Construction Equipment Market Growth and Forecast, 2022 - 2030 : Grand View Research, Inc

The global construction equipment market size is projected to reach USD 161.99 billion by 2030, registering a 3.9% CAGR from 2022 to 2030, according to a new study by Grand View Research Inc. Increasing investments by governments worldwide for developing public infrastructure is one of the prime factors that is expected to drive the market growth over the forecast period. Furthermore, the growing population in emerging economies such as India has resulted in increased residential and commercial construction activities, a trend that is expected to continue to increase the demand for construction equipment. Thus, the market is anticipated to grow steadily over the forecast period.

Favorable government initiatives are expected to drive the growth of the market in the forthcoming years. For instance, in August 2021, the federal government of the U.S. announced stimulus packages including USD 550 billion in new federal investment for modernizing infrastructure are expected to drive construction spending in the country. Similarly, in 2019, the Government of India announced to invest USD 1.4 trillion for infrastructure projects from 2019 to 2023; this signifies the upcoming demand for construction machinery in the country over the forecast period.

The COVID-19 outbreak hampered the growth of the market, due to supply chain disruptions and temporary shutdowns of dealer stores. However, in 2021, there was a sudden increase in demand for construction equipment due to the resumption of construction activity for halted and new projects. An abrupt demand for construction and infrastructure resulting in a shortage of inventories leading to an increase in the price of the commodity of base materials are expected to hinder the growth of the market over the forecast period.

Construction Equipment Market Segmentation

Grand View Research has segmented the global construction equipment market based on product and region:

Based on the Product Insights, the market is segmented into Earth Moving Machinery, Material Handling Machinery, Concrete and Road Construction Machinery.

• The earthmoving machinery segment dominated the market with a revenue share of over 60% in 2021. The excavators sub-segment is projected to expand at a moderate CAGR during the forecast period on account of the booming infrastructure projects worldwide and the adoption of conventional heavy-duty excavators by builders and contractors for building dams and highways.
• The material handling equipment segment is expected to register a 4% CAGR over the forecast period. It is ascribed to an increase in demand for crawler cranes to construct non-residential sectors, notably in industrial, manufacturing, and commercial building sectors.
• A surge in the need to maintain existing civil infrastructures, notably high-rise buildings is expected to raise the demand for material handling machinery globally. The crawler cranes segment is expected to register a 5.8% CAGR over the forecast period owing to its compactness and ease of accessibility in small construction sites, especially in urban areas.
• Increasing investment in road construction projects is expected to increase the demand for concrete and road construction machinery. For instance, in 2020, the U.S. government added USD 29 billion to the allocated funds for highway investments, which increased to USD 70 billion in 2020.

Construction Equipment Regional Outlook

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa (MEA)

Key Companies Profile & Market Share Insights

The market is highly competitive with key players such as Caterpillar, Komastu, Deere and Company, Sany Heavy Industries, Volvo AB, and Hitachi Construction Ltd. Currently, OEMs are dealing with numerous short-term challenges such as lack of skilled employees, high raw material prices, and shortage of semiconductor components. As a result, OEMs are expecting supply and logistic delays resulting in lower new construction equipment sales over the next few quarters of 2022. The focus for almost all key vendors in the market going forward will be to seek ways to provide cost-effective and eco-friendly equipment as an integral part of their product offerings.

Some prominent players in the Global Construction Equipment market include:

• Caterpillar
• CNH Industrial N.V.
• Doosan Corporation
• Escorts Limited
• Hitachi Construction Machinery Co., Ltd.
• Hyundai Construction Equipment Co., Ltd.
• J C Bamford Excavators Ltd.
• Deere & Company.
• Kobelco Construction Machinery Co., Ltd.
• Komatsu Ltd.
• Liebherr-International AG
• Manitou BF
• HÄ°DROMEK
• Sany Heavy Industry Co., Ltd.
• Sumitomo Heavy Industries, Ltd.
• Terex Corporation
• Volvo AB
• Zoomlion Heavy Industry Science and Technology Co., Ltd

Order a free sample PDF of the in Construction Equipment Market Intelligence Study, published by Grand View Research.