Industrial Machinery - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

Industrial Machinery Market Analysis

The industrial machinery market is expected to grow from USD 0.81 trillion in 2025 to USD 0.88 trillion in 2026 and is forecast to reach USD 1.31 trillion by 2031 at 8.38% CAGR over 2026-2031. Expansion reflected sustained infrastructure investment, accelerated factory automation, and the growing availability of zero-emission equipment. End-users increased spending on artificial-intelligence-enabled predictive maintenance platforms to curb unplanned downtime, while manufacturers pursued modular machine designs to shorten delivery cycles. Asia-Pacific held a commanding lead in 2024, helped by rapid capacity additions in China and India. North American and European buyers focused on reshoring-ready, multi-process machines that can switch quickly between product lines, supporting domestic supply-chain resilience. Tight skilled-labor pools for CNC and robotics roles kept automation demand elevated and encouraged Equipment-as-a-Service models that lower initial capital needs.

Global Industrial Machinery Market Trends and Insights

Adoption of Industry 4.0 & Smart Manufacturing

Manufacturers worldwide adopted sensors, cloud analytics, and digital twins to curb downtime and enhance throughput. Siemens’ Senseye platform processed more than 1 million machine data points per minute and lifted forecast accuracy by 85%, cutting maintenance costs by as much as 40%. Equipment builders embedded edge analytics modules that unlock new subscription revenue and enable Equipment-as-a-Service contracts. Digital twins let operators test cycle-time changes without stopping production, helping to justify capital upgrades. These capabilities drove faster paybacks and encouraged mid-sized plants to adopt automation despite tight budgets. Rising cybersecurity awareness prompted vendors to harden machine controllers with on-device encryption and network segmentation.

Growing Demand from Construction & Infrastructure Projects

Multi-year public-works budgets in Asia-Pacific and the Middle East continued to boost orders for earth-moving machines, cranes, and concrete equipment. Battery-powered compact loaders gained traction on urban job sites because they meet evolving low-emission and noise regulations. CASE Construction Equipment’s 12EV electric compact wheel loader delivered a 1.15-ton payload using a 23 kWh battery while eliminating exhaust emissions . Contractors also adopted hybrid drivetrains in large excavators to cut fuel consumption during idling. Flexible finance packages and residual-value guarantees from OEM-linked leasing units helped contractors offset high upfront prices, further strengthening demand.

High Capex and Maintenance Costs

Initial purchase prices for high-precision multitasking lathes and automated welding cells deterred many small plants. Caterpillar recorded a 10% year-over-year sales decline to USD 14.2 billion in Q1 2025 as some customers delayed fleet renewals amid economic uncertainty. Unplanned downtime still averaged 24% of production costs, underscoring the financial risk of older assets. OEMs introduced subscription models where buyers pay per machine-hour, bundling maintenance, software, and consumables. SKF’s Everything-as-a-Service offering let factories pay for bearing performance instead of ownership, easing balance-sheet pressure.

Other drivers and restraints analyzed in the detailed report include:

1. Rapid Industrialisation in Emerging Economies
2. Demand for Compact Zero-Emission Machinery (Urban Retrofit)
3. Raw-Material Price Volatility

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

Segment Analysis

Earth-moving equipment captured 30.85% of industrial machinery market share in 2025 as global highway, housing, and energy projects progressed. High-horsepower dozers and excavators remained essential for bulk earthworks, but demand plateaued in mature markets where fleets had been refreshed. Industrial robots and automation cells were the fastest-growing product, advancing at a 12.57% CAGR toward 2031. The installed base reached USD 16.5 billion as manufacturers adopted collaborative robots that work safely next to operators. Wider use of Robot-as-a-Service contracts reduced upfront costs, permitting small job-shops to deploy vision-guided arms for pick-and-place tasks. Compressors and pumps benefited from upgrades to variable-speed drives that lower energy bills, supporting incremental sales.

Equipment builders integrated artificial intelligence into motion controllers to cut cycle times and improve pick accuracy. Tesla’s gigafactory automation model inspired automakers to blend fixed robots with autonomous mobile robots that deliver parts on demand, trimming work-in-progress inventory. Material-handling equipment held steady demand from e-commerce fulfillment centers that required high-throughput conveyors and sorters. Agricultural machinery also advanced, helped by precision spraying systems and autonomous tractors that address rural labor shortages. The products segment continued to diversify as vendors introduced specialty machines, including electric-drive telehandlers for indoor logistics and hybrid-powered crawler cranes for urban high-rise construction.

Construction retained the largest application share at 29.12% of the industrial machinery market size in 2025, reflecting ongoing transport-network upgrades and utility expansions. Contractors prioritized low-noise, zero-emission machines for city projects, creating new specification points beyond raw horsepower. Agricultural applications recorded the fastest growth at a 10.71% CAGR. Autosteering tractors, drone-guided sprayers, and smart harvesters supported yield gains while reducing chemical inputs. Deere and Company earmarked USD 20 billion for United States factory investments that will roll out autonomous technologies to mitigate farm labor gaps. Food-processing facilities automated palletizing and quality inspection, leveraging artificial-vision to cut waste.

Automotive manufacturers expanded electric-vehicle capacity and installed high-tolerance laser-cutting systems for battery enclosures. Chemical and pharmaceutical plants adopted clean-in-place skid packages with remote monitoring, meeting stricter safety and traceability rules. Textile producers deployed compact robots to automate sewing lines, reversing offshoring trends. Power-generation projects, especially wind-turbine installation and grid-scale battery assembly, required purpose-built material-handling rigs. Printing firms embraced Industry 4.0 workflow software to optimize press utilization, extending the market for modular finishing machines. Each application segment demanded tailored automation, underpinning broad-based equipment sales.

The Global Industrial Machinery Market Report is Segmented by Product Type (Earth-Moving Equipment, Material-Handling and More), Application Industry (Printing, Food, Textile, Construction, and More), End-User Ownership (OEMs, Contract Manufacturers, and More), Automation Level (Conventional Manually Operated, Semi-Automated/CNC, and More) and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Geography Analysis

Asia-Pacific maintained a 42.35% revenue share in 2025 and recorded an 8.42% CAGR, strengthening its dominance in the industrial machinery market. Chinese automation suppliers introduced competitive servo drives and PLCs, enabling localized price points that challenged imported brands. India’s Production-Linked Incentive schemes supported machinery imports and encouraged joint ventures for domestic manufacture. Japan and South Korea focused on ultraprecise robotics and semiconductor equipment, sustaining high unit values. Taiwan’s contract electronics manufacturing required continuous investment in surface-mount and inspection machines, preserving demand for specialty feeders and cameras.

North America benefited from federal infrastructure funding and private-sector reshoring initiatives. Manufacturers expanded brownfield sites with modular machining cells that switch quickly between parts, supporting just-in-time delivery. Autonomous haul trucks deployed in Canadian mining underscored the region’s appetite for high-technology heavy equipment. Currency stability and access to low-cost energy attracted further investment in petrochemical and battery production lines, bolstering orders for compressors, pumps, and web-handling systems. Education partnerships addressed skilled-labor shortages by promoting robotics technician programs.

Europe saw steady demand as firms invested in multi-process machinery to defend competitiveness against rising energy costs. German builders supplied high-tolerance forming presses to Eastern European automotive and appliance plants. Scandinavian wood-processing mills installed intelligent saw lines that optimise yield from every log. The United Kingdom launched grants for zero-emission construction machinery, promoting adoption of compact electric excavators in urban redevelopment. The European repair-maintenance-overhaul sector grew as operators extended machine lifespans with predictive analytics.

South America and the Middle East and Africa represented emerging growth pockets. Brazilian infrastructure upgrades needed large earth-moving fleets and concrete pumps, but exchange-rate volatility constrained imports. Hitachi Construction Machinery and Marubeni set up a mining-equipment service venture in Brazil to localise support and shorten downtime. Gulf Cooperation Council nations invested in desalination and renewable-energy projects, requiring corrosion-resistant pumps and high-capacity cranes. African governments prioritised agricultural mechanisation by subsidising tractor purchases, aiding sales of low-horsepower machines.

List of Companies Covered in this Report:

1. Caterpillar Inc.
2. Komatsu Ltd.
3. Deere & Company
4. Hitachi Construction Machinery Co., Ltd.
5. CNH Industrial N.V.
6. Sandvik AB
7. Doosan Infracore Co., Ltd.
8. Volvo Construction Equipment AB
9. Liebherr-International AG
10. J.C. Bamford Excavators Ltd. (JCB)
11. Terex Corporation
12. Manitowoc Company, Inc.
13. Astec Industries, Inc.
14. Illinois Tool Works Inc.
15. Lincoln Electric Holdings, Inc.
16. AGCO Corporation
17. Alamo Group Inc.
18. Wacker Neuson SE
19. SANY Heavy Industry Co., Ltd.
20. XCMG Construction Machinery Co., Ltd.
21. Zoomlion Heavy Industry Science & Technology Co., Ltd.
22. Kubota Corporation
23. Yanmar Holdings Co., Ltd.
24. Atlas Copco AB
25. ABB Ltd.

Additional Benefits:

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