North America Construction Equipment Market Outlook 2027

In North America, the construction industry is a primary contributor to the overall economy and is forecasted to grow more in the forecasted period. The need for economic prosperity has channeled the finances towards the manufacturing of construction equipment, which will lead it to grow in the future. North America is well known to be a developed economy in terms of the construction industry and is considered the second major market in the construction industry. With the tag of a developed economy and high disposable income, North America has become a developed market for the construction industry.

The report, titled North America Construction Equipment Market Outlook, 2027 shows a complete analysis of the region's performance in terms of the overall construction equipment sales. In 2021, the market stood at USD 35 billion, which is anticipated to expand at more than 4.5% CAGR for 2022-2027. Even though the region is considered to be highly developed, the demand for large-scale earth-moving equipment is increasing constantly. It is the world’s largest dozer and grader market in volume terms; more than other major emerging markets, where such equipment would be expected to be sold in large numbers for new-build infrastructure projects.

Residential, commercial, and industrial development; public-private partnerships; and global economic growth are the primary drivers of off-road vehicles and heavy equipment used for heavy operations tasks such as lifting, material handling, excavation, and others. The construction equipment market is expected to expand significantly as a result of increased investment in the construction sector by both private and public players. An upswing in the number of large-scale projects such as mining, road transportation, and port building and construction in the oil and gas sectors have led to a surge in demand for excavators. Construction equipment rental services and offsite construction are two of the major emerging trends that allow users to meet their requirements and get maximum utilization without heavy capital investments.

North American countries, including the U.S. and Canada, have witnessed rapid urbanization in recent years, and new construction has tried to keep up with the increased demand for smart and sustainable infrastructure solutions. The shift towards urban areas with growing employment opportunities has resulted in rising public as well as private sector investments in the construction sector. The U.S. construction equipment market size is projected to record unprecedented growth over the next few years. The regional demand can be attributed to growing investments by manufacturers and suppliers in the installation of advanced automated equipment in warehouses and distribution centers. The Canadian construction equipment market is slated to experience notable expansion in the near future, with increasing urbanization and a subsequent rise in infrastructure investments by the public and private sectors. The growing influx of immigrants into the country is further augmenting the need for the development of new residential and commercial infrastructure.

The Government of Canada is expected to invest substantially in the expansion of the residential and commercial sectors. The regional government has already invested US$81.2 billion as part of its Invest in Canada initiative to support the development of public and commercial infrastructure in the country. Regional construction equipment suppliers and manufacturers are poised to witness promising opportunities in the coming years. Major infrastructure projects, such as the Gordie Howe International Bridge in Canada, the Purple Line in Maryland, the I-4 Ultimate in Florida, the Central 70 in Colorado, and the SH 99 Grand Parkway segments F1, F2, and G in Texas, are also boosting demand. Earthmoving & road building equipment, concrete equipment, and material handling & cranes are among the different types of equipment used in construction. Earthmoving and road building equipment are expected to witness substantial demand in the upcoming years with increasing mechanization of infrastructure development activities to speed up these processes and achieve required quality.

In response to the surging demand, construction equipment suppliers are focusing on designing more advanced equipment with cutting-edge technologies such as AI and IoT. For instance, in November 2018, Komatsu launched two new excavator models, PC300LC-8M0 and PC350LC-8M0, for use in road building and mining applications. Also, ongoing investments in smart city development projects are expected to create a significant demand for advanced construction materials and equipment. The majority of the smart city projects are being backed by government initiatives such as the Smart Cities Project under the U.S. Economic Development Program. Further, there has also been an increase in airport development activities, which is further likely to enhance the demand for heavy-duty construction equipment in the North American region. In addition to that, the emergence of e-commerce players is likely to further complement the regional outlook. Major ecommerce companies such as Amazon and eBay are investing substantially in the construction of warehouses for storage and inventory. In September 2020, Amazon disclosed plans to build more than 1,000 warehouses and delivery centers in the sub-urban regions of the country.

The North American construction equipment market is projected to gain momentum in the forthcoming years on the back of increased infrastructural development of residential buildings and the growing expatriate population across the region. Moreover, the increase in the expansion of the construction sector as the growing number of ongoing construction projects across the region, such as California High-Speed Rail, Richards Boulevard Office Complex, Los Angeles International Airport, and Vogtle Electric Generating Plant, is estimated to instigate the deployment of construction equipment and is further estimated to boost the growth of the North American construction equipment market in the coming timeframe.

Further, several ongoing projects across the region are California high-speed rail construction, Las Vegas convention centre, and Hudson Yards, which are likely to indicate the massive demand for construction equipment is expected to benefit the North American construction equipment market growth in the coming timeframe. Moreover, rising infrastructure investment such as highways, bridges, and metros is anticipated to incite the adoption of construction equipment during the forecast period. Additionally, on the basis of product type, earthmoving works in various earth activities such as digging trenches, grading soil, and removing dirt, which would foster the significant demand for construction equipment and would instigate the growth of the North American construction equipment market in the coming years.

Key players operating in the North American construction rental equipment industry are Ahern Rentals Inc., Briggs Equipment Inc., Caterpillar Inc., Cooper Equipment Rentals Ltd., H&E Equipment Services, Herc Rentals, Inc., Hinkel Equipment Rental Associates, and United Rentals, Inc. These players are majorly focusing on mergers and acquisitions to enhance their business operations and reach in the market. For instance, in July 2018, United Rentals acquired BakerCorp International Holdings, Inc. The acquisition was valued at $175 million. This assisted the company to cater to a wide range of customer groups and expand their construction equipment rental services. Similarly, in March 2019, Cooper Equipment Rentals Ltd. acquired Prime Rentals Ltd., which is an independent equipment rental company in Canada.

COVID-19 Impacts:

The market has been significantly impacted due to the prevailing situation of COVID-19. The manufacturing plants of various industries were shut down due to the pandemic. The manufacturing of automotive vehicles has been affected and the sales have also decreased because of the emergence of the COVID-19 pandemic. The sales of new construction equipment have been dropping substantially since April 2020 due to a shortage of capital and financial insecurities. The equipment rental services have also been impacted due to the temporary slowdown in construction activities in the region. However, the market is expected to witness steady growth subject to the revival of economic conditions in 2021.

Major companies present in the market

Caterpillar Private Limited, CNH Industrial, Doosan Infracore, Epiroc Construction Machinery Co. Ltd, Hitachi Construction Machinery Co. Ltd, J C Bamford Excavators Ltd, John Deere Ltd, Kobe Steel Ltd, Komatsu Ltd., Kubota Corporation, Liebherr Group, Metso Corporation, Sandvik Mining And Rock Technology, Sany Group, Terex Corporation, Volvo Construction Equipments, XCMG Ltd., Zoomlion Co. Ltd

Considered In the Report

• Geography: North America
• Base year: 2021
• Historical year: 2016
• Estimated year: 2022
• Forecasted year: 2027

Countries covered:

• USA
• Canada
• Mexico

Aspects Covered In the Report

• Market Size By Value for the historic time period (2016-2021)
• Market Size By Value for the forecast time period (2021-2027)
• Market Share by Application (2016, 2021 & 2027F)
• Market Share by Equipments (2016, 2021 & 2027F)
• Market Share by Country (2016, 2021 & 2027F)
• Market Share by Company (2021)

Segments covered in the Report

By Application

• Earth Moving Machinery
• Material Handling Machinery
• Concrete and road construction Machinery
• Other Machinery

By Earth Moving Machinery

• Excavators
• Loaders
• Dozers
• Motor Graders

By Material Handling Machinery

• Dumper /Dump Truck/ Tippers
• Cranes (Tower Crane, Mobile Crane)
• Telescopic Handlers
• Forklift

By Concrete and Road Construction Machinery

• Cement/Transit mixers
• Compactors & Road Rollers
• Pavers/Asphalt Finishers
• Others

Intended Audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the construction machinery and excavator industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.