Heavy Construction Equipment Market, Size, Segment and Growth by Forecast Period: (2021-2031)

Heavy Construction Equipment Market

Heavy Construction Equipment Market: Poised for Significant Growth

The heavy construction equipment market is on a strong upward trajectory, projected to grow from US$ 224.15 billion in 2024 to an estimated US$ 338.06 billion by 2031. This expansion represents a Compound Annual Growth Rate (CAGR) of 6.16% between 2025 and 2031.

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Executive Summary and Global Market Analysis

Heavy construction equipment encompasses the large machinery and vehicles vital for various construction tasks, including excavation, lifting, material handling, and demolition. These machines are indispensable for large-scale construction and civil engineering projects, significantly boosting efficiency and productivity on job sites.

A primary driver for the increasing demand for heavy construction equipment is the surge in government funding for transportation, renewable energy, and public infrastructure initiatives, particularly in developing nations like India, Mexico, and Brazil. The World Bank reports annual investments exceeding US$ 3.7 trillion in infrastructure development worldwide, aiming to meet the demands of a growing global population. Furthermore, the substantial rise in global investments within the clean energy sector is a significant market stimulant. The International Energy Agency highlights over US$ 3 trillion invested in 2024 alone for clean energy-related infrastructure development across the globe.

Heavy Construction Equipment Market: A Deep Dive into Key Segments and Growth Drivers

The heavy construction equipment market is experiencing significant growth, fueled by global infrastructure development and a boom in the construction industry. This analysis breaks down the market by its key segments and highlights the major factors propelling its expansion.

Market Segmentation: Understanding the Landscape

The heavy construction equipment market is analyzed across several crucial segments, each offering a unique perspective on its dynamics:

• By Machinery Type: This segment includes earthmoving equipment, material handling equipment, heavy construction vehicles, and others. In 2024, earthmoving equipment — encompassing machines like excavators, bulldozers, backhoe loaders, and wheel loaders — held the largest market share. This dominance is largely attributed to the surge in global infrastructure development projects. For example, Germany's Federal Transport Infrastructure Plan 2030 alone earmarks over $280 billion for transportation infrastructure. The increasing demand for sustainable solutions is also driving innovation in this segment, with companies like Volvo Construction Equipment launching advanced electric wheel loaders.
• By Propulsion Type: The market is divided into Internal Combustion Engine (ICE) and electric. In 2024, the ICE segment, primarily fueled by diesel and gasoline, accounted for the largest share. Diesel-powered equipment is a cornerstone of the construction industry due to its superior power, fuel efficiency in heavy-duty applications, and established infrastructure for maintenance and operation. These include essential machines such as excavators, dump trucks, and cranes.
• By Power Output: This segment categorizes equipment by horsepower: less than 100 HP, 101-200 HP, 201-400 HP, and 401 HP and above. The 201-400 HP segment commanded the largest share of the market in 2024, indicating a strong demand for machinery within this power range for a wide array of construction tasks.
• By End-Use Industry: The market serves various sectors, including building and construction, forestry and agriculture, energy and power, mining, and others. The building and construction segment held the dominant share in 2024, underscoring its critical reliance on heavy construction equipment for its rapid expansion worldwide.

Market Drivers and Opportunities: Paving the Way for Growth

Two significant factors are driving the robust growth of the heavy construction equipment market:

• Rise in Investment in the Global Construction Industry: The construction sector is witnessing unprecedented growth worldwide, driven by substantial government investments and increasing demand for diverse construction projects. Countries like the US, China, India, Mexico, and Brazil are at the forefront of this expansion. For instance, the US construction industry sees an annual investment of approximately $1.4 trillion. Landmark legislation such as the Bipartisan Infrastructure Law in the US ($1.2 trillion) and the EU infrastructure development fund in Europe ($828.8 billion) are injecting massive capital into infrastructure projects, directly fueling the demand for heavy construction equipment. The Asia Pacific region, with its rapidly growing population, accounts for a remarkable 45% (valued at $4.36 trillion in 2022) of the global construction industry, with significant investments in countries like India, Japan, and China focusing on new rail networks, residential structures, and roadways.
• Growing Infrastructure Advancement Activities in Emerging Economies: Emerging economies across the globe are undertaking ambitious infrastructure projects, presenting lucrative opportunities for the heavy construction equipment market. Countries such as Argentina, Brazil, China, India, Indonesia, Mexico, and South Africa are leading these initiatives. Notable projects include the Riachuelo water system in Argentina, the Hong Kong-Zhuhai-Macau Bridge in China, and the Beijing Subway Metro Network. European nations are also contributing to this trend with projects like the Evora Public Central Hospital and Crossrail. These large-scale infrastructure and construction initiatives by governments worldwide are creating a strong and sustained demand for heavy construction equipment.

Future Outlook

The continued global focus on infrastructure development, coupled with ongoing investments in the construction sector, suggests a promising future for the heavy construction equipment market. The trend towards electric and more efficient machinery within key segments like earthmoving equipment also points to a dynamic and evolving market landscape.

Market leaders and key company profiles

  JC BAMFORD EXCAVATORS LTD

  AB VOLVO

  CATERPILLAR INC

  HITACHI LTD

  HYUNDAI CONSTRUCTION EQUIPMENT CO LTD

  DOOSAN CORP

  CNH INDUSTRIAL NV

  DEERE & CO

  KOMATSU LTD

  LIEBHERR

Heavy Construction Equipment Market Report Coverage and Deliverables

The "Heavy Construction Equipment Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:

• Heavy Construction Equipment market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Heavy Construction Equipment market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed Porter's Five Forces and SWOT analysis
• Heavy Construction Equipment market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Heavy Construction Equipment market
• Detailed company profiles

The geographic scope of the Heavy Construction Equipment market report is divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America. The Heavy Construction Equipment market in Asia Pacific is expected to grow significantly during the forecast period.

The heavy construction equipment market in Asia Pacific is segmented into Australia, China, India, Japan, South Korea, Indonesia, Singapore, Malaysia, the Philippines, Vietnam, and the Rest of Asia Pacific. The construction sector in Asia Pacific recorded ~US$ 4.36 trillion of output in 2022, representing approximately 45% of the global construction sector. However, in January 2025, infrastructure investments related to transportation, renewable energy, and manufacturing reached US$ 21.9 billion in Singapore and Malaysia. Further, the government of New Zealand is emphasizing the development of infrastructure networks such as water and wastewater systems, road and rail networks, electricity transmission, and telecommunication infrastructure. Growing population and increasing urbanization are a few factors boosting the need to expand and upgrade important infrastructure facilities in the country. The government of New Zealand plans to offer ~US$ 47 billion for infrastructure development over the coming five years 2023-2027. The growing focus on infrastructure development is anticipated to propel the growth of construction activities, along with the application of heavy construction equipment, across the country in the coming years.

Heavy Construction Equipment Market Research Report Guidance

• The report includes qualitative and quantitative data in the Heavy Construction Equipment market across type, vehicle type, end user and geography.
• The report starts with the key takeaways (chapter 2), highlighting the key trends and outlook of the Heavy Construction Equipment market.
• Chapter 3 includes the research methodology of the study.
• Chapter 4 further includes ecosystem analysis along with Porter’s analysis.
• Chapter 5 highlights the major industry dynamics in the Heavy Construction Equipment market, including factors that are driving the market, prevailing deterrents, potential opportunities as well as future trends. Impact analysis of these drivers and restraints is also covered in this section.
• Chapter 6 discusses the Heavy Construction Equipment market scenario, in terms of historical market revenues, and forecast till the year 2031.
• Chapters 7 to 9 covers Heavy Construction Equipment market segments by type, application and geography across North America, Europe, Asia Pacific, Middle East and Africa, South and Central America. They cover market volume revenue forecast, and factors driving the market.
• Chapter 10 describes the competitive analysis along with the heat map analysis for the key players operating in the market.
• Chapter 11 describes the industry landscape analysis. It provides detailed description of various business activities such as market initiatives, new developments, mergers, and joint ventures globally, along with a competitive landscape.
• Chapter 12 provides detailed profiles of the major companies operating in the Heavy Construction Equipment market. The companies have been profiled on the basis of their key facts, business description, products and services, financial overview, SWOT analysis, and key developments.
• Chapter 13, i.e., the appendix is inclusive of a brief overview of the company, list of abbreviations, and disclaimer.

Heavy Construction Equipment Market News and Key Development:

The Heavy Construction Equipment market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the key developments in the Heavy Construction Equipment market are:

• Hitachi Construction Machinery Co., Ltd. (TSE: 6305; “Hitachi Construction Machinery”) announced the establishment of Hitachi Construction Machinery Development Center India Private Limited (“Hitachi Construction Machinery Development Center India”), a consolidated subsidiary that will develop and design construction machinery in India, in late December to strengthen the product development capabilities of the Hitachi Construction Machinery Group. The company will target and hire exceptional talent within India in the fields of IT and mechanical engineering and expand to a scale of 200 engineers and designers by FY2027. (Source: Hitachi Construction Machinery Co., Ltd, Press release, December 2024)
• HD Hyundai Construction Equipment North America has continued expansion of its HX crawler excavator product line with the availability of two new large frame mass excavators. The 82-ton HX800A L, and the 100-ton HX1000A L are designed to meet the needs of high-volume earthmoving, mining and quarrying applications. The HX800A L is powered by a 528 net hp (389 kW) engine, while the HX1000A L is equipped with a 620 net hp (420 kW) engine. (Source: HD Hyundai Construction Equipment, Press Release, August 2024)

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Author's Bio
Akshay
Senior Market Research Expert at Business Market Insights