North America Construction Equipment Market Size, Share, Competitive Landscape and Trend Analysis Report, by Solution Type, by Equipment Type, by Type, by Application and, by End-user : Regional Opportunity Analysis and Industry Forecast, 2022-2031.

North America Construction Equipment Market Research - 2031

The North America Construction Equipment Market Size was valued at $51,690.9 million in 2021 and is projected to reach $79,722.5 million by 2031, registering a CAGR of 4.4% from 2022 to 2031.

Market Introduction and Definition

Construction equipment refers to the machinery specifically manufactured for use in or aid of building construction. The most common examples of such equipment are front loaders, dump trucks, backhoe loaders, graders, crawler dozers, compactors, excavators, and others. Drilling, transporting, digging, paving, grading, lifting, and other such construction tasks are carried out using the abovementioned types of machinery. Furthermore, construction & infrastructure, manufacturing, oil & gas, and others are a few of the major sectors that utilize construction equipment to a greater extent.

“The North America construction equipment market was severely hampered during the lockdown period owing to the outbreak of COVID-19. The construction and infrastructure segment were most affected. However, the market recovered by the end of 2021.”

Market Dynamics

The rapid urbanization in countries in North America and a considerable rise in population facilitate the growth of the construction sector; thereby, that drive the growth of North America construction equipment market. For instance, between February 2021 and February 2023, the population of North America grew by 0.8%. In addition, according to the World Bank, the urban population of the U.S. increased from 79% of the total population in 2000, to 83% of the total population in 2021. Furthermore, according to Statistics Canada, in 2021, the urban population was 73.7% which is up from 73.2% five years earlier.

However, after the slowdown in construction activities led by COVID-19 pandemic in 2020 and 2021, the construction sector is expected to witness recovery and growth in the coming years. Such rapid demographic growth in the region plays an important role in driving up the number of residential, commercial, and industrial buildings. For instance, in the U.S., privately‐owned housing units authorized by building permits increased by 1.1% in July 2022 from July 2021. In addition, the U.S. government has planned to invest $100 billion to modernize and build new public schools across the U.S. Similarly, public and private entities in Canada also invest substantially in the development of residential, commercial, and industrial infrastructure.

Furthermore, Mexico is a major tourist destination in the region; therefore, the construction and renovation of hospitality buildings is a driving factor in North America construction equipment market growth. In addition, public-private partnerships (PPP) have been a major source of development in the region, especially in the U.S., and Canada. A public-private partnership is a partnership or some kind of joint venture between a private company or entity and a government entity. These partnerships are usually meant for the construction of public infrastructure systems, in which a private company handles a project and lends technical & operational expertise, and sometimes financial support for government projects.

Moreover, there is a lack of skilled labor in the U.S. and Canada, and any skilled labor if available is expensive; thus, demand for compact and robust construction equipment is very high in the region. Compact construction equipment is easy to operate and does not highly skilled and certified operators or labor.

Hence, various companies such as Hyundai Doosan Infracore, Caterpiller Inc., John Deer, and others offer a wide range of compact construction equipment that is easy and economical to operate. For instance, in April 2022, Doosan Corporation, a major player in the North America construction equipment market launched Doosan-7 Series mini excavators in the U.S. and Canada. 

However, factors such as strict government regulations against carbon emissions from machinery are anticipated to restrain the North America construction equipment market growth. 

Furthermore, technological innovations and other advancements, and improvements in construction equipment are expected to provide lucrative growth opportunities for players that operate in the North America construction equipment market. For example, the launch of automated equipment, the launch of online platforms that allow buyers to customize the equipment according to their requirements, and various other advancements. The benefits of automation are immense in the field of construction. An automated vehicle and machinery reduce the operation cost as no excessive human intervention is required. In addition, automated vehicles can work in places where it may be harmful to the health of an operator. Thus, companies such as Doosan, Hitachi, Sandvik, and others offer a wide range of automated construction equipment. Such advancements in construction equipment create opportunities for the upsurge in the North America construction equipment market during the forecast period.

The demand for construction equipment decreased in the year 2020, owing to low demand from different industries due to lockdowns imposed by the government of many countries. The COVID-19 pandemic led to the shutdown of production of various products for construction equipment manufacturers, mainly owing to prolonged lockdowns in major countries. The key players in North America are vastly dependent on countries in Asia-Pacific, Europe, and others for raw materials, and other supplies. Thus, lockdown hampered the growth of the North America construction equipment market significantly during the pandemic.

However, owing to the introduction of various vaccines, the severity of the COVID-19 pandemic has significantly reduced. This has led to the full-fledged reopening of construction equipment manufacturing companies, and their end user sectors as well at their full-scale capacities. Furthermore, it has been more than two years since the outbreak of this pandemic, and many companies have already shown notable signs of recovery. Contrarily, as of the beginning of 2023, the number of COVID-19 infection cases is surging again, especially in China, this has brought negative sentiments in the market, which may have a negative impact on the North America construction equipment market for a short duration. Thus, equipment and machinery manufacturers must focus on protecting their workforce, operations, and supply chains to respond to immediate crises and find new ways of working after COVID-19 infection cases start to decrease.

Segmental Overview

The North America construction equipment market is segmented on the basis of solution type, equipment type, type, application, end user, and region.

On the basis of solution type, it is bifurcated into products and services.  

On the basis of equipment, the market is bifurcated into heavy construction equipment and compact construction equipment.

On the basis of type, it is categorized into wheel bulldozers, front loaders, dump trucks, backhoe loaders, graders, crawler dozers, compactors, excavators, forklifts, concrete mixer trucks, and others.

On the basis of application, it is divided into excavation & mining, lifting & material handling, earth moving, transportation, and others.

On the basis of end user, it is divided into oil & gas, construction & infrastructure, manufacturing, mining, and others. On the basis of region, it is analyzed across North America which includes the U.S., Canada, and Mexico. 

By Solution Type:

The North America construction equipment market is divided into products and services. In 2021, the products segment dominated the North America construction equipment market, in terms of revenue, and the services segment is expected to grow with a significant CAGR during the forecast period. Under the products segment, various types of machinery that are used during construction are included such as loaders, dozers, excavators, cranes, forklifts, and similar others. The equipment such as excavators, front loaders, and dump trucks are considered significant to the North America construction equipment market share in 2021. Furthermore, the services segment which includes vehicle repair, inspection, maintenance, training for operators, and others is expected to grow with a significant CAGR. 

By Equipment:

The North America construction equipment market is classified into heavy construction equipment and compact construction equipment. The North American market for compact construction equipment is expected to grow rapidly during the forecast period. Compact construction equipment are best suited for small jobs. In addition, owing to their compact size, compact equipment are widely utilized in constrained spaces. Furthermore, compact equipment is cheaper and easy to maintain. Furthermore, heavy construction equipment held a significantly larger market share in 2021. 

By Type:

The North America construction equipment market is categorized into wheel bulldozers, front loaders, dump trucks, backhoe loaders, graders, crawler dozers, compactors, excavators, forklifts, concrete mixer trucks, and others. In 2021, the excavator segment held a major share of the North America construction equipment market. The forklift segment is expected to grow with a significant CAGR. Forklifts meant for construction are larger in size, have large wheels to easily move on an unpaved surface, and has stronger chassis and engine.

By Application:

The North America construction equipment market is divided into excavation & mining, lifting & material handling, earth moving, transportation, and others. The earthmoving segment accounted for a major North America construction equipment market share in 2021. An earth moving construction equipment is specialized equipment used for moving earth, rubble, sand, aggregate, and other similar materials from one place to another. Majorly loaders are used for earthmoving including wheel loaders. The lifting & material handling segment is expected to grow at the highest CAGR during the forecast period. Lifting and lowering objects on a construction site is a very common activity. Often cranes are used for such operations. 

By End User:

The North America construction equipment market is categorized into oil & gas, construction & infrastructure, manufacturing, mining, and others. The construction & infrastructure segment accounted for the largest market share in 2021, and the same segment is expected to maintain this trend of superiority over other segments throughout the forecast period. Construction equipment is used for building various types of infrastructure such as residential & commercial buildings, roads, rails, and other public works. Increased demand for technologically advanced construction equipment is expected to augment the overall demand of the segment. Moreover, the manufacturing segment is expected to grow at the second-highest growth rate. In the manufacturing sector, machines such as forklifts, hoisting equipment, and others are used for performing material handling operations on a manufacturing site.  

By Region:

The North America construction equipment market is analyzed across North America, which includes countries; the U.S., Canada, and Mexico. In 2021, the U.S. accounted for the highest North America construction equipment market share, and Mexico is anticipated to secure the leading position during the forecast period, due to the anticipated extensive growth of the construction sector. The rapid development of Mexico has motivated construction equipment manufacturers to establish their production units in the country. Furthermore, industries such as manufacturing, energy, mining, and agriculture are some of the major industries in the region which positively affects the market growth in the region. Furthermore, owing to the large GDP of the U.S., and Canada, demand for technologically advanced construction equipment is higher. In addition to this, various infrastructure development programs in Canada, and the U.S. major driving factor for the North America construction equipment market growth. 

Competition Analysis

Competitive analysis and profiles of the major players in the construction equipment end-user, such as Astec, Inc., Caterpillar Inc., Deere and Co, Hyundai Doosan Infracore North America, LLC, Hitachi America, Ltd., Komatsu Ltd., Liebherr USA Co., SANY America, Inc., Terex Corporation, and Volvo Group are provided in this report. Major players have adopted product launch, acquisition, geography expansion, and others as key developmental strategies to improve their product portfolio in the North America construction equipment market. 

Some examples of product launches in the market

In October 2021, Volvo Construction Equipment, which is a leading subsidiary of AB Volvo, launched three new electric compact excavator machines - the L20 Electric, EC18 Electric and ECR18 Electric. Similarly, in January 2023, Deere & Company launched two types of machinery named ExactShot and electric excavator, these two John Deere new machines will be used by the construction and agriculture industry and these products will be economical and environmentally sustainable as well.  

Key Benefits for Stakeholders

• The report provides an extensive analysis of the current and emerging North America construction equipment market trends and dynamics.  
• In-depth market analysis is conducted by constructing market estimations for the key market segments between 2021 and 2031. 
• Extensive analysis of the North America construction equipment market is conducted by following key product positioning and monitoring of the top competitors within the market framework.
• A comprehensive analysis of all regions is provided to determine the prevailing opportunities.
• The North America construction equipment market forecast analysis from 2022 to 2031 is included in the report.
• The key market players within North America construction equipment market are profiled in this report and their strategies are analyzed thoroughly, which helps understand the competitive outlook of the North America construction equipment industry.