Autonomous Heavy Equipment Market Statistics, 2023-2035

Global Autonomous Heavy Equipment Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Autonomous Heavy Equipment Market size is estimated to reach ~USD 28 Million by the end of 2035 by growing at a CAGR of ~7% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of autonomous heavy equipment was ~USD 10 Million. The primary growth factor for the rapid expansion of the global market is the rapid growth of the construction industry across the globe. The expansion of the building and construction industry is closely related to the high demand for autonomous heavy equipment. Various types of autonomous heavy equipment such as earth-moving equipment, material handling equipment, and other equipment are heavily used in the construction industry. Therefore, the rise in the construction industry is anticipated to bring lucrative growth opportunities for market growth during the forecast period. As per the statistics, the global construction industry generated revenue that amounted to almost USD 8 trillion in 2022 and is further expected to further grow and reach USD 17 trillion by 2029, with a CAGR value of 7%.

The global autonomous heavy equipment market is anticipated to grow on the account of various key advancements in the construction industry. Owing to the preference for reliable, strong, and aesthetic structures across the industrial, commercial, and residential sectors is projected to generate the demand for autonomous heavy equipment and aid in market expansion. Furthermore, autonomous heavy equipment is in high demand from various end-use industries owing to its ability to hasten the construction process and offer a high level of standardization. In the recent period, many of the industries which require autonomous heavy equipment such as automotive, electrical & electronics, and others have received massive investments which are projected to give an impetus to the growth of the market during the forecast period.

Global Autonomous Heavy Equipment Market: Growth Drivers and Challenges

Growth Drivers

Rapid Development in the Real Estate Sector – In the recent period, the demand for strong and robust structures has considerably grown up owing to the swift urbanization and industrialization across the globe. As a result, the real estate sector has considerably grown, which is anticipated to further create opportunities for the utilization of autonomous heavy equipment in a wide array of activities. Hence, this factor is expected to bring favorable growth opportunities for the expansion of market growth in the upcoming future. For instance, it has been noticed that the real estate sector is recovering as the global pandemic recedes. As per recent estimates, the revenue generation of real estate companies worldwide stood at approximately USD 10 billion in 2021.
Significant Increase in Infrastructure Development Projects – Recently, the governments of different nations are working towards the development of infrastructures such as highways, roads, bridges, and others for connecting parts of the world. Such heavy construction activities generate the need for autonomous heavy equipment for performing efficient construction processes. Therefore, the rising initiations to develop several infrastructures are estimated to create a positive outlook for the development of the global autonomous heavy equipment market in the assessment period. For instance, one of the major infrastructure projects is the Belt and Road Initiative by China. The project aims to accelerate economic growth across central and eastern Europe, Asia Pacific, and Africa by addressing the infrastructure gap between these regions. As of July 2022, up to 150 countries had officially agreed to join the Belt and Road Initiative (BRI) by China. Further, as per predictions by experts, China should spend up to USD 9 trillion over the life of the BRI.
Growing Adoption of Automation Processes Across the World – With the rising technological advancements, industries are propelled to adopt advanced technologies such as automation for performing heavy tasks. This factor is projected to increase awareness about the advantages of autonomous heavy equipment among the global population, which in turn, is anticipated to contribute positively towards market growth in the next few years. Recent statistics that have been published in 2022, stated that automation is expected to boost global productivity by almost 2% every year. Also, almost 85% of global businesses are forecasted to introduce robots and automation in the next ten years.
Escalation in the Use of Artificial Intelligence (AI) – Businesses around the world are focused on digital transformation by using the benefits of Artificial Intelligence (AI) for upgrading their activities and gaining major profits. Therefore, the use of autonomous heavy equipment is preferred owing to its various advantages which are further estimated to help in market growth. It has been stated that AI is predicted to contribute almost USD 16 trillion to the global economy by 2030, and nine out of ten leading businesses are forecasted to invest in AI technologies.
Increased Investment in the Research & Development (R&D) Sector – As per the World Bank, the Research and Development expenditure accounted for 2.63% of total GDP in 2020. This was a rise from 2.13% of the total GDP in 2017.

Challenges

Rising Concerns Regarding Safety and Cyber Security Issues – To automate heavy equipment, an efficient control system is generally used. However, cyber security cases are estimated to pose a challenge to market growth as it is difficult to control the potential damage that could be caused by hacking heavy equipment. Hackers are able to exploit the communication systems between vehicles and infrastructures. Hence, the threats associated with the protection and safety of heavy equipment are projected to limit the growth of the autonomous heavy equipment market in the near future.
Requirement of a High Initial Investment
Shortage of Labor Who Are Skilled to Use the Equipment

Global Autonomous Heavy Equipment Market Segmentation

The market is segmented and analyzed for demand and supply by product type into earth-moving equipment, material handling equipment, and concrete & road construction equipment. Out of the three types of autonomous heavy equipment, the earth-moving equipment segment is estimated to gain the largest market share of about ~41% in the year 2035. The major factor for market growth in the region is the increased undertaking of commercial and residential construction projects by the Asia Pacific government is expected to encourage the usage of autonomous equipment. It is evident that the increase in construction projects is the result of the growing industrialization and urbanization of a region, which is expected to contribute to market growth indirectly. According to the World Bank, the urban population comprised 56% of the total world population in 2019. Furthermore, the escalation in the quarrying and mining activities for bridging the gap between oil and demand is also anticipated to make use of earthmoving equipment the most. Some mostly used earthmoving equipment include backhoe loaders, mini excavators, crawler excavators, and skid-steer loaders. All these factors couple up to contribute positively to segment growth.

The global autonomous heavy equipment market is also segmented and analyzed for demand and supply by application into road construction, building construction, and others. Amongst these three segments, the building construction segment is expected to garner a significant share of around ~46% in the year 2035. One of the major factors for segment growth is the rising demand for building construction by the burgeoning population for sustenance and survival which requires efficient autonomous heavy equipment for the smooth conduction of building construction processes. Furthermore, with rapid urbanization, the need for building construction has considerably grown in the past few years. This has attracted the attention of the government and key players to boost economic growth in the future. As a result, high investments are made in the building construction sector which is subsequently anticipated to bring lucrative growth opportunities in the upcoming years. For instance, the government of India announced a raise in capital expenditure for infrastructure development in 2023-24 to an amount equivalent to ~USD 122 billion in its Union Budget 2023. This raise also included the highest to date outlay for railroads, which amounts to ~USD 29 billion.

Our in-depth analysis of the global autonomous heavy equipment market includes the following segments:

By Autonomous Type	Partial/Semi-Autonomous Fully Autonomous
By Product Type	Earth Moving Equipment Material Handling Equipment Concrete & Road Construction Equipment
By Application	Road Construction Building Construction Others

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Global Autonomous Heavy Equipment Market Regional Synopsis

Autonomous heavy equipment market share in Asia Pacific, amongst the market in all the other regions, is projected to be the largest with a share of about ~35% by the end of 2035. The growth of the market in the region can be attributed majorly to the significant investments being made to initiate construction activities and the development of dams, airports, special economic zones, highways, and other infrastructural developments which are projected to increase the chance of using autonomous heavy equipment. For instance, the total spending on airports present in Asia Pacific is expected to surpass USD 1 trillion by 2041. These initiatives mainly intend to improve the overall economy of the region by boosting trade and connectivity and attracting the key players operating in the autonomous heavy equipment business to set up their companies or invest in the expansion of their companies to this region, which is further projected to regional market growth.

The North American autonomous heavy equipment market is estimated to be the second largest, registering a share of about ~24% by the end of 2035. The extensive construction activities that are undertaken by Canada are considered to be the major factor for market growth in the region. The number of immigrants to Canada has increased considerably in recent years which is attracting significant investment from the regional government for the development of construction infrastructure to address the changing demands of both the immigrants and the citizens. This factor is estimated to increase the utilization rate of autonomous heavy equipment for building infrastructures. It is estimated that the construction of ~83,481 units of new homes started only in the Ontario province of Canada in 2022. Another factor for market growth in the region is the rapid technological advancements and the rising use of specialized equipment to optimize construction activities in the region.

Further, the autonomous heavy equipment market in the European region, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The major factors for market expansion in the region are the significant escalation in building residential properties in Europe region along with the many initiatives being undertaken by the regional governments to improve the infrastructure. All these factors add up to encourage key players in the construction industry to enter into partnerships with each other to accelerate the development of advanced autonomous heavy equipment. Such partnerships are expected to contribute positively to the growth of the regional market during the forecast period considerably.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the autonomous heavy equipment market?

Ans: Increasing investment in the construction and manufacturing unit and rapid urbanization are major factors of growth.

2) What would be the CAGR of autonomous heavy equipment market over the forecast period?

Ans: The market size of autonomous heavy equipment is anticipated to attain a CAGR of ~7% over the forecast period, i.e., 2023 â€“ 2035.

3) What are the challenges affecting the autonomous heavy equipment market growth?

Ans: The high cost of equipment, along with the high maintenance and the strict government laws are estimated to be the growth hindering factors for the market expansion.

4) Which region will provide more business opportunities for growth of autonomous heavy equipment market in future?

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.

5) Who are the major players dominating the autonomous heavy equipment market?

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, Deere and Company, and among others.

6) How are the company profiles selected?

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.

7) What are the segments in the autonomous heavy equipment market?

Ans: The market is segmented by automation level, product type, application, and by region.

8) Which segment captures the largest market size in the application segment in the autonomous heavy equipment market?

Ans: The building construction segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

Base Year	2022
Forecast Year	2023-2035
CAGR	~7%
Base Year Market Size (2022)	~ USD 10 Million
Forecast Year Market Size (2035)	~ USD 28 Million
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)