Construction Equipment Market Size, Share, Growth, Report 2025 to 2034

Construction Equipment Market Size and Growth Factors 2025 to 2034

The global construction equipment market size was estimated at USD 161.54 billion in 2024 and is expected to be worth around USD 295.61 billion by 2034, growing at a compound annual growth rate (CAGR) of 6.23% over the forecast period from 2025 to 2034. The construction equipment market is recording a bullish trend owing to the fast urbanization, investment in infrastructure, and upgrading of technologies. The rise in the demand of smart cities, green construction and an efficiency-based solution is also adding to the pace of the market. The combination of automation, IoT, telematics, and the use of AI-driven technologies are improving productivity, safety, and cost efficiency in projects.

What is the construction equipment?

The construction equipment market can be defined as the industry that produces and consumes the construction equipment including excavators, loaders, cranes, bulldozers, graders, and concrete equipment utilized in building, mining and infrastructure schemes. More equipment is being outfitted with GPS guidance and electrification, telematics, and predictive maintenance, which allow quicker project delivery, a lower environmental impact, and easier fleet management. The market is one of the most promising spheres that will surely bring changes to the way constructions are performed across the globe, with the focus on sustainability and innovation.

Construction Equipment Market Report Highlights

• By Region, Asia-Pacific led with 39.58% share (2024), fueled by rapid urban growth, mega projects like China’s Belt and Road and India’s Smart Cities Mission, plus strong domestic manufacturing bases.
• By Equipment Type, the earthmoving Equipment led with 41.22% share (2024), driven by its core role in excavation, grading, and land development for housing and highway expansion, especially in North America and Asia-Pacific.
• By Power Source, the diesel-powered equipment held 52.36% share (2024) due to reliability, torque, and fueling infrastructure. Despite the growth of electric models, diesel dominates in large projects and developing markets.
• By Application, the infrastructure (Roads, Bridges, Airports) accounted for 47.15% share (2024), supported by global government investments in highways, metro rail, and airport upgrades, sustaining demand for earthmoving and material handling machines.
• By End User, the construction companies captured 44.63% share (2024) as major contractors adopt advanced machinery to boost efficiency, with Asia-Pacific driving demand from urbanization and industrial growth.

Construction Equipment Market Trends

• Adoption of Automation & Telematics: The implementation of automation and telematics, increasing possibilities of remote monitoring and predictive maintenance, is one of the trends most evident in the market. This shift brings equipment even past mechanical exploitation to that of data-driven efficiency. In April 2025, Komatsu released new telematics-connected excavators in Japan that monitor real-time fuel consumption and machine well-being, again showing how automation is transforming working processes.
• Compact and Electric Machinery Growth: The demand of compact equipment is an upcoming trend the growth of electric equipment is particularly strategic in the urban projects where space and emission constraints play a vital role. This revolution has brought about innovation on the side of manufacturers into quieter and low-emission models. In December 2024, Volvo Construction Equipment added to its successful electric compact line-up in Europe, and the expansion is a further indication of the industry trend towards more sustainable and space-saving solutions.

Report Scope

Construction Equipment Market Dynamics

Market Drivers

• Government Infrastructure Spending: A major growth factor to the market is the maintenance of sponsored infrastructure works, which would consume infrastructure machinery in various sectors. These initiatives remain unperturbed in the long-term setup of manufacturers and contractors. In July 2025, the government of the USA increased spending on roads and bridges under its Infrastructure Investment project, directly positively impacting the results of equipment sales of Caterpillar and Deere.
• Sustainability Push in Equipment Design: Another trend is the push on sustainability around the world which is also leading to a shift away from diesel to hybrid and electric-powered equipment in the industry. Not only is this lower the emissions, but it also keeps to regulatory compliance In May 2025, the Ministry of Road Transport of India introduced incentives to the contractors who utilize hybrid machinery, which boosts the utilisation of eco-friendly equipment in the nationwide highway construction.

Market Restraints

• Tariff-Related Cost Influences: The high tariffs and trade barriers that are pushing costs of production higher and call a check on competitiveness is another market restraint. Such pressures make companies' walk a fine line between profitability and pricing. In August 2025, Caterpillar reported as much as USD 1.5 billion in costs hit by tariffs, in addition to U.S. housing slump due to which machinery orders were in danger.
• The high price of Electric Machinery: The cost of acquiring electric machinery in the initial stage is high and it puts away small and mid-sized contractors. This uneven cost also hinders penetration into the less developed markets. In July 2025 reports affirmed that the price of electric loaders and excavators was about 75% higher than that of diesel counterparts, restraining adoption despite the heavy improvement in environmental benefits.

Market Challenges

• Market Slowdown & OEM Strain: One of the major problems is the slackening of the market, where pressure and scarcity of fleet renewal poses a challenge to original equipment manufacturers. Innovation is something that companies cannot avoid to survive this environment. In April 2025, it was indicated that the global sales growth had stagnated and OEM companies, such as Hitachi and Komatsu, needed to use digital solutions and autonomous prototypes to maintain revenues.
• Election-related Holds on Projects: An additional related factor is election-related disruptions to significant construction projects. Such delays spread out the supply chain lowering use of equipment. In May 2025, India recorded the lowest ever construction equipment sales attributed to construction project stalls by the national elections and delay in payments to contractors causing severe pressure on the machines demand.

Market Opportunities

• Green Construction Mandates: Another good opportunity is that construction sites are increasingly being required to have zero emission, opening up a market where electric and hybrid machines will be practical. This creates opportunities to have companies that can be on the frontline in sustainability. In January 2025, Oslo made fossil-fuel equipment a ban on city projects which forced the global manufacturers to change portfolios in favor of fully electric fleet.
• Autonomous Equipment Innovation: Autonomous equipment is another way the industry will be able to evolve since it helps to overcome the shortage of labor force and makes the working process more productive. The capabilities to retrofit the existing fleets with autonomous kits are establishing competitive advantages. At CES 2025 in January 2025, Deere announced autonomous tractors and graders and was widely noticed as a solution to labor shortages in agriculture and construction, with scalable solutions suggested.

Construction Equipment Market Regional Analysis

The construction equipment market is segmented into several key regions: North America, Europe, Asia-Pacific, and LAMEA (Latin America, Middle East, and Africa). Here’s an in-depth look at each region.

Why does Asia-Pacific lead in the construction equipment market?

• The Asia-Pacific construction equipment market size was accounted for USD 63.94 billion in 2024 and is predicted to surpass around USD 117 billion by 2034.

Asia-Pacific is the fastest developing region from urbanization and infrastructure scaling to rapid adoption of technologies. In June 2025 Volvo CE announced plans to expand crawler excavator production in South Korea, Sweden, and North America which underscores the Asia Pacific region’s emergence in technology-enabled localized manufacturing and solidifies the region’s importance in global equipment supply chains.

Why is North America hit notable growth in the construction equipment market?

• The North America construction equipment market size was valued at USD 44.26 billion in 2024 and is expected to record USD 81 billion by 2034.

North America is leading in the market due to the strong infrastructure spending, emerging digital technologies, and resilient supply chains. In June 2025, Volvo Construction Equipment announced a $260 million investment to add a crawler excavator assembly line in the U.S. which aimed to reduce exports and boost local manufacturing. This underscores North America’s agility in production and flexibility in digital supply strategy as well as maintaining regulatory compliance.

Why is Europe hits significant growth in the construction equipment market?

• The Europe construction equipment market size was reached at USD 34.89 billion in 2024 and is forecasted to hit around USD 63.85 billion by 2034.

Europe is pursuing the “green and digital first” growth of construction equipment catalyzed by stringent regulatory frameworks and entrepreneurial innovation ecosystems. In April 2025, Hitachi Construction Machinery showcased Europe’s leadership in emission-free heavy equipment by launching the hydrogen model of the zero-emission excavator along with integrated digital services, highlighting the construction innovation ecosystem’s capability to streamline construction processes.

Construction Equipment Market Share, By Region, 2024 (%)

LAMEA Market Trends

• The LAMEA construction equipment market was valued at USD 18.45 billion in 2024 and is anticipated to reach around USD 33.76 billion by 2034.

The opportunities offered by the LAMEA region are underpinned by urbanization, the development of renewable infrastructure, and rugged region adaptable equipment. While there may not be recent developments related to construction equipment in the news, the region's infrastructure investment and need for robust equipment certainly highlight the growing opportunities in LAMEA. Reliability and flexibility in construction equipment continues to be in demand for the government-sponsored projects and urban development in Latin America, Middle Eastern mega projects, and African infrastructure undertakings.

Construction Equipment Market Segmental Analysis

Equipment Type Analysis

Earthmoving Equipment: Excavators, bulldozers, and graders are some of the services used for digging and moving soil for infrastructural projects. They continue to hold the largest share of the equipment market owing to the relentless demand for infrastructure, roads, and housing developments. CASE Construction Equipment showcased new MIDI excavators and backhoe loaders with productivity-enhancing features, along with electric models, at the international expo in June 2025. This further highlighted the increasing need for versatile earthmoving equipment across urban and rural projects.

Material Handling Equipment: This subsegment covers cranes, forklifts, and telehandlers used for lifting and moving the heavy loads in construction and logistics. Their position in ports and warehouses, and in large and complex infrastructure projects is critical. Manitowoc launching its latest Grove rough-terrain crane in North America designed for heavy lifting in space constrained sites in April 2025 illustrates the growth of material handling equipment. Such material handling equipment continues to advance with improved safety and higher load efficiency.

Concrete and Road Construction Equipment: These include concrete mixers, asphalt pavers, and pumps, as well as compactors, which are important for the construction of highways, bridges, and other commercial facilities. This equipment is are being utilized more and more as the government spends more on infrastructure. In Europe, the Wirtgen group in May 2025 introduced an advanced compact cold milling machine designed for sustainable road construction. The industry is updating concrete and road equipment to improve their emissions efficiency and environmental impacts.

Mining Equipment: Essential for mineral, coal, and metal extraction are hydraulic shovels, large excavators, dump trucks, and drilling rigs, which are heavy construction machines. These form the backbone of heavy industries and are largely used by industries that require raw materials. In Australia, Komatsu in March 2025 launched their next-generation autonomous open pit haul trucks designed to enhance safety and productivity in open pit mines. This is one instance of the reliance of the mining industry on sophisticated, high-capacity equipment.

Compact Construction Equipment: These includes mini excavators, compact skid-steer loaders, and compact wheel loaders. These are designated for smaller and urban projects. These equipment are popular for their fuel efficiency and maneuverability in tight spaces. Recently in Europe, Bobcat launched its new electric track loader which has zero emission which is suitable for urban construction. This is an example of the need for compact equipment in construction in sustainable projects in urban cities.

Power Source Analysis

Diesel-powered Equipment: Diesel engines dominate the construction equipment market because of their reliability and high torque output, especially for heavy-duty machinery like excavators and bulldozers. They are widely used in large infrastructure and mining projects due to their fuel efficiency and established refueling infrastructure. In March 2025, Caterpillar announced enhancements to its Stage V-compliant diesel engines to reduce particulate matter emissions while maintaining power. This reflects how traditional diesel power is adapting to stricter emission standards globally while remaining the backbone of the industry.

Electric Equipment: Electric-powered construction equipment is gaining traction due to zero emissions, reduced noise, and lower operational costs. Compact machines such as mini excavators, loaders, and forklifts are the most common electrified models used in urban construction sites. Volvo CE launched its EC500 Electric Excavator in February 2025, targeting heavy-duty construction projects with battery capacity suited for full-shift operation. This shows how electric solutions are scaling up beyond compact equipment to tackle larger applications.

Construction Equipment Market Share, By Power Source, 2024 (%)

Hybrid Equipment: Hybrid construction machines combine diesel engines with electric drives or hydraulic accumulators to improve fuel efficiency and cut emissions. They are particularly useful in markets transitioning from diesel to full electric where cost and infrastructure are still challenges. In January 2025, Komatsu introduced its HB365LC-4 hybrid excavator in Europe, claiming up to 20% better fuel efficiency than conventional models. This demonstrates hybrids’ role as a bridge technology for sustainable construction.

CNG/LNG-powered Equipment: Natural gas-powered construction equipment is still niche but expanding in regions with strong natural gas infrastructure. They provide lower greenhouse gas emissions and operating costs compared to diesel. In December 2024, JCB showcased its 3CX backhoe loader powered by CNG in India, highlighting local demand for cleaner alternatives in urban construction. Such equipment is increasingly promoted in regions struggling with air quality issues.

Hydrogen-powered Equipment: Hydrogen-powered machines are at the cutting edge of sustainable construction technology, offering high energy density and fast refueling compared to batteries. They are being tested in heavy-duty and long-duration applications where electrification remains difficult. In February 2025, Hyundai Construction Equipment announced successful field trials of its 14-ton hydrogen excavator in South Korea. This points to hydrogen’s potential for future adoption in large-scale construction projects.

Application Analysis

Residential Construction: Residential projects require precision work and compact equipment such as mini-excavators and skid-steer loaders, which can manoeuvre into tight spaces. Bobcat’s new electric compact track loader, which offers zero-emission performance and manoeuvrability, is ideal for urban housing developments and was unveiled in Europe in February 2025.

Commercial Construction: The construction of office buildings, retail centers and complexes requires. Commercial developments make use of mid sized to heavy equipment. There is also a growing focus on these sectors’ sustainability. Volvo CE showcased the ECR25 Electric excavator and L120 Electric loader at BuildTech Asia in March 2025, illustrating how commercial construction in Asia is adopting electric equipment.

Industrial Construction: Industrial construction such as factories and warehouses need heavy, rugged equipment specially designed for use in production areas such as factories or in close proximity to them. Caterpillar’s upgraded diesel excavators, with enhanced emissions control released in July 2024, continue to deliver high productivity, which makes them compatible with large scale industrial environments.

Infrastructure (Roads, Bridges, Airports): Infrastructure projects often work with large excavators, pavers, and rollers. These projects are usually under tight deadlines and are demanding high performance. Volvo CE released the ECR230 Electric mid-size excavator in May 2025, aimed at heavy-duty infrastructure work while also offering reduced emissions, ideal for the expansion of infrastructure projects on a global scale.

Mining & Quarrying: Mining and quarrying utilize specialized autonomous and teleoperated equipment to optimize their operations in demanding and harsh conditions. Komatsu’s most recent autonomous haul trucks, which are targeted for use in open pit mining, were unveiled in Australia in March 2025. These trucks are purposefully built to improve safety and operational efficiency in environments where human interaction is difficult and perilous.

End User Analysis

Construction Companies: The construction companies segment has generated highest revenue share in the market. These firms create demand for different types of machines which vary in size from compact to heavy-earthmoving equipment based on the nature of the project. As an example, in July 2025, Caterpillar announced the deployment of autonomous haul trucks tailored for infrastructure developers, demonstrating how OEMs serve end-users with project-specific solutions.

Mining Companies: The mining sector requires uniquely specialized, large capacity machines which are capable of operating for extended periods in rough terrain. In March 2025, Komatsu released autonomous haul trucks in Australia which exemplifies the continued thrust towards automation for safety and productivity in mining.

Infrastructure Developers: The public or private infrastructure developers are the ones who usually lead the equipment demand as they are the ones implementing mega projects like highways or airports and bridges. In May 2025, Volvo CE launched its EC230 Electric excavator aimed at infrastructure applications bringing powertrain modernization in alignment with the ever-growing need for sustainable large-scale projects.

Government & Municipal Bodies: In public works, parks, and other public services, municipalities tend to prefer equipment with low emission and noise for urban operations. Such was the case in January 2025 when Oslo announced that 98% of their municipal construction fleet was operating fossil-fuel free in 2023, executing the majority of city projects with electric machines.
Rental Service Providers: Utilizing machinery on rent offer equipment rental companies an innovative approach for adopting versatile or green technologies demanded by their customers. At BuildTech Asia in March 2025, Volvo CE showcased electric models in their product lines including the L120 Electric loader, proving how rental fleets can help their clients wanting eco-friendly equipment—even on a short-term lease.

Construction Equipment Market Top Companies

• Caterpillar, Inc
• CNH Industrial America LLC.
• Deere & Company
• Doosan Corporation
• Escorts Limited
• Hitachi Construction Machinery Co., Ltd.
• Hyundai Construction Equipment Co., Ltd.
• J C Bamford Excavators Ltd.
• Komatsu Ltd.
• KUBOTA Corporation
• LIEBHERR
• MANITOU Group
• SANY Group
• Terex Corporation
• AB Volvo

Recent Developments

• In October 2022, Caterpillar announced the expansion of its construction industries portfolio by unveiling four battery electric machine prototypes-the 301.9 mini excavator, 320 medium excavator, 950 GC medium wheel loader, and 906 compact wheel loader - at bauma 2022 in Munich, Germany, demonstrating its commitment to helping customers transition to lower-carbon, sustainable solutions through purpose-built electrified equipment powered by Caterpillar-designed, scalable lithium-ion batteries, with both onboard AC and offboard DC fast charging options; the 301.9 and 906 will be the first models available commercially, supporting Caterpillar’s ongoing strategy to offer innovative products for a reduced-carbon future and maximize customer value throughout the product lifecycle.
• In October 2024, Terex Corporation has completed its $2.0 billion acquisition of Environmental Solutions Group (ESG) from Dover Corporation, significantly strengthening Terex’s portfolio and increasing its North American revenue share to 67%; ESG, a market leader in refuse collection vehicles, waste compaction equipment, and related digital solutions, is expected to drive double-digit EPS accretion, margin growth, and free cash flow for Terex, while providing strategic synergies and operational excellence as it expands Terex’s offerings in the resilient, high-growth waste and recycling sector under established brands like Heil, Marathon, and 3rd Eye.

Market Segmentation

By Equipment Type

• Earthmoving Equipment
  
  • Excavators
    
    • Wheel
    • Crawler
  • Loaders
    
    • Backhoe Loaders
    • Skid Steer Loaders
    • Crawler/Track Loaders
    • Wheeled Loaders
  • Dump Trucks
  • Moto Graders
  • Dozers
    
    • Wheel
    • Crawler
• Material Handling Equipment
  
  • Crawler Cranes
  • Trailer Mounted Cranes
  • Truck Mounted Cranes
  • Forklift
• Concrete & Road Construction Equipment
  
  • Concrete Mixer & Pavers
  • Construction Pumps
  • Others
• Mining Equipment
• Compact Construction Equipment

By Power Source 

• Diesel-powered Equipment
• Electric Equipment 
• Hybrid Equipment
• CNG/LNG-powered Equipment
• Hydrogen-powered Equipment

By Engine Capacity

• Up to 250 HP
• 250-500 HP
• More than 500 HP

By Power Output

• <100 HP
• 101-200 HP
• 201-400 HP
• >401 HP

By Application

• Residential Construction
• Commercial Construction
• Industrial Construction
• Infrastructure (Roads, Bridges, Airports)
• Mining & Quarrying

By End User

• Construction Companies
• Mining Companies
• Infrastructure Developers
• Government & Municipal Bodies
• Rental Service Providers

By Region

• North America
• APAC
• Europe
• LAMEA