Autonomous Construction Equipment Market Analysis by Autonomous Type (Partial/Semi-Autonomous and Fully Autonomous); by Product Type (Earth Moving Equipment, Material Handling Equipment, Concrete and Road construction Equipment); and By Application (Road Construction; Building Construction and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4818 | Published Date: Apr 13, 2023
The global autonomous construction equipment market is estimated to garner a revenue of ~USD 53 Billion by the end of 2035 by growing at a CAGR of ~15% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 53 Billion in the year 2022. The growth of the market can be attributed to the increasing urbanization. As urbanization continues, there may be more pressure to reduce emissions and improve air quality in cities. Further, autonomous construction equipment can play a role in this by using electric or hybrid powertrains, which emit less pollution than diesel-powered equipment, which is expected to add to the market growth. For instance, in India, the annual pace of urbanization grew by over 1% in 2021.
In addition to these, factors that are believed to fuel the market growth of autonomous construction equipment include the growing advancements in technology. For instance, the introduction of sensors, GPS, and machine learning algorithms, among other technological advancements, have made it feasible for heavy machinery to function independently. With the use of these technologies, the machinery may be programmed to carry out duties more precisely and accurately. Additionally, the growing demand of workplace safety is predicted to present the potential for market expansion over the projected period.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~15% |
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Base Year Market Size (2022) |
~ USD 12 Billion |
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Forecast Year Market Size (2035) |
~ USD 53 Billion |
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Regional Scope |
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Growth Drivers
Growing Environmental Awareness – On account of the increasing air pollution across the globe, the market is expected to expand more in the upcoming years. According to a recent survey conducted in 24 countries, more than 50% of individuals are more aware of their environmental influence and over 80% are ready to take personal action to address environmental and sustainability issues in 2021.
Rising Cases of Work-Related Accidents – The increasing transportation incidents across the globe are estimated to drive market growth. Each year, there are over 150 million cases of work-related disease and around 320 million occupational accidents worldwide.
Growing Agriculture Sector –The increasing population and rising urban and rural income is driving the demand for agricultural products, which as a result is estimated to drive market growth. According to the most recent expenditure data, by 2025, it is anticipated that the Indian agriculture sector would grow to a value of over USD 20 billion.
Surging Demand for Autonomous Technology – It is expected that rising awareness regarding the safety and security of people, is anticipated to drive the market growth. By the year 2029, more than 70% of cars will be fully autonomous, making the roads safer as fewer accidents and more lives are saved by automated vehicles.
Challenges
The global autonomous construction equipment market is segmented and analyzed for demand and supply by application into road construction, building construction and others. Out of the three types, the building construction segment is estimated to gain the largest market share over the projected time frame. The growth of the segment can be attributed to the increasing population across the globe. For instance, there is a rising need for additional houses, businesses, and infrastructure as the world's population continues to rise, which increases the demand for autonomous construction equipments in the construction sector. Owing to its many advantages, including increased productivity, efficiency, and safety, autonomous construction equipment is becoming more and more common in the construction sector. Improved safety is one of the main advantages of autonomous heavy machinery. Further, autonomous equipment can carry out activities with a high degree of consistency and precision because to sophisticated sensors and algorithms, minimizing the need for rework and raising overall quality. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years. For instance, according to research, building construction is expected to increase its global annual sales by ~4,800 million by 2026 furthermore, by 2050, it is anticipated that there will be more than 9 billion people on Earth.
The global autonomous construction equipment market is also segmented and analyzed for demand and supply by autonomous type into partial/semi-autonomous and fully autonomous. Amongst these two segments, the partial/semi-autonomous segment is expected to garner a significant share. The growth can be attributed to growing shortage of skilled labors across the globe. Heavy machinery that is partially or partially autonomous has the technological capabilities to carry out specific duties automatically, without direct human direction. For instance, some sectors, including mining and construction, are struggling with a lack of trained workers. Heavy machinery that is partially or semi-autonomous helps by lowering the demand for human operators, and may complete some jobs more quickly and correctly than human operators, which can boost productivity and efficiency on construction sites. This, as a result, is anticipated to create numerous opportunities for the growth of the segment in the coming years. According to study, the global annual sales of the partial/semi-autonomous segment will increase to ~USD 6,300 million by 2026.
Our in-depth analysis of the global autonomous construction equipment market includes the following segments:
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By Automation Level |
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By Product Type |
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By Application Type |
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The Asian Pacific autonomous construction equipment market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the growing building & construction industry. For instance, as cities in the region continue to grow, there is a demand for new buildings and infrastructure to accommodate the increasing population, which in turn increases the need for construction equipments such as bulldozers, cranes, and excavators to assist infrastructure projects. By eliminating the need for human operators and enabling around-the-clock operation, autonomous construction equipment assists to boost efficiency and output in these projects. Further, the need for automation and digitization in the construction sector is projected to rise as cities grow. In addition, the region's growing agriculture sector, rising air pollution, is also anticipated to boost the market growth during the forecast period. According to estimates, the construction sector in India, is anticipated to increase by over 6% year on average between 2023 and 2026.
The North American autonomous construction equipment market, amongst the market in all the other regions, is projected to grow with the highest CAGR during the forecast period. The growth of the market can be attributed to the availability of large companies in the region. For instance, the creation and use of autonomous construction equipment is being pursued by a number of sizable businesses in North America. Further, several businesses are investing in the study and development of autonomous heavy machinery, which is a fast growing technology. In addition, the region's growing construction industry, increasing population are also anticipated to boost the market growth during the forecast period.
Further, the market in the Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increasing environmental concern in the region. For instance, the use of autonomous construction machinery can lessen the environmental effect of construction projects by cutting emissions and increasing fuel economy. Additionally, the shortage of skilled labor in the region, along with the growing technology employed in autonomous construction equipment, are also anticipated to contribute to the market growth in the region.
Royal Truck & Equipment stated to provide an autonomous truck mounted attenuator (ATMA) truck to the University of Tennessee Center for Transportation Research for a pilot demonstration. TMA trucks are usually parked behind road construction personnel to shield them from distracted or intoxicated drivers in the case of an accident, and removes the need for a human to operate a vehicle
Komatsu Ltd a manufacturer of global heavy equipment, revealed that the FrontRunner Autonomous Haulage System (AHS) has obtained certification to function on private long-term evolution (LTE) mobile broadband technology. This is the first AHS in the mining sector that can operate on private LTE in commercial operations, paving the door for extremely high system availability.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Rushikesh, Richa Gupta
Ans: Growing environmental awareness, and rising cases of work related accidents are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~15% over the forecast period, i.e., 2023 – 2035.
Ans: Exorbitant cost of equipments and the lack of skilled labors are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Komatsu Ltd, Caterpillar Inc., Hitachi Construction Machinery Co., Ltd., Volvo Construction Equipment, Built Robotics, Inc., Cyngn, Royal Truck & Equipment, Case Construction Equipment, and Deere and Company and among others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by automation level, product type, by application and region.
Ans: Ans: The building construction segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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