Global Heavy Construction Equipment Market Grows Steadily at a CAGR of 4.0%

Heavy construction equipment consists of machinery and trucks used for construction tasks such as excavation, material hauling, and tunneling. Tippers, dumpers, motor graders, dozers, loaders, and excavators are prevalent heavy construction equipment examples. The mechanical advantage of heavy equipment doubles the ratio of input force to output force, making processes that would require hundreds of workers and weeks of effort without heavy equipment much less labor-intensive. Hydraulic drives largely push specific machinery. Thus, these machines aid in increasing the production rate through work progress, reducing human requirements, increasing efficiency, speed, and safety on a larger scale, and reducing the time limit of processes and overall building expenses. Market Dynamics Rising Investment in Construction Sector Drives the Global Market The construction industry in Asia-Pacific and LAMEA is anticipated to expand due to the government's aim to finish multiple infrastructure projects. The building of regional airports, highways, rail networks, and power plants is included in these projects. For example, in October 2019, the Public Investment Fund of Saudi Arabia intended to invest USD 10 billion in Brazil, including constructing a 600-kilometer train from Mato Grosso to Para in northern Brazil. Similarly, throughout most of Latin America, the building industry rebounded in 2021 following a period of sluggishness induced by low consumer confidence and a lack of investment over the previous few years. The recovery of the construction industry, particularly in countries such as Brazil, Colombia, and Peru, is predicted to fuel the expansion of the heavy construction equipment market. Technical Advancement and Development of Low Emission, Fuel-Efficient Equipment Creates Tremendous Opportunities Construction equipment manufacturers have concentrated their R&D efforts on developing energy-efficient machines and increasing the fuel efficiency of existing machines. Fuel usage and carbon emissions are key concerns for most construction enterprises. The cost of fuel is a significant component of total building expenditures. Heavy construction equipment manufacturers have introduced several machines with exceptional fuel efficiency. Even with this, construction businesses are hesitant to invest in heavy equipment that consumes less gasoline due to the higher cost of these machines than conventional ones. In addition, substantial R&D efforts done by equipment makers would allow for the creation of low-cost machines with improved fuel economy and reduced carbon emissions. Caterpillar Inc. provides a 336E H hybrid excavator that reduces fuel consumption by approximately 25%. It also manufactures the 996K XE wheel loader, equipped with a new step-less powertrain technology to reduce fuel usage. Regional Analysis Asia-Pacific is the most significant global heavy construction equipment market shareholder and is anticipated to grow at a CAGR of 5.1% during the forecast period. China dominates the construction equipment market in terms of consumption and production. However, due to the rapid development of technology, developing nations such as India, Singapore, Hong Kong, and Taiwan, among others, have been identified as significant markets. Komatsu (Japan), Hitachi Construction Machinery (Japan), XCMG (China), Doosan Infracore (South Korea), and Sany (China) are among the prominent firms engaged in the Asian market (China). Moreover, according to a report issued in 2018 by the London-based Overseas Development Institute (ODI), the regional economy of Asia grew by 6% in 2017 and is anticipated to rise substantially through 2025. This affects the total expansion of construction and manufacturing facilities in these locations. Consequently, improving global manufacturing facilities would generate chances for developing the construction equipment market in this area. Europe is estimated to exhibit a CAGR of 2.4% over the forecast period. In Europe, governments have implemented strict regulations regulating carbon emissions. Thus, businesses are developing innovative equipment to meet European emission regulations. The construction industry has adopted more fuel-efficient and performance-oriented machinery. In addition, the major players, such as Volvo Construction Equipment, Liebherr, and JCB, have their headquarters in Europe, giving them a substantial presence in the region. Several factors contribute to the expansion of the European construction equipment industry. In Europe, construction equipment is mainly utilized in the construction and industrial sectors. In addition, the major countries in the region, such as Germany, the United Kingdom, France, and others, are significant centers of development for the manufacturing and energy industries, which increases demand for construction equipment in these nations. Key Highlights The global heavy construction equipment market was valued at USD 193.10 billion in 2022. It is estimated to reach USD 274.84 billion by 2031, growing at a CAGR of 4.0% during the forecast period (2023–2031). Based on equipment type, the global heavy construction equipment market is bifurcated into earthmoving equipment, material handling, heavy construction vehicles, and others. The earthmoving equipment segment owns the highest market share and is projected to exhibit a CAGR of 3.4% over the forecast period. Based on application, the global heavy construction equipment market is divided into excavation and demolition, heavy lifting, tunneling, material handling, and recycling and waste management. The excavation and demolition segment is responsible for the largest market share and is anticipated to grow at a CAGR of 3.1% over the forecast period. Based on the end-user, the global heavy construction equipment market is segmented into infrastructure, construction, mining, oil and gas, manufacturing, and others. The construction segment is the highest contributor to the market and is estimated to grow at a CAGR of 3.8% during the forecast period. Asia-Pacific is the most significant global heavy construction equipment market shareholder and is anticipated to grow at a CAGR of 5.1% during the forecast period. Competitive Players The key players in the global heavy construction equipment market are AB Volvo, CNH, Caterpillar Inc., Deere & Company, Hitachi Machinery Construction, Doosan Infracoe, Komatsu, Liebherr AG, JCB, and Sany. Market News In March 2023, Teleo, a firm developing autonomous technology for heavy construction equipment, signed agreements with John Aarts Group, Teichert, and Tomahawk Construction for remote-controlled wheel loaders, bulldozers, and dump trucks today, respectively. In March 2023, Manitex International, Inc., an internationally renowned supplier of truck cranes, specialized industrial equipment, and construction equipment rental solutions for infrastructure and construction markets, announced the official launch of the ECSY-Electric Crane System in conjunction with CONEXPO-Las Vegas' opening day. Global Heavy Construction Equipment Market: Segmentation By Equipment Type Earthmoving Material Handling Heavy Construction Vehicles Others By Applications Excavation and Demolition Heavy Lifting Tunneling Material Handling Recycling and Waste Management By End-User Infrastructure Construction Mining Oil and Gas Manufacturing Others By Regions North America Europe Asia-Pacific LAMEA