Construction Equipment Market Overview
The global construction equipment market size was valued at USD 112.98 billion in 2021 and is projected to reach USD 161.99 billion by 2030, at a CAGR of 3.9% from 2022 to 2030.
The worldwide rise in construction activity is anticipated to drive the demand for these equipment. Favorable government initiatives such as stimulus packages and lower housing rates that inclined consumers for new house purchases are key factors expected to drive market growth over the forecast period. However, supply chain and inventory concerns coupled with semiconductor shortages are likely to hinder the market growth over the next few years.
Gather more insights about the market drivers, restrains and growth of the Global Construction Equipment Market
The rising popularity of electric construction equipment is expected to create new revenue streams for the OEMs over the next few years. These equipment are operated on batteries and offer various attributes such as lower maintenance, reduced noise, lesser vibration and provides greater convenience for laborers to operate on the field. They are currently at the nascent stage and are expected to gain momentum over the forecast period. OEMs such as AB Volvo, Caterpillar, and Komastu have already commercialized compact electric excavators and wheel loaders in the market. However, the high initial upfront cost is expected to be one of the bottlenecks for its adoption during the forecast period.
The COVID-19 outbreak had a negative impact on construction activity in 2020. The rapid spread of COVID-19 infections caused an abrupt downturn in construction activities due to a temporary lockdown worldwide. The OEMs experienced supply chain disruptions and temporary shutdowns of dealer stores that halted new purchases. However, in 2021, there was a sudden increase in demand for construction equipment due to the resumption of construction activity for halted and new projects. Lower housing rates further boosted the demand for residential sectors, which further elevated the equipment demand. Considering the current market dynamics that include market uncertainty due to the rising number of COVID-19 infections due to the new variant Omicron, the high prices of steel and aluminum, and semiconductor shortages, the market is also expected to witness a slowdown in equipment sales over the next few quarters of 2022.
Increasing construction spending worldwide is one of the long-term factors expected to drive sales in the market over the forecast period. The U.S. has witnessed significant growth in construction spending over the last few years. Similarly, in Europe, upcoming multi-family housing construction projects commenced in Q3 2021 which include Milanosesto Mixed-Use Complex (Italy), ZAC Campus Grand Parc Mixed-Use Development (France), Viadux Mixed-Use Community (U.K.), Camden Goods Yard Mixed-Use Community (U.K.), and Sackville Road Residential Community (U.K) are also expected to drive the market growth. Government initiatives to modernize the aging public infrastructure such as port extension, an underwater tunnel connecting major European countries, and railway tunnels are also expected to drive the market growth.
The growing population in Asia Pacific countries, notably China, India, and South Asian countries is creating the need for better infrastructure such as houses, schools, hospitals, stadiums, government buildings, and airports. Also, the demand for construction equipment is increasing in the residential construction sector owing to lower housing rates and rapid urbanization in China and India. Additionally, an increase in the number of favorable government policies aimed to encourage the Public-Private Partnership (PPP) model is also expected to bode well for the growth of the construction equipment market over the forecast period.
Construction Equipment Market Segmentation
Based on the Product Insights, the market is segmented into Earth Moving Machinery, Material Handling Machinery and Concrete and Road Construction Machinery.
- The earthmoving machinery segment dominated the market with a revenue share of over 60% in 2021.
- The concrete and road construction machinery is expected to reach USD 39.10 billion by 2030. Increasing investment in road construction projects is expected to increase the demand for concrete and road construction machinery.
Based on the Construction Equipment Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
- Asia Pacific accounted for the largest revenue share of over 40% in 2021 and is expected to register a CAGR of over 4.0% from 2022 to 2030.
- North America is expected to register a CAGR of over 3.0% over the forecast period on the account of an increase in residential construction activity.
Browse through Grand View Research’s HVAC & Construction Industry Research Reports.
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- Submarine Cable Market– The global submarine cable market size was estimated at USD 25.50 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 6.1% from 2022 to 2030. The major factors driving the market are increasing investments in offshore wind farms, increasing data traffic, and investments by OTT providers to suffice the requirements.
Market Share Insights:
- January 2021: Komatsu Ltd. entered into a joint development agreement with Honda Motor Co., Ltd. The agreement focused on electrifying Komatsu’s PCO1 micro excavators and establishing a battery-sharing system that used Honda’s Mobile Power Pack (MPP) batteries for use by different construction equipment and other civil engineering and construction equipment industries.
- August 2021: The federal government of the U.S. announced stimulus packages including USD 550 billion in new federal investment for modernizing infrastructure are expected to drive construction spending in the country.
Key Companies Profile:
The focus for almost all key vendors in the market going forward will be to seek ways to provide cost-effective and eco-friendly equipment as an integral part of their product offerings. Over the next few years, OEMs are presumed to adopt organic and inorganic growth approaches through joint ventures, partnerships, and mergers and acquisitions, which further help the vendors increase their customer base and strengthen their foothold in the market.
Some prominent players in the global Construction Equipment market include
- Caterpillar
- CNH Industrial N.V.
- Doosan Corporation
- Escorts Limited
- Hitachi Construction Machinery Co., Ltd.
- Hyundai Construction Equipment Co., Ltd.
- J C Bamford Excavators Ltd.
- Deere & Company.
- Kobelco Construction Machinery Co., Ltd.
- Komatsu Ltd.
- Liebherr-International AG
- Manitou BF
- HİDROMEK
- Sany Heavy Industry Co., Ltd.
- Sumitomo Heavy Industries, Ltd.
- Terex Corporation
- Volvo AB
- Zoomlion Heavy Industry Science and Technology Co., Ltd
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