The global heavy construction equipment market was valued at USD 204.41 billion in 2023 and is anticipated to grow at a CAGR of 5.2% from 2024 to 2030. This growth is primarily fueled by urbanization and population growth, which drive the demand for housing and infrastructure development, particularly in emerging economies. As cities expand and populations increase, there is a pressing need for improved housing solutions and continuous upgrades to infrastructure, such as bridges, roads, ports, and rail systems. These factors, along with the modernization of transportation networks in both developed and developing regions, are key drivers behind the increasing demand for heavy construction equipment.
Moreover, the development of fuel-efficient machinery and the surge in construction of high-rise buildings in developed countries have also spurred growth. Fuel-efficient technologies are becoming more attractive to companies looking to reduce operational costs and minimize their environmental footprint. These advancements are making heavy construction equipment more sustainable and in alignment with global environmental goals.
Governments around the world are focusing heavily on infrastructure development, particularly in key areas of economic growth. From railroads and metros to roads and sanitation facilities, infrastructure projects are expected to play a vital role in fueling the demand for construction equipment. As urban populations continue to grow, particularly in regions like Asia-Pacific and Latin America, the need for infrastructure to support these rising numbers is paramount. According to the United Nations Department of Economic and Social Affairs, 68% of the world’s population is expected to live in urban areas by 2050, underscoring the need for robust infrastructure projects.
Additionally, the rising desire for improved standards of living is driving growth in public welfare projects that require heavy construction equipment. These projects, which include improved sanitation and hygiene infrastructure, are critical for enhancing the quality of life in both urban and rural areas. As more people migrate from rural regions to cities in search of better opportunities, the demand for residential and commercial construction is expected to rise significantly, further driving growth in the construction equipment market.
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Machinery Insights
In terms of machinery, the material handling equipment segment was the largest contributor to market revenue in 2023, accounting for 51.0% of the total market share. The continuous demand for equipment used in the construction of high-rise buildings, such as cranes, forklifts, and hoists, is a significant factor driving this growth. Additionally, with the increase in redevelopment projects, the construction of new bridges and infrastructure in urban areas continues to boost demand for material handling equipment. Equipment like conveyer belts, excavators, and tower cranes play critical roles in enabling construction in densely populated areas where space is limited.
The earthmoving equipment segment is expected to witness the fastest growth during the forecast period, with a projected CAGR of 5.9%. Earthmoving equipment, such as excavators, backhoe loaders, motor graders, and wheel loaders, is crucial for a wide range of projects, including mining, excavation, heavy lifting, and demolition. The growing demand for core minerals used in various industries is also driving demand for this equipment, as many of these minerals require specialized machinery for their extraction and transportation.
The rising trade in core minerals and the expansion of industries such as mining will continue to contribute to the demand for heavy construction equipment. Additionally, the development of new technologies in construction equipment is improving efficiency and reducing the time required for various operations, which further contributes to market growth.
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