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Earthmoving Equipment Market Size By Product (Excavators, Loaders, Backhoe, Compaction Equipment), By Application (Construction, Underground Mining, Surface Mining), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020-2026

  • Report ID: GMI408
  • Published Date: Sep 2020
  • Report Format: PDF

Industry Trends

Earthmoving Equipment Market size exceeded USD 80 billion in 2019 and is anticipated to witness a growth of over 3% between 2020 and 2026. Increasing number of new construction projects in commercial and residential sectors with growing urbanization and industrialization is supporting the industry growth.

Technological advancements in the field of remote monitoring and telematics are some of the key factors driving the earthmoving equipment demand. Market players are integrating their equipments with advanced software solutions to provide robust monitoring and control capabilities to users. For instance, in July 2020, CASE Construction Equipment launched its SiteWatch telematics platform integrated with intuitive navigation and dashboard search interface for construction & earthmoving equipment.

Earthmoving Equipment Market

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The market is witnessing a growing trend of adopting multifunctional equipment to cater to a wide range of applications on construction and mining sites. Multifunctional earthmoving equipment, such as a backhoe loader, can be deployed in several applications including material handling, excavating, and re-filling. In response to the escalating demand, manufacturers are introducing new models of earthmoving equipment with multiple functionalities. For instance, in March 2020, Caterpillar, Inc. launched a new model of multifunctional backhoe loader, the 420XE for the North American and European markets.

High initial investment required for the purchase of new earthmoving equipment is one of the prominent market factors restricting the market growth. High cost of critical components, such as engine, suspension, motors, and other pneumatic parts, required for manufacturing these machines contribute to their high prices. Earthmoving equipment buyers also face high road taxes and insurance costs to comply with government regulations. However, the impact of this challenge is expected to reduce owing to the attractive financing programs offered by market players.

The earthmoving equipment market is witnessing a slowdown due to the ongoing coronavirus (COVID-19) pandemic. The construction & mining industry is experiencing a major setback owing to several factors such as shortage of capital and labor. Government authorities are shifting their focus from large construction projects to mitigating the pandemic situation. For instance, in March 2020, the UK government announced a delay in the completion of the London Crossrail project till 2021 due to insufficient funds. The growing financial insecurities among large construction companies are also impacting the market size in 2020.

Increasing demand for durable and multifunctional excavators

The excavators segment held around 25% market share in 2019 driven by the increasing government and private sector investments in the development of commercial infrastructure globally. Construction of well-connected road infrastructure, bridges, and dams in several countries across the globe is providing new market opportunities.

The ability of excavators to operate for long hours in harsh environmental conditions is fueling the market demand. Advanced excavator models also allow users to mount additional tools for enhanced flexibility. Industry players are launching new models of excavators integrated with advanced technologies to cater to their growing earthmoving equipment market demand.

Government investments in public infrastructure development driving the market revenue

Earthmoving Equipment Market Size

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Construction application is expected to grow at over 3.5% CAGR through 2026. Increasing government investments and public private partnerships (PPP) for the development of robust commercial infrastructure are positively influencing the market statistics. For instance, in March 2020, the European Commission approved investments of approximately USD 1.63 billion for development of 14 large infrastructure projects.

Positive outlook of the construction industry supporting the Asia Pacific market outlook

Asia Pacific Earthmoving Equipment Market

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The Asia Pacific earthmoving equipment market size valued at over USD 36 billion in 2019. Positive outlook of the construction industry is driving the regional market demand. Countries, such as China, Japan, and India, are increasingly investing in development of a modern infrastructure to support the economic growth. For instance, in March 2020, the Japan International Cooperation Agency (JICA), signed an agreement with the government of India for the development of three rail infrastructure projects in India.

The presence of several market leaders, such as Komatsu Ltd., Hitachi Construction Machinery, Sany Group, and Kobelco, is boosting the APAC market growth. These players are increasingly investing in R&D to launch new models of earthmoving equipment and increase their market representation. For instance, in 2019, Komatsu, Ltd. invested USD 35.2 million in R&D activities to develop autonomous earthmoving equipment in the next three years.

Business expansion and strategic partnerships adopted by earthmoving equipment manufacturers

Companies operating in the global earthmoving equipment market are adopting business expansion strategies through partnerships and collaborations. For instance, in June 2018, Caterpillar, Inc announced a strategic partnership with Newmont Mining. The partnership aided the company to develop prototypes of autonomous mining & earthmoving equipment with advanced technologies. Through this partnership, Caterpillar is leveraging Newmont’s expertise in automation technologies for further development of its ‘Command for Underground’ semi-autonomous system developed for wheel loaders.

Manufacturers are also laying a strong emphasis on expansion of their dealer network to reach a wider customer base and increase their geographical footprint.

Key players operating in the market include Volvo Construction Equipment, Komatsu Ltd., Bobcat, Caterpillar, Inc., XCMG Group, Hitachi Construction Machinery, Terex Corporation, Kobelco Construction Machinery Co., Sany group, and Liebherr Group.

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

Market, By Product

  • Excavators
  • Loaders
  • Backhoes
  • Compaction Equipment
  • Others

Market, By Application

  • Construction
  • Underground mining
  • Surface mining

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


Authors: Preeti Wadhwani, Prasenjit Saha

Frequently Asked Questions (FAQ) :

The earthmoving equipment market size was pegged at USD 80 billion in 2019 and will hit a steady 3% CAGR up to 2026, owing to rapid industrialization and increased residential & commercial infrastructure projects.

With higher public spending worldwide and increased public private partnerships to build key infrastructure, the industry share from construction sector will grow at a robust 3.5% CAGR through 2026.

Excavators are expected to contribute nearly 25% of the total market value by 2026, with high opportunities from the development of new road infrastructure, bridges and dams.

APAC market share was valued at over USD 36 billion in 2019, as countries like China, India and Japan expand their spending to boost the economy by developing advanced infrastructure.

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Premium Report Details

  • Base Year: 2019
  • Companies covered: 15
  • Tables & Figures: 132
  • Countries covered: 16
  • Pages: 160
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