Construction Equipment Market Size, Share & Industry Trends Analysis Report By Product, By Earth Moving Machinery Type, By Material Handling Machinery Type, By Concrete & Road Construction Machinery Type, By Regional Outlook and Forecast, 2021-2027

The Global Construction Equipment Market size is expected to reach $136.7 billion by 2027, rising at a market growth of 3.5% CAGR during the forecast period.



Construction equipment is specialized machinery that is used to carry out construction tasks. This equipment can perform various tough and heavy-duty tasks such as drilling, hauling, digging, paving, and grading. Construction, manufacturing, infrastructure, and oil and gas industries are the key users of the construction equipment.

The rising emphasis on public-private partnerships is expected to be one of the causes driving the growth of the construction equipment market. These collaborations refer to a joint venture between the private sector and the government for the construction of public infrastructure. A private firm manages a project and contributes technical and operational knowledge to government programs in this sort of partnership. Additionally, as the world's population grows, the demand for infrastructures such as housing and transportation also increases, therefore, the demand for these machines is expected to rise due to an increase in construction activities around the world. Moreover, government programs, like stimulus packages, that encourage people to buy new homes, as well as reduced mortgages, are likely to increase the growth of the market.

Excavators are a crucial and commonly utilized type of construction equipment. The primary function of these machines is excavation, but they are also employed for a variety of other tasks such as demolition, heavy lifting, river dredging, and tree cutting. A cabinet and a long arm are included in excavators. A long arm digging bucket is also given at the end of the machine, and a cabinet is provided for the machine operator. This entire cabin design can be rotated up to 360 degrees, making it easier to operate. Wheeled excavators and tracked excavators are now widely available for people all over the world.
Another form of soil excavating apparatus is bulldozers, which are leveraged in the process of removing the topsoil layers up to a certain depth. The sharp-edged large metal plate offered at its front is used to remove soil. Hydraulic pistons are commonly used to decline and incline this plate. These are commonly used to remove weak soil and rock strata, lift soil, and various other purposes.

COVID-19 Impact Analysis

The COVID-19 pandemic posed a significant challenge in front of various economies across the world. Various businesses were majorly hampered due to the outbreak of the coronavirus. In addition, governments across all the countries were forced to enforce lockdowns over their countries, due to which, all the businesses were sent under a temporary closure. Owing to this, the supply of various goods and services was regulated. Moreover, due to the travel restrictions imposed by governments, the worldwide supply chain was majorly devastated. The COVID-19 pandemic also had a major impact on the construction equipment sector. Due to the lockdown, construction activities around the world were majorly halted. The majority of the construction projects were canceled or postponed. Containment policies led to a significant drop in economic activity.

Market driving Factors:

Increasing penetration of electric and autonomous construction machines

The construction equipment market is being transformed by electrification, which presents a substantial opportunity and design options for various equipment across the market. Electrification has been rising in various market segments, including construction equipment, such as cars, buses, and other vehicles. This has been made feasible by the rising development and increasing affordability of modern technology and machinery, as well as the enforcement of pollution restrictions, which have altered the future of the construction equipment business. Several cities throughout the world have imposed prohibitions on the utilization of diesel within their boundaries, affecting construction equipment operations in certain areas. In China and Europe, stronger emission standards for heavy machinery, as well as equipment, are being imposed at the global, regional, and municipal levels.

The advent of rental construction equipment services

Rental services are significantly gaining the traction of consumers in the worldwide construction equipment industry these days. According to the Construction Equipment Rental Association (CERA), emerging and most populated economies are expected to see increased demand for rental services. Regional and local rising firms are anticipated to build a position in the leasing service industry, generating substantial revenue from their local customer base. In order to benefit their business and customers simultaneously, construction companies focus on sectors such as general infrastructure, utility, and electrical, oil and gas, as well as commercial and residential development.

Marketing Restraining Factor:

Lack of harmonized emission regulations

This Global Technical Regulation (GTR) aims to provide a globally harmonized method for determining the levels of gaseous compound emissions, particulate matter emissions, particle number emissions, CO2 emissions, electric energy consumption, fuel consumption, and electric range from light-duty vehicles. Engine and equipment manufacturers have pressed regulatory agencies in various nations to standardize global emission standards in order to ease engine development and emission type approval or certification for diverse markets. For example, the California Air Resources Board (CARB) has harmonized California GHG standards with EPA Federal standards, allowing manufacturers to establish compliance with California requirements by demonstrating compliance with the 2017 to 2025 EPA Federal criteria.

Product Outlook

Based on Product, the market is segmented into Earth Moving Machinery, Material Handling Machinery, and Concrete & Road Construction Machinery. In 2020, the material handling machinery segment witnessed a substantial revenue share of the construction equipment market. Material handling equipment is mechanical machinery that moves, stores, controls, and protects materials, goods, and products during the manufacturing, distribution, utilization, and disposal processes. In addition, within the confines of an organization, material handling equipment is utilized to move bulk, packaged, and individual products. This equipment are leveraged in order to increase the efficiency of material flow, improve safety & working conditions, and reduce material handling costs. Hence, the growth of this segment is rapidly increasing.

Earth Moving Machinery Type Outlook

Based on Earth Moving Machinery Type, the market is segmented into Excavator, Loader, and Others. The increasing growth of the segment is owing to the fact that infrastructure projects are booming all over the world, due to which, builders and contractors are widely using traditional heavy-duty excavators to make dams and roadways. Moreover, an excavator is a big, diesel-powered construction machine that uses its bucket, which is placed on the front of the machinery, to dig trenches, pits, and foundations in the ground.

Material Handling Machinery Type Outlook

Based on Material Handling Machinery Type, the market is segmented into Crawler Cranes, Trailer Mounted Cranes, and Truck Mounted Cranes. In the material handling machinery segment, trailer-mounted cranes accounted for a significant revenue share of the market. Boom cranes installed on trailers are ideal for delivering and placing the largest and bulkiest goods. They are a practical option to hauling as well as setting non-divisible goods that are too big for cranes mounted on trucks. Therefore, the growth of the market is increasing owing to this factor.

Concrete & Road Construction Machinery Type Outlook

Based on Concrete & Road Construction Machinery Type, the market is segmented into Concrete Mixer & Pavers, Construction Pumps, and Others. Concrete mixers & pavers registered the largest revenue share of the market. A concrete mixer, also called a cement mixer, is a machine that mixes cement, aggregates, such as sand or gravel, and water in a uniform manner to make concrete. A spinning drum is used to blend the components in a standard concrete mixer. Portable concrete mixers are significantly being utilized for small-scale projects to ensure that the concrete can be mixed on the job site, enabling workers a plenty of time to utilize it before it hardens.

Regional Outlook

Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. In 2020, North America garnered a significant revenue share of the construction equipment market. An increase in the number of people living in their own residencies. According to the United States Census Bureau, expenditure on construction increased by 5.8% in January 2021, resulting in a rise in equipment demand in 2021. Moreover, in the first few quarters of 2022, increased rental utilization of earthmoving equipment, particularly mini-excavators and small truck loaders, is predicted to raise the demand for new equipment among rental companies.

The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; Volvo Group and Caterpillar, Inc. are the forerunners in the Construction Equipment Market. Companies such as Terex Corporation, Komatsu Ltd., Zoomlion Heavy Industry Science & Technology Co., Ltd. are some of the key innovators in the Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Caterpillar, Inc., Kobelco Construction Machinery Co., Ltd. (Kobe Steel, Ltd.), Komatsu Ltd., Liebherr-International AG, Sumitomo Heavy Industries, Ltd., Terex Corporation, Volvo Group, Zoomlion Heavy Industry Science & Technology Co., Ltd., Hitachi Construction Machinery Co., Ltd. (Hitachi ltd.), Hyundai Heavy Industries Co., Ltd. (Hyundai Construction Equipment Co., Ltd.)

Partnerships, Collaborations and Agreements:

• Sep 2021: Liebherr came into a framework agreement with Hexagon, a world leader in digital reality solutions. Following the agreement, Hexagon's technologies is expected to allow Liebherr to offer autonomous mining solutions.
• Sep 2021: Liebherr entered into a Memorandum of Understanding with ABB, a Swedish-Swiss multinational corporation. Under this partnership, the companies is expected to jointly bring solutions to the market to reduce the greenhouse gas emissions related to heavy machinery in mining.
• Aug 2021: Caterpillar teamed up with Gmmco, a Non-govt company based in India. Following this collaboration, the companies is expected to introduce Cat424 in order to offer convenience, enhanced fuel savings, and robust engineered structures. Moreover, the new product is expected to be available in various options.
• Jul 2021: Komatsu joined hands with AgJunction, a leading vendor of advanced guidance and autosteering solutions. Under this partnership, the companies is expected to bring automation across the operation of various dump trucks on construction sites. Moreover, the companies is expected to integrate a general-purpose automation kit by AgJunction, which enables real-time obstacle detection and avoidance for the dump trucks, as well as automation-compatible dump trucks to be designed by Komatsu.
• Jul 2021: Komatsu teamed up with Honda, a Japan-based automobile manufacturer. Under this partnership, Honda is expected to electrify Komatsu's Honda Mobile Power Pack-built micro excavators and deploy a battery-sharing system.
• Feb 2021: Liebherr partnered with Leica Geosystems, a subsidiary of Hexagon. Following this partnership, the companies aimed to offer easy-to-use integrated solutions to the heavy construction sector in order to deliver ready-to-use technology to its customers.
• Feb 2021: Volvo came into a global supply partnership with Engcon, a Swedish tiltrotator manufacturer. Under this partnership, Volvo is expected to integrate Engcon tiltrotators in its EC300 E and EC250 E excavators. Moreover, the companies is expected to jointly develop intelligent and integrated solutions.
• Jan 2021: Komatsu collaborated with Proterra, a leader in innovating commercial vehicle electrification technology. Under this partnership, Komatsu is expected to leverage Proterra's cutting-edge battery technology for the development of the first battery-electric middle-class hydraulic excavator of Komatsu.
• Jul 2020: Kobelco partnered with iQuippo, a dealer of new and refurbished construction equipment. Under this partnership, Kobelco is expected to market mining and construction equipment developed by the OEM over its platform to expand its reach.

Acquisitions and Mergers:

• Aug 2021: Hyundai acquired Doosan Infracore, the top construction equipment manufacturer in South Korea. This acquisition is expected to strengthen the company's position across the country.
• Jul 2021: Terex took over MDS International, a heavy-duty and recycling trommels manufacturer. This acquisition is expected to strengthen the company's vision of growth to expand its portfolio in the screening, crushing, and environmental industries.
• Mar 2021: Sumitomo completed its acquisition of Aver Asia, a construction and infrastructure equipment rental company. Following the acquisition, the company is expected to expand its business across Southeast Asia to enhance productivity and safety in the construction industry across the region by delivering highly reliable construction equipment and making it more accessible.
• Jun 2020: Caterpillar took over Marble Robot, California-based autonomy, and robot technology Solutions Company. Under this acquisition, the company is expected to leverage Marble Robot's expertise of the new team to bring scalable solutions to fulfill the evolving requirements of construction, industrial, quarry, and waste industries.

Product Launches and Product Expansions:

• Jan 2022: Zoomlion unveiled its first collaborative intelligent robotic excavator. The new product comprises a human-machine interaction system and integrates intelligent control, artificial intelligence, and other advanced technologies to offer the excavator, the ability to communicate with the operator and automate tasks. Moreover, the new product is also compatible with voice commands and gestures.
• Nov 2021: Liebherr introduced LTM 1110-5.2 mobile crane, an upgraded version of LTM 1110-5.1 mobile crane. The new product comprises the driver's cab, the crane control system, and the gearbox.
• Nov 2021: Hyundai rolled out B-X Series, a 2.5-ton advanced electric forklift. Through this launch, the company aimed to strengthen its position in the eco-friendly logistics industry by offering a forklift that can be used in indoor workplaces and is estimated to become a core product.
• Oct 2021: Terex unveiled Powerscreen Pulse, an industry-leading telemetry platform. With this launch, the company is expected to enable its customers to receive more detailed insights into the performance of their machines and entire fleets, intuitive dashboards, and filters and custom reports on productivity and health of their equipment.
• Oct 2021: Terex rolled out the TF-50L and TF-50H feeders, two new products to its tracked conveyors offerings. The new product range is expected to complement the current portfolio of the company. Moreover, the new machines are easy to use, manufacture a quality product, and allow operators to enhance their operations.
• Oct 2021: Volvo released EC18 and ECR18 Electric excavators, and L20 electric wheeled loader. The new products aimed to complement Volvo CE's strategy of reaching net-zero value chain greenhouse gas emissions by 2040
• Sep 2021: Tata Hitachi released TL340H Prime, a new CEV-4 (BS4) compliant wheel loader of the company. The new product is expected to offer reduced operational cost and increased reliability along with optimal dump reach and height. Moreover, the machine also consists of an array of bucket options to manage a broad range of materials.
• Aug 2021: Volvo introduced P4370D ABG Wheeled paver, P7920D ABG, P5320D ABG, and P8820D ABG Tracked pave, a new range of Volvo Paver. Through this launch, the company aimed to offer seamless performance as well as finish to several projects along with maximum reliability and optimized fuel consumption.
• Aug 2021: Volvo launched L120H and L90H Wheel Loadersin India. The new H series Wheel Loaders are up to 10% more efficient as well as 20% more fuel-efficient
• Jul 2021: Volvo rolled out EC550E and EC530E, two 50-ton classes for excavators models. The new products comprise the highest engine power in the class to fulfill the contractors' demand for high performance in heavy-duty digging, mass excavation, and large-scale site preparation.
• Jun 2021: Kobelco Construction Machinery unveiled SK210NLC-11 and SK210LC-11. The new product is expected to offer high-performance, increased efficiency, and enhanced productivity. Moreover, this product is based on Kobelco's elegant Performance X Design concept for the excellent operator.
• Apr 2021: Liebherr introduced R 928, a generation 8 crawler excavator, an addition to its generation 8 series. With this launch, the company aimed to significantly decrease the transport problems of several customers.
• Mar 2021: Liebherr unveiled R 9600 hydraulic excavator, a successor to the R 996B, in Austalia. The new product aimed to achieve the highest sustainability, performance, safety, lifetime, ease of maintenance, and Total Cost of Ownership standards.
• Feb 2021: Terex Finlay unveiled LJ-130 Hybrid Jaw Crusher. The new product is expected to offer a robust mobile solution for operators with the requirement of a highly productive machine for hard rock and ore applications.
• Jan 2021: Caterpillar rolled out Cat 352 in 50 tons, Cat 374 in 72 tons, and cat 395 in 94 tons, a range of its next-generation large excavators. The new products are more durable, efficient, safer, comfortable, and convenient to use. In addition, these products is expected to allow the user to save significant costs.
• Jan 2021: Hyundai introduced SMART PLUS, an upgraded range of excavators, with new global color. Through this launch, the company aimed to strengthen its position across the export market and India. The new product range comprises 11 excavator models spanning from 8 tons to 50 tons and is designed to serve the mining, construction, irrigation, and infrastructure sector.

Geographical Expansions:

• Jun 2021: Zoomlion expanded its geographical footprint by launching a new factory in Europe. This expansion aimed to enhance and advance localized production of Zoomlion in the European market. Moreover, the new facility is expected to also offer a complete range of services to local customers.
• May 2021: Zoomlion expanded its geographical footprint by launching its tower crane intelligent manufacturing factory in Changde, Hunan. This geographical expansion is expected to significantly enhance the production efficiency of the company with a manufacturing capacity of one tower crane rolls off the assembly line every 18 minutes.

Scope of the Study

Market Segments Covered in the Report:

By Product

• Earth Moving Machinery
• Excavator
• Loader
• Others
• Material Handling Machinery
• Crawler Cranes
• Trailer Mounted Cranes
• Truck Mounted Cranes
• Concrete & Road Construction Machinery
• Concrete Mixer & Pavers
• Construction Pumps
• Others

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• Caterpillar, Inc.
• Kobelco Construction Machinery Co., Ltd. (Kobe Steel, Ltd.)
• Komatsu Ltd.
• Liebherr-International AG
• Sumitomo Heavy Industries, Ltd.
• Terex Corporation
• Volvo Group
• Zoomlion Heavy Industry Science & Technology Co., Ltd.
• Hitachi Construction Machinery Co., Ltd. (Hitachi ltd.)
• Hyundai Heavy Industries Co., Ltd. (Hyundai Construction Equipment Co., Ltd.)

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