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August 2025
The construction equipment market is set to grow from USD 233.17 billion in 2025 to USD 483.88 billion by 2034, with an expected CAGR of 8.45% over the forecast period from 2025 to 2034. The construction equipment market is rapidly growing due to rapid development in road infrastructure.
Additionally, governments are investing in smart cities, housing, and renewable energy infrastructure, making construction equipment more desirable to contractors for operating in construction projects. The technological advancements in construction equipment coupled with partnerships and strategic investments by construction companies is also expected to drive the market growth. The growing popularity of green construction in developed nations is expected to create ample growth opportunities for the market players in the future.
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The construction equipment market refers to the industry encompassing the design, manufacturing, distribution, and usage of machinery and equipment used for construction-related activities. Construction equipment is commonly used for roads, railways, bridges, airports, other housing development projects, and industrial developments. The market comprises equipment such as earthmoving equipment, material handling equipment, road building & paving equipment, concrete equipment, demolition & recycling equipment, tunnelling & mining equipment, and some others. The construction equipment are powered by different propulsion technologies including diesel, electric, and hybrid power sources. The end-users of this sector include construction companies, mining companies, rental companies, and government & municipalities. This market is expected to rise drastically with the growth of the overall automotive sector around the world.
The market trends in the construction equipment market comprise of strategic partnerships and Investments in innovative products.
The earthmoving equipment segment dominated the market with around 45% of the market share and is expected to be the fastest-growing segment in the forecasted period, as it relates to projects that involve roads, bridges, and urban development. Earthmoving equipment is advantageous in heavy construction related to excavation, grading, and the transportation of dirt efficiently. Increasing smart city projects, mining, and large-scale infrastructure projects coupled with advancements in machinery shall continue to create growth opportunities for the earthmoving equipment industry.
The diesel segment captured around 88% of the market share because it offers strong performance, reliability, and durability. Diesel is used in heavy construction sites where there is a need for consistent high power for long operational hours. Diesel engines are also preferred as a power source for construction equipment deployed in remote locations that have limited power or charging capabilities.
The electric segment is anticipated to be the fastest-growing segment in the market as it supports zero emissions and can lower noise and operational costs. As governments have taken steps to green construction through stricter emissions regulations, electric machines have become a major source of operation for urban construction projects. The enhancements in battery life and charging infrastructure have expanded possibilities and accessibility of electric power supply, which further increases the adoption of electric construction equipment in the market.
The Internal Combustion Engines (ICEs) segment captured almost 90% of the market. ICEs are proven to be reliable, powerful, and durable. It continues to be a viable option for contractors on larger projects where cost is significantly important, along with reliability and power. Additionally, the rates at which the construction equipment with ICE are comparatively cheaper, and thus it is a viable option for the construction equipment market in both the developing and developed regions.
The battery-powered electric segment is projected to experience the highest growth rate in the market between 2025 and 2034. This is due to the increase in demand for clean and sustainable construction. Battery-powered electric equipment decreases fuel costs, reduces maintenance requirements, and is ideal for urban centres where infrastructure construction is restricted by municipal by-law emissions requirements. Improvements in battery-powered electric equipment are producing longer run-times, allowing for more productive demolition and construction practices. Moreover, urban infrastructure and smart cities create positive opportunities for the battery-powered electric equipment segment.
The infrastructure development segment dominated with a 45% market share and is expected to grow at the fastest rate in the construction equipment market. This is due to rapid investment in infrastructure development by governments and private companies for building roads, bridges, highways, railways, and airports. Additionally, the rapid adoption of hybrid equipment in the construction sector is driving the market expansion.
The construction companies segment led the construction equipment market with a market share of 50%. Construction companies have the highest proportion of the market, due to long-term use on project sites. Ownership of machinery allows construction companies to relieve the burden of rental costs and gives them superior control over its operation. Large construction contractors invest in such equipment to meet deadlines and lessening additional costs.
The rental companies segment is expected to grow with the highest CAGR in the market during the studied years. Rental companies are the fastest-growing segment in the market because there are many small and medium contractors who prefer a short rental payment over purchasing expensive construction equipment. Renting eliminates the financial burden that in turn allows contractors to work with the newest machinery equipped with the latest technology. Additionally, rental companies minimize costs with the added upside of flexibility, especially in short-term projects.
The manual equipment segment captured around 75% of the market share. It is because the majority of construction projects still utilize traditional machines operated by skilled workers. Manual equipment is also cheaper to buy and maintain, compared to fully automated models. Many regions still do not have the necessary infrastructure for advanced automation systems; thus manual equipment dominates as the most favourable option. Additionally, manual equipment is readily available and familiar among the general construction workers, which supports the segment in being dominant in the construction equipment market.
The fully automated/autonomous equipment segment is projected to expand rapidly in the market in the coming years. This is because, in addition to improved safety, decreased labor expenses, improved precision, and speedy construction, autonomous machines can operate autonomously with very limited human input. This reduces potential human errors and speeds up the construction process. A variety of factors are driving the demand for autonomous construction equipment, including a lack of labor availability, rising wages, and the integration of digital solutions in the construction industry.
Asia-Pacific captured around 45% of the construction equipment market share. Rapid urbanization, major construction equipment investments, and government support are three key factors leading the region to be the largest construction equipment market. Countries such as China, India, Japan, and South Korea are investing heavily in smart cities, high-speed rail, airports, and renewable energy infrastructure. Additionally, government support in the mining sector and industrial expansion is also creating tremendous demand for construction equipment. The Asia-Pacific construction equipment market is also a significant opportunity for electric and automated equipment. These possibilities are supported by government policy regulations that are forcing the market towards green construction.
China led the construction equipment market in the Asia-Pacific region. This is due to the massive publicly financed infrastructure projects, such as Chinas Belt and Road project. Infrastructure projects in China are focused on extensive railways and metro systems, extraordinary highways, and increasingly large residential properties. The growth of urbanization programs and mining sector projects has created huge demand for construction equipment, while green policies suggest that there will be ample opportunity for electric and automated equipment as the scale and complexity of the construction and mining sectors increase.
The Middle East & Africa are expected to grow at the fastest rate in the forecasted period. The Middle East & Africa are the key focus regions with the highest growth rates for the construction equipment market due to the mega government projects and infrastructure spending in these regions. Countries in these regions have increased spending for the purposes of funding smart cities, multi-modal transport networks, and renewable energy infrastructures. These spending opportunities will continue to fuel new opportunities for automated and electric equipment, which are also opening new opportunities for rental companies for smaller contractors.
Saudi Arabia led the construction equipment market in the Middle East & Africa and is trying to build an evolving culture and climate under the program of Saudi Arabia Vision 2030. The government is continually investing billions of dollars into mega projects such as NEOM city, expansions to current airport facilities, housing, and renewable energy plants. These mega projects require advanced construction equipment, and with the introduction of automated machines, the overall efficiency can be increased while reducing operational costs for the companies.
Various types of raw materials are used in the production of construction equipment including steel, aluminium, rubber, glass, advanced plastics and some others.
Specialized companies manufacture components from the raw materials such as engines, hydraulic systems, transmissions, control systems, electrical units and others.
Construction equipment are assembled in large assembly plants with components such as engine, hydraulic lines, tracks or wheels and integrated with digital systems and automation.
The global construction equipment market is highly competitive. Some of the prominent players in the market comprise of Caterpillar Inc., Komatsu Ltd., Hitachi Construction Machinery Co., Ltd., Volvo Construction Equipment, Liebherr Group, Deere & Company (John Deere), Doosan Infracore, Hyundai Construction Equipment, CNH Industrial (CASE Construction Equipment), JCB Ltd., Terex Corporation, Sany Group, XCMG Group, Zoomlion Heavy Industry Science & Technology Co., Ltd., Kobelco Construction Machinery Co., Ltd., Wirtgen Group, Astec Industries, Inc., Bell Equipment, Takeuchi Manufacturing Co., Ltd., and Yanmar Holdings Co., Ltd. These companies are focusing on innovation, sustainability, and expansion to increase their customer reach and gain market dominance. Several companies are transitioning towards the production of electric and hybrid equipment to meet the needs of green regulations.
By Equipment Type
By Power Source
By Propulsion
By Application
By End-User
By Automation Level
By Region
August 2025
August 2025
April 2025
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