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% between 2025 and 2031.

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Executive Summary and Market Overview:

Heavy construction equipment encompasses large machinery and vehicles designed for operations such as excavation, lifting, material handling, and demolition. These machines play a critical role in enhancing efficiency and productivity on construction and civil engineering sites.

Market growth is being driven by rising government investments in transportation, renewable energy, and public infrastructure—particularly in emerging economies like India, Mexico, and Brazil. According to the World Bank, annual global infrastructure investments exceed US$ 3.7 trillion, highlighting the scale of demand fueled by population growth and urbanization.

Additionally, the surge in clean energy projects is significantly contributing to market expansion. As per the International Energy Agency (IEA), more than US$ 3 trillion is expected to be invested globally in 2024 alone for clean energy infrastructure, further boosting the need for advanced heavy construction equipment.

Heavy Construction Equipment Market Segmentation Analysis

Key segments that contributed to the derivation of the Heavy Construction Equipment market analysis are type and application.

  • By machinery type, the heavy construction equipment market is segmented into earthmoving equipment, material handling equipment, heavy construction vehicles, others. The earthmoving equipment segment held a larger share of the market in 2024.
  • In terms of propulsion type, the market is segmented into ICE, electric. The ICE segment held the largest share of the market in 2024.
  • In terms of power output, the market is segmented into less than 100 HP, 101-200 HP, 201-400, 401 HP. The 201-400 HP segment held the largest share of the market in 2024
  • By End Use Industry, the market is segmented into building and construction, forestry and agriculture, energy and power, mining, others. building and construction segment held the largest share of the market in 2024.

Heavy Construction Equipment Market Drivers and Opportunities:

Rise in Investment in Construction Industry Worldwide

The construction industry is growing rapidly in various countries across the globe, with a rise in government investments and an increase in demand for various construction projects. Countries such as the US, China, Mexico, Brazil, and India have the most significant construction businesses in the world. According to the Associated General Contractors of America (AGC), the US construction industry is growing with an investment of ~US$ 1.4 trillion per year. A surge in construction activities in the country, along with the increasing population and the proliferating commercial sector, drives the heavy construction equipment market growth. The global demand for the long-term construction sector is growing rapidly owing to the increasing government investment in infrastructure development. For instance, ~US$ 1.2 trillion in funding was passed by the Bipartisan Infrastructure Law in the US, and US$ 828.8 billion was passed by the EU infrastructure development fund in Europe.

In Asia Pacific, the rising population is putting a strain on current infrastructure, highlighting the need for the development of new rail networks, residential structures, and roadways. The construction industry in Asia Pacific was valued at US$ 4.36 trillion in 2022, which represents 45% of the overall global construction industry. The investment is mostly in countries such as India, Japan, Australia, Singapore, Malaysia, and China. The governments and regulatory bodies in countries in this region are focusing on additional infrastructure investments which is proliferating the demand for heavy construction equipment.

Growing Infrastructure Advancement Activities in Emerging Economies

Argentina, Brazil, China, India, Indonesia, Mexico, Poland, South Africa, South Korea, Turkey, Egypt, Iran, Nigeria, Pakistan, Russia, Saudi Arabia, Taiwan, and Thailand are the notable emerging economies implementing major construction and infrastructure activities. In Argentina, the Riachuelo water system, Salado River waterworks, stage IV, National Route 7 Lujan-Junín stretch, National Route 9, and San Miguel de Tucumán-Santiago del Estero stretch are a few of the major infrastructure projects. The governments of China and India are also taking various initiatives to strengthen their construction and infrastructure industries. Various active projects in China include the Hong Kong-Zhuhai-Macau Bridge, Shanghai Tower, Beijing Subway Metro Network, the Giant Wind Turbines, and the Super LNG Tanker. In Europe, Evora Public Central Hospital, Edge East Side Tower, Baltic Offshore Pipeline, Flamanville 3, and Crossrail are among the ongoing construction projects contributing to the demand for heavy construction equipment. Such infrastructure and construction initiatives taken by the governments of various emerging economies worldwide are likely to provide lucrative growth opportunities to the heavy construction equipment market.

Heavy Construction Equipment Market Size and Share Analysis

Based on type, the global heavy construction equipment market is bifurcated into earthmoving equipment, material handling equipment, heavy construction vehicles, others. The earthmoving equipment segment registered a larger market share in 2024 and is expected to dominate during the forecast period. Earthmoving equipment include excavators, bulldozers, backhoe loaders, and wheel loaders. The increasing investment in infrastructure development projects worldwide is a major driving factor for this segmental growth. Germany's Federal Transport Infrastructure Plan 2030 includes an investment of US$ 280.68 billion between 2016 and 2030 on transportation-related infrastructure. Also, the German government committed US$ 59.34 billion for the green infrastructure projects in 2024. Such an increase in the investment for infrastructure development is a major driving factor for the earth moving equipment market. Several major players in the market are launching advanced electric earthmoving equipment. For instance, in September 2024, Volvo Construction Equipment launched the next electric L120 Electric wheel loader machine in Indonesia. The new electric wheel loader machine was launched at the Mining Indonesia event and will be made available for purchase in 2025.

Based on propulsion type, the global heavy construction equipment market is segmented into ICE and electric. The ICE segment dominated the market for vehicle type in 2024. ICE includes vehicle powered by diesel and gasoline. Diesel heavy construction equipment are a category of machines powered by diesel engines, used extensively in the construction industry for tasks that require significant power and heavy lifting. These vehicles play a crucial role in building infrastructure, from roads and bridges to buildings and industrial facilities. Diesel-powered heavy construction equipment include excavators, backhoe loaders, dump trucks, wheel loaders, cranes, and others. Diesel engines are generally more fuel-efficient than gasoline engines, especially in heavy-duty applications, reducing operational costs. Diesel-powered equipment are widely available, and they have a proven infrastructure, making it easier for construction projects to maintain their fleets.

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




Heavy Construction Equipment Market – Asia Pacific Regional Insights

The Heavy Construction Equipment market report categorizes geographic analysis across 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 substantial growth during the forecast period.

Asia Pacific Market Overview

The heavy construction equipment market in Asia Pacific includes key countries such as Australia, China, India, Japan, South Korea, Indonesia, Singapore, Malaysia, the Philippines, Vietnam, and the Rest of Asia Pacific. In 2022, the construction sector across the region generated approximately US$ 4.36 trillion, accounting for nearly 45% of global construction output.

As of January 2025, combined infrastructure investments in Singapore and Malaysia reached US$ 21.9 billion, primarily focused on transportation, renewable energy, and manufacturing sectors. Simultaneously, New Zealand has been prioritizing the enhancement of its infrastructure systems—including water and wastewater, road and rail networks, electricity transmission, and telecommunications. The government has pledged nearly US$ 47 billion for infrastructure development from 2023 to 2027.

The surge in population growth and urbanization across Asia Pacific is driving the demand for upgraded and expanded infrastructure facilities. This growing infrastructure emphasis is expected to significantly boost construction activity and, by extension, the demand for heavy construction equipment throughout the region.

Market Report Structure

The Heavy Construction Equipment Market Research Report provides a detailed blend of qualitative and quantitative insights, segmented by type, vehicle type, end user, and geography.

  • Chapter 2: Key takeaways outlining major trends and market outlook
  • Chapter 3: Research methodology
  • Chapter 4: Ecosystem and Porter’s Five Forces analysis
  • Chapter 5: Market dynamics – drivers, restraints, opportunities, future trends, and impact analysis
  • Chapter 6: Historical and forecasted market revenues through 2031
  • Chapters 7–9: Market segmentation by type, application, and regional insights with volume and revenue projections
  • Chapter 10: Competitive landscape and heatmap analysis
  • Chapter 11: Industry landscape including recent business developments such as mergers, acquisitions, and strategic initiatives
  • Chapter 12: Company profiles – detailed overview of major market players including financials, SWOT analysis, product offerings, and key developments
  • Chapter 13: Appendix – glossary, abbreviations, and disclaimer

Recent Market Developments

  • Hitachi Construction Machinery Co., Ltd. (TSE: 6305) announced the formation of Hitachi Construction Machinery Development Center India Private Limited, a new subsidiary focused on machinery design and development. Launched in December 2024, the center aims to scale up to 200 engineers and designers by FY2027, reinforcing Hitachi’s engineering capabilities in IT and mechanical design in India.
    (Source: Hitachi Construction Machinery Co., Ltd, Press Release, December 2024)
  • HD Hyundai Construction Equipment North America expanded its HX crawler excavator line by launching two new large-frame mass excavators:
    • HX800A L (82 tons, 528 net hp / 389 kW)
    • HX1000A L (100 tons, 620 net hp / 420 kW)



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Author's Bio
Akshay
Senior Market Research Expert at Business Market Insights