HYDERABAD, India, Jan. 19, 2026 /PRNewswire/ -- According to the latest report by Mordor Intelligence, the global construction equipment market is poised for robust growth, valued at USD 192.59 billion in 2025 and expected to expand from USD 205.38 billion in 2026 to USD 283.22 billion by 2031, registering a CAGR of 6.64% during the forecast period. This growth is driven by sustained infrastructure expansion, the accelerating shift toward electrification, and large-scale public and private investments in transportation networks, energy infrastructure, and advanced manufacturing facilities worldwide. Mega projects across Asia continue to dominate demand for earthmoving, material-handling, and concrete equipment, while Europe and North America are increasingly adopting electric and hybrid machines. Regulatory frameworks like Stage V and EPA Phase 3 emissions standards are accelerating fleet modernization, and rental-led procurement models are reshaping market dynamics, offering contractors flexible equipment access and improved fleet utilization.
Key Trends Shaping the Construction Equipment Market
Rental-Led Procurement Enhances Fleet Efficiency:
The construction equipment market trends indicate a clear shift toward rental-based models. Contractors increasingly prefer renting machinery rather than owning, optimizing usage and reducing capital expenditure. Connected rental fleets enable predictive maintenance and longer machine lifecycles, prompting OEMs to integrate telematics and expand service-based revenue streams.
Supply Chain Challenges and OEM Adaptation:
Tightening availability of critical components, including hydraulic systems and engine parts, is extending lead times and impacting project schedules. Leading manufacturers are bringing production in-house to stabilize supply chains. While these constraints may temporarily affect growth, they are driving innovation in parts management and equipment reliability.
Electrification and Sustainable Solutions:
Hybrid, battery-electric, and hydrogen fuel-cell equipment are gaining traction, particularly in urban and environmentally sensitive projects. This transition is shaping the construction equipment market analysis, as OEMs balance operational efficiency with compliance to increasingly stringent environmental regulations.
Construction Equipment Market Share by Region
Asia Pacific: Dominates the global market due to extensive infrastructure initiatives in China, India, and Southeast Asia. Diesel-powered heavy machinery remains prevalent, while compact electric equipment is deployed in urban centres like Japan and South Korea.
North America: Growth is fuelled by domestic manufacturing and infrastructure spending. Emission regulations and urban construction projects are driving adoption of hybrid and electric compact machines. Large rental companies are consolidating operations, optimizing dealer networks, and reshaping access to construction equipment.
Construction Equipment Industry Segmentation
By Equipment Type:
- Earthmoving
- Material Handling
- Concrete and Road Machinery
- Light/Compact Tools
By Propulsion Type:
- Internal Combustion
- Hybrid Hydraulic
- Battery-Electric
- Hydrogen Fuel-Cell
By Equipment Size:
- Heavy (Above 11 tons)
- Medium (6-11 tons)
- Compact/Mini (less than 6 tons)
By Power Output:
- Up to 250 HP
- 250-500 HP
- Above 500 HP
Leading Companies in the Construction Equipment Market
- Caterpillar Inc.
- Komatsu Ltd
- Deere & Company
- Hitachi Construction Machinery
- Volvo Construction Equipment
- CNH Industrial (CASE, New Holland)
- Liebherr-International AG
- Doosan Bobcat
- Kobelco Construction Machinery
- SANY Group
- XCMG Construction Machinery
- Zoomlion Heavy Industry
- Wirtgen Group
- JCB Limited
- Hyundai Doosan Infracore
- Terex Corporation
- Manitowoc Company
Get More insights on construction equipment Industry: https://www.mordorintelligence.com/industry-reports/construction-equipment-market?utm_source=prnewswire
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https://www.mordorintelligence.com/industry-reports/mobile-crane-market?utm_source=prnewswire
Dredging Equipment Market: The global dredging equipment market is estimated at USD 5.8 billion in 2025 and is forecast to grow to USD 7.57 billion by 2030, reflecting a CAGR of 5.48% over the period. Demand is being driven by expanding infrastructure modernization programs, climate-adaptation works, port deepening for larger vessels, and the global energy transition supporting offshore renewable energy construction.
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