Construction Machinery Market by Machinery Types (Cranes, Telescopic Handlers, Excavator, Loaders & Backhoe, Motor Grader, and Others), Drive Types (Hydraulic, Electric and Hybrid), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021 – 2028

The global construction machinery market size was USD 161 billion in 2020 and is expected to reach USD 228 billion by 2028, expanding at a CAGR of 5.9% during the forecast period, 2021–2028. The growth of the market is attributed to the increasing demand for heavy construction machinery in emerging countries.

The construction machinery industry has been hit hard due to the COVID-19 outbreak. Construction developers, contractors, and supply chain suppliers have been hampered due to this pandemic. This began with the closure of multiple construction projects in China, the UK, India, and then across the globe. The closedown of production facilities led to a sharp decline in the output of various materials from steel to cement. This led to the heavy investment in in large-scale public infrastructure projects by local authorities and companies of respective countries, changing the market scenario. For instance, in March 2021, the UK government allocated more than USD 16 billion for the development of construction projects in the energy and public utilities sectors.

Market Trends, Drivers, Restraints, and Opportunities

• Rising global infrastructure is expected to boost the market growth during the forecast period.
• Rapid growth of the construction industry for infrastructure development in developing countries is one of the major factors driving the market growth in the coming years.
• Increased number of construction and industrial development projects is anticipated to drive the market growth during the forecast period.
• High maintenance cost of construction machinery can hamper the market growth.
• Lacks of skilled operators can restrict the market growth during the forecast period.
• Increasing R&D investment, ongoing technological advancement in the construction machinery industry and increasing smart city development are projected to create lucrative opportunities for the market players.

Scope of the Report

The report on the global construction machinery market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Global Construction Machinery Market Segment Insights

Crane segment is projected to hold a major market share

Based on machinery types, the market is divided into cranes, telescopic handlers, excavator, loaders &backhoe, motor grader, and others. The crane segment is expected to represent a key market share during the forecast period owing to rising development of large-scale construction projects across the globe. Several construction projects are being planned in Europe. Germany, France, and Italy, which includes port expansion and development of underwater tunnels to Europe-based countries. Rising cranes sales determines that the construction market is not only stable but also booming across the globe. On the other hand, the excavator segment is anticipated to expand at a rapid pace during the forecast period due to the increasing excavation or digging at confined spaces, which has promoted the development of compact excavators. Excavators are enhanced by integrating telematics and convenience and safety technologies, such as elevators and touch screen infotainment systems, to provide enhanced operating capabilities.

Hydraulic segment is expected to grow at a robust pace

On the basis of drive types, the construction machinery market is bifurcated into hydraulic, electric, and hybrid. The hydraulic segment is expected to hold a significant market share during the forecast period due to their capability of moving heavier loads and provide more power than mechanical, electrical or pneumatic systems. Hydraulic system allows to easily handle various weights without the use of heavy gears, pulleys or levers and is simple, safe and inexpensive owing to the few moving parts as compared to mechanical and electrical systems, which makes maintenance easier.

 Asia Pacific is expected to dominate the market

In terms of regions, the construction machinery market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to dominate the market during the forecast period. The regional market growth is attributed to the presence of the construction machinery market, with a huge market share of countries such as China, India and Japan. Companies are launching region-specific products. For instance, in December 2020, Komatsu announced that it would launch affordable excavators in Southeast Asia. Moreover, the awareness of the dependence on gasoline and diesel have encouraged the company to set ambitious goals to reduce carbon dioxide emissions by 2040. For example, in January 2021, Komatsu announced a partnership with Proterra for the development of battery for Komatsu electric hydraulic excavators. Proterra Battery systems is expected to test electric excavator by the end of 2021.

The Middle East & Africa and Latin America are expected to provide lucrative opportunities for the industry players. This is due to the economic improvement and foreign investment, which are expected to promote further infrastructure development and construction activities in these regions.