The global heavy construction equipment market size was valued at USD 204.41 billion in 2023 and is projected to grow at a CAGR of 5.2% from 2024 to 2030. Key growth drivers for this market are unceasing urbanization, population growth leading to the growing demand for housing solutions and continuous infrastructural enhancements in developing economies. In addition, the emergence of fuel-efficient machinery and the increasing development of high-rise buildings in developed countries is expected to generate greater demand for the heavy construction equipment market.
The continuous focus of multiple governments worldwide on modifying and developing new infrastructural provisions such as bridges, road networks, ports, railroads, metros, and others in the country's prime revenue-generating areas is developing a rise in demand for this heavy construction equipment market. The rising inclination of people towards improving their standard of living is fueling the need for improved sanitation and hygiene infrastructure facilities, leading to growth in the utilization of heavy construction equipment for various public welfare projects. The key factors, such as rapid urbanization and the rising migration of people from rural parts of the country to urbanized areas for livelihood, fuel the need for residential and commercial constructions and are anticipated to develop growth for this industry during the forecast period. According to the United Nations Department of Economic and Social Affairs, nearly 68% of the world's population is projected to live primarily in urban areas by the year 2050.
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Global Heavy Construction Equipment Market Report Segmentation:
Machinery Insights
The material handling equipment segment dominated the market and accounted for a revenue share of 51.0% in 2023. This growth is attributed to the continuous demand of various heavy construction equipment especially for the construction of high-rise buildings. Some of the commonly used heavy construction equipment in material handling are cranes, forklifts, conveyer belts, excavators, hoists, crawler cranes, telescopic handler cranes, tower cranes, gantry cranes, passenger hoists, and others. Increasing number of redevelopments, construction of new bridges or other amenities in crowded areas and growing development of high rise structure is expected to develop growth for this segment.
Application Insights
The material handling segment accounted for the largest revenue share in 2023. Heavy construction equipment such as hoists, conveyors, cranes, forklift trucks, tractors, and dump trucks are utilized for material handling applications. Bulk materials can be easily transported using material handling equipment in complicated construction sites, warehouses, and other settings. Manufacturers in this industry are focusing on designing user-friendly and technologically advanced equipment for numerous types of material handling. These aspects are expected to drive growth for this segment.
End Use Insights
The infrastructure segment dominated the global industry in 2023. Growing number of infrastructure enhancement projects by governments across the world and unceasing urbanization leading to higher demand for newly developed infrastructural amenities are driving the growth of this segment. Governing authorities in developing economies are constantly investing in development and improvement of energy facilities, transportation systems, communication networks, water management systems, and other public welfare infrastructural projects. These factors are expected to generate greater demand for the segment in approaching years.
Propulsion Insights
Internal combustion engines (ICEs) accounted for the largest revenue share in 2023. This growth is attributed to ICEs' benefits, such as being inexpensive to maintain and manufacture, compatibility with a variety of fuels, and having a high power-to-weight ratio ideal for tasks that need a high power output in limited space. Moreover, internal combustion engines are capable of delivering optimal performance and efficiency by utilizing hydrogen as fuel, leading to low-to-zero harmful emissions.
Power Output Insights
Based on the power output range, <100 HP segment accounted for the largest revenue share in 2023. Heavy construction equipment with a power output of less than 100 HP facilitates tasks in limited space and are mainly used in projects such as maintenance and highway repair in urban areas due to space limitations. Some of the low-power heavy construction equipment includes compactors, mini excavators, and loaders. Therefore, rising urbanization is anticipated to drive the demand for heavy construction equipment with less than 100 HP. The ability of this equipment to work in remote and intricate settings is expected to drive the growth during the forecast period.
Engine Capacity Insights
Based on engine capacity, 5-10L segment accounted for the largest revenue share in 2023. Rising investment in numerous commercial projects such as the construction of railways, roads, dams, and urban infrastructure is driving growth for heavy construction equipment with 5-10L energy capacity. Construction equipment such as road rollers, compactors, crawler excavators, and others are incorporated with this engine capacity.
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North America heavy construction equipment market held significant share of global industry in 2023. The key factors driving the growth for this market are urbanization, increasing population, enhancements in infrastructure, technological progress, and mining activities in the region. According to National Geographic Society, North America is top producer of coal. In addition, the region exports multiple materials to other countries and businesses such as bauxite, iron, copper, and nickel. Furthermore, the region has promoted construction of engineering marvels, advanced infrastructural projects and large cities. These aspects have contributed to the vital role of this regional market in growth of global industry.
Key Heavy Construction Equipment Company Insights
Some of the key companies in the heavy construction equipment market include Caterpillar, Komatsu Ltd., AB Volvo, Hitachi Construction Machinery Co., Ltd., Deere & Company., CNH Industrial N.V., and others. To address the competitive state of industry, the key companies have adopted strategies such as growing investments in research & development, rising adoption of innovation, collaborations with companies and governments, participation in welfare initiatives related to infrastructural enhancements and more.
Caterpillar Inc., one of the prominent companies in manufacturing industry of construction and mining equipment, off-highway natural gas and diesel engines, diesel-electric locomotives and industrial gas turbines as well. Some of the heavy construction equipment offered by the company includes articulated trucks, backhoe loaders, compactors, draglines, drills, motor graders, hydraulic mining shovels, off-highway trucks, road reclaimers, pipelayers, excavators, dozers, lift trucks and more.Komatsu Ltd., a Japan-based global corporation, manufactures mining, forestry, construction, and military machinery, some of its heavy construction equipment offerings are excavators, bulldozers, motor graders, wheel loaders, dump trucks, wheel dozers and others.Key Heavy Construction Equipment Companies:
The following are the leading companies in the heavy construction equipment market. These companies collectively hold the largest market share and dictate industry trends.
CaterpillarKomatsu Ltd.AB VolvoHitachi Construction Machinery Co., Ltd.Deere & Company.CNH Industrial N.V.LIEBHERRKobelco Construction Machinery Co., Ltd.SANYXCMG GROUPOrder a free sample PDF of the Heavy Construction Equipment Market Intelligence Study, published by Grand View Research.
