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Increasing Urbanization and Infrastructure Development to Drive the Global Construction Equipment Market at a CAGR of 6.76% during the Forecast Period 2025 to 2035
Market Research Future (MRFR) has published a cooked research report on the “Global Construction Equipment Market” that contains information from 2025 to 2035. The Construction Equipment market is estimated to register a CAGR of 6.76% during the forecast period of 2025 to 2035.
MRFR recognizes the following companies as the key players in the Global Construction Equipment Market — Caterpillar (US), Komatsu (Japan), Volvo Construction Equipment (Sweden), Hitachi Construction Machinery (Japan), JCB (UK), Doosan Infracore (South Korea), CNH Industrial (UK), and Liebherr (Germany).
Market Highlights
The Global Construction Equipment Market is accounted for to register a CAGR of 6.76% during the forecast period and is estimated to reach USD 359.62 Billion by 2035.
The main things that are driving market growth are more people moving to cities, better infrastructure, and new technologies. The demand for construction machinery like excavators, loaders, and cranes is rising because more construction is happening, and the government is putting a lot of money into infrastructure.
Innovations like automation, telematics, and artificial intelligence are changing the way businesses work by making them more efficient and safer. These improvements make it possible to monitor things in real time and do predictive maintenance, which cuts down on downtime and improves performance.
Sustainability is now a major concern for equipment makers, which is why electric and hybrid construction machines are becoming more popular. This trend fits with the world's efforts to cut down on carbon emissions and follow environmental rules. Companies like Komatsu and Volvo Construction Equipment are adding electric models to their lineups, and Caterpillar is putting money into AI-driven predictive maintenance to make machines last longer and work better.
In August 2025, Caterpillar worked with a top tech company to make AI-based predictive maintenance solutions that made machines work better and longer. In September 2025, Komatsu released a new line of electric excavators that were made to help the company reach its sustainability goals. In July 2025, Volvo Construction Equipment opened a new factory in North America that focuses on making electric and hybrid machinery. Over the next ten years, the construction equipment industry is likely to change because of new technologies, efforts to protect the environment, and the growth of cities' infrastructure.
Segment Analysis
The Global Construction Equipment Market has been segmented based on Type, Fuel Type, Application, and Region.
The Global Construction Equipment Market segmentation, based on Type, has been segmented into Excavator, Crawler Excavators, Mini Excavators, Loaders, Wheeled Loaders, Dozers, Skid Steer Loader/Compact Track Loader, Tractor Loader Backhoe, Graders, and Compaction Equipment. Among these, the Excavator segment is projected to dominate the Global Construction Equipment Market revenue through the projected period.
The Fuel Type segment is further bifurcated into Diesel, Gasoline, and Others. Among these, the Diesel segment is projected to dominate the market revenue through the projected period.
The Application segment is further bifurcated into Construction, Infrastructure, Oil & Gas, Mining, Irrigation/Channel Clearing, Industrial Application, Quarrying, Military, Agriculture, and Rental. Among these, the Construction segment is projected to dominate the market revenue through the projected period.
Region Analysis
By Region, the Construction Equipment market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. The North American market accounted for the largest share (approximately 35%) in 2024 and continues to lead due to strong infrastructure investments, urban development, and technological advancements in machinery. The U.S. and Canada are the major contributors, supported by robust government infrastructure programs. Market access is better when there are established manufacturers and a strong distribution network. As more and more construction projects are started, the need for better tools and machines keeps going up. This keeps North America at the top of the construction equipment market.
Key Findings of the Study
- The Global Construction Equipment Market is expected to reach USD 359.62 Billion by 2035, at a CAGR of 6.76% during the forecast period.
- North America accounted for the largest market share, while the Asia-Pacific is the fastest-growing region.
- Based on Type, the Excavator segment was attributed to holding the largest market share in 2024.
- Based on Fuel Type, Diesel was the dominant segment, while Gasoline is the fastest-growing.
- Based on the Application, the Construction segment was attributed to holding the largest share, with Mining emerging rapidly.
- Key players include Caterpillar (US), Komatsu (JP), Volvo Construction Equipment (SE), Hitachi Construction Machinery (JP), JCB (GB), Doosan Infracore (KR), CNH Industrial (GB), and Liebherr (DE).