction Equipment Market Share

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The market analysis and trends show that the earthmoving and road building segment held about 55% of the market share, and is anticipated to value at over USD 90 billion in 2026. This segment includes revenue generated from backhoes, excavators, loaders, and compaction equipment.

The major market factors contributing to the growth include a rapid expansion in road-building projects and development of public infrastructure by government authorities. The mechanization of infrastructure building activities to achieve fine quality is creating the demand for earthmoving & roadbuilding equipment.

Excavators market is anticipated to witness a growth rate of over 5% from 2020 to 2026. Increasing construction activities in the residential sector are providing growth opportunities for excavators in the market. The availability of excavators in several models to suit applications in roadbuilding, forestry, mining, and commercial construction is supporting their wide adoption. Several advantages of excavators, such as the ability to operate in diverse terrains, flexibility to mount additional tools, and high durability, are proliferating their market demand.

In response to the growing demand, construction equipment market players are launching new equipment integrated with advanced technologies such as IoT and AI. For instance, in November 2018, Komatsu launched two new models of hydraulic excavators, Komatsu PC300LC-8M0 and Komatsu PC350LC-8M0, in collaboration with L&T for applications in mining and roadbuilding industries.

These machines are integrated with advanced Komtrax technology that provides users with robust monitoring and control facilities assisted by proximity sensors and IoT. The technology also enables efficient control over fuel usage of the construction equipment.

Increasing demand for autonomous equipment owing to rising safety concerns in Asia Pacific

The Asia Pacific construction equipment market share was valued at around USD 55 billion in 2019 where China holds about 40% of the revenue share. The construction equipment industry in the region is witnessing a high growth due to increasing government and private sector investments on infrastructure development.

The real estate industry in emerging countries including India and China is developing rapidly due to the increasing demand for residential apartments. Moreover, the growing number of accidents on construction sites is driving the adoption of autonomous construction equipment to ensure labor safety. These market factors are supporting the industry growth in the region.

Several countries in Asia Pacific including China, Japan, and South Korea are witnessing an increase in deployment of construction equipment, such as cranes, for efficient utility distribution. This is encouraging leading market companies to launch new equipment in the market.

For instance, in March 2020, Manitowoc announced the launch of its new crane model Grove GMK6400-1, which is ideal for deployment in all terrains and various industry applications. The machine is equipped with ‘Crane Control System’ for significant improvement in operational efficiency. The flexibility of attaching additional tools enables the crane to reach higher altitudes and achieve enhanced positioning.

Strategic partnerships and business expansion adopted by construction equipment market players

The market leaders are laying emphasis on strategic partnerships with other industry players to expand their business and gain a competitive advantage in this market. For instance, in July 2018, Caterpillar, Inc. partnered with Newmont Mining for the development of autonomous mining vehicles. The partnership aided the companies to leverage their expertise to develop new technologies for mining machines. The collaboration also focuses on Caterpillar’s semi-autonomous system ‘Command for Underground’ developed for underground wheel loaders.

The equipment manufacturers are also laying an emphasis on expansion of their global footprint as a part of their strategic initiatives. For instance, in September 2019, Komatsu announced its plans to set up a manufacturing facility in South Africa. This new plant will be set up by June 2020, focusing primarily on R&D and production of construction & mining equipment.

The key players operating in the market share include Volvo Construction Equipment, Komatsu Ltd., Caterpillar, Inc., Hitachi Construction Machinery, CNH Industrial, XCMG Group, Terex Corporation, Sany Group, Liebherr, and Kobelco Construction Machinery Co.

The construction equipment market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2020 to 2026 for the following segments:

By Product

  • Earthmoving and Roadbuilding Equipment 
    • Backhoes
    • Excavators
    • Loaders
    • Compaction equipment
    • Others
  • Material Handling and Cranes 
    • Storage & handling equipment
    • Engineered systems
    • Industrial trucks
    • Bulk material handling equipment
  • Concrete Equipment 
    • Concrete pumps
    • Crushers
    • Transit mixers
    • Asphalt pavers
    • Batching plants

The above information has been provided for the following regions and countries:

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

Frequently Asked Questions (FAQ) :

The market size of construction equipment was valued over USD 135 billion in 2019.
The industry share of construction equipment is predicted to achieve more than 4% growth through 2026.
The market analysis and trends show that the earthmoving and road building segment held about 55% of the market share in 2019, and is anticipated to be valued at over USD 90 billion in 2026.
The Asia Pacific market was valued at around USD 55 billion in 2019.
Excavators market is anticipated to witness a growth rate of over 5% from 2020 to 2026.
The key players operating in the market include Volvo Construction Equipment, Komatsu Ltd., Caterpillar, Inc., Hitachi Construction Machinery, CNH Industrial, XCMG Group, Terex Corporation, Sany Group, Liebherr, and Kobelco Construction Machinery Co.

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Premium Report Details

  • Published Date: Jun 2020
  • Pages: 250
  • Tables: 221
  • Charts / Figures: 29
  • Companies covered: 22
  • Countries covered: 16

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