Heavy Construction Equipment Market Expected to Reach $176.2 Billion by 2030.

According to a new report published by Allied Market Research, titled, “Heavy Construction Equipment Market by Equipment Type, Application, and End-User: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global heavy construction equipment market size was valued at $176.2 billion in 2020, and is projected to reach $273.5 billion by 2030, registering a CAGR of 4.4% from 2021 to 2030. Heavy construction equipment is heavy duty vehicles or machinery that are specifically built to execute construction activities, most commonly excavation, material handling, earthwork operations or other significant construction tasks. The market is driven by investment in residential, commercial, and industrial sectors, global economic growth and increase in public-private partnership. However, increase in oil prices and higher carbon emission rate are some factors that hamper the growth of market.

The heavy construction equipment market is segmented into equipment type, which includes material handling equipment, heavy construction vehicles, earthmoving and others. Among these, the earthmoving equipment segment accounts for the largest market size by value, owing to low operating costs and rising demand from diverse sectors such as building and construction, infrastructure, mining, oil & gas and forestry.

Furthermore, excavators are construction vehicles that are used to dig up or transport large objects. Excavators are made up of two main components: a driving base and a strong boom arm with an excavation attachment. The arm is controlled by the operator, who sits in a compact cab linked to the base. Various key players are manufacturing advanced excavator machines for efficient work and reduce operational time. For instance, in December 2020, Hitachi Construction introduced 12-ton and 20-ton excavator equipment for construction use. These machines are battery powered prototype and offers higher weight class than ordinary excavators.

The material handling applications segment is anticipated to grow rapidly, with a CAGR of 5.4% during the forecast period, due to increased use of material handling equipment such as cranes and telehandlers in large building, construction, and mining operations. The heavy construction equipment is used in numerous industry verticals. The end-user industries analyzed in the report are construction, mining, infrastructure, manufacturing, oil & gas, and others.

Expansion of construction industry in various countries has provided significant opportunities for heavy construction equipment market growth. For instance, China’s central government established a goal in November 2020 of having 70% of new safe building construction completed by 2022 according to its own criteria. Similarly, in May 2019, the Indian government proposed a $1.5 trillion investment plan in the building sector for a six-year period ending in 2025. This investment is aimed at enhancing the building quality of schools and higher education facilities as well as health, sports, and basic infrastructure.

By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific was the highest revenue contributor in 2020. The heavy construction equipment market is expected increase owning to government initiatives related to infrastructure developments. For instance, in August 2021, India Union Minister of Road Transport and Highways has invested $3.4 billion for road project in Gujarat. Similarly, in March 2021, China government introduced $30 billion infrastructure plan, which includes new expressways, upgrading existing highways and road conditions.

However, during the pandemic lockdown, various manufacturers in the heavy construction equipment had to stop their business in countries such as China, the U.S., and India. This break directly impacted sales of heavy construction equipment companies. In addition, lack of manpower and raw materials also constricted supply of equipment of heavy construction equipment has negatively influenced growth of the market. However, reopening of production facilities and introduction of vaccines for coronavirus disease are anticipated to lead to re-opening of heavy construction equipment companies.

Competition Analysis

The key market players profiled in the heavy construction equipment industry report include Caterpillar Inc., CNH Industrial N.V., Deere & Company, Doosan Infracore Co Ltd., Hitachi Construction Machinery Co. Ltd., J C Bamford Excavators Ltd., Komatsu Ltd., Liebherr International AG, Volvo Group and XCMG Group.

Key Findings Of The Study

• The report provides an extensive analysis of the current and emerging heavy construction equipment market trends and dynamics. 

• Depending on end-user, the construction segment dominated the heavy construction equipment, in terms of revenue in 2020 and manufacturing is projected to grow at a CAGR 5.3% during the forecast period.
• By type, the earthmoving equipment segment registered highest revenue in the heavy construction equipment market share in 2020.
• Asia-Pacific is projected to register the highest growth rate in the coming years.
• The key players within the heavy construction equipment are profiled in this report, and their strategies are analyzed thoroughly, which help understand the competitive outlook of the heavy construction equipment industry.
• The report provides an extensive analysis of the heavy construction equipment trends and emerging opportunities of the market. 
• In-depth heavy construction equipment market analysis is conducted by constructing estimations for the key segments between 2021 and 2030.