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Construction Equipment Market Size, Share and Industry Analysis, By Equipment Type (Earthmoving Equipment, Material Handling Equipment & Cranes, Concrete Equipment, Road Building Equipment, Civil Engineering Equipment, Crushing and Screening Equipment and Other Equipment), By Application (Residential, Commercial & Industrial) and Regional Forecast, 2020-2027

Region : Global | Format: PDF | Report ID: FBI100521



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The global construction equipment market size stood at USD 129.32 billion in 2019 and is projected to reach USD 160.84 billion by 2027, exhibiting a CAGR of 2.8% during the forecast period.

The global market growth is observed with the rise in public-private partnerships, increasing industrial, residential, and commercial construction activities, and rising government investments in infrastructure development. The major players operating in the market are investing in research & development activities for up-gradation in equipment in order to provide efficient equipment for industries and end-users including mining, agriculture, forestry, material handling (e.g., ports, warehouses), waste management, and municipal equipment (e.g., tool carriers, street sweeping).

A significant market trend observed is the ongoing shift from traditional equipment to automated equipment as consumers are retrofitting and renovating the old technology. In order to increase the productivity across the construction industry, the prominent and strong players are effectively trying to tighten up this equipment supply chain and achieve higher efficiencies.

However, the building & construction industry is one of the worst affected sectors owing to the COVID-19 global pandemic. COVID-19 pandemic has paralyzed the economic activities across the world. The committee for European construction equipment (CECE) stated that the COVID-19 pandemic extensively impacted near about 60% of the European construction equipment industry. The impact is majorly on original equipment manufacturers (OEMs). The Association General Contractors of America (AGC) states that the U.S. construction projects of nearly USD 160 billion are affected by COVID-19 pandemic.


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Emergence of Construction Equipment Rental Services to Be a Major Trend

Rental services are nowadays gaining more traction across the market. According to the CERA, rental services of machineries is growing substantially and is also expected to grow during the forecast period across the developing countries such as China, and India. The local and regional SMEs are likely to prefer the rental service business in order to establish themselves, wherein they generate revenue from the customer base of the regional contractor. Large construction firms are engaged primarily in the following sectors to earn higher profits: general infrastructure, oil and gas, utility and electrical, and commercial and residential construction.

Besides that, with infrastructure plans receiving improved budgetary allocations in developing countries, the construction equipment rental market growth would be progressively steady, as governmental projects show higher preference for rental use of equipment. Moreover, it is safer, comfortable, and more affordable for governments to work with rental companies than owing their fleet of construction machineries.


Adoption of Advanced Construction Equipment to Drive Growth

Consumers across the globe are demanding more fuel-efficient, technological upgraded equipment for augmenting  constructing activities. Adoption of upgraded equipment reduces labor costs, tracking of work done in every stage of process, and also brings down operational costs. Players are working on expanding their business domain by providing products, services or solutions, along with new values which take full advantage of ICT (Information and Communication Technology) and IoT (Internet of Things) technologies. Additionally, they are engaged in introducing advanced equipment that can not only cater to customers’ requirements, but also overcome social and environmental problems. Thus, the end-users are more attracted to these machines. Recently, an Australian company Black Cat Civil found the Cat Next Gen excavators to be a perfect match for their technology-focused business model; a factor that will subsequently affect the excavators market.

Increasing Construction & Infrastructure Investments Worldwide to Boost the Demand of this Market

The government and private sectors across the globe are making large investments in the construction of new residential & commercial buildings and public infrastructure, creating several growth opportunities for the construction industry. According to the Institute of Civil Engineers, the global construction market is expected to reach at around USD 8 trillion by the end of 2030, driven by the infrastructure development across U.S., China, and India. Increasing urbanization, particularly in Latin American and Asian countries, is creating huge demand for residential infrastructure, contributing to the construction equipment market growth. Governments in European countries are making investments in new smart city development projects. The European Union is expected to have over 300 smart cities by 2020, boosting the adoption of advanced construction machines in the process.


Use of Construction Equipment Results in Environmental Imbalance and Hampers the Growth

This equipment is considered to be a major source for ozone emissions, which deteriorate air quality. This equipment emits volatile organic compounds (VOC), nitrogen oxides (NOx), and carbon monoxide (CO) that adversely affect the environment. The emissions generated by the equipment results in environmental imbalance across urban and the rural areas. Besides, large mining sites can also be a source of significant equipment emissions.

However, to attain control over these emissions, worldwide, local departments of transportation, utility companies, government agencies, and private companies are collaboratively initiating to collect data on the number of equipment and construction project locations. Similarly, residential building permits, commercial building permits, and demolition permits were collected to geo-code construction emissions by adopting various software technologies that can monitor the emission substrates. Likewise, developed economies are taking active steps to strengthen exhaust emission laws for construction machinery and energy efficiency improvement that can play a vital role in curbing the effects of global warming.


By Equipment Type Analysis

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Material Handling Equipment & Cranes Segment to Show Lucrative Growth Rate in the Forecast Period

Based on equipment type, the market is segmented into earthmoving equipment, material handling equipment and cranes, concrete equipment, road building equipment, civil engineering equipment, crushing and screening equipment, and others.

Material handling equipment segment is projected to have exponential growth owing to the rising need for cranes and other machineries across several domains for handling heavy construction materials and products. AGV, forklift trucks, and telescopic handlers are the basic material handling cranes used in construction and warehouse applications.

Furthermore, road building and earthmoving equipment segments are expected to show progressive demand as the investments for industrial and commercial construction projects are rising in developing countries such as China and India. Civil engineering and concrete equipment segments are anticipated to depict stable growth as the need for this equipment depends upon the number of ongoing construction and infrastructure projects. Crushing & screening equipment segment is expected to have considerable growth owing to limited demand for mining applications.

The other equipment consists of tippers, trailers, and tankers that are likely to have stagnant demand in the overall market.

By Application Analysis

Industrial Application Segment to Witness Exponential CAGR

Based on application, the market is segmented into residential, commercial, and industrial.

Industrial application segment is anticipated to portray progressive growth in the near future owing to rising industrialization and foreign direct investments (FDI) for several international manufacturing plants in developing countries. Commercial infrastructure development across developed and developing countries is likely to depict considerable market worldwide.

Rapid population growth in Asian and African countries is expected to uplift the market with stable growth for the residential sector applications.


Asia Pacific Construction Equipment Market Size, 2019 (USD Billion)

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Asia Pacific is anticipated to emerge dominant in the construction equipment market share during the forecast period. Growth witnessed in the region is likely to be driven by the emergence of online retail facilities, availability of machinery on rental basis, increasing investments in infrastructure development, enhancement in capital investments. Similarly, the Chinese government is investing in public infrastructure and renewable energy, and also in residential construction projects, which in return is resulting in the increased demand for these equipments for construction and machineries. In 2017, Chinese government aimed to deliver the One Belt One Road project, and the 21st century Maritime Silk Road that would cost around USD 4 trillion in order to improve the land and waterway connectivity.

Europe generated a substantial revenue in 2019 and is expected to witness growth owing to increasing demand for new housing units, improving employment level etc. Also, as Germany is considered the home to Europe’s best-performing machine and equipment sector, Europe is expected to have significant opportunity to grow over the forecast period. Moreover, European countries such as Italy & Spain are expected to show slow growth during 2020, owing to the sudden spread and long lasting effect of COVID-19 across these countries.

The strong presence of the prominent companies Caterpillar, and Sany America is aiding the growth of the market in North America. Additionally, the explicit efforts of these companies regarding technological developments, strategic partnerships, acquisitions, and focus on the aftermarket services are also projected to influence the market potential in North America.

Furthermore, in the Middle East & Africa, the Gulf Council Corporation holds the highest share in the regional market, owing to the development of large-scale infrastructure projects across the GCC countries. However, these countries have been affected severely by the COVID-19 pandemic, leading to reduced operations in the construction sector, which is projected to slow down the progress of the Saudi Vision 2030 project. Similarly, the construction sector in Latin America has had steady growth over the past few years, owing to moderate infrastructure investments. The COVID-19 pandemic, however, has led to suspended operations of the equipment manufacturers in Brazil and Colombia. More than 1,900 housing projects have been shut down in Colombia due to the coronavirus, thus minimizing the pace of the construction projects across the region for the time being.


Key Market Leaders are Opting for Next-Generation Construction Equipment to Expand their Product Portfolio

The market leaders such as Caterpillar Inc., JCB, Komatsu, AB Volvo, and Liebherr dominate the global market, controlling up to 40% of the market share. Their dominance is due to the strong customer base of these companies worldwide, as well as the increasing graph of investments for product development. Additionally, Caterpillar Inc. holds the highest share in the global market, owing to its decades of strong market presence and a large customer base.

Furthermore, the companies are also indulged in transforming the traditional equipment into the next-gen machines that are acquainted with advanced technologies such as connected IoT, automation, etc. Additionally, these companies are expanding their services beyond their conventional set up in order to deliver value to customers throughout the lifecycle of their products by providing digital solutions.

  • November, 2018 – Caterpillar Inc. launched Next Generation D6 dozer, which has 35 percent better fuel efficiency and increased agility compared to prior models. Also the company is continuously developing exciting new offerings, which promise to further drive customer loyalty and profitable growth.

List of Key Companies Profiled:

  • AB Volvo (Gothenburg, Sweden)

  • Caterpillar Inc. (Illinois, U.S.)

  • Komatsu Ltd. (Tokyo, Japan)

  • Doosan Infracore Co. Ltd. (Seoul, South Korea)

  • Hitachi Construction Machinery Co., Ltd. (Tokyo, Japan)

  • J.C. Bamford Excavators Ltd. (Rocester, U.K.)

  • Liebherr Group (Bulle, Switzerland)

  • CNH Industrial N.V. (London, U.K.)

  • Hyundai Construction Equipment Co., Ltd.(Seoul, South Korea)

  • SANY Group (Beijing, China)


  • October, 2019 – Volvo Construction Equipment launched its first electric compact wheel loader for German tree farming, offering emission free and easy to maintain wheel loader for wide range of applications such as pallet handling and material loading, grading, and sweeping.

  • August, 2019 – Doosan Construction Equipment introduced a wide range of new products at Bauma 2019 exhibition including Stage V DX27z, DX62R-3, DX35z, DX63-3, and DX85R-3 mini excavators, DX250WMH-5 25-ton material handler, Stage V DX300LC-7 30-ton excavator, DX800LC-5B 80-ton excavator, and 30 and 40-ton Stage V compliant articulated dump trucks (ADTs) and DL280-5, DL420CVT-5 and DL580-5 wheel loaders.


 A growing trend is observed in the penetration of this market across several industries.

The construction equipment market research report provides various key insights such as adoption trend analysis, recent industry developments including mergers & acquisitions, ecosystem analysis, macro, and microeconomic factors, consolidated SWOT analysis, key construction equipment industry trends, competitive landscape and company profiles.

An Infographic Representation of Construction Equipment Market

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Report Scope & Segmentation



Study Period


Base Year


Forecast Period


Historical Period



  Value (USD billion)


By Equipment Type

  • Earthmoving Equipment

  • Material Handling Equipment & Cranes

  • Concrete Equipment

  • Road Building Equipment

  • Civil Engineering Equipment

  • Crushing and Screening Equipment

  • Other Equipment (Trailers, etc.)

By Application

  • Residential

  • Commercial

  • Industrial

By Region

  • North America (the U.S. and Canada)

  • Europe (U.K., Germany, France, Italy, Spain, and the Rest of Europe)

  • Asia Pacific (Japan, China, India, Korea, Southeast Asia, and the Rest of Asia Pacific)

  • The Middle East & Africa (South Africa, GCC, and the Rest of the Middle East & Africa)

  • Latin America (Brazil, Mexico, and the Rest of Latin America)

Frequently Asked Questions

Fortune Business Insights says that the value of the construction equipment market was USD 129.32 billion in 2019.

Fortune Business Insights says that the market is projected to reach USD 160.84 billion by 2027.

Growing at a CAGR of 2.8%, the market will exhibit steady growth in the forecast period (2020-2027).

Asia Pacific is expected to hold the highest market share.

Material Handling Equipment & Cranes (equipment type) segment is expected to be the leading segment in market during the forecast period.

Industrial application is anticipated to display highest growth rate under the application segment.

Adoption of advance equipment to drive growth and increasing construction & infrastructure investments worldwide will drive the growth of the market.

Caterpillar Inc., JCB, Komatsu, AB Volvo, and Liebherr are the top players in market.

Potential environmental damage caused by the use of these equipments is the restraining factor in the market.

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Construction Equipment Market Size, Share and Global Industry Trend Forecast till 2026
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