Autonomous Heavy Equipment Market size is anticipated to surpass USD 28 Million by the end of 2035 by growing at a CAGR of 7% during the forecast period , i.e., 2023-2035. In the year 2022, the industry size of autonomous heavy equipment was over 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.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~7% |
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Base Year Market Size (2022) |
~ USD 10 Million |
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Forecast Year Market Size (2035) |
~ USD 28 Million |
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Regional Scope |
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Product Type (Earth Moving Equipment, Material Handling Equipment, Concrete, Road Construction Equipment)
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.
Application (Road Construction)
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 market includes the following segments:
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By Autonomous Type |
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By Product Type |
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By Application |
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APAC Market Statistics
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.
North American Market Forecast
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.
Europe Market Forecast
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.
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Author Credits: Rushikesh, Richa Gupta
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