Heavy Construction Equipment Market Outlook (2024–2031)
The global heavy construction equipment market is projected to grow from US$ 224.15 billion in 2024 to US$ 338.06 billion by 2031, registering a CAGR of 6.16% from 2025 to 2031.
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Executive Summary and Market Overview
Heavy construction equipment comprises large-scale machinery and vehicles used in major construction projects for tasks such as excavation, lifting, material handling, and demolition. These machines are crucial for enhancing efficiency and productivity on construction sites, especially in large infrastructure and civil engineering developments.
The market is witnessing strong growth driven by increased government investments in transportation, renewable energy, and public infrastructure, particularly in emerging economies such as India, Mexico, and Brazil. According to the World Bank, over US$ 3.7 trillion is invested annually in infrastructure development to meet the demands of growing global populations.
Additionally, the shift toward clean energy is fueling further demand. The International Energy Agency (IEA) reports that over US$ 3 trillion was allocated in 2024 alone for clean energy infrastructure projects worldwide. These large-scale investments are significantly boosting the need for advanced heavy construction equipment across the globe.
Heavy Construction Equipment Market Segmentation Analysis
The analysis of the heavy construction equipment market is derived from key segments based on machinery type, propulsion type, power output, and end-use industry.
By Machinery Type:
The market is categorized into:
- Earthmoving Equipment
- Material Handling Equipment
- Heavy Construction Vehicles
- Others
Among these, earthmoving equipment held the largest market share in 2024. This category includes excavators, bulldozers, backhoe loaders, and wheel loaders. The segment’s growth is driven by increased global infrastructure development investments. For instance, Germany’s Federal Transport Infrastructure Plan 2030 allocates US$ 280.68 billion toward transportation-related infrastructure by 2030, including US$ 59.34 billion specifically for green infrastructure projects in 2024. Additionally, companies like Volvo Construction Equipment are introducing advanced electric variants—such as the L120 Electric Wheel Loader launched in Indonesia in September 2024—highlighting continued innovation in this segment.
By Propulsion Type:
The market is segmented into:
- Internal Combustion Engine (ICE)
- Electric
The ICE segment dominated the market in 2024. ICE-powered equipment, particularly diesel variants, remain preferred due to their high fuel efficiency, power output, and established infrastructure. Diesel-powered machinery such as excavators, dump trucks, and cranes are essential for heavy-duty applications and remain widely used in construction projects globally.
By Power Output:
The segmentation includes:
- Less than 100 HP
- 101–200 HP
- 201–400 HP
- Above 401 HP
The 201–400 HP segment accounted for the largest market share in 2024. Equipment in this range offers the optimal balance between power and operational efficiency, making them suitable for medium to large-scale construction projects.
By End-Use Industry:
The market is divided into:
- Building & Construction
- Forestry & Agriculture
- Energy & Power
- Mining
- Others
The building and construction segment was the dominant end-use industry in 2024. The rise in urbanization and commercial infrastructure development globally has significantly boosted the demand for heavy construction machinery.
Market Drivers and Opportunities
1. Surge in Global Construction Investment
The global construction sector is expanding rapidly, driven by rising government spending and growing demand for new infrastructure. Leading countries such as the US, China, Mexico, Brazil, and India have some of the world’s most robust construction markets. According to the Associated General Contractors of America (AGC), the US construction sector alone receives approximately US$ 1.4 trillion in annual investment. Furthermore, landmark funding initiatives such as the US Bipartisan Infrastructure Law (US$ 1.2 trillion) and the EU Infrastructure Fund (US$ 828.8 billion) are accelerating infrastructure activity and fueling equipment demand.
In Asia Pacific, surging populations are putting pressure on existing infrastructure, prompting governments to invest heavily in new transportation networks, residential projects, and road systems. The region’s construction market was valued at US$ 4.36 trillion in 2022—representing 45% of the global total—with major contributions from India, China, Japan, Australia, and Southeast Asia.
2. Infrastructure Growth in Emerging Economies
Emerging markets such as Argentina, Brazil, India, China, Indonesia, Turkey, and South Africa are witnessing rapid infrastructure development. Notable projects include:
- Argentina: Salado River Waterworks, National Route 9
- China: Hong Kong–Zhuhai–Macau Bridge, Shanghai Tower, Beijing Metro
- Europe: Baltic Offshore Pipeline, Crossrail (UK), Flamanville 3 (France)
These infrastructure initiatives are expected to significantly increase demand for heavy construction equipment in the coming years, creating lucrative growth opportunities for manufacturers and suppliers globally.
Market Outlook
The global heavy construction equipment market is poised for steady expansion, underpinned by rising infrastructure investments, the ongoing shift toward electric machinery, and growing activity in emerging economies. Earthmoving equipment is set to maintain its dominant position, supported by both public and private sector projects across the globe.
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
Geographic Scope of the Heavy Construction Equipment Market
The Heavy Construction Equipment market report covers five key regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America. Among these, the Asia Pacific market is projected to witness significant growth during the forecast period.
Within Asia Pacific, the market is segmented into Australia, China, India, Japan, South Korea, Indonesia, Singapore, Malaysia, the Philippines, Vietnam, and the Rest of Asia Pacific. In 2022, the construction sector in this region generated approximately US$ 4.36 trillion, accounting for around 45% of global construction output.
In January 2025, infrastructure investments in Singapore and Malaysia reached approximately US$ 21.9 billion, focused on sectors such as transportation, renewable energy, and manufacturing. In addition, the New Zealand government is prioritizing the development of critical infrastructure, including water and wastewater systems, road and rail networks, electricity transmission, and telecommunications. With rapid population growth and increasing urbanization, New Zealand plans to invest ~US$ 47 billion from 2023 to 2027 in infrastructure expansion.
This rising focus on infrastructure development across Asia Pacific countries is expected to drive growth in construction activities, leading to increased demand for heavy construction equipment in the coming years.
Heavy Construction Equipment Market Report Overview
The market report offers a comprehensive analysis combining both qualitative and quantitative data across parameters such as type, vehicle type, end user, and geography.
- Chapter 2 – Key Takeaways: Summarizes major trends and market outlook.
- Chapter 3 – Research Methodology: Describes the methods used for data gathering and analysis.
- Chapter 4 – Ecosystem and Porter’s Analysis: Offers insights into the market ecosystem and competitive forces.
- Chapter 5 – Market Dynamics: Covers key drivers, restraints, opportunities, and future trends, along with impact analysis.
- Chapter 6 – Market Scenario: Presents historical revenues and forecasts through 2031.
- Chapters 7 to 9 – Segment Analysis: Provides detailed segmentation by type, application, and geography across all major regions, along with volume, revenue forecasts, and growth drivers.
- Chapter 10 – Competitive Landscape: Includes a heat map and strategic positioning of key players.
- Chapter 11 – Industry Landscape: Reviews market initiatives, recent developments, partnerships, mergers, and acquisitions.
- Chapter 12 – Company Profiles: Detailed profiles of major companies, including business overview, product offerings, financials, SWOT analysis, and recent developments.
- Chapter 13 – Appendix: Includes glossary, abbreviations, and disclaimers.
Recent Developments in the Heavy Construction Equipment Market
- Hitachi Construction Machinery Co., Ltd. announced the launch of Hitachi Construction Machinery Development Center India Private Limited in December 2024. This new subsidiary aims to strengthen the company’s product development capabilities by recruiting top talent in IT and mechanical engineering in India. The company plans to scale up to 200 engineers and designers by FY2027.
- HD Hyundai Construction Equipment North America expanded its HX crawler excavator product line with two new large-frame models designed for high-volume earthmoving, mining, and quarrying:
- HX800A L: 82-ton model powered by a 528 net hp (389 kW) engine.
- HX1000A L: 100-ton model equipped with a 620 net hp (420 kW) engine.
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Author’s Bio
Akshay
Senior Market Research Expert at Business Market Insights
