Heavy-duty vehicles intended particularly for accomplishing construction chores, primarily earthwork, are referred to as construction equipment. Some of the construction equipment includes Wheel Tractor Scraper, Bulldozers, Graders, Dragline Excavator, etc. construction equipment is split into 3 sections based on purpose and use. They are Earth Moving Equipment, Construction Vehicle, And Material Handling Equipment.
Covid-19 Impact & Market Status
The construction equipment market was adversely hit in the three quarters of 2020 owing to the rapid spread of a fatal virus called COVID-19. Governments across the globe imposed strict safety measures and declared a lockdown to counter the virus. This worldwide imposition of lockdown caused the temporary suspension of construction activities, a halt in construction equipment manufacturing facilities, and long terms turbulence in global imports & exports. Companies like, Liebherr Group, CNH Industrial N.V., and The Manitowoc stalled their production operations in the 2nd quarter of 2020 to follow safety protocols against coronavirus. In the post-pandemic era, the construction equipment industry is anticipated to record a speedy recovery in 2022 which is led by several government initiatives to develop the infrastructure of the nations.
Concrete equipment demand is being fueled by a significant increase in road building projects.
In North America, there is a growing need for industrial development projects and rental construction equipment.
In 2021, the North American construction equipment industry was valued at more than USD 30 billion. The strategic and sustainable initiatives taken up by the government for infrastructure development and advancement in the logistics & transport sectors are offering a conducive avenue to the regional industries. Moreover, the exemplary presence of well-established market participants and their growing inclination toward introducing innovative products would hike the adoption of construction equipment.
Asia-Pacific is Expected to Dominate the Global Market
The Asia-Pacific region stands first in the global construction equipment market as it holds the largest % of market share (by China, Japan, and India). The deployment of construction equipment for the South-North water transfer plant project in China is most likely to be done by leasing and owning. As a result, demand for construction machinery is expected to increase throughout the forecasted years. The Asia Pacific region's increasing number of dams, residential and commercial complexes, real-estate firms, and rail and road infrastructure growth are all major drivers for the worldwide construction machines industry.
The construction equipment market was valued at 150 billion dollars in 2022, and it is estimated to grow at a CAGR of 5% over the forecasted year, reaching 157.5 billion dollars.
Construction equipment can effectively discharge heavy-duty works which are required in the construction sector. The shifting emphasis of construction companies and building contractors toward the growing operations of construction without compromising the safety & security is likely to expand the business across the globe.
The surge in prominence of commercial constructions like shopping malls, IT parks, and other government buildings is driving the growth of the construction equipment industry. The construction equipment market is witnessing an upward trend due to the rising inclination toward metro cities and huge buildings. Government authorities are now making strategic plans to collaborate with private firms to accelerate their prominence in urban cities and create a conducive market outlook.
The expensive costs of ownership are one of the restricting factors hampering the upliftment of the construction equipment industry. The construction equipment requires intense maintenance for which changing oil & other lubricants, filter replacement, engine & hydraulic motor servicing, and tire-related works are needed. All these items and processes make it costly to maintain construction equipment. For instance, key participants of the industry are focusing on the introduction of advanced construction machinery for which well-trained operators (for safe and secure utilization) are a prerequisite. However, the shortage of efficient and trained operators in the market is becoming another obstacle to the extension of the construction equipment market across the world.
The increasing focus on standardized infrastructure, as well as the advancement of automation in construction and manufacturing activities, has had a significant influence on market growth. Due to a surge in road building initiatives performed by the federal and state governments, particularly in Asia-Pacific, the machinery used in road construction has seen a significant increase in recent years. The upward demand for cost-effective machines is pushing the manufacturers of construction equipment to choose electric and hybrid vehicles over mechanical and traditional hydraulic machines.
The concept of renting or leasing construction equipment is getting prominence exponentially due to the equipment’s reasonable costs and the cost of the maintenance process. Moreover, the Rental companies are offering machinery along with the facility of trained professional machine operators and drivers to deal with any technical errors.
The boom in Digitalization, IT connectivity, and automation industry is pushing market development forward leaving an everlasting impact on construction projects. Moreover, renting companies are geared up for investing in Research and Development activities to meet the growing demand for advanced construction machinery and replace the former machines with new/ upgraded machinery.
The Key players operating in the construction equipment market include Doosan Group, Guangxi LiuGong Machinery Co., Ltd., Caterpillar, Inc., CNH Industrial, Hitachi Construction Machinery Co., Ltd., Kobelco Construction Machinery Co., Ltd., Deere & Company, J.C. Bamford Excavators Limited, Sumitomo Heavy Industries Ltd., Komatsu Ltd., Liebherr Group, Palfinger AG, Tadano Ltd., SANY Group, The Atlas Copco Group, The Manitowoc Company, Inc., Wacker Neuson, Terex Corporation, XCMG Group, Volvo Construction Equipment, and Zoomlion Heavy Industry Science & Technology Co., Ltd.
Latest Innovations in the Global Construction Equipment Market: A Snapshot
- In January 2022, CanLift Equipment Ltd. Partnered with a renowned construction manufacturer named Xuzhou Construction Machinery Group Co., Ltd to widen its product line for manufacturing construction machinery equipment.
- In January 2022, Japan's biggest construction machinery company Hitachi declared the sale of its 50% stake worth USD 1.6 billion. For instance, Itochu holds 51% shares of the Japan Industrial Partners in the construction equipment market.
- In February 2022, a construction technology company based in Berlin named Flex Cavo raised its capital by USD 8 million for manufacturing construction equipment by introducing more than 150 new construction machinery and equipment.
Construction Equipment Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 157.5 billion|
|Growth Rate||CAGR of 5 % during 2021-2028|
|Segment Covered||Product, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Doosan Group, Guangxi LiuGong Machinery Co., Ltd., Caterpillar, Inc., CNH Industrial, Hitachi Construction Machinery Co., Ltd., Kobelco Construction Machinery Co., Ltd., Deere & Company, J.C. Bamford Excavators Limited, Sumitomo Heavy Industries Ltd., Komatsu Ltd., Liebherr Group, Palfinger AG, Tadano Ltd., SANY Group, The Atlas Copco Group, The Manitowoc Company, Inc., Wacker Neuson, Terex Corporation, XCMG Group, Volvo Construction Equipment, and Zoomlion Heavy Industry Science & Technology Co., Ltd.|
Key Segments of the Global Construction Equipment Market
Product Overview, 2022-2029 (USD Billion)
- Earthmoving & Roadbuilding Equipment
- Compaction Equipment
- Material Handling and Cranes
- Storage & Handling Equipment
- Engineered Systems
- Industrial Trucks
- Bulk Material Handling Equipment
- Concrete Equipment
- Concrete Pumps
- Transit Mixers
- Asphalt Pavers
- Batching Plants
Regional Overview, 2022-2029 (USD Billion)
- North America
- The US
- Rest of Europe
- The Asia Pacific
- Rest of Asia Pacific
- South America
- Rest of South America
- Middle East & Africa