Compact Construction Equipment Market Size was valued at USD 220.5 Billion in 2022. The Compact Construction Equipment industry is projected to grow from USD 229.76 Billion in 2023 to USD 319.31 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.20% during the forecast period (2023 - 2032). Increasing demand for urbanization and infrastructure development are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The quick adoption of new technologies and automation is one of the key trends in the market for small construction equipment, which is aiding the market CAGR. To provide real-time monitoring, remote diagnosis, and predictive maintenance, equipment manufacturers are integrating telematics, IoT (Internet of Things), and GPS systems. This improves operational effectiveness while lowering downtime and operating expenses. Additionally, equipment is becoming safer and more productive thanks to automation features like autonomous operation and remote control. These technologically driven trends are anticipated to continue changing the market for small construction equipment as the construction sector becomes more digitalized.
The use of electric and hybrid small construction equipment is being driven by the shift toward greener and more sustainable construction methods. Compact excavators, loaders, and other pieces of machinery are being made in electric form by manufacturers as they place more and more attention on lowering emissions and limiting environmental effects. Electric machines are appealing solutions for construction organizations looking to meet sustainability targets since they have zero emissions at the time of use, lower noise levels, and cheaper running costs. The range and power of electric compact equipment are anticipated to increase as battery technology develops, further driving this trend.
Additionally, rental services are becoming a more popular and cost-effective solution for contractors and building firms. A variety of specialist equipment can be accessed by renting without the upfront expenditures and ongoing upkeep associated with ownership. Additionally, rental firms frequently offer modern, well-maintained equipment to guarantee optimum performance and adherence to environmental rules. The rental trend provides greater adaptability and cost management, which supports its continuous expansion in the small equipment market while the construction industry undergoes swings in demand. Thus driving the Compact Construction Equipment market revenue.
The Compact Construction Equipment market segmentation, based on type, includes Mini Excavators, Compact Wheel Loaders, Compact Track Loaders, Skid Steer Loaders, and Others. The market for compact construction equipment is dominated by the "skid steer loaders" sector. This supremacy can be due to a number of important elements. First off, skid steer loaders are incredibly adaptable machines that may be used for a variety of jobs, including digging, grading, material handling, and trenching. They are useful for a variety of job sites, including construction, landscaping, agricultural, and road maintenance, because of their small size and mobility. Manufacturers have improved skid steer loaders' efficiency and functionality through the addition of new features and attachments, which has increased consumer demand and fueled category expansion.
The Compact Construction Equipment market segmentation, based on Application, includes Construction, Mining, Agriculture, and Others. Due to a number of strong factors, the "construction" segment dominates the market for small construction equipment. In the first place, the construction sector is a significant user of small equipment, relying on tools like mini excavators, compact wheel loaders, and compact track loaders for a variety of jobs like digging, lifting, and material handling. The demand for compact equipment has also increased due to rising urbanization, infrastructural development, and residential construction projects around the world. These machines' adaptability, effectiveness, and mobility make them essential on construction sites and considerably contribute to the segment's growth.
Figure 1: Compact Construction Equipment Market, by Application, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. North America has the greatest market for small construction equipment thanks to factors like active infrastructure and development projects, rising urbanization, and a thriving rental equipment industry. In addition, the region's need for small construction equipment is being boosted by technical improvements, rigorous emissions laws, and a focus on efficiency.
Further, the major countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: COMPACT CONSTRUCTION EQUIPMENT MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Compact Construction Equipment market accounts for the second-largest. Strong infrastructure and development projects, strict environmental restrictions, and the use of cutting-edge technologies are the main drivers of this region's growth. European nations place a high value on sustainability and are adopting electric and hybrid compact construction equipment at a faster rate, which is helping the market grow. Further, the German Compact Construction Equipment market held the largest market share, and the UK Compact Construction Equipment market was the fastest-growing market in the European region.
The Asia-Pacific Compact Construction Equipment Market is expected to grow at the fastest CAGR from 2023 to 2032. Growing construction activity, urbanization, and infrastructure development in developing nations like China and India are what are driving the region's growth. The area is rapidly increasing as a result of an increase in the demand for compact equipment to support these projects, as well as a burgeoning rental industry. Moreover, China’s Compact Construction Equipment market held the largest market share, and the Indian Compact Construction Equipment market was the fastest-growing market in the Asia-Pacific region.
Leading market players are present in the fiercely competitive market for small construction equipment. Market participants have a wide range of products, cutting-edge technology, and enormous networks of distribution. In order to obtain a competitive edge, regional players and more recent newcomers are undertaking market developments, including strategic alliances, collaborations, and launching new products.
Manufacturers are investing in R&D as a result of the industry's transition to electric and hybrid equipment in the Compact Construction Equipment industry. In recent years, the Compact Construction Equipment industry has rental businesses like United Rentals and Herc Rentals, which are essential in broadening client access to compact equipment as well as the market. Major players in the Compact Construction Equipment market, including KING MACHINERY, KOMATSU LTD., AB VOLVO, SANY GROUP, XCMG GROUP, CATERPILLAR, INC., DEERE & COMPANY, HYUNDAI HEAVY INDUSTRIES CO. LTD., MANITOU BF, S.A. (MUSTANG), and J C BAMFORD EXCAVATORS LTD.
AB Volvo is a Swedish manufacturing business with its headquarters in Gothenburg. It is renowned for its broad selection of goods, which includes trucks, buses, and construction machinery. Mini excavators, small track loaders, and compact wheel loaders are all part of Volvo's line of compact construction equipment. These machines are excellent for a variety of applications in the construction and landscaping industries because of their design for adaptability, efficiency, and mobility. Volvo is dedicated to sustainability and is working to increase the fuel efficiency of its machinery and cut emissions.
SANY GROUP is a leading Chinese multinational heavy equipment manufacturing corporation headquartered in Changsha, China. Mini excavators, compact excavators, and skid steer loaders are all included in SANY's product line of compact construction equipment. These tools are suitable for a range of excavation, construction, and landscaping operations because of their durability, effectiveness, and variety in design. The inventive engineering and dedication to quality that SANY is recognized for. The business is well-known for its solutions for construction machines and equipment and has a presence, both of which contribute to its dominant position in the sector.
KING MACHINERY
KOMATSU LTD.
SANY GROUP
XCMG GROUP
CATERPILLAR, INC.
DEERE & COMPANY
HYUNDAI HEAVY INDUSTRIES CO. LTD.
MANITOU BF
S.A. (MUSTANG)
Dec 2023 Volvo Construction Equipment (Volvo CE) has announced the formation of a new Compact Business Unit in order to take full advantage of the potential in the expanding compact equipment category.
July 2023: Introducing a new 3-ton class electric mini excavator with a lithium-ion battery to the European market is Komatsu Ltd. As it works to achieve carbon neutrality by 2050, Komatsu sees the market debut of this new model as an opportunity to create an immediate market for electric construction machinery.
Mar 2021: Kobelco introduces the next-generation KS45SRX-7 compact excavator, a new model in the 5-tonne category. The Kobelco KS45SRX-7 excavator model offers the same quality, feel, and comfort as the company's larger excavator models because it was built with all the features of Kobelco's Performance X Design concept.
Mini Excavators
Compact Wheel Loaders
Compact Track Loaders
Skid Steer Loaders
Others
Construction
Mining
Agriculture
Others
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 220.5 Billion |
| Market Size 2023 | USD 229.76 Billion |
| Market Size 2032 | USD 319.31 Billion |
| Compound Annual Growth Rate (CAGR) | 4.20% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | KING MACHINERY, KOMATSU LTD., AB VOLVO, SANY GROUP, XCMG GROUP, CATERPILLAR, INC., DEERE & COMPANY, HYUNDAI HEAVY INDUSTRIES CO. LTD., MANITOU BF, S.A. (MUSTANG), and J C BAMFORD EXCAVATORS LTD |
| Key Market Opportunities | Rising Demand for Electric and Hybrid Equipment Enhanced Telematics and IoT Integration |
| Key Market Dynamics | Urbanization and Infrastructure Development Technological Advancements |
Compact Construction Equipment Market Highlights:
Frequently Asked Questions (FAQ) :
The Compact Construction Equipment market size was valued at USD 220.5 Billion in 2022.
The market is projected to grow at a CAGR of 4.20% during the forecast period, 2023-2032.
North America had the largest share of the market
The key players in the market are KING MACHINERY, KOMATSU LTD., AB VOLVO, SANY GROUP, XCMG GROUP, CATERPILLAR, INC., DEERE & COMPANY, HYUNDAI HEAVY INDUSTRIES CO. LTD., MANITOU BF, S.A. (MUSTANG), AND J C BAMFORD EXCAVATORS LTD.
The Skid Steer Loaders category dominated the market in 2022.
The Construction had the largest share in the market.
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