Heavy Construction Equipment Market Share, Size, Trends, Industry Analysis Report, By Type (Earthmoving Equipment, Heavy Construction Vehicles, Material Handling Equipment, and Others); By Application; By End-User; By Region; Segment Forecast, 2024- 2032
- Published Date:Jan-2024
- Pages: 116
- Format: PDF
- Report ID: PM3875
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global heavy construction equipment market was valued at USD 202.95 billion in 2023 and is expected to grow at a CAGR of 4.40% during the forecast period.
Heavy construction equipment includes equipment and vehicles that are specifically designed for use in various construction applications and operations such as grading, drilling, excavating, hauling, and paving. This heavy construction equipment is used by various end-user industries, including mining, oil and gas, construction, manufacturing, forestry, and infrastructure.
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At present, the heavy construction equipment market is driven by an increase in the utilization of earthmoving equipment, such as loaders, which are used in different industries for transporting heavy waste material, dirt, sand, and others. However, material handling equipment and other segments are expected to be the most lucrative sectors in the heavy construction equipment market during the forecast period.
- For instance, in May 2022, Catepillar Inc. launched two next generation products named Cat 303 Mini Hex and Cat 120 GC Motor Grader, which was intended to expect a boom on India’s infrastructure.
However, environmental concerns caused by the release of harmful gases, such as carbon dioxide and others by diesel-run machinery, hamper the market growth. Furthermore, the development of low-emission and fuel-efficient equipment offers lucrative growth opportunities for the market players during the forecast period.
Moreover, higher carbon emissions and an increase in oil prices are some factors that limit the growth of the heavy construction equipment market. The commonly observed types of heavy construction equipment are earthmoving equipment, material handling equipment, heavy construction vehicles, and others. Among these, the earthmoving equipment segment accounts for the largest market size by value, owing to low operating costs and increased demand from various industries such as construction, manufacturing, oil and gas, and mining and forestry.
Growth Drivers
Increased focus on expansion of the mining sector is projected to spur the product demand.
Heavy construction equipment such as loaders, excavators, and others are essential for mining exploration. The expansion of the mining sector in the region fosters market growth. The governments of countries located in Latin America are heavily focusing on the expansion of the mining sector to fulfill the need for a rise in the requirement of metals and ores. For example, the government of Argentina implemented new legislation called the “New Federal Mining Agreement” in 2017 to attract investments in the mining sector. Similarly, in 2018, the government of Brazil launched a new mining agency called the National Mining Agency (ANM) to promote the exploitation of gold, silver, copper, and others and regulation and inspection of mining activities. Furthermore, in January 2020, India and Brazil signed a bilateral agreement to boost their stuttering economies and expand cooperation in key sectors such as mining by 2022.
Report Segmentation
The market is primarily segmented based on type, application end-user, and region.
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By Application |
By End-User |
By Region |
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By Type Analysis
Material Handling Equipment segment is expected to witness highest growth during forecast period
The material handling equipment segment is projected to grow at a CAGR during the projected period, mainly driven by the rise in focus on workplace safety and employee safety, recovery in the construction industry, and increase in mining activities, which have led to fuel in demand for heavy construction equipment used in material handling, which is required during construction operations and for placing goods in warehouses and manufacturing plants.
Material handling equipment, such as cranes, dumpers, conveyors, forklifts, loaders, and telescopic handlers, is used for material handling, mainly in large building construction and mining operations. Warehouses and manufacturing firms use material handling equipment to move and shift the respective loads. Different equipment perform material handling operations as per their lifting capacity; the tower crane is used in tall-building construction as it can reach up to 800 meters, while mobile cranes are used for easy transportation to the construction sites.
Forklifts are deployed by warehouses for placing, shifting, and removing the goods. The equipment is chosen as per the capacity, application, and lifting capacity, and it is used in construction, oil & gas, mining, infrastructure (mainly bridges), and agriculture sectors. Material handling is an important activity that ensures extra care for human life during operations. Thus, in turn, is propelling the demand and growth of the segment market.
By Application Analysis
Excavation & demolition segment accounted for the largest market share in 2022
The excavation and demolition segment accounted for the largest market share in 2022 and is likely to retain its market position throughout the forecast period. Manufacturers have developed improved solutions, such as various excavators and demolition machines for specific requirements, and improved technology, such as high-reach demolition machines and improved fuel efficiency, to reduce operation costs and improve productivity. Moreover, technologically advanced excavators ensure improved output, cost-effectiveness, higher performance, and flexibility, providing heavy construction equipment manufacturers with a competitive edge.
By End-User Analysis
Infrastructure segment held the significant market revenue share in 2022
The infrastructure segment held a significant market share in revenue share in 2022, which is highly accelerated due to better fuel efficiency and low operating costs. In addition, owing to the increased use of earthmoving equipment in construction activities, companies are introducing equipment that ensures comfort and high performance. For instance, newly commercialized motor graders, such as the 24 M, offer comfort, productivity, advanced technology, high engine power, and a loadsensing system. Furthermore, the rise in economic activity shifts in demographic trends and spending on infrastructure projects drives the growth of the infrastructure sector. For instance, in November 2019, China planned to invest around US$1 billion to build a port in Sao Luisto to increase shipping activities to overseas markets. Moreover, increased renting and leasing of heavy construction equipment in the region is expected to increase the demand for heavy construction equipment in the future.
Regional Insights
Asia Pacific region dominated the global market in 2022
The Asia Pacific region dominated the global market with the largest market share in 2022 and is expected to maintain its dominance over the anticipated period. The growth of the segment market can be largely attributed to rapid technological growth in developing countries such as Singapore, India, Hong Kong, and Taiwan. Moreover, urbanization and population surges are another factor contributing to the growth. Asia is currently undergoing a swift urbanization process, witnessing millions of individuals migrating from rural to urban areas. Consequently, there is a heightened demand for both residential and commercial spaces, intensifying the requirement for heavy construction equipment.
The Europe region is expected to be the second largest region with a healthy CAGR during the projected period, owing to stringent carbon emission regulations in Europe, governments are implementing strict laws. Consequently, companies are actively innovating their equipment to meet these European emission standards. This has resulted in construction equipment becoming more fuel-efficient and focused on improved performance.
Key Market Players & Competitive Insights
The heavy construction equipment market is fragmented and is anticipated to witness competition due to several players' presence. Major service providers in the market are constantly upgrading their technologies to stay ahead of the competition and to ensure efficiency, integrity, and safety. These players focus on partnership, product upgrades, and collaboration to gain a competitive edge over their peers and capture a significant market share.
Some of the major players operating in the global market include:
- Caterpillar Inc.
- CNH Industrial N.V.
- Deere & Company
- Doosan Infracore Co Ltd.
- Hitachi Construction Machinery Co. Ltd.
- J C Bamford Excavators Ltd.
- Kobelco Construction Machinery Co. Ltd.
- Komatsu Ltd.
- Liebherr International AG
- SANY Group Co. Ltd.
- Terex Corporation
- Volvo Group
- Wacker Neuson Linz GmbH
- XCMG Group
- Zoomlion Heavy Industry Science and Technology Co. Ltd.
Recent Developments
- In March 2020, Volvo Group introduced DD128C compactor which has fast rolling speed and 2,000 mm wide drum. The product had radi drum edges and a chamfer had auto-reversing eccentrics feature.
- In March 2019, JCB planned to invest over $90 million to open a new plant in Gujarat, India. The new plant was expected to be in operation from 2020 and to meet the increased demand for construction equipment worldwide.
Heavy Construction Equipment Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 211.33 billion |
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Revenue forecast in 2032 |
USD 298.24 billion |
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CAGR |
4.40% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments covered |
By Type, By Application, By End-User, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
