According to Markets and Markets, the size of the heavy construction equipment market is expected to grow from USD 129.11 billion in 2021 to USD 180.06 billion in 2024, at an estimated CAGR of 7.0%. The heavy construction equipment market is expected to grow at a high rate due to increasing urbanization, massive investments in infrastructure and industrial sectors, and increased construction activities in emerging economies.
By type, the material transport segment is expected to grow at a higher rate due to factors such as increased investment in the infrastructure sector and improved facilities for government and private companies.
In terms of value, the excavation and demolition segment (by application) is expected to grow at a CAGR during the forecast period. This growth can be attributed to factors such as the increase in mining activities for precious minerals and metals around the world, as well as the increase in natural disasters where excavators are used for rescue operations.
In terms of end-use, the construction and manufacturing segment accounted for a larger share of the heavy construction equipment market in 2023 and is expected to grow at a higher rate due to increased public and private investment in the infrastructure sector in the emerging economies of Asia Pacific, the Middle East and North America.
The Asia-Pacific market will account for the largest share of the heavy construction equipment market in 2023, followed by the Middle East, Africa and Latin America. However, with the maturity of the heavy construction equipment market in developed countries, the market in developing countries such as China, India, Russia, South Africa and Middle Eastern countries is expected to grow at a higher rate from 2023 to 2027. The Pacific region is expected to have the fastest growth of any market at the regional level. This is due to the region's large population and expected new construction and infrastructure activity over the next decade.
Asia Pacific is currently the largest market for heavy construction equipment. China, Japan, Australia and India are among the major markets for heavy construction equipment. The Asia Pacific heavy construction equipment market is expected to grow at the highest CAGR during the forecast period. Increasing industrialism and population growth in China and India are driving the growth of the Asia Pacific heavy construction equipment market. In addition, other emerging economies such as the Middle East and Latin American countries are experiencing high demand for infrastructure development. Rapid urbanization in these countries requires accelerated construction, as well as high demand for facilities due to population growth. In addition, increased government investment in infrastructure activities offers potential for growth in the heavy construction equipment market in these countries.
Factors such as poor economic conditions in many European countries, post-epidemic crisis policies, and government regulations on the use of heavy construction equipment in 2019-2021 are likely to restrain the growth of the market. The global heavy construction equipment market is dominated by Caterpillar Inc (US), Deer and Company (US), Hyundai Heavy Industries Co Ltd (South Korea), Volvo Construction Equipment (Sweden), Komatsu Ltd (Japan), Doosan Infracore Ltd (South Korea), Hitachi Construction Machinery Ltd (Japan), and JCB Ltd (UK). These market players have adopted various strategies such as new product launches, expansions & divestment, and mergers & acquisitions to thrive in the heavy construction equipment market.