Heavy Construction Equipment Market

Market Overview:

Heavy Construction Equipment can be defined as heavy-duty vehicles which are designed to be used for executing construction tasks such as earthwork operations, lifting of containers or materials, drilling holes, and concrete or paving applications among others.  The global heavy construction equipment market was valued at around USD 171.3 billion in 2020 and is expected to register a CAGR of 6.3% during the review period to reach to around USD 272.1 billion by end of 2030.

Heavy Construction Equipment Market Report Scope

Market Segmentation:

By type, the global heavy construction equipment market has been segmented into earthmoving equipment, material-handling equipment, heavy construction vehicle, and other. The earthmoving equipment segment accounted for the largest market share in 2020 and is expected to register significant growth during the review period. The earthmoving equipment includes excavators, dozers, motor graders and loaders among others. The segment growth can be attributed to increasing number of big construction projects such as construction of railway beds, dams, canals and commercial buildings among others across the geographies.  The material handling equipment segment is expected to register substantial growth during the review period. Material handling equipment are used for the movement, control, storage and protection of materials and goods throughout the manufacturing, distribution, consumption and disposal. Heavy construction vehicles such as dumpers and tippers are primarily used for carrying or lifting of bulk materials on construction sites.  

By application, the global heavy construction equipment market has been segmented into excavation & demolition, heavy lifting, material handling, tunnelling, transportation and recycling & waste management. The excavation & demolition segment accounted for the largest market share in 2020 and is expected to grow at a significant CAGR during the review period. The segment growth can be attributed to significant increase in the mining activities across the geographies. Increased spending on removal and remodelling of buildings is also expected to propel the segment growth substantially. The demand for construction equipment to lift heavy materials at various construction sites is expected to propel the market growth at a significant rate during the review period.

By end-use industry, the global heavy construction equipment market has been segmented into construction & manufacturing, infrastructure, oil & gas, public work, mining, forestry & agriculture, and others. The construction & manufacturing segment accounted for the largest market share in 2020 and is expected to register significant growth during the review period. The segment growth can be attributed to expanding building & construction industry with rise in both residential and commercial construction projects across the geographies. Rising investment on oil & gas exploration activities to fuel the demand for oil from various end-use industries is likely to contribute to the market growth significantly during the review period.

Market Dynamics and Factors:

The growth of the global heavy construction equipment market is primarily driven by rapid growth of the building & construction and mining industries. Growing building & construction industry with increased spending on various infrastructure projects such as tunnels, bridges, railways and huge buildings is likely to drive the global heavy construction equipment market growth. Significant growth of the mining industry with increase in mining activities to meet the global demand for metal across verticals is expected to bolster the global heavy construction equipment market growth.

Increasing number of construction companies are considering taking heavy construction equipment on rent or lease due to cost effectiveness is likely to create lucrative opportunities for the players operating in the global heavy construction equipment market during the forecast period.

However, increasing government regulations pertaining to carbon emissions from heavy construction equipment is likely to hamper the global heavy construction equipment market growth.

Geographical Analysis:

By geography, the global heavy construction equipment market has been segmented into North America, Europe, Asia-Pacific, Latin America and the Middle East & Africa. The market in Asia-Pacific accounted for the largest share in 2018 and is expected to grow at a significant CAGR during the review period. China was the key revenue generating country in the region in 2020. The regional market growth can be attributed to expanding growth of the end-use industries including manufacturing, construction, oil & gas, and mining among others. Increasing investment on infrastructure development activities in the developing economies of Asia-Pacific region to boost their economic growth is likely to drive the demand for heavy construction equipment. In addition to this, supportive government initiatives to boost infrastructure development further increase the product demand. For instance, in India, around 22 green expressways are likely to be built in India at an estimated cost of around USD 42 billion in the coming years.

 The market growth in North America is driven by the established presence of the end-use industries particularly oil & gas and manufacturing. In addition to this, growing building & construction industry with rising emphasis on renovation of residential buildings, and bridges & tunnels is likely to propel the market growth.

The European market is expected to grow at a considerable CAGR on account of increasing product demand in the key end-use industries. Germany was the largest revenue generating country in the region. Growing construction activities in the eastern European countries is expected to bolster the regional growth.

The market in Latin America and the Middle East & Africa is expected to be driven by the growth of the major end-use industries particularly manufacturing, mining and building & construction.

Key Market Segmentation

Global Heavy Construction Equipment Market, By Type

o    Earthmoving Equipment

o    Material-Handling Equipment

o    Heavy Construction Vehicle

o    Other

Global Heavy Construction Equipment Market, By Application

o    Excavation & Demolition

o    Heavy Lifting

o    Material Handling

o    Tunnelling

o    Transportation

o    Recycling & Waste Management

Global Heavy Construction Equipment Market, By End Use Industry

o    Construction & Manufacturing

o    Infrastructure

o    Oil & Gas

o    Public Work

o    Mining

o    Forestry & Agriculture

o    Others

Global Heavy Construction Equipment Market, By Region

North America

o    US

o    Canada

o    Mexico

Europe

o    Germany

o    UK

o    France

o    Italy

o    Spain

o    Rest of Europe

Asia-Pacific

o    China

o    India

o    Japan

o    South Korea

o    Rest of Asia-Pacific

Middle East and Africa

South America