Construction Equipment Market to Reach USD 426.44 Billion by 2034; Rising Investments in Urbanization and Transport Infrastructure to Propel Market Growth

The global construction equipment market size was valued at USD 237.41 billion in 2025. The market is projected to grow from USD 252.87 billion in 2026 to USD 426.44 billion by 2034, exhibiting a CAGR of 6.8% 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 Other Equipment), By Propulsion Type (Internal Combustion Engine (ICE), Electric Construction Equipment, and CNG/LNG), By Power Output (<100 HP, 101-200 HP, 201-400 HP, and >401 HP), By Engine Capacity (Up to 250 HP, 250-500 HP, and More than 500 HP), By Application (Residential, Commercial, and Industrial), and Regional Forecast, 2026 – 2034”.

Construction equipment includes machinery and systems used for earthmoving, material handling, road construction, lifting, and infrastructure development across residential, commercial, industrial, and public projects. Demand is growing globally due to investments in transportation, urbanization, renewable energy, mining, and smart city initiatives. The market is further supported by technology adoption such as telematics, automation, and predictive maintenance, along with rising equipment rentals and infrastructure modernization programs.

Komatsu Ltd. Expands Portfolio with New HM460-6 Articulated Dump Truck

Komatsu Ltd. strengthened its heavy equipment portfolio in March 2026 with the HM460-6 articulated dump truck, which offers greater payload capacity, enhanced traction, and upgraded operator-assistance technologies.

Government and Private Spending on Smart Cities to Drive Market Growth

The construction equipment market is growing due to rising investments in transport infrastructure, urbanization, industrial projects, energy, and public works in both developed and emerging economies. Government and private spending on highways, rail, airports, ports, bridges, renewables, and smart cities is driving demand for earthmoving, material handling, and concrete equipment. Fleet replacement and expansion in residential and commercial construction are further supporting global construction equipment market growth.

However, high ownership costs and cyclical demand hamper market growth.

Key Players to Focus on Offering Wide Portfolios to Propel Market Growth

The market has a moderate level of concentration. Competition is driven by factors such as product range, production capacity, technological advancement, dealer network reach, after-sales support, and global footprint. Major players including Caterpillar Inc., Komatsu Ltd., Volvo CE, Hitachi Construction Machinery hold strong positions through broad portfolios covering earthmoving, material handling, road building, concrete, and mining equipment. These firms are further reinforcing their market standing by investing in automation, telematics, machine control, fleet connectivity, fuel efficiency, and low-emission technologies.

Notable Industry Development

• September 2025: Caterpillar expanded Cat Command autonomous solutions with enhanced remote and semi-autonomous features for mining, quarrying, and major construction projects.

List of Key Companies Profiled in the Report

• Caterpillar Inc. (U.S.)
• Komatsu Ltd. (Japan)
• Volvo Construction Equipment (Sweden)
• Hitachi Construction Machinery Co., Ltd. (Japan)
• Liebherr Group (Switzerland)
• Deere & Company (U.S.)
• JCB Ltd. (U.K.)
• SANY Group (China)
• XCMG Group (China)
• Hyundai Construction Equipment Co., Ltd. (South Korea)

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

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

Further Report Findings

• Asia Pacific region dominates the construction equipment market share. China and India are key markets in the region, supported by large-scale activity, modern equipment fleets, and strong infrastructure investment. Meanwhile, India and Southeast Asia are emerging as fastest-growing markets fuelled by smart city projects, industrial corridor development, and increased government spending on roads, railways, airports, and logistics infrastructure.   
• North America holds a substantial share for the construction equipment industry, which is attributed to major infrastructure investments, strong residential building activity, expanding industrial projects, and the need to replace aging equipment fleets in the U.S. and Canada. Demand in the region is largely shaped by highway modernization, upgrades to transportation infrastructure, and others.

Table of Segmentation