Construction Equipment Market Size, Share & Trends Analysis Report By Product (Earth Moving Machinery, Material Handling Machinery), By Propulsion Type (ICE, Electric, CNG/LNG), By Power Output, By Region, And Segment Forecasts, 2023 - 2030

Construction Equipment Market Size, Share & Trends Analysis Report By Product (Earth Moving Machinery, Material Handling Machinery), By Propulsion Type (ICE, Electric, CNG/LNG), By Power Output, By Region, And Segment Forecasts, 2023 - 2030

Construction Equipment Market Growth & Trends

The global construction equipment market size is expected to reach USD 363.23 billion by 2030 and expand at a CAGR of 8.4% from 2023 to 2030, according to the recent reports of Grand View Research, Inc. The increasing investments made by governments across the globe in the development of public infrastructure is one of the major factors expected to fuel construction equipment market growth. Additionally, the demand for construction equipment is predicted to rise owing to the increased residential and commercial construction activity caused by the growing population in emerging countries.

Globally, the sales of earthmoving machinery exceeded 717,000 units in 2022 and is projected to surpass 1,000,000 units by 2030. This increase can be attributed to the increasing investments in industrial construction projects, which necessitate the utilization of heavy machinery. Earthmoving equipment plays a vital role in tasks such as excavation, grading, and material handling, enabling efficient and timely completion of construction projects.

In the upcoming years, the industry is predicted to grow due to favorable government efforts to boost the infrastructure development, ultimately increasing construction activities. For instance, the U.S. federal government's announcement of stimulus packages in August 2021, which included USD 550 billion in new federal investment for infrastructure modernization, is anticipated to spur building spending in the nation. Similar to this, the Government of India announced in 2019 that it will invest USD 1.4 trillion for infrastructure projects from 2019 to 2023; this represents the country's anticipated demand for construction equipment over the forecast period.

High ownership costs are one of the key factors limiting the expansion of the construction equipment business. These machines need frequent maintenance, such as oil and other lubricant changes, engine and hydraulic motor service, filter replacement, and tire-related work, which has a significant impact on market data. Furthermore, industry players are concentrating on providing intelligent construction equipment, which needs skilled operators for safe and secure utilization. The adoption of construction equipment is being hampered by a lack of qualified and professional operators in the market.

Moreover, the construction equipment market is witnessing rapid technological advancements, such as the integration of telematics, Internet of Things (IoT), and Artificial Intelligence (AI). For instance, telematics solutions can help the users in obtaining the exact location of the equipment, triggering alerts for scheduled maintenance, tracking fuel consumption, protecting the equipment against theft, setting on/off timings of vehicles, and accessing the engines for running remote diagnostics. As a result, these innovations offer numerous benefits, including improved productivity, remote monitoring, predictive maintenance, and enhanced safety features.

Construction Equipment Market Report Highlights

• The material handling machinery segment dominated the market and is expected to register a highest over the forecast period. It can be ascribed to an increase in demand for crawler cranes that offer greater convenience and ease of accessibility in small construction sites, especially in urban areas
• The earthmoving machinery segment is expected to expand at a significant CAGR over the forecast period. The segment is expected to witness progressive demand owing to the increasing investments for industrial and commercial construction projects in emerging economies of the Asia Pacific and the Middle East and Africa
• The concrete and road construction machinery are projected to expand at the highest growth rate over the forecast period. Favorable government initiatives to increase their investment in highway construction are anticipated to drive the growth of the segment
• The electric construction equipment segment is anticipated to register the highest CAGR from 2023-2030. Governments across the globe are implementing regulations and providing incentives to promote the widespread adoption of electric construction equipment. For instance, the European Union has made it mandatory for OEMs to install essential ADAS functions, such as cruise control and lane departure warning systems on heavy equipment by 2020
• The <100 HP segment led the largest market share of more than 38.0% in 2022. <100 HP construction equipment, including mini-excavators, skid steer loaders, compact wheel loaders, and compact track loaders, offer exceptional versatility and maneuverability. The growth is due to the rising use of compact construction equipment in emerging economies like Asia Pacific, Latin America, and Africa
• Several governments, including those in Taiwan, New Zealand, UK, Brazil, and France, are concentrating on enhancing their transportation and construction infrastructures. To speed up their economic growth, these governments are significantly funding numerous infrastructural projects

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