Global Construction Machinery

Global Construction Machinery

Global demand for construction machinery is forecast to expand 6.1% annually to $317 billion in 2027. Gains will be driven by a significant improvement in sales in China – the world’s largest construction machinery market – following a sharp, pandemic-related decline in 2022. In addition, growth will be supported by:

• the development of new construction equipment that features advanced technologies, such as state-of-the-art engines and data collection capabilities
• intensification of global workforce issues (e.g., rising labor costs, skilled worker shortages) and the adoption of new regulations (e.g., emissions standards), which will drive investment in new construction equipment

Market Conditions in China to Improve Dramatically

Despite a sharp increase in construction equipment prices in 2022 that supported market value throughout much of the world, demand in China contracted by 26% because of the economic disruption that resulted from the government’s “Zero-COVID” policy, which included temporary lockdowns and significantly impeded construction activity. However, the government ended this policy in November 2022, and product sales going forward are expected to recover at a swift pace, as construction and mining activity accelerate. Additionally, the Chinese government will continue to expand and upgrade the country’s expansive public infrastructure and strengthen construction and mining sector regulations, which in some cases will require the use of more advanced, better performing equipment.

All-Electric Equipment & Smart Technology among Key Technological Improvements

In order to meet the needs of their customers and comply with a variety of regulations, suppliers have continue to focus on updating and improving their construction machinery with the latest technology. Among the most significant of these improvements are all-electric machines and the incorporation of smart technology:

• Improvements to battery technology and greater familiarity with battery-powered motor vehicles have encouraged key suppliers such as Komatsu and Volvo Construction Equipment to introduce all-electric equipment to the marketplace. These vehicles feature much lower emissions than gas-powered equipment (an important factor in meeting environmental regulations in some countries), run more quietly, and feature fewer moving parts, thus making a breakdown less likely.
• Major suppliers such as Deere and HD Hyundai Infracore have introduced smart technology to their vehicles to improve their performance. Smart systems collect and analyze data that allows the user to operate the machinery with better precision and control.

Study Description

This Freedonia study analyzes the $237 billion global construction machinery market. It provides supply and demand figures for 2012, 2017, and 2022, and forecasts for 2027 and 2032. We also offer annual data for the 2019-2026 period and historical construction equipment demand charts for the 2004-2022 period for all countries. Global Construction Machinery also presents product demand by type (excavators; loaders; cranes and draglines; dozers and off-highway trucks; mixing and paving equipment; grading and compaction equipment; and parts and attachments) for 18 countries. In addition, this Freedonia study offers a competitive analysis of industry leaders and provides market share for 23 major suppliers, such as Caterpillar, Deere, Hitachi Heavy Industries, Hyundai, JCB, Komatsu, Liebherr-International, SANY, Tadano, Terex, Volvo, Xuzhou Construction Machinery, and Zoomlion. We also present regional market share figures for 2022.