Construction Equipment Market to Grow by USD 3.8 Billion (2024-2028) New Equipment Launches Boost Growth, Report on AI-Powered Market Evolution - Technavio

NEW YORK, Nov. 26, 2024 /PRNewswire/ -- Report on how AI is driving market transformation - The global construction equipment market size is estimated to grow by USD 3.8 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 5.21% during the forecast period. Rising number of new construction equipment launches is driving market growth, with a trend towards rise in adoption of electric construction equipment. However, high initial cost and maintenance of construction equipment poses a challenge. Key market players include AB Volvo, Action Construction Equipment Ltd., Caterpillar Inc., CNH Industrial NV, Deere and Co., Doosan Corp., Escorts Ltd., Guangxi Liugong Machinery Co. Ltd., Hitachi Construction Machinery Co. Ltd., HD Hyundai Construction Equipment Co. Ltd., J C Bamford Excavators Ltd., Kobe Steel Ltd., Komatsu Ltd., Liebherr International AG, Manitou BF SA, Sany Group, Sumitomo Heavy Industries Ltd., Terex Corp., Xuzhou Construction Machinery Group Co. Ltd., and Zoomlion Heavy Industry Science and Technology Co. Ltd..

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Key Market Trends Fueling Growth

The Construction Equipment Market is experiencing significant growth due to increasing infrastructure projects and urban migration. Sustainable projects, such as renewable energy and smart city development, are driving the demand for electric construction equipment and autonomous machinery. Battery technology and hybrid dump trucks are becoming popular alternatives to diesel engines due to emission laws. Heavy equipment and compact construction equipment are essential for infrastructure projects, including national highway developments and housing projects. The rental equipment industry is thriving due to the closure of construction activities and the need for fuel-efficient equipment. Technological integration, including autonomous vehicle technology and automation, is improving equipment efficiency and productivity. The Construction Leadership Council is advocating for infrastructure investments and industrial application in sectors like mining, agriculture, forestry, waste management, municipal services, and material handling. The market is also witnessing trends like advanced equipment, smart grids, and long-term contracts. Despite the challenges posed by environmental imbalance and greenhouse gas emissions, the construction equipment market continues to evolve, offering opportunities for innovation and growth. 

The global construction equipment market is experiencing a significant growth in the utilization of electric construction equipment. This trend is primarily driven by the rising awareness of sustainability and stringent emissions regulations. Electric construction equipment offers several advantages, including lower operating costs, reduced carbon emissions, quieter operation, and enhanced operational efficiency. These benefits make electric equipment an attractive choice for construction firms aiming to boost their environmental performance and operational efficiency. The increasing focus on sustainability and environmental responsibility within the construction sector is a key factor fueling the adoption of electric construction equipment. Electric equipment significantly reduces emissions compared to diesel-powered alternatives, enabling construction companies to comply with environmental regulations and minimize their carbon footprint. 

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Market Challenges

• The construction equipment market faces numerous challenges in infrastructure projects, with sustainable initiatives and emission laws being top priorities. Electric construction equipment, autonomous machinery, and battery technology are gaining popularity for their eco-friendliness and efficiency. However, the transition from diesel engines to electric power and autonomous machinery comes with challenges, including high upfront costs and the need for advanced infrastructure. Urban migration and public spending drive the demand for construction activities in various sectors like mining, agriculture, forestry, material handling, waste management, municipal services, and more. Heavy equipment and compact construction equipment are essential for these industries, with a focus on equipment efficiency and technological integration. Emission laws, fuel-efficient equipment, and renewable energy projects are key considerations for infrastructure investments. The rental services sector plays a crucial role in providing access to advanced equipment for various industrial applications. The Construction Leadership Council and trade agreements aim to address these challenges through collaboration and standardization. Construction activities closure due to the pandemic and environmental imbalance have impacted the market. The future of construction equipment lies in smart city development, automated equipment, and the integration of renewable energy sources, such as solar and wind power, into smart grids. Long-term contracts and product quality are essential for maintaining a competitive edge in the market.
• The global construction equipment market faces significant challenges due to the high initial costs and ongoing maintenance expenses. These factors pose financial hurdles for construction companies, particularly small- and mid-sized businesses. Acquiring new construction equipment requires a substantial upfront investment, straining financial resources and potentially leading companies to purchase older or lower-quality equipment. This decision may compromise performance, efficiency, and safety. Overall, these challenges impact purchasing decisions, operating budgets, and industry performance.

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Segment Overview 

This construction equipment market report extensively covers market segmentation by

1. Product 
• 1.1 Owned equipment
• 1.2 Rented equipment
• 1.3 Leased equipment
2. Application 
• 2.1 Commercial
• 2.2 Residential
• 2.3 Infrastructure
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Owned equipment- The owned equipment segment in the global construction equipment market consists of machinery and vehicles that construction companies, contractors, and end-users own outright. This segment includes excavators, loaders, skid steers, trucks, trailers, and other construction-specific vehicles. Ownership allows for greater control over assets and operations, making it a significant portion of the market. Trends include advanced telematics, IoT solutions, eco-friendly machinery, and automation. Technological advancements, environmental concerns, and market dynamics drive these developments. Owned equipment is cost-effective for larger projects and offers operational efficiencies and savings. Macroeconomic factors, regulatory policies, and labor dynamics influence demand. The adoption of owned equipment is expected to increase due to these advantages, driving growth in the market.

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Research Analysis

The Construction Equipment Market is experiencing significant growth due to the increasing demand for infrastructure development and sustainable projects. Electric construction equipment, autonomous machinery, battery technology, and hybrid dump trucks are becoming increasingly popular as solutions for reducing emissions and improving equipment efficiency. Infrastructure projects, including road infrastructure and national highway projects, are driving the market, with a focus on technological integration for increased productivity. Mining, agriculture, forestry, material handling, waste management, municipal services, and automated equipment are other sectors benefiting from advancements in construction machinery. Diesel engines continue to dominate the market, but stricter emission laws are pushing the industry towards cleaner alternatives. Pavers, dozers, and forklifts are among the essential equipment types in the construction equipment industry.

Market Research Overview

The Construction Equipment Market is experiencing significant growth due to the increasing demand for infrastructure development, sustainable projects, and urbanization. Electric construction equipment, autonomous machinery, and advanced battery technology are becoming increasingly popular as the industry shifts towards more sustainable and efficient solutions. Diesel engines and hybrid dump trucks are still in use, but emission laws are driving the adoption of fuel-efficient equipment. Heavy equipment and compact construction equipment are essential for various industries, including mining, agriculture, forestry, material handling, waste management, municipal services, and commercial infrastructure. The Equipment rental industry plays a crucial role in providing flexible solutions for construction activities. Smart city development, renewable energy projects, and industrial applications are also major drivers for the market. Technological integration, including autonomous vehicle technology and smart grids, is transforming the construction landscape. Long-term contracts and product quality are essential considerations for construction projects, which are becoming more complex and sophisticated. The Construction Leadership Council and various trade agreements are shaping the future of the industry, with a focus on innovation, sustainability, and safety. Construction activities closure due to the COVID-19 pandemic has had a significant impact on the market, but the industry is expected to recover as infrastructure investments resume.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Owned Equipment
• Rented Equipment
• Leased Equipment
• Application
• Commercial
• Residential
• Infrastructure
• Geography
• APAC
• North America
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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