Construction Equipment Market Size, Share & Analysis

KEY TAKEAWAYS

• BY EQUIPMENT TYPE

  Rigid dump trucks are projected to record the highest CAGR within the construction equipment market, primarily driven by large-scale infrastructure development and mining activities across China, India, and Indonesia. Crawler Excavators are expected to hold largest market share during the forecast period. The surge in government-backed projects such as highway expansion, urban redevelopment, and quarry operations is boosting demand for high-capacity hauling equipment. Additionally, rising investments in metal and mineral extraction projects and the replacement of aging fleets with high-performance, fuel-efficient models further reinforce growth prospects for rigid dump trucks in the forecast period.
• BY EQUIPMENT CATEGORY

  The earthmoving segment is the fastest and largest growing in the construction equipment market, owing to high demand pull from China and India due to massive infrastructure investments. Rapid urbanization and projects like China's Belt and Road Initiative and India's $1.4 trillion National Infrastructure Pipeline boost needs for excavators and loaders in site preparation and earthmoving tasks. OEMs rapidly adopt hydraulic-electric integration, advanced telematics, and grade-control systems in excavators, loaders, and dozers, gaining fuel efficiency and precision. These technologies enable scalable hybrid and electric variants across multiple weight classes faster than cranes or concrete machinery.
• BY AFTER-TREATMENT DEVICE

  Exhaust Gas Recirculation (EGR) systems are witnessing the fastest growth within the construction equipment market, driven by stringent Stage V and Bharat Stage IV emission mandates. In China and India, rapid expansion of road and urban infrastructure projects, coupled with high production of diesel-based excavators and loaders, is boosting EGR adoption. Additionally, OEMs are integrating cooled and electronically controlled EGR systems to meet NOx reduction targets while maintaining engine efficiency across heavy-duty segments.
• BY APPLICATION

  The infrastructure segment is the fastest growing in the construction equipment market, mainly due to high demand from China, India, and Southeast Asian countries. These regions are investing heavily in mega infrastructure projects such as highways, metros, airports, and smart cities. Government stimulus and national programs like China’s Belt and Road Initiative and India’s National Infrastructure Pipeline are driving a surge in equipment orders for earthmoving, concrete, and lifting machinery. Rapid urbanization and the push for modernization further amplify the need for advanced equipment across large-scale job sites.
• BY ENGINE CAPACITY

  The <5L engine capacity segment is the largest and fastest growing in the construction equipment market, mainly due to high demand pull from China, India, and Southeast Asia. These countries are focusing on compact construction machinery for urban infrastructure, smart city, and residential projects that require fuel-efficient, low-emission engines. Growing investments in small to medium construction, rising regulatory pressure for emission compliance, and preference for agile machines in tight city spaces are boosting adoption. Manufacturers are responding with advanced, efficient diesel and hybrid engines to fit this segment.
• BY POWER OUTPUT

  By power output, Equipment below 100 hp remains the largest market segment because it powers compact, versatile machines suited for urban construction, rental fleets, and last-mile earthmoving, these applications demand high maneuverability and lower operating costs. In contrast, the 201–400 hp range is the fastest-growing as OEMs electrify and automate mid-to-heavy-duty platforms, these power class is ideal for integrating advanced hydraulics, telematics, and hybrid powertrains, delivering high productivity with improved fuel and emissions performance in large-scale infrastructure and mining projects.
• BY PROPULSION

  The CNG/LNG/RNG segment is the fastest growing propulsion type in the construction equipment market, driven mainly by demand from the Middle East region due to abundant natural gas reserves and expanding infrastructure projects. Governments here are promoting cleaner fuel usage through subsidies and sustainability targets. Whereas, the diesel segment remains the largest growing type globally, supported by strong demand from countries like China and India owing to established diesel fleets, large-scale infrastructure, and industrial development requiring high-power equipment. Diesel engines also benefit from extensive fuel availability and service networks in these regions.
• By application (Rental)

  The infrastructure segment is the fastest growing in the construction equipment rental market, driven by high demand pull from India, China, and the U.S. These countries are investing in large-scale projects like India's National Infrastructure Pipeline, China's Belt and Road Initiative, and U.S. Bipartisan Infrastructure Law, requiring flexible access to heavy machinery for roads, bridges, and urban development. Rental services offer cost savings on ownership and maintenance, enabling contractors to scale fleets for short-term needs without capital strain. Government funding and urbanization further accelerate rentals for earthmovers and cranes in these high-volume sites.
• electric & hybrid construction equipment market, by equipment type

  Electric dump trucks hold the largest market share during the forecast period in the electric & hybrid construction equipment market, by equipment type, owing to high demand pull from China, the U.S., and India due to massive mining and infrastructure projects. These countries are leading in EV adoption through government incentives like China's dual-credit policy, U.S. IRA tax credits, and India's FAME scheme, pushing zero-emission fleets for cost savings on fuel and maintenance. Electric dump trucks excel in hauling heavy loads with regenerative braking for energy recovery and lower operating costs up to 40% versus diesel, suiting long-haul sites. Rapid battery advancements and charging infrastructure expansions further enable their scalability in urban and remote operations.
• electric construction equipment market, by battery chemistry,

  The lithium iron phosphate (LFP) segment is projected to be the fastest and largest growing in the construction equipment market during the forecast period, owing to high demand pull from China, India, and the U.S. These countries are driving adoption through massive infrastructure and mining electrification, supported by China's dual-credit policy, U.S. IRA tax credits up to $7,500 per vehicle, and India's FAME-II subsidies for electric fleets. LFP batteries offer superior safety with no thermal runaway risks, up to 5,000 cycles for 10+ year lifespan, and 30% lower costs versus NMC types, suiting heavy-duty excavators and loaders in harsh environments. Rapid scaling of domestic production in China and incentives for LFP-based EVs further boost scalability for zero-emission construction goals.
• AUTONOMOUS CONSTRUCTION EQUIPMENT MARKET, BY REGION

  The Americas is the fastest and largest growing region in the autonomous construction equipment market during the forecast period, owing to high demand pull from the U.S. and Canada due to acute labor shortages and massive infrastructure modernization. The U.S. Bipartisan Infrastructure Law allocates over USD 1.2 trillion for roads, bridges, and EV charging networks, while Canada's $150 billion investment in national infrastructure drives adoption of semi-autonomous dozers and excavators to boost productivity by up to 30%. These countries benefit from advanced R&D by OEMs like Caterpillar and Volvo, focusing on AI, LiDAR, and GPS for safety in hazardous sites amid a projected 2.2 million worker gap by 2026. Regulatory incentives and mining sector pilots further accelerate deployment for precision earthmoving.
• CONSTRUCTION EQUIPMENT MARKET, BY REGION

  Asia as the largest growing market by value in the construction equipment market. The growth in this region is due to high demand pull from China, India, and Indonesia. These countries are fueling expansion through massive infrastructure investments like China's Belt and Road Initiative with over USD 1 trillion in projects, India's USD 1.4 trillion National Infrastructure Pipeline, and Indonesia's USD 475 billion infrastructure plan for ports and highways. Rapid urbanization at 2-3% annual rates, population growth exceeding 1.4 billion in China and India, and government stimulus for smart cities and industrial corridors drive demand for earthmovers and cranes. Local OEM manufacturing and EV incentives further lower costs and accelerate adoption in these high-growth economies.
• COMPETITIVE LANDSCAPE

  Major market players have adopted both organic and inorganic strategies, including partnerships and investments. For instance, Caterpillar (US), Komatsu Ltd. (Japan), Deere & Company (US), Hitachi Construction Machinery Co., Ltd. (Japan), Xuzhou Construction Machinery Group (China), SANY Group (China), and AB Volvo (Sweden) have entered into a number of agreements and partnerships to cater to the growing demand for construcution equipment market across innovative applications.

The construction equipment market is growing steadily as governments and developers push new infrastructure and urban projects, while contractors increasingly use rentals for cost flexibility and rely on telematics to monitor uptime, safety, and maintenance. Electrification and hybrid machines are gaining momentum due to tighter emission goals and city rules, with OEMs and rental firms partnering with technology providers to roll out compact electric models, better batteries, and connected systems that reshape how fleets are managed.