The latest publication from Meticulous Research® forecasts that the construction equipment market will surpass $236.9 billion by 2031, growing at a CAGR of 5.3% from 2024 to 2031. This market growth is fueled by significant government investments in construction and infrastructure development and the increasing need to enhance efficiency, productivity, and safety in construction projects. The automation of construction equipment is also expected to drive market growth. However, stringent international trade policies and high equipment costs may restrain this growth. Additionally, the lack of skilled equipment operators remains a significant challenge.

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Key trends in the construction equipment market include the growing demand for compact construction equipment and the increasing adoption of electric construction equipment. The market is segmented by type, propulsion type, and end user, and includes an evaluation of industry competitors and an analysis of regional and country-level markets. By type, the market is segmented into material handling equipment, concrete and road construction equipment, earth-moving equipment, and other construction equipment. In 2024, the material handling equipment segment is expected to hold the largest share of 40.0%. This dominance is due to the rapid pace of industrialization, modernization of industrial infrastructures to increase production capacity, and the rising demand for material handling equipment to ensure smooth material movement, reduce manual labor, and boost productivity.

The earth-moving equipment segment is expected to experience the highest CAGR during the forecast period. This growth is driven by increasing investments in residential, commercial, and industrial construction projects, and the rising demand for earth-moving equipment for various tasks such as laying foundations, grading soil, removing dirt and rocks, digging trenches, and conducting demolition works. Partnerships among market players to expand their product offerings further bolster this segment's growth. For instance, in January 2022, CanLift Equipment Ltd. (Canada) expanded its construction machinery product line through a strategic partnership with Xuzhou Construction Machinery Group Co., Ltd (China), enhancing sales of earth-moving equipment in Ontario.

Based on propulsion type, the construction equipment market is segmented into ICE, electric, and CNG/LNG. In 2024, the ICE segment is expected to account for the largest share of 53.0% of the market. This segment’s large share is attributed to the ease of use and high power-to-weight ratio of ICE construction equipment, their lower cost compared to electric alternatives, and increasing initiatives by market players to expand their product portfolios. For example, in January 2023, Crown Equipment Corporation (U.S.) expanded its lift truck portfolio by launching IC and electric counterbalance forklifts capable of carrying up to 5.5 tons.

However, the electric segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the benefits of electric construction equipment, such as lower operating expenses and minimal maintenance requirements. Supportive government initiatives promoting the adoption of electric construction equipment and the rising focus of market players on product launches and enhancements also contribute to this segment’s growth. For instance, in February 2023, Action Construction Equipment Ltd. (India) announced the launch of its electric crane with a lifting capacity of 180 tons.

The construction equipment market is also segmented by end user into construction companies, government agencies, private contractors, aerospace & defense companies, mining companies, and other end users. In 2024, the construction companies segment is expected to hold the largest share of 55.0% of the market. This segment’s large share is due to increasing investments in infrastructure development globally, the growing adoption of advanced equipment by construction companies to enhance project speed and efficiency, and the shortage of labor in the construction sector. Additionally, the construction companies segment is projected to register the highest CAGR during the forecast period, driven by increasing investments by leading companies in developing advanced construction equipment. For example, in September 2023, Skanska (Sweden) initiated a pilot project involving a zero-emissions electric excavator on the Los Angeles Metro’s Purple (D Line) Extension Transit Project.

Regionally, the construction equipment market is segmented into North America, Asia-Pacific, Europe, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of 45.0% of the market. This significant share is due to increasing investments in construction projects, a rising focus on sustainability, efficiency, and safety within the construction industry, rapid growth in the real estate sector, and the expansion of rail and road infrastructure across the region. Moreover, the market in Asia-Pacific is projected to register the highest CAGR of 7.0% during the forecast period, driven by the increasing demand for sustainable construction equipment and rising initiatives by key market players to expand their presence in the region. For instance, in July 2023, Volvo Construction Equipment (Volvo CE) established a dealership in Kuching, Sarawak, to cater to the rising demand from Malaysian customers.

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