Meticulous Research® reveals a 5.3% CAGR from 2024 to 2031, with automation and innovation set to reshape the industry landscape.

The global construction equipment market is projected to reach a staggering $236.9 billion by 2031, growing at a compound annual growth rate (CAGR) of 5.3% from 2024, according to the latest report by Meticulous Research®. The market’s expansion is attributed to increasing investments in construction and infrastructure development, as well as a heightened demand for more efficient, productive, and safer construction operations.

Key factors driving growth include significant government spending on infrastructure projects and the rising trend of automation in construction equipment. These factors are expected to create substantial opportunities in the market, although stringent international trade policies and the high cost of construction equipment could potentially temper growth. Additionally, the scarcity of skilled equipment operators continues to present a notable challenge for the industry.

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Emerging Trends: Compact and Electric Equipment

Compact and electric construction equipment are gaining prominence, reflecting a shift in industry preferences. As construction companies and contractors seek more sustainable and versatile solutions, these segments are expected to witness robust growth, further boosting the market.

Market Segmentation and Key Insights
The construction equipment market is analyzed across several segments, including type, propulsion method, and end user. The study also provides a comprehensive analysis of competitive dynamics and evaluates market trends at both regional and national levels.

By Type: Material Handling Equipment Leads, Earth-Moving Equipment Sees Rapid Growth

In terms of equipment type, the market is segmented into material handling equipment, concrete and road construction equipment, earth-moving equipment, and other specialized equipment. In 2024, the material handling equipment segment is anticipated to dominate with a 40.0% market share. This growth is fueled by the rapid pace of global industrialization and modernization initiatives, which are increasing demand for automated material handling systems to improve productivity and reduce labor dependency.

Earth-moving equipment, however, is expected to register the fastest growth over the forecast period. The increasing investments in residential, commercial, and industrial construction projects are key contributors to this growth, driving demand for equipment used in activities such as excavation, grading, and demolition. Strategic partnerships within the industry are also playing a critical role. For example, CanLift Equipment Ltd. partnered with Xuzhou Construction Machinery Group Co., Ltd to expand earth-moving equipment offerings in Canada.

By Propulsion Type: ICE Equipment Dominates, but Electric Equipment Gains Traction

The market is also categorized by propulsion type into internal combustion engine (ICE), electric, and CNG/LNG-powered equipment. In 2024, ICE-powered equipment is expected to maintain the largest market share at 53.0%, supported by its affordability and superior power-to-weight ratio. Additionally, ICE technology remains a preferred choice due to its lower cost compared to electric alternatives.

However, electric equipment is set to experience the highest CAGR during the forecast period, driven by its lower operating costs and minimal maintenance requirements. Government incentives promoting electric alternatives, combined with increased focus on sustainability, are further fueling this segment’s growth. Recent product innovations, such as Action Construction Equipment Ltd.’s electric crane with a 180-ton lifting capacity, are paving the way for broader adoption of electric construction machinery.

By End User: Construction Companies to Dominate
Among end users, construction companies are projected to lead the market in 2024, accounting for 55.0% of total revenue. This dominance can be attributed to global infrastructure investments, the adoption of advanced machinery to boost project efficiency, and a growing labor shortage within the sector. Furthermore, the construction companies segment is expected to register the highest CAGR over the forecast period, driven by continuous investments in cutting-edge equipment. A notable example includes Skanska’s pilot project in 2023, which deployed a zero-emissions electric excavator for the Los Angeles Metro’s Purple (D Line) Extension.

Geographical Insights: Asia-Pacific Leads the Way
Geographically, the Asia-Pacific region is expected to capture the largest share of the global market in 2024, with a 45.0% share. The region’s dominance is underpinned by significant investments in large-scale construction projects, coupled with the rapid development of real estate and infrastructure across countries such as China and India. The Asia-Pacific market is also set to grow at the fastest rate, with a projected CAGR of 7.0%, fueled by the rising demand for sustainable construction solutions and the expansion of major market players in the region.

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Leading Industry Players
The construction equipment market is characterized by strong competition among leading players, including Caterpillar (U.S.), CNH Industrial N.V. (U.K.), Deere & Company (U.S.), Doosan Corporation (South Korea), Hitachi Construction Machinery Co., Ltd. (Japan), J C Bamford Excavators Ltd. (U.K.), Komatsu Ltd. (Japan), KUBOTA Corporation (Japan), LIEBHERR (Switzerland), Volvo Group (Sweden), SANY Group (China), MANITOU Group (France), Wacker Neuson SE (Germany), Terex Corporation (U.S.), and Hyundai Construction Equipment Co., Ltd. (South Korea).

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