Construction Equipment - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Construction Equipment Market Analysis

The construction equipment market is valued at USD 192.59 billion in 2025 and is projected to advance at a 6.73% CAGR to 2030, reaching USD 266.73 billion. Robust government spending on roads, rail, power transmission, and semiconductor fabs underpins demand across earthmoving, material-handling, and concrete machinery. Asia’s mega-project pipeline, the electrification push in Europe and North America, and the industry-wide tilt toward rental fleets jointly reinforce a resilient growth outlook. Competitive intensity is sharpening as Chinese OEMs capture share abroad while Western leaders pivot to service-centric offerings and autonomous technologies. The construction equipment market is also shaped by quicker fleet renewal cycles driven by Stage V and EPA Phase 3 regulations, tightening the gap between product and digital service launches.

Global Construction Equipment Market Trends and Insights

Mega-Infrastructure Pipelines in Asia Driving Demand

A committed project pipeline exceeding USD 3.7 trillion is transforming allocation priorities, pulling large dozers, 45-ton excavators, and high-capacity concrete pumps into Asian depots ahead of other regions. Saudi Arabia alone awarded USD 55 billion in projects in 2024, a 57% jump year-on-year, while the UAE lifted awards by 200% to USD 34 billion. OEMs are tailoring sales mixes toward higher horsepower and longer-reach booms, anchoring revenue in the construction equipment market through larger ticket sizes and aftermarket contracts.

U.S. IRA and CHIPS Acts Accelerating Earth-Moving Purchases

Federal incentives for semiconductor fabs, EV plants, and grid upgrades have created a structural pull for 250-500 HP dozers and excavators across the Sun Belt. The American Society of Civil Engineers identifies a USD 3.7 trillion infrastructure gap by 2035, ensuring sustained visibility for OEM order books. Contractors, faced with labor constraints, are leaning toward larger units that compress project schedules and ease per-hour operating budgets.

OEM Lead-Time Spikes Due to Component Shortages

Delivery windows stretch beyond 42 weeks for critical hydraulic valves and pumps, forcing contractors to adjust project phasing. Market leaders increasingly vertically integrate to secure supply, echoing Caterpillar’s expanded in-house component machining. Persistent bottlenecks threaten to defer replacement cycles and dampen near-term construction equipment market momentum until inventories normalize.

Other drivers and restraints analyzed in the detailed report include:

1. Rental-First Procurement Shift Expanding Utilization Rates
2. EU Stage V Emission Caps Forcing Fleet Renewal Toward Hybrids and Electrics
3. Lithium-Ion Cell Scarcity Inflating Equipment TCO

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Earthmoving machinery commanded 59.45% of the construction equipment market in 2024 and is expected to post a 13.37% CAGR through 2030, anchored by the versatility of excavators, loaders, and dozers across civil, mining, and industrial projects. The loader sub-segment alone captured a significant share of the electric earthmoving slice in 2024, underscoring early electrification traction in material re-handling niches.

Design enhancements now center on operator-assist systems, tiltrotator add-ons, and machine-control software that convert 3D models into grade-check commands. Komatsu’s Smart Construction suite exemplifies this digital overlay, producing site twins that elevate precision and cut rework. These capabilities lift resale values and strengthen aftermarket attachment revenue, reinforcing OEM margins inside the construction equipment market.

Internal-combustion engines retained 95.33% share of the construction equipment market in 2024 as entrenched fueling infrastructure, high duty cycles, and residual value familiarity tempered switching speed. Yet battery-electric units are growing at 25.11% CAGR through 2030, the quickest clip among all propulsion modes, assisted by urban emission zones and night-time noise ordinances. Compact excavators below 8 tons lead adoption due to manageable battery weight and shorter duty cycles.

Hybrid hydraulics offer a transitional bridge, enabling fuel savings of approximately 20-25% with minimal operator retraining. Hydrogen internal combustion and fuel-cell prototypes, now under test by Caterpillar and JCB, promise zero tailpipe emissions for 30-ton and heavier classes. Parallel R&D tracks heighten capital intensity, but early-mover advantages could seal customer loyalty in the emerging zero-emission slice of the construction equipment market.

The Construction Equipment Market Report is Segmented by Equipment Type (Earthmoving, and More), Propulsion Type (Internal Combustion (Diesel & CNG/LNG), and More), Equipment Size/Weight (Heavy (Above 11 Tons), and More), Power Output (Up To 250 HP, and More), Application (Infrastructure, and More), Sales Channel (New Equipment, and More), and Geography. The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

Geography Analysis

Asia Pacific led with 46.13% of the construction equipment market in 2024, underpinned by China’s Belt and Road Initiative and India’s National Infrastructure Pipeline. Chinese crawler excavator volumes are set to exceed 150,000 units by 2027, more than doubling 2023 output and reinforcing supplier economies of scale. Manufacturers route high-power diesel inventory to Southeast Asia and GCC job sites while shipping compact electric loaders to Japanese and Korean cities.

The Middle East posts the fastest trajectory at 9.23% CAGR through 2030 as Saudi Arabia’s Vision 2030 and the UAE’s Dubai Urban Master Plan funnel billions into housing, tourism, and logistics. Project awards jumped significantly in 2024, tightening regional equipment supply and prompting OEMs to stage temporary import yards at Jebel Ali Port. Heat-tolerant battery chemistries and sealed cabin filtration systems are differentiators in the Gulf slice of the construction equipment market.

North America maintains a solid outlook propelled by industrial reshoring and infrastructure revamps backed by the IRA and CHIPS legislation. EPA Phase 3 standards, effective model year 2027, are nudging fleets toward hybrid and electric compact equipment for urban utility work. Rental giants consolidate to secure scale, evidenced by multi-billion-dollar acquisitions that compress dealer networks and elevate access fees.

List of Companies Covered in this Report:

1. Caterpillar Inc.
2. Komatsu Ltd
3. Deere & Company
4. Hitachi Construction Machinery
5. Volvo Construction Equipment
6. CNH Industrial (NCASE, New Holland)
7. Liebherr-International AG
8. Doosan Bobcat
9. Kobelco Construction Machinery
10. SANY Group
11. XCMG Construction Machinery
12. Zoomlion Heavy Industry
13. Wirtgen Group
14. JCB Limited
15. Hyundai Doosan Infracore
16. Terex Corporation
17. Manitowoc Company
18. Sunward Intelligent Equipment
19. Yanmar Co. Ltd
20. Astec Industries
21. Atlas Copco AB
22. Kubota Corporation
23. Epiroc AB
24. Sumitomo (HSC Cranes)
25. Wacker Neuson SE
26. Takeuchi Mfg.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support