Japan Construction Equipment Market Size, Share & 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, and Industrial), and Country Forecast, 2025-2032

The Japan construction equipment market size was worth USD 8.47 billion in 2024. The market is estimated to grow to from USD 9.05 billion in 2025 to USD 14.34 billion by 2032, exhibiting a CAGR of 6.8% during the forecast period.

Increasing demand for climate resilience, real-estate sector growth, supported by easy rental financing solutions across the country, is expected to boost the construction equipment market in Japan. Adoption of Industry 4.0 and automation across logistics centers, distribution facilities, etc., to further push the demand for material handling and road construction equipment sales in the country. Urban redevelopment and smart city projects across the major cities in Japan are considerably driving the construction equipment market growth.

• For instance, in 2025, Japan has planned several urban redevelopment projects that include the Yodoyabashi Station west district type project, the Miyamasaka District First-Class Urban Redevelopment Project, the Roppongi 5-chome West District Type 1 Urban Redevelopment Project, etc.

Japan’s Select Smart City-Related Projects and Investment, 2025

Ministry of External Affairs and Communications has planned a Regional DX Promotion Package Project accounting for about USD 5.67 Mn in 2025. Investment in urban expansion and modernization of cities through several city- and country-level associations to benefit the Japanese construction equipment market share.

Japan Construction Equipment Market Trends

Compact and Tech-enabled Machines with Predictive Maintenance and Remote Diagnostics are Emerging as Key Trends

Owing to an aging workforce and urban redevelopment, the demand for IoT- and AI-integrated compact machines is significantly generating a high volume of sales. Autonomous and smart construction machines with telematics integration and digitalization are likely to boost the market demand. A few of the prominent features driving this trend include fleet monitoring, remote diagnostics systems, and maneuverable and operator-friendly ergonomics.

• For instance, in August 2025, Soracom and Quake Global partnered to develop telematics solutions for mobile machinery. The telematics systems to include features such as real-time engine monitoring, GPS tracking, remote diagnostics, etc.

Japan Construction Equipment Market Growth Factors

Public Infrastructure and Logistics Sector Expansion to Bolster the Market Growth

Growing urban density and high rental demand are driving the investment in public infrastructure such as roads, rail, public works, etc. E-commerce growth due to rising online purchases, robotics, and smart machines to significantly drive Japan construction equipment market growth. Companies are increasing the application of robotics and automated material handling systems in the logistics and distribution centres, driving the demand for forklift trucks, reach trucks, etc. Furthermore, stringent regulatory policies and sustainability targets to meet carbon emissions goals will further enhance the market for battery-operated and tech-integrated machines.

• For instance, in May 2025, Toyota Industries has deployed its fully autonomous four-fork forklift to Coca-Cola bottlers to their logistics DX in Japan’s Hakushu Plant Warehouse.

Japan Construction Equipment Market Restraints

Limited Skilled Workforce and Various Other Factors to Limit the Market Growth

An aging workforce is a critical factor limiting the construction equipment market, although automation is gaining traction across industries. Unprecedented geopolitical scenarios, reciprocal tariffs, and disrupted sourcing strategies for components and other raw materials of construction equipment are further limiting the sales of construction equipment.

• For example, Japan imported about USD 1.45 billion Integrated circuits in 2023 from the U.S., provided the U.S. has imposed reciprocal tariffs of about 10-15% on Japanese products.

Japan Construction Equipment Market Segmentation Analysis

By Equipment Type

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

Material handling equipment and cranes are expected to witness the highest growth rate owing to the expansion of warehousing facilities, logistics centres, and port renewal projects in the country.

Earthmoving machinery is expected to lead the segment as excavators, dozers, and loaders are crucial for urban infrastructure and smart city projects. Continuous land excavation and construction sites preparation, along with demand driven by industrial facilities expansion, to significantly drive the demand for construction equipment. Government investment in public infrastructure and rental demand for machines are further pushing the growth of the earthmoving equipment market.

• For instance, in May 2025, Volvo CE unveiled its 23 machine models, including excavator EC230, ECR 145, etc., at the Volvo Days 2025 exhibition held in Japan.  

By Application

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

Aging residential infrastructure, increasing investment in new residential buildings, expanding urban areas due to space constraints, private investments, and government housing policies are a few of the key factors driving the market for construction equipment in the residential sector.

Adoption of automation across various industries, expanding logistics and warehousing hubs, battery manufacturing, and clean energy infrastructure development are expected to drive the growth of industrial applications in the Japanese market.

List of Key Companies in the Japan Construction Equipment Market

Kubota Corporation, Hitachi Construction Machinery, and Toyota Industries are few of the prominent players in the Japan construction equipment market share. They are introducing technology-integrated equipment, establishing brand presence, strong dealer and distributor networks, and collaborating to drive the growth of the construction equipment market.

• For instance, in July 2024, Komatsu introduced a new demolition excavator portfolio in the Japan market. The new models included PC290LC-11, PC360LC-11, and PC490LC-11, are straight boom excavators with enhanced reach of about 22%-26% in comparison to standard excavators.

LIST OF KEY COMPANIES PROFILED

• Kubota Corporation (Japan)
• Komatsu (Japan)
• Hitachi Construction Machinery (Japan)
• Toyota Industries (Japan)
• KION Group AG (Germany)
• Mitsubishi Heavy Industries (Japan)
• Tadano Ltd. (Japan)
• Kyokuto Kaihatsu Kogyo Co., Ltd. (Japan)
• Aichi Corporation (Japan)
• Yanmar Construction Equipment Co., Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS

• April 2025: Hitachi Construction Machinery has launched the LANDCROS Connect fleet management system at BAUMA 2025.
• July 2023: Komatsu has launched 20 new models of electric excavators in the Japanese market for rental companies.

REPORT COVERAGE

The Japan construction equipment market report provides a detailed analysis of the market. It focuses on market dynamics and key industry developments, such as mergers and acquisitions. Additionally, it includes information about the growth in earthmoving equipment, concrete and material handling equipment, and applications. Besides this, the report also offers insights into the latest industry trends and the impact of various factors on the demand for construction equipment.

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Report Scope & Segmentation