Heavy Construction Equipment Market Trends, Size, Segment and Growth by Forecast to 2030

Heavy Construction Equipment Market Analysis and Forecast (2024-2031)

Executive Summary

The global heavy construction equipment market is projected to reach US$ 338.06 billion by 2031, up from US$ 224.15 billion in 2024, growing at a CAGR of 6.05% from 2023 to 2031. Heavy construction equipment includes large machinery used for excavation, material handling, lifting, and demolition, which are essential for large-scale construction and civil engineering projects. Increasing investments in infrastructure, clean energy, and public sector projects in developing countries such as India, Mexico, and Brazil are driving market expansion.

According to the World Bank, over US$ 3.7 trillion is invested annually in infrastructure development to support the growing global population. Additionally, the International Energy Agency (IEA) reports that more than US$ 3 trillion is projected to be invested in 2024 in clean energy infrastructure worldwide, further fueling the demand for heavy construction equipment.

Market Segmentation

By Machinery Type:

• Earthmoving Equipment (Excavators, Bulldozers, Backhoe Loaders, Wheel Loaders) – Largest market share in 2024
• Material Handling Equipment
• Heavy Construction Vehicles
• Others

By Propulsion Type:

• Internal Combustion Engine (ICE) Equipment – Largest market share in 2024
• Electric Equipment

By Power Output:

• Less than 100 HP
• 101-200 HP
• 201-400 HP – Largest market share in 2024
• 401 HP & above

By End-Use Industry:

• Building & Construction – Largest market share in 2024
• Forestry & Agriculture
• Energy & Power
• Mining
• Others

Market Drivers and Growth Opportunities

1. Rising Investments in the Global Construction Industry

The construction sector is experiencing rapid growth worldwide, driven by increased government spending and urbanization. Countries like the US, China, Mexico, Brazil, and India lead in construction investments.

• In the United States, construction investments total ~US$ 1.4 trillion per year (Associated General Contractors of America – AGC).
• The Bipartisan Infrastructure Law (US$ 1.2 trillion) and EU infrastructure development fund (US$ 828.8 billion) are further accelerating the sector’s expansion.
• The Asia-Pacific construction market, valued at US$ 4.36 trillion in 2022, accounts for 45% of the global construction industry, with major projects in India, Japan, Australia, Singapore, Malaysia, and China.
  
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2. Infrastructure Development in Emerging Economies

Emerging markets are implementing large-scale construction and infrastructure projects, driving heavy construction equipment demand.

• Argentina: Riachuelo Water System, Salado River Waterworks, National Route 7 and 9 expansions.
• China: Hong Kong-Zhuhai-Macau Bridge, Shanghai Tower, Beijing Subway Metro Network.
• India: Smart Cities Mission, Delhi-Mumbai Industrial Corridor, Bharatmala Project.
• Europe: Evora Public Central Hospital, Baltic Offshore Pipeline, Flamanville 3, Crossrail.

These infrastructure advancements offer lucrative growth opportunities for the heavy construction equipment market.

Market Trends and Technological Developments

1. Expansion of Earthmoving Equipment Segment

The earthmoving equipment segment dominated the market in 2024, driven by increasing infrastructure projects worldwide.

• Germany’s Federal Transport Infrastructure Plan 2030 includes a US$ 280.68 billion investment.
• Germany’s Green Infrastructure Projects (2024): US$ 59.34 billion allocated for sustainable construction.
• Major companies are investing in electric earthmoving equipment. Volvo Construction Equipment launched the L120 Electric wheel loader in Indonesia (September 2024), set for release in 2025.

2. Dominance of ICE Equipment in the Market

Despite growing interest in electric construction equipment, ICE-powered heavy construction machinery remains dominant due to its high power and fuel efficiency.

• Diesel-powered construction vehicles such as excavators, backhoe loaders, dump trucks, and cranes are widely used.
• Diesel engines provide superior fuel efficiency and longevity, making them the preferred choice for large-scale construction projects.
  
  Key Sources Referred:

Conclusion

The global heavy construction equipment market is poised for significant growth, driven by increasing infrastructure investments, rapid urbanization, and clean energy projects. While ICE equipment currently dominates, the shift towards electric and sustainable construction machinery is expected to reshape the industry in the coming years. The market presents lucrative opportunities for stakeholders, particularly in emerging economies and the earthmoving equipment segment.

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Author’s Bio:
Akshay
Senior Market Research Expert at Business Market Insights