Global construction equipment market is projected to observe a CAGR of 5.27% during the forecast period 2024-2031, growing from USD 163.39 billion in 2023 to USD 246.41 billion in 2031. The market has witnessed significant growth in recent years and is expected to expand in the coming years owing to increasing government investments in infrastructural development, advancements in new product launches of construction equipment, rapid urbanization in emerging countries, and integration of advanced features in construction equipment. The global construction equipment market demand is rising owing to an increase in population, advancements and modernization in existing infrastructure, increased emphasis on developing sustainable green projects, and rapid declaration of funds by the government in transport infrastructure development. For instance, in July 2024, the European Commission chose 134 transport projects to be awarded over USD 7.5 billion in EU funding through the Connecting Europe Facility (CEF), the EU’s tool for strategically investing in infrastructure. This marks the largest funding round in the current CEF transport program.
Companies in the global construction equipment market are significantly investing in different research and development activities to advance construction equipment’s functioning, applications, and performance to embrace sustainable mobility options and expand their customer base in the construction equipment market. In addition, companies are also planning to launch new construction equipment to expand their product portfolio and address the rising demand for electric construction equipment.
For instance, in April 2024, AB Volvo announced the launch of the largest electric excavator in Japan, which will accomplish net-zero emissions by 2040 and expand its customer base by providing sustainable choices that serve the requirements of the Japanese market.
Infrastructure Development and Urbanization Drive Global Construction Equipment Market Growth
The rapid pace of infrastructure development and urbanization, particularly in emerging economies, is a major driver of the global construction equipment market. Governments and private entities are investing heavily in the construction of roads, bridges, commercial complexes, and residential buildings to support economic growth and accommodate the increasing population. This surge in infrastructure projects creates a strong demand for various construction equipment, such as excavators, loaders, and mobile cranes. Additionally, growing trends toward sustainable construction and green buildings have pushed companies to innovate and launch equipment with advanced features that offer higher efficiency, lower emissions, and reduced operational costs.
For instance, numerous large-scale infrastructure projects across the globe are driving construction equipment demand, including the TENT-T Core Rail Network in Europe, the ambitious NEOM City project in Saudi Arabia, the Gulf Railway spanning the GCC nations, and the Delhi-Mumbai Industrial Corridor in India. Other high-profile initiatives such as the California High-Speed Rail, King Abdullah Economic City, Forest City in Malaysia, Silk City in Kuwait, and even infrastructure developments supporting the International Space Station illustrate the global scope of infrastructure expansion and the corresponding demand for advanced construction equipment.
Rapid Surge in Infrastructure and Construction Investments Fosters Market Demand
Globally, the government and private entities are making significant investments in constructing new commercial and residential buildings and public infrastructure, supporting the growth of the construction industry. For instance, in India, in March 2024, the Minister of Civil Aviation and Steel announced the inauguration of 15 airport projects worth USD 12.1 billion, which are to be completed by 2028. The significant increase in urbanization, specifically in emerging countries, including India and China, introduces a massive requirement for residential infrastructure, leading to the global construction equipment market growth in the forecast period. Companies and governments in emerging markets are making substantial investments in projects of new smart city development and advancement in existing infrastructure.
Read More: https://www.marketsandata.com/industry-reports/construction-equipment-market
For instance, in August 2024, under the National Industrial Corridor Development Programme, the Union Cabinet approved 12 new industrial smart cities, investing USD 3.43 billion to boost domestic manufacturing and economic development in India.
Government Policies and Regulations Drive the Global Construction Equipment Market
Governments of different countries are significantly planning to develop existing infrastructure and invest in advancement of road transport and highways, propelling the demand for construction equipment across the globe in the forecast period. In addition, the governments have compelled companies to integrate lightweight raw materials and components in heavy commercial vehicles and electric vehicles to accomplish the objective of net-zero carbon emissions. Furthermore, governments across the globe are implementing regulations and giving subsidies as well as incentives to encourage the considerable adoption of electric construction equipment. The governments have announced the launch of a smart grid program that addresses infrastructure development, accomplishing its objectives for an energy framework based on clean energy growth. Investments to improve road safety and existing infrastructure drive the global construction equipment market demand in the forecast period.
For instance, in July 2024, the U.S. Department of Transportation signed a Full Funding Grant Agreement through the Federal Transit Administration’s Capital Investment Grants program, enabling the Free Trade Agreement (FTA) to invest nearly USD 6.9 billion to help build the tunnel and rehabilitate the prevailing North River Tunnel, representing the largest grant ever signed by FTA.
Loaders and Dozers Dominate the Global Construction Equipment Market
Loaders and dozers hold a significant share of the global construction equipment market due to their versatility and widespread application in various construction activities, including earthmoving, material handling, and site preparation. Their high demand comes from the growing number of large infrastructure projects, particularly in developing countries where new roads, buildings, and mining operations are increasing. Loaders are useful for moving and loading materials quickly, while dozers are essential for tasks like pushing, leveling, and grading land.
Recent advancements have made these machines even more efficient. Features like GPS tracking and automated controls help increase productivity and safety on job sites. Manufacturers are also focusing on developing electric and hybrid models to reduce fuel costs and meet environmental standards. Companies like Caterpillar Inc. and Komatsu Ltd. are introducing new, eco-friendly machines to meet the growing demand for greener construction equipment. These trends are expected to keep loaders and dozers at the top of the construction equipment market in the coming years.
Asia-Pacific Dominates the Global Construction Equipment Market
Asia-Pacific holds the largest market size in the global construction equipment market owing to rapid urbanization in emerging countries, increasing government aims to enhance prevailing infrastructure, and rising infrastructure development activities in emerging countries, including India and China. The significant increase in government expenditure on improving existing infrastructure is boosting construction activities in emerging nations. For instance, India is placing significant stress on enhancing its road infrastructure to ensure competent transportation of resources. In June 2022, the Indian Minister of Road Transport and Highways revealed the launch of 15 new national highway projects, totaling USD 165.37 million, in Patna and Hajipur, Bihar. In addition, companies are planning to launch new construction equipment to address the rising demand from the construction sector and announced a collaboration to expand their market presence.
For instance, in November 2023, Marubeni Corporation announced a joint venture with Rend Corporation, named PT. Max Rent Indonesia in partnership with local entity PT. EXXA Capital, which provides construction and industrial machinery rental services in the Republic of Indonesia.
Future Market Scenario (2024-2031F)
1. Increase in public-private partnerships, construction activities in residential, commercial, and industrial sectors, rising investment in R&D to upgrade equipment effectiveness for industries including forestry, material handling, mining, waste management, and others, drive the global construction equipment market’s growth.
2. Technological integration with construction equipment and the integration of lightweight raw materials and components will propel the global construction equipment market’s growth in the forecast period.
3. Higher investment and expenditure by the government in enhancing existing structures is accelerating construction activities in emerging countries, further fostering the demand for construction equipment.
Report Scope
“Construction Equipment Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of the global construction equipment market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
Contact
Mr. Vivek Gupta
5741 Cleveland street,
Suite 120, VA beach, VA, USA 23462
Tel: +1 (757) 343-3258
Email: info@marketsandata.com
Website: https://www.marketsandata.com/