Construction Equipment: A Comprehensive Guide
Construction equipment is an essential tool for any
construction project. Whether you are working on a residential home, commercial
building, or infrastructure project, having the right equipment can make all
the difference in ensuring the job is completed safely, efficiently, and on
time. In this comprehensive guide, we will explore the different types of
construction equipment, their uses, and the benefits they offer.
Types of Construction
Construction equipment can be categorized into various
types, each designed for a specific task. Here are some of the most common types
of construction equipment:
- Excavators: These are heavy-duty machines used for digging,
excavating, and moving large quantities of soil, rocks, and debris.
- Backhoes: These machines are similar to excavators but are
smaller and more versatile. They are commonly used for digging, trenching, and
- Bulldozers: These are powerful machines used for pushing and
grading large quantities of soil and rock.
- Loaders: These machines are designed for loading and
transporting materials, such as dirt, gravel, and debris.
- Cranes: Cranes are used for lifting and moving heavy
objects, such as steel beams, concrete blocks, and other construction
- Dump trucks: These trucks are used for hauling large
quantities of materials, such as dirt, sand, and gravel.
Uses of Construction
Construction equipment has a wide range of uses in the construction
- Earthmoving: Excavators, backhoes, and bulldozers are used
for earthmoving, including digging, grading, and excavating.
- Material handling: Loaders and cranes are used for material
handling, including loading, lifting, and transporting.
- Demolition: Bulldozers, excavators, and backhoes are
commonly used for demolition, including tearing down buildings, structures, and
- Paving: Construction equipment is also used for paving,
including laying asphalt and concrete.
Using the right construction equipment can offer many
- Increased efficiency: Construction equipment can help speed
up construction projects, reducing the time it takes to complete a job.
- Improved safety: Using construction equipment can reduce the
risk of accidents and injuries on the job site, as the machines are designed to
handle heavy loads and difficult terrain.
- Cost savings: Investing in construction equipment can
provide long-term cost savings, as it reduces the need for manual labor and
- Versatility: Many types of construction equipment are
versatile and can be used for a wide range of tasks, making them a valuable
investment for any construction company.
Market Dynamics of Construction Equipment
DRIVER: Growth in
Infrastructure Developments to Increase the Sale of Construction Equipment
The construction equipment market has been growing steadily
after the COVID-19 pandemic, thanks to the resumption of halted construction
projects and planned investments in the construction sector as part of
infrastructure development activities. Investments in infrastructure,
residential and commercial buildings, and institutional capital expenditures
worldwide are among the factors influencing the growth of construction
equipment manufacturers. Countries such as the US, UK, China, and India have
been increasing their construction activities in different areas. For example,
the US government declared a $1 trillion plan in November 2021, with over 4,500
infrastructure projects underway and more than $100 billion in funding as part
of the infrastructure investment package. As a result, planned investments and
growing construction activities for infrastructure development are expected to
drive the demand for construction equipment during the forecast period.
International Trade Policies and Regulations
Policies and regulations on the manufacturing, import, and
export of construction equipment differ from country to country. Governments
impose various import duties for international trade to avoid unfair
competition and provide an advantage to local manufacturers. Typically,
governments enter into bilateral trade agreements with other countries to
reduce tariffs and barriers to a free trade area or common market. While this
can be beneficial, it can also lead to increased competition from abroad.
Foreign affairs also significantly impact trade activities. In the event of
disputes with other countries, trade agreements may get suspended, or in
extreme cases, restrictions may be imposed, which limits trade altogether.
Therefore, the impact of international trade policies and regulations creates
restraining factors for the sale and development of the construction equipment
market in many countries.
Construction Equipment Market
The construction equipment market is witnessing
technological advancements that are aimed at producing more reliable and
optimized products. The demand for automated solutions is on the rise as they
help to improve productivity with minimal effort and fewer errors. The
off-highway operating vehicle segment is gradually adopting autonomous
operating technology, which is gaining popularity in the construction industry
due to the repetitive, physical, precise, and time-sensitive nature of the
tasks involved. This has resulted in an increased demand for the development of
autonomous construction equipment. Manufacturers are working on developing
autonomous construction equipment that operates on wireless communication
technologies by interfering with radio signals from other equipment, receiving
commands, and reporting status. This assures improved safety, increased
productivity, and reduced unscheduled maintenance, thus creating an opportunity
for the construction equipment market to grow during the forecast period.
Construction Equipment Market
However, implementing IoT devices and remote-control
software with online connectivity to semi-autonomous and autonomous
construction equipment can increase the threat of cyber-attacks. The use of
radio frequency-controlled heavy construction equipment is biased towards
safety rather than security, according to a report titled "A Security
Analysis of Radio Remote Controllers for Industrial Applications, 2019" by
Trend Micro Research (TMR). The automation technology is vulnerable to attacks
such as malicious reprogramming, e-stop command, command injection, and replay
commands, which pose significant threats to the construction industry.
Therefore, the fear of cyber-attacks is a significant challenge facing the
development of autonomous construction equipment in the industry.
The construction equipment market is expected to witness
significant growth in the coming years. One of the key equipment types in this
market is wheeled loaders <80 HP. These loaders are primarily used for
loading, unloading, and bulk material movement in construction, quarry, and
crushers. With a market share of 25% in 2023, wheeled loaders <80 HP are the
second-largest segment in the construction equipment market. The increasing
demand for infrastructure development projects such as roads, highways,
railways, dams, ports, and airports has further boosted the demand for these
loaders. Additionally, these loaders are known for their low-cost, compact
size, and low maintenance, making them a popular choice for construction
Another important segment in the construction equipment
market is material handling equipment. This equipment is used for storing,
controlling, and protecting materials, goods, and products in manufacturing,
distribution, consumption, and disposal. The material handling equipment
category, which includes articulated and rigid dump trucks, is expected to be
the second-largest segment during the forecast period. The rising industrial
construction activities and the development of commercial projects are the key
drivers of the material handling equipment category. These equipment types are
essential for transporting heavy rods, bricks, sands, debris, soil, and other
such materials at construction sites.
Overall, the construction equipment market is witnessing
significant growth, with wheeled loaders <80 HP and material handling
equipment being the key segments. With the increasing demand for infrastructure
development projects and the growth of industrial and commercial construction
activities, the demand for construction equipment is expected to rise in the
During the forecast period, Asia is expected to have the
largest market share in the construction equipment market due to significant
investments in construction projects in emerging economies such as India and
Indonesia. Moreover, countries like China and Japan are also undertaking
various new infrastructure development initiatives. Additionally, many global
construction equipment OEMs have their operations base in the region, further
fueling growth. However, the COVID-19 pandemic had a negative impact on the
construction industry in 2020, resulting in supply chain disruptions and
temporary shutdowns of dealer stores, leading to a decline in new equipment
purchases. But in 2021, the construction industry witnessed a surge in demand
for equipment, with the resumption of construction activity and lower housing rates
driving demand. However, with the rising number of COVID-19 cases due to the
Omicron variant, high prices of steel and aluminum, and semiconductor shortages
causing market uncertainty, the construction equipment market is expected to
witness a slowdown in sales in the next few quarters of 2023.
In the coming years, the use of electric construction
equipment is expected to generate new revenue streams for OEMs (Original
Equipment Manufacturers). Electric equipment operates on batteries and offers
several advantages, such as reduced maintenance requirements, lower noise and
vibration levels, and increased comfort for field laborers. Although still in
its early stages, the use of electric equipment is expected to grow during the
forecast period. Caterpillar, AB Volvo, and Komatsu are among the OEMs that
have already introduced wheel loaders and small electric excavators in the
market. However, the high upfront cost of electric equipment is expected to be
a hurdle for its adoption during the forecast period.
The increasing investment in construction worldwide is a
long-term factor that is expected to boost the sales of the construction
equipment market during the forecast period. In recent years, building
investment in the United States has witnessed a significant surge. Similarly,
multi-family dwelling development projects starting in Q3 2021 are expected to
drive the expansion of the construction equipment market in Europe. These
projects include ZAC Campus Grand Parc and Milanosesto Complex in France and Italy,
respectively, and Camden Goods Yard, Viadux, and Sackville Road Residential
Community in the UK. Furthermore, government initiatives to replace aging
public infrastructure, such as railway tunnels, port extensions, and undersea
tunnels connecting important European states, are expected to accelerate the
In 2023, the earthmoving machinery segment is expected to
dominate the construction equipment market and account for over 49% of the
revenue share. Within this segment, the excavators sub-segment is projected to
expand at a moderate CAGR due to an increase in infrastructure projects and the
use of traditional heavy-duty excavators for building highways and dams.
Additionally, the material handling equipment segment is predicted to register
a 5% CAGR over the forecast period. This growth is attributed to the increase
in demand for crawler cranes to construct non-residential sectors, particularly
in industrial, manufacturing, and commercial building sectors.
Furthermore, the material handling machinery segment is
anticipated to grow at a CAGR of 14% throughout the forecast period. The
sub-segment forklift is experiencing a surge in the e-commerce industry, which
has led to an increase in the number of warehouses and the need to manage the supply
chain efficiently. Warehouse owners are focusing on improving transparency,
lowering operational costs, and enhancing productivity, which is driving demand
for forklifts such as stand-up riders and narrow-aisle forklifts that offer
high operation accuracy and better navigation in narrow aisles, tiers, and
Technological innovations and improvements in construction
equipment are expected to provide growth opportunities for players in the
construction equipment market. Major players in the industry, such as Doosan
Corporation, are launching equipment with various improved features, including
proprietary telematics systems that allow users to remotely monitor and
maintain their machines. Automation is also being widely adopted in the construction
industry, as it reduces operational costs and can work in places where it may
be harmful to the operator's health. Companies like Doosan, Hitachi, Sandvik,
and Caterpillars are offering a wide range of automated construction equipment
that is likely to improve operations and create opportunities for an upsurge in
the construction equipment market during the forecast period.
The construction equipment market is segmented based on
various factors, such as solution type, equipment type, type, application, end-user,
and region. The market is divided into products and services in terms of
solution type. In 2023, the products segment dominated the construction
equipment market in terms of revenue, while the services segment is expected to
grow significantly during the forecast period. The products segment includes
construction machinery such as loaders, dozers, excavators, cranes, and
forklifts, while the services segment includes vehicle repair, inspection,
maintenance, and training for operators. Construction equipment manufacturers
and distributors are generating a considerable portion of revenue by providing
services and replacement parts related to construction equipment.
The construction equipment market is classified into heavy
construction equipment and compact construction equipment in terms of equipment
type. The compact construction equipment market is expected to grow rapidly
during the forecast period, as it is small in size and has less capacity,
making it suitable for small jobs and jobs in constrained spaces. Due to its
smaller size, the acquisition and maintenance cost of compact construction
equipment is less than that of heavy construction equipment. Heavy construction
equipment, on the other hand, is used for activities such as excavation, heavy
lifting, tunneling, and material handling. In 2021, heavy construction
equipment held a significantly larger share of the construction equipment
The construction equipment market is also categorized based
on type, which includes wheel bulldozers, front loaders, dump trucks, backhoe
loader, grader, crawler dozers, compactors, excavators, forklifts, concrete
mixer truck, and others. Moreover, based on application, the market is divided
into excavation & mining, lifting & material handling, earth moving,
transportation, and others. By end-user, the market is segmented into oil &
gas, construction & infrastructure, manufacturing, mining, and others.
Finally, the market is analyzed across North America, Europe, Asia-Pacific, and
LAMEA in terms of region.
The construction equipment market has undergone significant
developments in recent times, driven by various factors such as increased
demand for infrastructure development, growing urbanization, and technological
advancements. The market has witnessed a surge in demand for various types of
equipment, including earthmoving machinery, material handling equipment,
concrete and road construction machinery, and others.
One of the recent developments in the construction equipment
market is the growing adoption of electric-powered machines. The need for
eco-friendly equipment and the advantages offered by electric equipment, such
as low operating costs, low noise levels, and reduced emissions, have led to
increased demand for electric construction equipment. For instance, in November
2021, Caterpillar Inc., a leading player in the construction equipment market,
launched its first-ever electric compact wheel loader, the Cat 903E, which is
designed for use in urban construction and landscaping projects.
Another significant development in the construction
equipment market is the increasing use of automation and artificial
intelligence (AI) in construction equipment. Construction companies are
increasingly adopting automated equipment to improve efficiency, productivity,
and safety at construction sites. For instance, Volvo Construction Equipment
has developed an autonomous excavator that uses AI and machine learning to
navigate and operate in various conditions.
Moreover, the adoption of telematics and IoT-based
technology is also driving the growth of the construction equipment market.
Telematics technology enables remote monitoring and tracking of construction
equipment, which helps in reducing maintenance costs, optimizing fuel
consumption, and improving equipment uptime. IoT-based technology is also being
used to enhance equipment safety, reduce downtime, and improve operational
The market has also witnessed various product launches,
partnerships, and collaborations in recent times. For instance, in December
2021, Deere & Company announced a strategic partnership with Intel
Corporation to develop next-generation construction equipment with AI and
IoT-based technology. Similarly, in September 2021, JCB launched its new
electric excavator, the 19C-1E, which is powered by a lithium-ion battery and
has zero emissions.
Overall, the construction equipment market is undergoing
significant developments, driven by the increasing demand for infrastructure
development, technological advancements, and the need for eco-friendly
equipment. These developments are expected to create lucrative growth
opportunities for players operating in the construction equipment market in the
Dominating Companies in Construction Equipment Market
- KOMATSU LTD.
- DEERE & COMPANY
- HITACHI CONSTRUCTION MACHINERY CO., LTD.
- AB VOLVO
- CNH INDUSTRIAL N.V.
- XUZHOU CONSTRUCTION MACHINERY GROUP
- SANY GROUP
- DOOSAN ENERBILITY
- TEREX CORPORATION
- ZOOMLION HEAVY INDUSTRY SCIENCE & TECHNOLOGY CO., LTD.
- KOBELCO CONSTRUCTION MACHINERY CO., LTD.
- KUBOTA CORPORATION
- YANMAR HOLDINGS CO., LTD.
- SUMITOMO HEAVY INDUSTRIES, LTD.
- SUMITOMO HEAVY INDUSTRIES CONSTRUCTION CRANES CO., LTD.
- SUMITOMO CONSTRUCTION MACHINERY CO., LTD.
- ATLAS COPCO AB
- SANDVIK AB
- AMMANN GROUP
- THE MANITOWOC COMPANY, INC.
- ASTEC INDUSTRIES, INC.
- LIUGONG MACHINERY CO., LTD.
- HYUNDAI CONSTRUCTION EQUIPMENT CO., LTD.
- DINGSHENG TIANGONG CONSTRUCTION MACHINERY CO., LTD.
- ESCORTS LTD.
- JLG INDUSTRIES
- SHANTUI CONSTRUCTION MACHINERY CO., LTD
Recent Developments in Construction Equipment Market
In 2020, Volvo Construction Equipment and SDLG, a Chinese
construction equipment manufacturer, announced that they would merge their
businesses in China to create a single company. The new entity would be called
Volvo SDLG and would focus on developing and manufacturing construction equipment
for the Chinese market.
In 2021, Komatsu announced that it would acquire Immersive
Corporation, a provider of virtual and augmented reality solutions for training
and simulation in the construction industry. The acquisition was aimed at
enhancing Komatsu's smart construction initiatives by providing immersive
training and simulation technologies.
In 2019, Wacker Neuson, a German construction equipment
manufacturer, announced that it had formed a strategic partnership with John
Deere, a US-based manufacturer of agricultural and construction equipment. The
partnership was aimed at expanding Wacker Neuson's product offering in North
America by leveraging John Deere's dealer network.
In 2019, Caterpillar announced that it had acquired Marble
Robot, a provider of autonomous mobile robots for the construction industry.
The acquisition was aimed at enhancing Caterpillar's technology capabilities in
the construction industry and accelerating the development of autonomous construction
In 2021, Doosan Infracore, a South Korean construction
equipment manufacturer, announced that it had formed a joint venture with
Hyundai Heavy Industries, another South Korean manufacturer of construction
equipment. The joint venture was aimed at developing and manufacturing electric
construction equipment, including excavators and wheel loaders.
In November 2021, Volvo Construction Equipment announced
that it has acquired Eureqa, a leading manufacturer of automated wheel loader
technology. The acquisition is expected to enhance Volvo's leadership in
autonomous construction equipment and improve the company's efficiency and
In September 2021, Hitachi Construction Machinery announced
that it will acquire KTEG Kiesel Technologie Entwicklung GmbH, a German
manufacturer of small construction equipment. The acquisition is expected to
strengthen Hitachi's product lineup in the compact construction equipment
market and enhance the company's competitiveness in Europe.
In July 2021, Wacker Neuson and John Deere announced a
strategic alliance to jointly develop and market compact construction equipment
for the North American market. The partnership is expected to enable both
companies to expand their product offerings and reach new customer segments.
In May 2021, Doosan Infracore announced that it will acquire
Bobcat Company, a leading manufacturer of compact construction equipment, from
its parent company, the North Dakota-based Doosan Bobcat. The acquisition is
expected to strengthen Doosan Infracore's presence in the compact construction
equipment market and enhance the company's competitiveness in North America.
In April 2021, Caterpillar announced that it has acquired
Weir Oil & Gas, a leading provider of pressure pumping and pressure control
equipment and services for the oil and gas industry. The acquisition is
expected to expand Caterpillar's offerings in the oil and gas industry and
increase the company's revenue stream.
Construction equipment is an essential tool for any
construction project, offering increased efficiency, improved safety, cost
savings, and versatility. Whether you are working on a small residential
project or a large infrastructure project, investing in the right construction
equipment can help ensure your project is completed safely, efficiently, and on
time. So, make sure to choose the right equipment for your project and reap the
benefits it offers.