The Global Construction Equipment Market was valued at USD 185.0 Bn in 2020 is expected to reach USD 265.1 Bn by 2027, with a growing CAGR of 4.5% during the forecast period.
The growing investment in construction and infrastructure across the globe drives the growth of construction equipment. The high spending from government and private sectors throughout the world in the construction of residential, commercial, and public infrastructure, contributing to the growth of the construction industry, which in turn, proliferating the demand for construction equipment. For instance, as per the Institute of Civil Engineers, it is estimated that the global construction equipment industry is projected to reach around USD 8 trillion by 2030, driven by the infrastructural development across the U.S., China, and India.
The increasing urbanization coupled with the rising population across the globe significantly propels the growth of the construction equipment industry. For instance, according to the report of the United Nations Conference on Trade and Development published in 2020, it is estimated that the world population grew by 1.1% over the year, or 82 million people, to reach a global total of 7.7 billion. Moreover, the share of the urban population was increased to 55.7% in 2019.
Based on the application, the market has been segmented into infrastructure, commercial, and residential. The infrastructure segment is expected to hold a significant market share during the forecast period. The growth in this segment is attributed to the increasing infrastructural projects across the globe. For instance, according to the report by the Indian Brand Equity Foundation (IBEF), in 2020, in India, the total allocated investments for the ‘Smart City projects’ stood at USD 28.3 billion.
The prominent players operating in the construction equipment industry are Caterpillar, Komatsu, Deere & Company, and others. These companies offer a wide range of construction equipment in the construction industry. For example, Caterpillar offers construction equipment through its construction industries business segment under the brand name, CAT. Caterpillar’s construction industries segment is basically accountable for helping clients with the use of equipment in infrastructure, forestry, and building construction. The most of sales in this segment are in the heavy and standard construction, rental, quarry and aggregates, and mining markets.
The strict government regulations and carbon emissions might be hampering market growth. Opportunities will be created by new technological innovations which will be expected to be a boost for the players operating in the market.
Global Construction Equipment Market by Region Outlook (Revenue, USD Million, 2021-2027)
In terms of geography, the Asia Pacific segment is predicted to hold the major share of the global construction equipment market share. This region is witnessing demand for smart homes, commercial complexes, and residential buildings, there is a rise in urbanization. The Asia Pacific region held the maximum share in 2020 due to the rising demand for smart residential and commercial buildings. The rising number of real-estate businesses, construction work, and expansion of road & rail systems are some other factors that are boosting the demand for the construction equipment.
The Global Construction Equipment Industry Segmentation:
Global Construction Equipment Market by Type Outlook (Revenue, USD Million, 2021-2027)
Global Construction Equipment Market by Equipment Category Industry Outlook (Revenue, USD Million, 2021-2027)
Global Construction Equipment Market by Propulsion Type Category Industry Outlook (Revenue, USD Million, 2021-2027)
Global Construction Equipment Market by Application Industry Outlook (Revenue, USD Million, 2021-2027)
The key players operating in the construction equipment market are: