Construction Equipment Market Share, Size and Growth Analysis By 2029

The global market for construction equipment is projected to expand from US$ 126,062.8 million in 2022 to US$ 223,451.1 million by 2028, reflecting a compound annual growth rate (CAGR) of 10.0% during this period.

Public-private partnerships (PPPs) represent a collaborative approach where government entities and private companies work together to develop public infrastructure. In these arrangements, private organizations assume the management of government projects, leveraging their technical and operational expertise. This model is gaining traction in regions such as India, Africa, and China. The engagement of the private sector in infrastructure initiatives, especially when private investments are at stake, can significantly boost efficiency. This is achieved by enabling developers to utilize their risk management capabilities through a genuine transfer of risks and responsibilities. In contrast, traditional procurement methods, which often neglect commercial and financial aspects, tend to produce less favorable results. Effective participation from the private sector and appropriate risk transfer can introduce specialized risk management skills, foster a long-term commitment to the project, and mitigate various risks without the looming threat of insolvency. Consequently, the rise in public-private partnerships is a key driver of growth in the construction equipment sector.

The construction equipment sector is experiencing a profound shift due to the rise of electrification, which opens up numerous opportunities and design innovations. Electrification is being adopted across various market segments, including construction machinery for vehicles, buses, and other transport modes. The accessibility and cost-effectiveness of advanced technologies, coupled with stricter environmental regulations, have made electrification a practical choice, thereby reshaping the future landscape of the construction equipment industry. Many urban areas globally have banned diesel engines within city limits, restricting the operation of construction machinery in certain locales. Countries like China and those in Europe have enacted rigorous pollution control standards for heavy machinery. The transition to electric construction equipment provides a viable solution to comply with these emission and noise pollution regulations.

Following extensive development of earlier concept models, the TA15 has been launched as a pivotal element of the TARA autonomous transportation system. This system comprises multiple TA15 units functioning as base vehicles, along with essential infrastructure such as charging stations and control towers, all integrated with tailored cloud solutions to address specific operational needs, maintenance, and repair support. The system is designed to facilitate material transport in off-road settings like quarries, with the number of machines and charging stations required being contingent on production and transport volumes, as well as the haul cycle. As electric versions of both existing and new products continue to evolve, there are significant growth prospects for the construction equipment market in the years ahead.

In North America, urbanization has surged recently, leading to an increased demand for smart and sustainable infrastructure solutions, prompting the construction of new buildings to address these requirements. This trend has spurred heightened investments in construction from both governmental and private sectors, particularly in urban areas with robust job opportunities. Additionally, the growth of e-commerce giants like Amazon and eBay has resulted in substantial investments in warehouses and storage facilities to accommodate the rising demand for online shopping. For instance, Amazon plans to establish over 1,000 warehouses and delivery centers in suburban regions across the country. In Europe, the construction equipment market is being fueled by several large-scale initiatives, including the London Crossrail project and the Fehmarn Belt Fixed Link connecting Germany and Denmark. The demand for construction machinery in Europe has surged recently, driven by an increase in residential construction in nations like Germany and France, as well as infrastructure development in Southern European countries. The COVID-19 pandemic has further amplified the need for infrastructure, particularly in healthcare facilities such as hospitals, clinics, laboratories, and logistics centers. Moreover, Birmingham's population is projected to grow by 25% due to a significant urban development plan.

In the Asia-Pacific region, the heavy construction equipment market is anticipated to witness a rise in demand as several countries return to a semblance of normalcy following the pandemic. The influx of corporate capital investments and the rapid advancement of infrastructure in emerging economies like China and India have further stimulated the demand for heavy construction machinery throughout the region. In the Middle East and Africa, the construction industry is being driven by swift economic growth, an expanding middle class, population growth, and increased foreign investments. Countries such as Saudi Arabia, the UAE, Oman, and Egypt are embarking on numerous infrastructure projects, including new megacities, railways, ports, airports, and housing developments, which are expected to boost the demand for construction equipment in the near future. Additionally, smaller construction projects aimed at enhancing urban infrastructure, such as new bridges, flyovers, commercial centers, and highways, are also contributing to the rising need for construction machinery.

Key players in the construction equipment market include Caterpillar Inc., CNH Industrial N.V., Hitachi Construction Machinery Co., Ltd., J C Bamford Excavators Ltd., Deere & Company, Komatsu Ltd., Liebherr-International Deutschland GmbH, Terex Corporation, Volvo CE, and Zoomlion Heavy Industry Science and Technology Co., Ltd. The report also includes secondary research on other companies that hold a significant share of the market.

The construction equipment market size has been assessed through a combination of primary and secondary research methodologies. Initially, extensive secondary research was conducted using various internal and external sources to gather qualitative and quantitative data related to the construction equipment market. This process aimed to provide a comprehensive overview and forecast for the market, encompassing all segments within the region. Furthermore, numerous primary interviews were conducted with industry experts and commentators to validate the data and gain additional analytical insights into the construction equipment market. Interviewees included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants, including valuation experts, research analysts, and key opinion leaders specializing in the construction equipment sector.