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Construction Equipment Market Research Report—Global Forecast till 2028

Construction Equipment Market Information by Type (Excavator, Crawler Excavators, Mini Excavators, Loaders, Wheeled Loaders, Dozers, Skid Steer Loader/Compact Track Loader, Tractor Loader Backhoe, Graders, And Compaction Equipment), by Fuel Type (Diesel, and Gasoline) by Application (Construction, Infrastructure, Oil & Gas, Mining, Irrigation/Channel Clearing, Industrial Application, Quarrying, Military, Agriculture, and Rental), and Region - Forecast to 2028

ID: MRFR/CO/1431-CR | April 2022 | Region: Global | 349 Pages         

Construction Equipment Market

The global construction equipment market is expected to reach USD 225 Billion by 2028 and register a CAGR of 7% during the forecast period of 2021 to 2028.

Segmentation

By Type Excavator Crawler Excavators Mini Excavators Loaders Wheeled Loaders Dozers Skid Steer Loader Compact Track Loader Tractor Loader Backhoe Graders
By Fuel Type Diesel Gasolin
By Application Construction Infrastructure Oil & Gas Mining Irrigation Channel Clearing Industrial Application Quarrying Military Agriculture Rental

Key Players

  • AB Volvo
  • Caterpillar Inc.
  • Komatsu Ltd
  • CNH Industrial
  • Hitachi Construction Machinery Co.Ltd
  • J C. Bamford Crawled Excavators Limited
  • Liebherr Group
  • XCMG
  • Terex Corporation
  • SANY Heavy Industry CO. LTD
  • Hyundai Heavy Industries Ltd
  • Sandvik Group
  • Riwal
  • Cramo Plc
  • Atlas Copco AB

Drivers

  • Government support for construction
  • Growth of the mining industry
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Construction Equipment Market Overview


The global construction equipment market is expected to reach USD 225 Billion by 2028 and register a CAGR of 7% during the forecast period of 2021 to 2028.

Construction Equipment Market is defined by the equipment market of heavy machinery, which deals with the infrastructure, buildings, heavy tools like excavators, Loaders, Tractor Graders, Infrastructure, Mining, Irrigation, Agriculture etc. through diesel and gasoline to run. Technological developments, adaptations, and outcomes always encourage the growth of the construction equipment market. Decent growth is experienced because of heavy investments done in the infrastructure market to acquire the market by providing the required affordable building equipment at lower-cost capital, technologically easy, up-gradation of the latest heavy machinery, lower maintenance, and lower repair costs with a reduced amount of transportation costs.


Here are some market-based heavy construction equipment such as Excavators, Loaders, Dozers, graders etc. 


Excavators exhibit superior digging power and mobility, allowing heavy equipment to perform tasks like digging trenches, breaking holes, and excavating mines. 


Loaders are heavy equipment machines often used in construction like gravel, rock, sand etc. 


Dozers are powerful machines used in road building, farming, and construction. 


A diesel engine tastes up the air, compresses it and injects fuel into compressed air. However, having a flashpoint above 140 degrees Fahrenheit is not as easily ignitable but is considered a fire hazard. 


A gasoline engine intakes a mixture of gas and air, condenses it and explodes the mixture with a spark. Natural gas has been used in trucks for a long time, and the introduction of new gasoline alternatives is meeting acceptance in construction applications.


A quarry is typically defined as a surface excavation to produce rock as the main constituent.   


There are several types of equipment in the agricultural sector, from hand tools and power tools to tractors and the countless farm implements they tow or operate.


November 2022


Husqvarna Construction, part of Husqvarna Group, has further strengthened its offering for contractors looking for a really durable drill motor with the launch of two new electric drill motors - DM 400 and DM 430 – single-phase 3.2 kW that doesn’t compromise on performance. These are the first Husqvarna drill motors to be equipped with Embedded Connectivity.


The durable all-aluminum casing has a solid feel and a compact design to make it usable even when drilling in narrow corners. The carrying handle also works as an impact guard and is easy to remove when needed, giving extra clearance in tight spaces. Husqvarna DM 400 / DM 430 are equipped with Embedded Connectivity – an enhanced version of Husqvarna Fleet Services.


Market Overview:


The growth for construction equipment market is driven by technological developments and their adaptations. Furthermore, the infrastructural growth along with rapid urbanization is augmenting the market for the same. The largest end use market for this product is infrastructure especially in emerging markets like India, China, and Brazil. Decent growth is experienced by construction equipment market because of heavy investments done in the infrastructure market with an objective of accommodating smart commercial and residential buildings.


Impact of COVID-19


COVID-19 has had a substantial impact on the construction industry across North America, but the legal repercussions differ from region to region and contract to contract. The construction industry has been severely hit by the outbreak owing to the halting of construction projects in North America. Countries, including the US and Canada, have temporarily stopped the production and construction projects. The overall construction industry is facing several challenges due to the pandemic, and most of the housing projects are expected to remain under construction due to disruptions in supply chains, cash flow constraints, and production shutdown.


November 2022


Kioti will be formally launching itself into the compact construction equipment market with the release of its first skid steer and compact track loaders in the first half of 2023. The Daedong-owned brand, which has been a fixture in the hobby farm market with its compact utility tractors, introduced its dealers to the concept of entering the compact construction equipment market in late 2020.


Design changes, supply chain challenges and the pandemic set back the official debut of the machines, originally slated for early 2022. However, the company continued to give efforts in order to remain afloat in the intensely competitive market of construction equipment.


A key component for Kioti is that the new machines are designed, engineered and manufactured by the company.


Market Dynamics


Drivers


  • Government support for construction


Across the globe, countries are bringing various reforms and regulations to boost their infrastructure and real estate. Such reforms are anticipated to augment the growth of the construction equipment market due to the growth of the construction sector in the region. Authorities in the regions such as North America and Europe have observed increased spending on private construction activities, especially in the US and the UK. According to the Federal Reserve Bank of St. Louis, the total construction spending in the US increased by approximately 7.8% in January 2020 compared to that of January 2019. Furthermore, the emergence of green buildings to achieve ecological and aesthetic synchronization with the environment, further guided by various authorities, such as LEED in the US, would increase the demand for such equipment in the construction sector.



  • Growth of the mining industry


Restraints


  • Fluctuating raw material prices


There are several costs associated with the manufacturing of construction equipment that involves large investments by OEMs, increasing the price for the operators. The raw material is one of the chief aspects of the heavy construction equipment market, which accounts for a greater share of the total cost of production. The prices of materials, such as steel, plastic, copper, and iron, required for the manufacturing of such equipment fluctuate, raising the price of final products. Steel is one of the major raw materials used for the manufacture and assembly of equipment. The market growth is hindered by the fluctuating prices of raw materials, such as iron and steel.



  • Shortage of trained and experienced dermatologist/ plastic surgeo


Opportunity


  • Growing demand for rental and used construction equipment


Rental and used equipment are becoming an attractive option due to several benefits, such as the decreased cost of renting equipment, lower capital, easy technology up-gradation, project-specific rentals facilities, prevent depreciation woes, limited footprint occupied, lower maintenance and repair costs, and reduced transportation costs. There are several players offering construction equipment rental services. Caterpillar, United Rentals, Inc., and BigRentz, Inc. are some of the companies offering rental services for construction equipment, including cranes, lifts, material handling equipment, and backhoes. Such benefits of renting the equipment or purchasing used equipment are anticipated to boost the growth of the global construction equipment market during the forecast period.


November 2022


Two Southwestern construction equipment heavyweights will join forces next month when Mesa, Arizona-based Empire Southwest LLC acquires longtime Southern Nevada-based Cashman Equipment Co. for an undisclosed sum.


Mesa believes that the combination of the two companies will provide new synergies, great customer satisfaction, and very importantly, even more options and enhanced capabilities.


Segment Overview:


By Type


  • Excavator


Excavators are earthmoving vehicles that comprise a bucket, arm, rotating cab, and movable tracks. Excavators provide superior digging power and mobility, allowing heavy equipment to perform functions, including digging trenches, breaking holes to lift away waste, and excavating mines. Excavators are applied to various contractor and industrial needs, including mining, road construction, building construction, and demolitions.



  • Crawled Excavators


A crawler excavator is a construction machine used to excavate rock and soil and then load the material into trucks or move it to other locations. The machine's arm is usually capable of fitting various attachments to the end to accomplish specific jobs such as digging, breaking, or scooping.



  • Mini Excavators


Mini excavators, also known as compact excavators, have a narrower undercarriage, which can frequently be compacted when the operator needs to move the excavator through tight spaces, such as doorways or gates. The excavators have a reduced tail-swing or even a zero tail-swing, making it easier to make tight turns and maneuver in small, cramped, or narrow job sites, such as parking lots.



  • Loaders


Loaders are heavy equipment machine often used in construction, primarily used to load material (such as demolition debris, snow, feed, gravel, logs, dirt, raw minerals, recycled material, rock, sand, and woodchips) into or onto another type of machinery (such as a dump truck, conveyor belt, feed-hopper, railcar, laying pipe, or into an open trench excavation).



  • Wheeled Loaders


A wheel loader consists of an articulated mainframe that supports a front-end attachment and a cab and engine compartment with transmission at the rear end. Wheel loaders, by design, are extremely versatile in scrap applications. They can be used as carriers for implements such as shovel buckets, forklift tines, or grapples.



  • Dozers


Dozers are powerful machines used for pushing earth or rocks in road building, farming, construction, and wrecking. It comprises a heavy, broad steel blade or plate mounted on the front of a tractor. The blade may be lifted and forced down by hydraulic rams. For digging, the blade is held below surface level.



  • Skid Steer Loader/Compact Track Loader


Compact track loaders essentially skid steer loaders with high-flotation rubber tracks, allowing these earthmoving machines to work in poor underfoot conditions and on sensitive surfaces. Like the skid steer, the mini track loader has auxiliary hydraulics for powering attachments, and its flat-footed nature suits it well for grading, sometimes with a laser-based grade-control system.



  • Tractor Loader Backhoe


A backhoe is an excavation machine that utilizes a digging bucket on the end of a two-part articulated arm. These loaders are typically loader or tractor units with a loader-style bucket on the front and a backhoe add-on (a digging bucket at the end of a two-part articulated arm) attached to the rear.



  • Graders


A grader is a heavy-duty machine designed with a long blade used in different industry sectors. Graders are commonly used in civil construction, roadworks, and mining sites to create smooth and flat surfaces. Certain graders can operate multiple attachments and are designed for specialized tasks such as underground mining.



  • Compaction Equipment


Compaction is one kind of densification that is realized by the rearrangement of soil particles without a flow of water. It is a simple way of increasing the stability and supporting capacity of the soil. There are different types of soil compaction equipment depending upon the type of soil and its moisture conditions.


By Fuel Type


  • Diesel


Diesel fuel have a flashpoint above 140 degrees Fahrenheit, so it is not as easily ignitable but are considered as a fire hazard. A diesel engine takes in air, compresses it, and injects fuel into the compressed air. The heat of the compressed air lights the fuel spontaneously.



  • Gasoline


A gasoline engine intake a mixture of gas and air, compresses it, and ignites the mixture with a spark. It compresses at a ratio of 8:1 to 12:1. Gasoline has a flashpoint of -45 degrees Fahrenheit. The flashpoint is the lowest temperature in which a flammable liquid gives off enough vapors to form an ignitable mixture with air.



  • Others


Alternative fuels, including natural gas, propane, biodiesel, and hydrogen, are some of the fuels considered by manufacturers for construction applications. Propane has been used to power pavers for a long time since it is more effective at heating asphalt. Natural gas is used in trucks for a long time, and the introduction of new gasoline alternatives is meeting acceptance in construction applications.


By Application


  • Construction


Heavy construction equipment is used for several purposes in large projects. Selecting different types of heavy equipment depends on the size of the work and the economy of the project, making the construction process easier and faster.


  • Infrastructure


The use of heavy machinery becomes an important step in the implementation of infrastructure applications. Heavy crawler excavators and versatile wheel loaders, state-of-the-art graders and dozers, and high-performance, maneuverable compact equipment are some of the equipment majorly used in infrastructure construction.


  • Oil & Gas


Heavy construction equipment used in the oil & gas industry and refinery and petrochemical plants must operate under the most severe pressure and temperature conditions under corrosion and hydrogen attacks. Due to the continuous improvement required for higher productivity of refineries and petrochemical plants, the thickness, diameter and weight of reactors and vessels have increased drastically and reached the limits of the current manufacturing technology.


  • Mining


Various types of construction equipment are used in the mining sector, these equipment perform various functions such as preparation of the ground, excavation, haulage of material, dumping/laying in a specified manner, earthmoving, material handling, and road construction.


  • Irrigation/Channel Clearing


Irrigation projects such as barrages, canals, aqueducts, lift irrigation, and flood banks demand speed & efficiency. Hydraulic excavators are extensively deployed for the excavation of earth in irrigation projects. These excavators have a faster cycle time, which coupled with low fuel consumption, make them versatile and an attractive proposition in job sites, where production is of utmost importance.


  • Industrial Application


The types of construction equipment and their uses often depend on an industrial construction project’s size and purpose. However, industrial construction methods for forestry, highway construction, routine road maintenance, bridge construction and erecting structures employ many of the same tools and pieces of heavy equipment and machinery.


  • Quarrying


A quarry is typically defined as a surface excavation to produce rock as the principal product. As such, it differs from an open-cut, open cast, surface, or open-pit mine in that the rock itself is a valuable commodity rather than a specific mineral within the rock mass.


  • Military


Army or ground-based forces are frequently called on to conduct construction tasks as part of military operations, tasks that could be partially or fully aided by the employment of Robotic and Autonomous Systems (RAS) technologies. Robotic and autonomous systems tailored for the military call upon the ability to integrate actuators, end-effector manipulation, sensors, vision imaging, computer control and human interface for operations in unstructured, difficult, and hazardous conditions.


  • Agriculture


Agricultural machinery relates to the mechanical structures and devices used in farming or other agriculture. There are several types of equipment, from hand tools and power tools to tractors and the countless kinds of farm implements they tow or operate.


  • Rental


Construction companies that do not have their construction equipment usually rent the tool for a long period. Heavy equipment rental products can range from back-end loaders to full-size tractors. The rental transaction is contractual; the timeline is prolonged within months to years.

Regional Analysis

The global construction equipment market has been segmented, on the basis of region, into China, India, Russia & Belarus, Turkey & Caucasus, Southest Asia, Middle East, and Africa.


  • China


China is the largest contributor to the growth of the construction equipment market. According to the National Development and Reform Commission of the People’s Republic of China (NDRC), 90% of key projects have resumed construction in China during the last week of March. Companies are focused on delivering mobile elevating work platforms across the country while taking full anti-epidemic measures.


  • Middle East


The Middle East is one of the fastest-growing regional market in the global construction equipment market. Various construction megaprojects such as the megacity, NEOM, in Saudi Arabia and large football stadiums in Qatar for the FIFA World Cup in 2022 are expected to drive the construction industry in the region. Similarly, the construction of skyscrapers and artificial islands in Dubai is expected to drive the construction equipment market in the Middle East during the forecast period. Additionally, the region is emerging as a popular tourism hub. The real estate segment in the region is expanding at a rapid pace and is witnessing a significant increase in the construction of non-residential buildings and infrastructure projects, especially in countries such as Saudi Arabia and the UAE.

November 2022


DOOSAN have added the new DX245DM-7 to their high-reach demolition excavator range, replacing the DX235DM-5 model which was launched in early 2020. As with all Doosan’s demolition machines – including the heavier 47-tonne DX380DM-7 and 61-tonne DX530DM-7 models – the DX245DM-7 features a tiltable cab that provides a 30-degree tilting angle and a high level of visibility.


The new 31-tonne demolition excavator also shares the same modular boom design and hydraulic lock mechanism that enables operators to use the machine for not only high-reach demolition work, but also other on-site applications.

Competitive Landscape


  • The global construction equipment market consists of various global and regional service providers that are continuously evolving to enhance their market position. The growth of the construction equipment market is driven by technological developments and their adaptations. Furthermore, the infrastructural growth along with rapid urbanization is augmenting the market for the same. However, growing environmental concerns of authorities can hamper the growth of the market. The construction equipment manufacturers compete based on cost, efficiency, and reliability of products to sustain in the market. It is important for construction equipment manufacturers to provide products or solutions according to the industry's needs and customers’ needs to maintain their market position and gain a competitive advantage.


Key Players

The prominent players in the global construction equipment market are


  • AB Volvo,

  • Caterpillar Inc.,

  • Komatsu Ltd,

  • CNH Industrial,

  • Hitachi Construction Machinery Co. Ltd,

  • J C. Bamford Crawled Excavators Limited,

  • Liebherr Group,

  • XCMG,

  • Terex Corporation,

  • SANY Heavy Industry CO. LTD,

  • Hyundai Heavy Industries Ltd,

  • Sandvik Group,

  • Riwal, Cramo Plc

  • Atlas Copco AB


Recent Developments


March 2021- The Caterpillar company announced updates to the versatile and productive cost Analysis Tool, including improvements based on customer feedback to ease operation.


November 2020- Volvo Construction Equipment unveiled the first mid-size electric excavator concept, which has occupied the market to a great extent providing the required machinery in an updated version for the proper running of the construction equipment market.



Report Overview

The study covers the existing short-term and long-term market effects, helping decision-makers draft short-term and long-term plans for businesses by region. The report covers major regions of China, India, Russia & Belarus, Turkey & Caucasus, South East Asia, Middle East, and Africa. The report analyzes market drivers, restraints, opportunities, challenges, Porter's Five Forces, value chain, and impact of COVID-19 on the market.


Market Segmentation

Global Construction Equipment Market, by Type


  • Excavator

  • Crawler Excavators

  • Mini Excavators

  • Loaders

  • Wheeled Loaders

  • Dozers

  • Skid Steer Loader/Compact Track Loader

  • Tractor Loader Backhoe

  • Graders

  • Compaction Equipment


Global Construction Equipment Market, by Fuel Type


  • Diesel

  • Gasoline

  • Others


Global Construction Equipment Market, by Application


  • Construction

  • Infrastructure

  • Oil & Gas

  • Mining

  • Irrigation/Channel Clearing

  • Industrial Application

  • Quarrying

  • Military

  • Agriculture

  • Rental


Global Construction Equipment Market, by Region


  • China

  • India

  • Russia & Belarus

  • Turkey & Caucasus

  • Southeast Asia

    • Singapore

    • Indonesia

    • Malaysia

    • Thailand

    • Vietnam

    • Rest of Southeast Asia



  • Middle East

    • UAE

    • Saudi Arabia

    • Kuwait

    • Egypt

    • Rest of Middle East



  • Africa

    • South Africa

    • Northern Africa

    • Rest of Africa





Report Scope:

Report Attribute/Metric Details
  Market Size   2028: USD 225 Billion
  CAGR   7% (2021-2028)
  Base Year   2020
  Forecast Period   2021-2028
  Historical Data   2018 & 2019
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Type, Fuel Type, Application, and Region
  Geographies Covered   China, India, Russia & Belarus, Turkey & Caucasu, South East Asia, Middle East, and Africa
  Key Vendors   AB Volvo, Caterpillar Inc., Komatsu Ltd, CNH Industrial, Hitachi Construction Machinery Co. Ltd, J C. Bamford Crawled Excavators Limited, Liebherr Group, XCMG, Terex Corporation, SANY Heavy Industry CO. LTD, Hyundai Heavy Industries Ltd, Sandvik Group, Riwal, Cramo Plc, and Atlas Copco AB.
  Key Market Opportunities   Growing demand for rental and used construction equipment
  Key Market Drivers   Government support for construction • Growth of the mining industry


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Frequently Asked Questions (FAQ) :

The global construction equipment market is expected to reach USD 225 Billion by 2028 and register a CAGR of 7% during the forecast period of 2021 to 2028.

AB Volvo, Caterpillar Inc., Komatsu Ltd, CNH Industrial, Hitachi Construction Machinery Co. Ltd, J C. Bamford Crawled Excavators Limited, Liebherr Group, XCMG, Terex Corporation, SANY Heavy Industry CO. LTD, Hyundai Heavy Industries Ltd, Sandvik Group, Riwal, Cramo Plc, and Atlas Copco AB.

Excavators, Loaders, Dozers, graders etc