Construction Equipment Market to Grow at a CAGR of 6.7% over 2025 to 2032; Rising Infrastructure Investments to Drive Market Growth

The global construction equipment market size was valued at USD 161.45 billion in 2024. The market is projected to grow from USD 171.98 billion in 2025 to USD 271.30 billion by 2032, exhibiting a CAGR of 6.7% during the forecast period. Fortune Business Insights™ presents this information in its report titled “Construction Equipment Market Size, Share & Industry Analysis, By Equipment Type (Earthmoving Equipment, Material Handling Equipment & Cranes, Concrete Equipment, Road Building Equipment, Civil Engineering Equipment, Crushing and Screening Equipment, and Others), By Application (Residential, Commercial, and Industrial), and Regional Forecast, 2025 – 2032”.

With smart city initiatives and sustainability mandates, the construction equipment industry is poised for steady expansion. The adoption of electric and hybrid equipment is gaining traction, fueled by emission regulations and eco-friendly trends. Meanwhile, IoT and AI-driven maintenance solutions will optimize operations, reducing costs and boosting productivity.

Caterpillar Unveiled its Next-Generation D8 Dozer to Enhance Productivity and Efficiency

In December 2024, Caterpillar introduced its next-generation D8 dozer, featuring enhanced automation, a more powerful engine, and real-time connectivity for improved performance and efficiency. Designed for demanding environments, it offers superior productivity and advanced machine monitoring.

Growing Adoption of Excavators to Drive Market Growth

Growing infrastructure investments and urban expansion are fueling the demand for advanced construction equipment, particularly excavators. Innovations in electrification, automation, and telematics are enhancing efficiency and sustainability. Stricter environmental regulations are accelerating the shift toward energy-efficient models. As smart construction gains momentum, the excavator segment is positioned for the highest growth within the construction equipment market.

Nevertheless, reduced availability of critical components due to raw material price volatility, transportation bottlenecks, and semiconductor shortages could hinder construction equipment market growth.

Industry Participants Focus on Sustainability to Meet Emission Regulations

The global construction machinery market remains highly competitive, with key players advancing automation, electrification, and telematics using AI and IoT for efficiency and safety. Companies prioritize sustainability, developing fuel-efficient and electric machinery to meet emission regulations. Strategic mergers and expansions drive growth in emerging markets amid rising infrastructure development.

List of Key Players Mentioned in the Report:

• Caterpillar Inc. (U.S.)
• CNH Industrial N.V. (U.K.)
• Doosan Corporation (South Korea)
• Hitachi Construction Machinery Co., Ltd. (Japan)
• HD Hyundai Construction Equipment Co., Ltd. (South Korea)
• J.C. Bamford Excavators Limited (U.K.)
• Komatsu Ltd. (Japan)
• Liebherr Group (Switzerland)
• SANY GROUP (China)
• Volvo Group (Sweden)
• Xuzhou Construction Machinery Group Co., Ltd. (China)
• Deere & Company (U.S.)
• Volvo Construction Equipment (Sweden)
• Terex Corporation (U.S.)
• Zoomlion (China)
• Kobelco Construction Machinery Co., Ltd. (Japan)

To get a detailed report summary and research scope of this market, click here:

https://www.fortunebusinessinsights.com/industry-reports/construction-equipment-market-100521

Key Industry Development

• February 2022: Doosan Bobcat began construction on a USD 300 million compact loader plant in Nuevo Leon, Mexico. Opening in 2026, the 65,000-square-meter facility will expand production capacity by 20%, strengthening its North American presence.

Further Report Findings

• In terms of equipment type, the market is divided into material handling equipment & cranes, concrete equipment, road building equipment, civil engineering equipment, crushing and screening equipment, earthmoving equipment, and others. In 2024, the earthmoving equipment segment led the market, driven by its vital role in excavation, grading, and site preparation. Growing infrastructure, mining, and urban projects, along with advancements in electric and GPS-enabled excavators, reinforce its dominance.
• Asia Pacific captured the key construction equipment market share in 2024, with China and India driving demand through large-scale infrastructure projects and urban expansion. Government investments in smart cities and transportation networks accelerated market growth alongside the adoption of electric and automated machinery. China remained the largest market, supported by the BRI and rising industrialization, boosting demand for heavy machinery, cranes, and material handling equipment.
• Construction equipment demand in the Middle East & Africa is rising due to infrastructure, oil & gas, and smart city projects across the UAE, Saudi Arabia, and South Africa. NEOM City, Expo-related developments, and Africa’s mining sector are boosting demand for earthmoving machines, road-building equipment, and cranes.

Table of Segmentation