Construction Equipment Market to Reach $361.6 billion by 2035, Driven by Infrastructure Expansion and Equipment Modernization

Published: Jan 2026

Construction equipment market was valued at $211.2 billion in 2024 and is projected to reach $361.6 billion by 2035, growing at a CAGR of 5.1% during the forecast period (2025-2035). Market growth is primarily supported by rising investments in infrastructure development, urban expansion, and large-scale construction projects across both developed and emerging economies. Increasing demand for earthmoving, material handling, and road construction equipment is reinforcing steady volume growth across residential, commercial, and industrial construction activities.

Browse the full report description of “Construction Equipment Market Size, Share & Trends Analysis Report By Machinery Type (Earth Moving Equipment (Cranes, Loader & Backhoe, Telescopic Handlers, Excavators, Motor Graders, and Others (Trencher)), Material Handling Equipment (Hoists, Conveyors, Forklifts, and Others (Industrial Trucks)), and Other Construction Equipment (Concrete Mixers, Road Rollers, Stone Crushers, Dumpers, Tippers & Trailers, and Others (Slurry Seal Machines)), and by Industry (Construction & Infrastructure, Manufacturing, Mining, and Others (Oil & Gas)), Forecast Period (2026-2035)” at https://www.omrglobal.com/industry-reports/construction-equipment-market

Ongoing modernization of construction fleets is further strengthening market momentum. Contractors are increasingly adopting advanced equipment to improve productivity, reduce operating costs, and enhance on-site efficiency. Technological advancements such as telematics, automation, and digitally enabled fleet management systems are gaining traction, enabling better equipment utilization and lifecycle management. In addition, expanding public infrastructure programs and private sector investments are sustaining long-term demand for high-capacity and specialized construction machinery.

Earthmoving equipment continues to account for the largest share of the market, supported by sustained demand from mining, excavation, and large infrastructure projects. Meanwhile, material handling and concrete equipment segments are benefiting from growth in urban construction and commercial development. Collectively, these factors are reinforcing a stable and positive outlook for the global construction equipment market.

Rising Construction Activity and Project Pipeline Supporting Construction Equipment Market Growth

According to the Construction Equipment Association (CEA), in January 2025, Sustained expansion in construction activity, as reflected by the UK PMI remaining above the expansion threshold, is supporting steady utilization of construction machinery across projects. A strong pipeline of large-scale developments, with the top 100 projects scheduled for 2025 generating £34 billion in work, is expected to translate into higher demand for earthmoving, material handling, and specialized equipment. Furthermore, the projected 2.5% increase in construction output in 2025 reinforces the need for fleet expansion and equipment replacement, while expectations of modest single-digit growth in equipment sales indicate a gradual market recovery and strengthening procurement activity across key construction segments.

Innovation Leaders Transforming the Construction Equipment Market

The key players in the construction equipment market include Caterpillar Inc., CNH Industrial NV, Komatsu Ltd., Liebherr Group, and Volvo Group, among others. These companies are driving innovation in ignition system technologies through the development of high-efficiency electronic and coil-on-plug designs, improved thermal and voltage performance, and enhanced durability, supporting evolving engine efficiency and emission compliance requirements across global automotive markets.

  • In December 2024, Mahindra Construction Equipment Division (MCE), a part of the Mahindra Group, launched its latest offerings at BAUMA CONEXPO 2024, demonstrating their commitment to innovation and reliability. The new CEV5 range of Construction Equipment are set to redefine the standards in their respective categories, offering advanced features and compliance with the latest industry norms.

Market Coverage

  • The market number available for – 2025-2035
  • Base year- 2024
  • Forecast period- 2025-2035
  • Segment Covered-
    • By Type
    • By Industry
  • Regions Covered-
    • North America
    • Europe
    • Asia-Pacific
    • Rest of the World
  • Competitive Landscape - Caterpillar Inc., CNH Industrial NV, Komatsu Ltd., Liebherr Group, and Volvo Group, among others.

Key questions addressed by the report.

  • What is the market growth rate?
  • Which segment and region dominate the market in the base year?
  • Which segment and region will project the fastest growth in the market?
  • Who is the leader in the market?
  • How are players addressing challenges to sustain growth?
  • Where is the investment opportunity?

Global Construction Equipment Market Report Segment

By Type

  • Earth Moving Equipment
  • Material Handling Equipment
  • Other Construction Equipment

By Industry

  • Construction & Infrastructure
  • Manufacturing
  • Mining
  • Others

Global Construction Equipment Market Report Segment by Region

North America

  • United States
  • Canada

Europe

  • UK
  • Germany
  • Italy
  • Spain
  • France
  • Russia
  • Rest of Europe

Asia-Pacific

  • China
  • India
  • Japan
  • South Korea
  • Australia and New Zealand
  • ASEAN Economies
  • Rest of Asia-Pacific

Rest of the World

  • Latin America
  • Middle East & Africa

To learn more about this report request a sample copy @ https://www.omrglobal.com/request-sample/construction-equipment-market