Market Overview
| Study Period | 2020 - 2030 |
|---|---|
| Market Size (2025) | USD 192.59 Billion |
| Market Size (2030) | USD 266.73 Billion |
| Growth Rate (2025 - 2030) | 6.73% CAGR |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Construction Equipment Market Analysis by Mordor Intelligence
The construction equipment market is valued at USD 192.59 billion in 2025 and is projected to advance at a 6.73% CAGR to 2030, reaching USD 266.73 billion. Robust government spending on roads, rail, power transmission, and semiconductor fabs underpins demand across earthmoving, material-handling, and concrete machinery. Asia’s mega-project pipeline, the electrification push in Europe and North America, and the industry-wide tilt toward rental fleets jointly reinforce a resilient growth outlook. Competitive intensity is sharpening as Chinese OEMs capture share abroad while Western leaders pivot to service-centric offerings and autonomous technologies. The construction equipment market is also shaped by quicker fleet renewal cycles driven by Stage V and EPA Phase 3 regulations, tightening the gap between product and digital service launches.
Key Report Takeaways
- By equipment type, earthmoving machinery captured 59.45% of the construction equipment market share in 2024, and is expected to grow at a 13.37% CAGR through 2030.
- By propulsion type, internal-combustion engines retained a 95.33% share, while battery-electric units are set to expand at a 25.11% CAGR, the quickest pace across the construction equipment market.
- By equipment size, heavy machines above 11 tons held around 71.75% of the construction equipment market size in 2024, while compact/mini (less than 6 tons) equipment category is set to register a 14.86% CAGR.
- By power output, sub-250 HP models commanded a 61.23% share, whereas the 250–500 HP band records the highest projected CAGR of 9.75% through 2030.
- By application, infrastructure projects accounted for 73.80% of the construction equipment market share in 2024, whereas mining and quarrying are projected to post a 9.13% CAGR.
- By sales channel, new-equipment purchases dominated the 2024 construction equipment market with a 75.33% market share, while rental channel is set to post a 7.32% CAGR.
- By geography, Asia Pacific led with 46.13% of the construction equipment revenue share in 2024, whereas the Middle East and Africa region is set to register fastest CAGR of 9.23%.
Global Construction Equipment Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Mega-Infrastructure Pipelines in Asia | +1.8% | Asia Pacific, Middle East | Medium term (2-4 years) |
| U.S. IRA and CHIPS Acts | +1.2% | North America | Medium term (2-4 years) |
| Rental-First Procurement | +1.1% | Global | Medium term (2-4 years) |
| EU Stage V Caps | +0.9% | Europe | Short term (≤ 2 years) |
| Critical Raw-Material Extraction Surge | +0.7% | Africa | Long term (≥ 4 years) |
| Job-Site Automation | +0.6% | North America, Europe, and advanced Asian markets | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
Mega-Infrastructure Pipelines in Asia Driving Demand
A committed project pipeline exceeding USD 3.7 trillion is transforming allocation priorities, pulling large dozers, 45-ton excavators, and high-capacity concrete pumps into Asian depots ahead of other regions. Saudi Arabia alone awarded USD 55 billion in projects in 2024, a 57% jump year-on-year, while the UAE lifted awards by 200% to USD 34 billion. OEMs are tailoring sales mixes toward higher horsepower and longer-reach booms, anchoring revenue in the construction equipment market through larger ticket sizes and aftermarket contracts.
U.S. IRA and CHIPS Acts Accelerating Earth-Moving Purchases
Federal incentives for semiconductor fabs, EV plants, and grid upgrades have created a structural pull for 250-500 HP dozers and excavators across the Sun Belt. The American Society of Civil Engineers identifies a USD 3.7 trillion infrastructure gap by 2035, ensuring sustained visibility for OEM order books[1]“A Comprehensive Assessment of America’s Infrastructure 2025,” American Society of Civil Engineers, infrastructurereportcard.org. Contractors, faced with labor constraints, are leaning toward larger units that compress project schedules and ease per-hour operating budgets.
Rental-First Procurement Shift Expanding Utilization Rates
Rental revenues are set to touch USD 82.6 billion in 2025, reflecting a broad contractor preference for off-balance-sheet equipment access. Utilization rates on connected rental fleets often exceed 85%, roughly 30% higher than owned machines, reinforcing a virtuous loop of asset sweating, predictive maintenance, and residual value optimization. OEMs are realigning channel strategies, embedding telematics that feed real-time data to rental partners and promote service contracts.
EU Stage V Emission Caps Forcing Fleet Renewal Toward Hybrids and Electrics
Stage V rules now encompass engines below 19 kW and mandate finer particulate thresholds. Atlas Copco notes that compact equipment compliance necessitates diesel particulate filters, while Perkins reports 28% higher power density in new Stage V engines. This regulatory pulse accelerates the construction equipment market shift toward battery-electric compact loaders and hybrid drive lines in mid-range excavators.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Hydraulic Component Shortages | -1.1% | Global | Short term (≤ 2 years) |
| Lithium-Ion Cell Scarcity | -0.8% | Global | Short term (≤ 2 years) |
| Persistent Skills Gap | -0.6% | South America, with spillover to Africa | Long term (≥ 4 years) |
| Municipal Noise-Abatement Bylaws | -0.5% | Urban centers in Europe and North America | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
OEM Lead-Time Spikes Due to Component Shortages
Delivery windows stretch beyond 42 weeks for critical hydraulic valves and pumps, forcing contractors to adjust project phasing. Market leaders increasingly vertically integrate to secure supply, echoing Caterpillar’s expanded in-house component machining. Persistent bottlenecks threaten to defer replacement cycles and dampen near-term construction equipment market momentum until inventories normalize.
Lithium-Ion Cell Scarcity Inflating Equipment TCO
Heavy-duty battery packs compete with automotive demand, inflating upfront prices on 20-ton electric excavators by 30% versus diesel peers. This gap compresses buyer ROI windows even though life-cycle costs remain favorable. OEMs with captive battery supply or strategic joint ventures capture early share in the electric slice of the construction equipment market.
Segment Analysis
By Equipment Type: Earthmoving Retains Primacy, Electric Variants Scale
Earthmoving machinery commanded 59.45% of the construction equipment market in 2024 and is expected to post a 13.37% CAGR through 2030, anchored by the versatility of excavators, loaders, and dozers across civil, mining, and industrial projects. The loader sub-segment alone captured a significant share of the electric earthmoving slice in 2024, underscoring early electrification traction in material re-handling niches.
Design enhancements now center on operator-assist systems, tiltrotator add-ons, and machine-control software that convert 3D models into grade-check commands. Komatsu’s Smart Construction suite exemplifies this digital overlay, producing site twins that elevate precision and cut rework. These capabilities lift resale values and strengthen aftermarket attachment revenue, reinforcing OEM margins inside the construction equipment market.
Note: Segment shares of all individual segments available upon report purchase
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By Propulsion Type: Electric Traction Accelerates, ICE Still Dominant
Internal-combustion engines retained 95.33% share of the construction equipment market in 2024 as entrenched fueling infrastructure, high duty cycles, and residual value familiarity tempered switching speed. Yet battery-electric units are growing at 25.11% CAGR through 2030, the quickest clip among all propulsion modes, assisted by urban emission zones and night-time noise ordinances. Compact excavators below 8 tons lead adoption due to manageable battery weight and shorter duty cycles.
Hybrid hydraulics offer a transitional bridge, enabling fuel savings of approximately 20-25% with minimal operator retraining. Hydrogen internal combustion and fuel-cell prototypes, now under test by Caterpillar and JCB, promise zero tailpipe emissions for 30-ton and heavier classes. Parallel R&D tracks heighten capital intensity, but early-mover advantages could seal customer loyalty in the emerging zero-emission slice of the construction equipment market.
By Equipment Size: Heavy Gear Dominates While Compact Outpaces
Heavy equipment larger than 11 tons captured 71.75% of the construction equipment market share in 2024, fueled by freeway, port, and dam projects that demand 45-ton excavators and 60-ton ADTs. Procurement agencies favor large units to accelerate earthworks and lower per-cubic-meter movement costs.
Compact machines below 6 tons are rising faster, expected to register a 14.86% CAGR as dense cities favor agile skid steers, mini loaders, and zero-tail-swing excavators. Quick-attach couplers and a broadening attachment catalog now allow a single compact base unit to replace multiple dedicated tools, improving job-site economics for small contractors and rental fleets alike.
By Power Output: Mid-Range Engines Strike Optimal Balance
Machines up to 250 HP held 61.23% of the construction equipment market size in 2924, balancing fuel economy with sufficient breakout force for mixed-use projects. OEM product roadmaps emphasize modular engine families that scale from 140 HP to 250 HP using common blocks and electronic controls, reducing parts inventory.
The 250-500 HP cohort is forecasted to expand at 9.75% CAGR to 2030, propelled by high-throughput export terminals and mining overburden removal. Advances in aftertreatment design, including compact SCR modules, now enable Tier 4/Stage V compliance without enlarging engine bays, preserving machine geometry. Units above 500 HP occupy a niche yet indispensable role in ultra-large earthworks and open-pit mining, where cycle time gains translate into outsized production benefits.
By Application: Infrastructure Leads, Mining Emerges Fastest
Infrastructure projects represented 73.80% of the construction equipment market in 2024 as governments financed bridge refurbishments, rail extensions, and renewable-energy corridors. U.S. federal outlays via the Infrastructure Investment and Jobs Act are funneled toward highways, while Asia focuses on megacity metro lines. Neighboring segments, such as residential and commercial buildings, maintain stable volumes but face cyclical moderation tied to interest-rate regimes.
Mining and quarrying is the fastest-growing application at a 9.13% CAGR to 2030. Demand for copper, lithium, and rare earths vital to energy transition technologies drives multi-billion-dollar pit expansions across Africa and South America. Autonomous haulage and teleremote drilling, once confined to iron-ore majors, are cascading into mid-tier miners, expanding the technology adoption curve in the construction equipment market.
Note: Segment shares of all individual segments available upon report purchase
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By Sales Channel: Rental Momentum Reshapes Ownership Economics
New equipment purchases still dominated value terms in 2024 with a 75.33% market share, yet the rental route is carving an ever-larger slice as contractors defend cash positions, growing at 7.32% CAGR through 2030. The appeal stems from access to the newest Stage V or electric machines without heavy capex, plus embedded maintenance packages that cut downtime.
Digital platforms now streamline used-equipment auctions and refurbishment programs, expanding reach beyond regional dealers. OEM-certified rebuilds attract buyers in emissions-lenient geographies, extending product life cycles and lowering entry barriers for small firms. Channel diversification compels OEMs to harmonize product, service, and finance offerings to safeguard margin capture across the construction equipment market.
Geography Analysis
Asia Pacific led with 46.13% of the construction equipment market in 2024, underpinned by China’s Belt and Road Initiative and India’s National Infrastructure Pipeline. Chinese crawler excavator volumes are set to exceed 150,000 units by 2027, more than doubling 2023 output and reinforcing supplier economies of scale. Manufacturers route high-power diesel inventory to Southeast Asia and GCC job sites while shipping compact electric loaders to Japanese and Korean cities.
The Middle East posts the fastest trajectory at 9.23% CAGR through 2030 as Saudi Arabia’s Vision 2030 and the UAE’s Dubai Urban Master Plan funnel billions into housing, tourism, and logistics. Project awards jumped significantly in 2024, tightening regional equipment supply and prompting OEMs to stage temporary import yards at Jebel Ali Port. Heat-tolerant battery chemistries and sealed cabin filtration systems are differentiators in the Gulf slice of the construction equipment market.
North America maintains a solid outlook propelled by industrial reshoring and infrastructure revamps backed by the IRA and CHIPS legislation. EPA Phase 3 standards, effective model year 2027, are nudging fleets toward hybrid and electric compact equipment for urban utility work[2]“Greenhouse Gas Emissions Standards for Heavy-Duty Vehicles – Phase 3,” U.S. Environmental Protection Agency, epa.gov. Rental giants consolidate to secure scale, evidenced by multi-billion-dollar acquisitions that compress dealer networks and elevate access fees.
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Competitive Landscape
The construction equipment market displays moderate concentration; the top five OEMs, including Caterpillar and Hitachi Construction Machinery, controlled a significant share of global shipments in 2024. Competition intensifies around digital services, autonomous operation, and fuel-agnostic powertrains rather than pure horsepower races. Caterpillar’s shift toward an integrated value chain covering design, logistics, and remanufacturing exemplifies the pivot from iron sales to lifetime service revenue.
Merger and acquisition activity underscores portfolio realignment; Komatsu’s purchase of GHH boosted its underground footprint, while FAYAT’s acquisition of Mecalac broadened its compact offering. Chinese challengers like SANY and XCMG continue double-digit export growth, aided by competitive pricing and accelerated electric rollouts. Rental market consolidation, highlighted by Herc Holdings’ and United Rentals’ consecutive purchases of H&E Equipment Services, reduces bargaining fragmentation and places further pressure on OEM discounting.
Product launches mirror the electrification and automation themes. Komatsu’s Smart Construction 3D guidance enables full 360-degree bucket rotation, creating digital twins that feed progress analytics. Caterpillar’s Stage V telehandlers integrate factory telematics for predictive maintenance, while JCB’s Texas plant expansion signals confidence in sustained U.S. demand. These moves redefine competitive levers beyond unit sales toward data, uptime guarantees, and circular economy programs.
Construction Equipment Industry Leaders
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Caterpillar Inc.
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Komatsu Ltd
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Volvo Construction Equipment (Volvo Group)
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Deere & Company
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Hitachi Construction Machinery Co., Ltd.
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- June 2025: Herc Holdings acquired H&E Equipment Services for USD 5.3 billion, intensifying rental market consolidation.
- April 2025: Komatsu unveiled its Smart Construction 3D Machine Guidance excavator system at Bauma 2025, enabling full bucket rotation and real-time digital twins.
- April 2025: Komatsu unveiled its Smart Construction 3D Machine Guidance excavator system at Bauma 2025, enabling full bucket rotation and real-time digital twins.
- April 2025: JCB doubled its new San Antonio factory to 1 million sq ft to counter tariff impacts and boost U.S. output.
- March 2025: FAYAT Group completed the Mecalac acquisition to deepen its compact equipment portfolio.
Global Construction Equipment Market Report Scope
The Construction Equipment Market is Segmented by Machinery Type (Cranes, Telescopic Handling, Excavator, Loaders and Backhoe, Motor Grader, and Other Machinery Types), by Drive Type (Hydraulic, Electric, and Hybrid), and by Geography (North America, Europe, Asia-Pacific, and Rest of the World). The report offers market size and forecasts for Construction Equipment in value (USD Billion) for all the above segments.
By Equipment Type
| Earthmoving |
| Material Handling |
| Concrete and Road Machinery |
| Light/Compact Tools |
By Propulsion Type
| Internal Combustion |
| Hybrid Hydraulic |
| Battery-Electric |
| Hydrogen Fuel-Cell |
By Equipment Size
| Heavy ( Above 11 tons) |
| Medium (6-11 tons) |
| Compact/Mini (less than 6 tons) |
By Power Output
| Up to 250 HP |
| 250 - 500 HP |
| Above 500 HP |
By Application
| Infrastructure |
| Residential and Commercial Construction |
| Mining and Quarrying |
| Oil and Gas/Pipelines |
| Industrial and Manufacturing |
By Sales Channel
| New Equipment |
| Rental |
| Used/Refurbished |
By Geography
| North America | United States |
| Canada | |
| Rest of North America | |
| South America | Brazil |
| Argentina | |
| Rest of South America | |
| Europe | Germany |
| United Kingdom | |
| France | |
| Italy | |
| Spain | |
| Sweden | |
| Rest of Europe | |
| Asia-Pacific | China |
| India | |
| Japan | |
| South Korea | |
| Indonesia | |
| Rest of Asia-Pacific | |
| Middle East and Africa | Saudi Arabia |
| United Arab Emirates | |
| Turkey | |
| South Africa | |
| Nigeria | |
| Egypt | |
| Rest of Middle East and Africa |
| By Equipment Type | Earthmoving | |
| Material Handling | ||
| Concrete and Road Machinery | ||
| Light/Compact Tools | ||
| By Propulsion Type | Internal Combustion | |
| Hybrid Hydraulic | ||
| Battery-Electric | ||
| Hydrogen Fuel-Cell | ||
| By Equipment Size | Heavy ( Above 11 tons) | |
| Medium (6-11 tons) | ||
| Compact/Mini (less than 6 tons) | ||
| By Power Output | Up to 250 HP | |
| 250 - 500 HP | ||
| Above 500 HP | ||
| By Application | Infrastructure | |
| Residential and Commercial Construction | ||
| Mining and Quarrying | ||
| Oil and Gas/Pipelines | ||
| Industrial and Manufacturing | ||
| By Sales Channel | New Equipment | |
| Rental | ||
| Used/Refurbished | ||
| By Geography | North America | United States |
| Canada | ||
| Rest of North America | ||
| South America | Brazil | |
| Argentina | ||
| Rest of South America | ||
| Europe | Germany | |
| United Kingdom | ||
| France | ||
| Italy | ||
| Spain | ||
| Sweden | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| India | ||
| Japan | ||
| South Korea | ||
| Indonesia | ||
| Rest of Asia-Pacific | ||
| Middle East and Africa | Saudi Arabia | |
| United Arab Emirates | ||
| Turkey | ||
| South Africa | ||
| Nigeria | ||
| Egypt | ||
| Rest of Middle East and Africa | ||
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Key Questions Answered in the Report
What is the current size of the construction equipment market?
The market is valued at USD 192.59 billion in 2025 and is projected to reach USD 266.73 billion by 2030.
Which region dominates construction equipment demand today?
Asia Pacific leads with 46.13% revenue share, fueled by large-scale infrastructure pipelines in China, India, and GCC countries.
How fast is battery-electric construction equipment growing?
Battery-electric models are expanding at a 25.11% CAGR, the fastest of all propulsion types, propelled by stricter emission zones and noise ordinances.
Why are rental channels gaining ground in equipment acquisition?
Rental fleets offer contractors capital flexibility, access to the latest technology, and utilization rates that exceed owned equipment.
Which equipment category holds the largest market share?
Earthmoving machinery, including excavators, loaders, and dozers, held 59.45% of the construction equipment market share in 2024.
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