Construction Equipment Market Size & Share, by Equipment Type (Excavator, Loader, Dozer, Dump Truck, Compactor, Crane); Propulsion Type (Diesel, ICE, Electric, CNG/LNG); Application (Excavation and Mining, Lifting and Material Handling, Earth Moving, Transportation); End User (Residential, Commercial, Industrial) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 1425
  • Published Date: Dec 01, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Construction Equipment Market size is poised to reach USD 243 Billion by the end of 2036, growing at a CAGR of 4% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of construction equipment was over USD 149 Billion. Rapid urbanization in developing countries and an increased government emphasis on upgrading the existing infrastructure are expected to push up construction activity, raising demand for equipment such as excavators, wheel loaders, dump trucks, etc. According to the UN estimates about 55% of people live in urban areas.

The construction equipment is transportable, semi-permanent, and is primarily used for earthmoving, lifting containers or materials, drilling holes in the earth or rock, and concrete & paving applications. It is also used in other applications such as infrastructure, residential, commercial, and industrial buildings.

Construction Equipment Market
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Construction Equipment Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Installation of Construction Equipment in Infrastructure Sector - Increasing urbanization, population growth, technical progress, a need for modernization of infrastructure, and increased focus on developing environmentally sustainable projects are driving the development of an industrial sector. In addition, the market for construction equipment has continued to rise steadily in line with an increase in new purchases as a result of increasing construction projects and proposed new investments in the building sector. The demand for construction equipment is expected to increase over the forecast period due to these planned investments and a growing infrastructure development activity.
  • Government Orders Telematics and E-Call Services - Many technological developments are being made in the construction equipment market to produce more dependable and optimal goods. Due to the repetitious, time-sensitive, and physically exact nature of the activities, the off-highway industry is gradually adopting autonomous technology. Construction equipment now requires more automation as a result of this. Manufacturers are harnessing radio waves from other gadgets to create wireless, autonomous construction machines that can block communication, receive commands, and report situations. It promises more safety, less unscheduled maintenance, and increased production. As a result, the sector would have a profit opportunity as autonomous construction equipment gained popularity.
  • Adoption of Technologically Advanced Equipment - Technological improvement and more fuel-efficient equipment are called for by consumers around the globe to supplement their construction activities. Improved equipment will reduce labor costs, monitor the work carried out at all stages of the process, and result in lower operational costs. In view of new values that fully exploit ICT and Internet of Things (IoT) technologies, players are looking for ways to expand their business domain through the provision of products, services, or solutions. In addition, they take part in the design and deployment of sophisticated equipment that can satisfy their customers' needs as well as solve problems related to society and the environment.


  • Limited Battery Capacity in Electric Equipment - The battery is the most extensive component of an electrical construction vehicle, which can have a significant effect on machine performance and maneuverability due to its size and weight. The bigger batteries can extend the duration of operation by adding weight but also make it harder for the machine to move and maneuver. Moreover, the adoption of electric construction equipment remains a major barrier to battery costs. Lithium-ion batteries have been declining over the past several years, but they remain too costly to compete with existing diesel engines. Moreover, the time involved in charging electric construction equipment might be a major inconvenience. It can take a few hours to charge an entire battery, according to its capacity and charger power. It can make it hard to use electrical construction equipment on long or ongoing projects. Consequently, it is expected that the battery threats for electrical construction equipment will pose a challenge to this market.
  • Strict Regulations and International Trade Policies May Hinder the Growth of the Market
  • Concerns Regarding Environmental Imbalance While Using Construction Equipment May Hamper the Market Growth

Construction Equipment Market: Key Insights

Base Year


Forecast Year



~ 4%

Base Year Market Size (2023)

 ~ USD 149 Billion

Forecast Year Market Size (2036)

 ~ USD 243 Billion

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)
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Construction Equipment Segmentation

Propulsion Type (Diesel, ICE, Electric, CNG/LNG)

Construction equipment market from the diesel segment is anticipated to hold the largest share of 40% during the forecast period. Diesel construction equipment is a common type of machinery that has the highest market penetration in the world on account of its ability to produce substantial torque and constant performance, being essential for handling medium to full-duty jobs under any working condition. Moreover, the easy availability of spare parts and aftersales service at a low cost, and hassle-free maintenance allows diesel-powered vehicles to be an appropriate choice as it is already well-tested and saturated technology. Therefore, these factors are expected to drive the growth of the segment.

Application (Excavation and Mining, Lifting and Material Handling, Earth Moving, Transportation)

The earthmoving segment in the construction equipment market is expected to account for the share of 37% during the foreseen period. The growth can be attributed to the growing investments in industrial and commercial construction projects in developing countries such as China and India. As per a report, China began building commercial real estate on an annual basis in 2021, totaling over 141.05 million square meters. Earthmoving equipment facilitates tasks like excavation, grading, and material handling enabling efficient and timely completion of construction projects.

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

     Equipment Type

  • Excavator
  • Loader
  • Dozer
  • Dump Truck
  • Compactor
  • Crane

     Propulsion Type

  • Diesel
  • ICE
  • Electric


  • Excavation and Mining
  • Lifting and Material Handling
  • Earth Moving
  • Transportation

     End User

  • Residential
  • Commercial
  • Industrial

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Construction Equipment Industry - Regional Synopsis

APAC Market Forecast

Construction equipment market in Asia Pacific is anticipated to hold a share of 35% during the projected period. The emergence of internet retail outlets, the availability of machinery on a rental basis, government investment in infrastructure development, and increased capital expenditure are all likely to have contributed to economic growth in this region. At the same time, China's government has invested in local infrastructure and renewable energy as well as housing projects that are also generating an increase in demand for construction equipment. According to an estimation, China developed about 6.5 million new residential homes in 2021, a rise over prior years. Therefore, all these factors are expected to drive the growth of the market in the region rapidly.

European Market Statistics

European construction equipment market is poised to hold a share of 26% by the end of 2036. The market is expanding in the region due to the increasing demand for new housing units and improving employment levels. Also, the region is known to be the home of the best-performing machine and equipment sector, this factor is likely to drive the growth of the market in the region. The favorable market for the manufacture and supply of building equipment is created by investments in infrastructure projects. Furthermore, urbanization is taking place in Europe rapidly and there are increasing numbers of people moving to cities. A wide range of construction equipment is needed for projects in cities, such as housing or business buildings.

Research Nester
Construction Equipment Market Size
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Companies Dominating the Construction Equipment Landscape

    • Marubeni Corporation
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • ABB Ltd
    • Caterpillar Inc
    • SANY Group
    • CNH Industrial NV
    • NEC Corporation

In the News

  • Caterpillar launched next-generation Cat® 255 and 265 Compact Track Loaders, which are a complete redesign of the previous series, building on the success of the D3 series compact track loaders and enhancing the characteristics that made the earlier models so well-liked. The 255 and 265-the first next-generation models in the compact track loader line-improve engine performance, lift and tilt performance, stability, operator comfort, and technology, all of which enhance Caterpillar's loader reputation. 
  • Leading the world in the production of high-end equipment, SANY Group ("SANY") is preparing for the 2023 CONEXPO-CON/AGG, which will take place in Las Vegas from March 14-18. This premier event will bring together professionals from all major construction sectors and is the largest construction trade show in North America.

Author Credits:  Mohd Shadab, Yashika Karodiwal

  • Report ID: 1425
  • Published Date: Dec 01, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Growing installation of construction equipment in the infrastructure sector, government orders telematics and e-call services, and adoption of technologically advanced equipment are the major factors driving the growth of the construction equipment market

The market size of construction equipment is anticipated to attain a CAGR of 4% over the forecast period, i.e., 2024-2036.

The major players in the market are Marubeni Corporation ABB Ltd, Caterpillar Inc, SANY Group, CNH Industrial NV, NEC Corporation, Hitachi, Ltd, Komatsu Ltd, SORABITO Co., Ltd., Hokkai Sangyo Co., Ltd and others.

The diesel segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Construction Equipment Market Report Scope

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