HOME Research Insight Caterpillar and Komatsu are the Major Players in the Construction Equipment Market



Caterpillar and Komatsu are the Major Players in the Construction Equipment Market


Construction equipment play an important role in the current industrial scenario, in terms of saving time and reducing costs of construction activities, improving safety of the construction site, and timely delivery of projects. Construction equipment such as loaders, excavators, dozers, drills, and grader equipment are essential for the industry. The construction equipment market is projected to grow at a CAGR of 4.52% during the forecast period. From an estimated market size of USD 146.17 Billion in 2018, it is projected to reach a market size of USD 199.18 Billion by 2025. Factors driving the market are technological advancements such as small diesel engines without the need for aftertreatment device, emission regulation, and increasing government spending on infrastructure development.

The increasing demand for safety and convenience have changed the market dynamics for construction equipment manufacturers. Key strategies adopted by the major players is new product development. For instance, Case, a subsidiary of CNH Industrial, has launched CX145D SR to its D series lineup. It is a highly mobile and powerful excavator that is easy to transport and ideal for restricted constructions sites. The rising demand for safety and convenience as well as high growth in emerging markets has encouraged companies to adopt this strategy. The companies that adopted this strategy are Volvo Construction Equipment (Sweden), John Deere (US), JCB (UK), Zoomlion (China), CNH Industrial (Netherlands), Caterpillar (US), and Liebherr (Switzerland). Expansion is another key strategy prevailing in the market, e.g., Komatsu established a technical center in Japan that has helped the company in improving its design quality. Other companies that adopted this strategy include Caterpillar (US), Liebherr (Switzerland), Volvo Construction Equipment (Sweden), and John Deere (US).

The construction equipment market is dominated by a few global players and comprises several regional players. Some of the key manufacturers operating in the market are Caterpillar Inc. (US), Komatsu Ltd. (Japan), CNH Industrial (Neatherland), Volvo Construction Equipment (Sweden), Terex (US), and Liebherr (Switzerland).

Caterpillar is the market leader in construction equipment. Its core competency is to manufacture tailored equipment through extensive R&D. It has adopted new product launch and collaborations, partnerships, joint ventures, and mergers & acquisitions as their key strategies. For instance, Caterpillar has partnered with Ritche Bros (Canada) in 2016 for live onsite and online auction of used caterpillar equipment and with FIT (Germany) in 2017 to design and develop aluminum and titanium parts for heavy construction equipment. Also in 2014, the company introduced a new product Cat 990K wheel loader, which is more efficient than the previous one.

Komatsu is among the major players in the industry. Its core competency is dump trucks and operational efficiency. It has adopted sacquisition and expansion as the key strategy for development. In 2017, the company acquired Joy Global for USD 3.4 billion to offer a wide range of equipment and expanded its business throughout the world. The company also expanded its facility at the Omaya plant in Japan in 2015 to include a technical center that allowed the company to design quality projects in a shorter duration.   

Related Reports:

Construction Equipment Market by Type (Excavator - Crawler and Mini, Loader - Backhoe, Skid-steer, Wheeled and Other Equipment), Category, Emission Regulation, Aftertreatment Device, Power Output, Application, Rental Equipment, and Region - Global Forecast to 2025

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