Construction Equipment Market Size - By Product, By Propulsion, By Application, By End Use, Growth Forecast, 2026 - 2035
Report ID: GMI2803
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Published Date: January 2026
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Report Format: PDF
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Authors: Preeti Wadhwani, Aishvarya Ambekar
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Base Year: 2025
Companies covered: 25
Tables & Figures: 170
Countries covered: 27
Pages: 250
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. 2026, January. Construction Equipment Market Size - By Product, By Propulsion, By Application, By End Use, Growth Forecast, 2026 - 2035 (Report ID: GMI2803). Global Market Insights Inc. Retrieved February 7, 2026, from https://www.gminsights.com/toc/details/construction-equipment-market

Construction Equipment Market
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Construction Equipment Market Size
The global construction equipment market was valued at USD 167 billion in 2025. The market is expected to grow from USD 169.6 billion in 2026 to USD 289.5 billion in 2035 at a CAGR of 6.1%, according to latest report published by Global Market Insights Inc.
The infrastructure and construction sector acts as a major growth driver for economic development of a country. High focus of regional government authorities on investing in large public infrastructure projects will positively influence the market demand.
The construction equipment market is witnessing an upward trend for smart construction. Advances in technology coupled with strategic partnerships between several companies are supporting the digital transformation of the industry in 2024.
For instance, In March 2024, Hitachi Construction Machinery (Europe) NV (HCME), a renowned construction equipment manufacturer, joined forces with ShareMat, a leading provider of professional software and Fleet Management Systems (FMS) for construction equipment, to establish a strategic collaboration in France.
In 2024, the Volvo Group estimated that about 56,050 construction equipment units were delivered worldwide. The main equipment deliveries took place in the Asia region, which contributed to over half of the market for the Volvo Group equipment. The market for the Volvo Group equipment within the North American region showed net deliveries of about 7,120 equipment units.
According to AEM (Association of Equipment Manufacturers), Government authorities worldwide are striving to replace existing aged infrastructure with strong modernized structures, which would propel growth within the construction equipment marketplace. For 2025, the growth in global construction demand is expected at 2.77%, followed by 3.7% and 3.92% in 2026 and 2027, respectively. In 2025, emerging markets are expected to grow faster than advanced economies at 3.55% and 1.61%, respectively. Of course, this is usually the case, but a widening disparity ties to the influence of interest rate increases.
The construction sector is witnessing increasing investments from several government organizations for the country’s overall economic development. For instance, the Russian government is focusing on the development of affordable housing for the low and middle-income groups. Similarly, through the ‘Make in India’ initiative, the Indian government is also focusing on developing the country’s infrastructure.
Products used in the construction industry mainly include earthmoving & road building equipment, material handling machines & cranes, and concrete equipment. Growing road development projects in Asia Pacific countries including China and India have created several growth opportunities for the industry growth.
Government initiatives related to the manufacturing & development of industrial machinery projects are further driving the product demand across the globe. Additionally, the rising popularity of the construction & mining equipment rental services is promoting the demand for such products.
The growing telecom, energy domain, and smart city initiatives for the realization of connected cities will boost the market growth.
The high cost of the machinery is expected to hamper the construction equipment market growth. Organizations undertaking small projects still prefer traditional human techniques over modern machinery owing to budgetary constraints. The high operating & maintenance cost of this equipment discouraging small-scale project owners to adopt technologically advanced equipment.
The escalating infrastructure development projects in Asia Pacific countries including India, China, and Japan will favor the market growth. The growing infrastructure activities in India have led several equipment manufacturers to expand their market presence in the country to increase their global footprint.
The Europe construction equipment market size is expected to grow rapidly with several countries including Italy and Spain gaining stability after the economic crisis. The strong manufacturing sector in Germany will further favor the manufacturing of technologically advanced machinery. German companies are looking to expand their industrial presence globally, thereby providing a boost to the industry growth.
Construction Equipment Market Trends
Rising commercial constructions, such as IT parks, shopping malls, and other government buildings, are driving industry growth. Construction equipment possesses the ability to efficiently carry out heavy-duty works required in the construction sector, thereby boosting the market demand.
The shifting focus of construction companies and building contractors toward speeding up of construction operations without compromising safety & security will enhance business expansion.
Various governments, such as the UK, Brazil, Taiwan, New Zealand, and France, are focusing on improving their road and building infrastructures. These governments are heavily investing in various infrastructure projects to accelerate their economic growth. In September 2025, the latest data on construction activity was published by The Office for National Statistics (ONS). Output increased by 0.3% in June, after a fall of 0.5% in May, meaning output increased by 1.2% in Q2 compared with Q1. This increase followed a stable first quarter and followed a modest increase in output of 0.5% last year. The growth in output during Q2 was due to the increase in both new work and repair and maintenance activity - up 1.1% and 1.4%, respectively.
The construction equipment market is experiencing an upward trend owing to increasing focus toward smart cities and buildings. Several government authorities are establishing strategic partnerships with private firms to increase their transition toward smart cities, creating a positive market outlook
The initial high acquisition cost of modern construction machines is driving contractors and construction organizations to switch to construction equipment rental services. Market reasons such as high taxes, service, high depreciation costs, and the equipment insurance required by new machinery have all contributed to the increased demand for equipment rentals.
Additionally, the construction sector is dynamic and strongly influenced by market volatility. Renting construction equipment safeguards the organization against unforeseeable financial downturns. The availability of a wide range of technologically modern equipment for rent is also increasing market revenue.
The demand for used construction equipment has grown exponentially in recent years, which second-hand dealers and global online auction platforms are tapping into. The demand varies hugely from country to country. The growing construction sector in various countries has offered several opportunities for companies which are manufacturing construction equipment as well as companies selling used and refurbished equipment. Used construction equipment in real estate and construction activities has resulted in a substantial surge of demand for concrete equipment, excavators, backhoes and material handling equipment.
Construction Equipment Market Analysis
Based on product, the market is divided into earthmoving & roadbuilding equipment, material handling and cranes, and concrete equipment. The earthmoving & roadbuilding equipment segment dominated around 56% market share in 2025 and is expected to grow at a CAGR of over 5.5% from 2026 to 2035.
Based on propulsion, the market is segmented into diesel, CMG/LNG, and electric. The diesel segment dominates the market with 92.6% share in 2025 and is expected to grow at a CAGR of 5.6% from 2026 to 2035.
Based on application, the construction equipment market is segmented into residential construction, commercial construction, industrial construction, mining & quarrying. The commercial construction dominated the market and was valued at USD 71.1 billion in 2025.
Based on end use, the market is segmented into construction companies, mining operators, rental companies, government & municipalities, and industrial users. The construction companies is the largest segment in market and was valued at USD 92.4 billion in 2025.
China dominated the construction equipment market in Asia Pacific with around 50% share in 2025 and generated USD 38.7 billion in revenue.
Germany construction equipment market holds around 24% share in 2025 and generated USD 9.9 billion in revenue. The German economy is majorly driven by the country’s engineering and automobile industry.
The construction equipment market in U.S. is projected to witness around 6.7% CAGR throughout 2026 to 2035.
Brazil construction equipment is expected to reach over USD 5.9 billion in 2035 by growing at a CAGR of 3.7% between 2026 and 2035.
Saudi Arabia construction equipment accounted for over USD 4.1 billion in 2025 and is anticipated to show lucrative growth over the forecast period.
Construction Equipment Market Share
Construction Equipment Market Companies
Major players operating in the construction equipment industry are:
Construction Equipment Market News
The construction equipment market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and shipment (Units) from 2022 to 2035, for the following segments:
Market, By Product
Market, By Propulsion
Market, By Application
Market, By End Use
The above information is provided for the following regions and countries: