Construction Equipment Market: Aftermarket Services Expansion, Maintenance Solutions & Growth Outlook

According to IMARC Group's latest research publication, the global construction equipment market size reached USD 249.99 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 349.91 Billion by 2034, exhibiting a growth rate of 3.42% during 2026-2034.

How AI is Reshaping the Future of Construction Equipment Market

• Predictive Maintenance and Equipment Uptime: AI-powered telematics systems monitor engine vitals, hydraulic pressure, and temperatures through sensors that continuously track machine health.
• Autonomous Equipment Operations and Safety Enhancement: Self-driving excavators, robotic bulldozers, and AI-guided machinery are removing workers from high-risk environments where construction accounts for approximately 60,000 fatal accidents globally each year.
• Fleet Optimization and Resource Management: AI analyzes real-time usage data to identify underutilized machines and eliminate idle time, enabling companies to redeploy or resize fleets more effectively.

Access Reliable 2026 Market Research & Forecasts

Construction Equipment Industry Overview:

The U.S. Bipartisan Infrastructure Law is fundamentally reshaping the construction equipment landscape through unprecedented federal investments totaling USD 1.2 trillion for roads, bridges, and public transit systems. By early 2025, the Biden-Harris Administration had announced USD 62 billion in annual formula funding to all 50 states, with over 60,000 infrastructure projects funded since the law's passage.

Construction Equipment Market Trends & Drivers

Government infrastructure programs are the primary catalyst accelerating equipment demand across developed and emerging markets. The United States allocated USD 1.2 trillion through the Bipartisan Infrastructure Law, with USD 62 billion distributed annually to states for roads, bridges, and transit projects.

Rapid urbanization and population growth are creating massive infrastructure needs across emerging economies. China's urbanization rate reached approximately 66.2% in 2023, up from below 20% in 1980, with projections indicating China will add 255 million urban dwellers by 2050 while India will add 416 million.

Technological innovation and equipment replacement cycles sustain continuous market demand as machinery reaches end-of-service life. Construction equipment typically operates efficiently for 10 to 15 years before maintenance costs escalate and efficiency declines, creating ongoing replacement needs.

Leading Companies Operating in the Global Construction Equipment Industry:

• AB Volvo
• Caterpillar Inc.
• CNH Industrial N.V.
• Deere & Company
• Doosan Infracore
• Hitachi Construction Machinery
• Komatsu Ltd.
• Liebherr-International AG

Construction Equipment Market Report Segmentation:

By Solution Type:

• Products
• Services

Products represent the largest segment as they encompass the machinery used across all construction tasks including earthmoving, material handling, and concrete work.

By Equipment Type:

• Heavy Construction Equipment
• Compact Construction Equipment

Heavy construction equipment dominates the market by encompassing machinery designed for heavy-duty tasks in large-scale infrastructure projects.

By Type:

• Loader
• Cranes
• Forklift
• Excavator
• Dozers
• Others

Loaders are the leading segment due to their versatility in material handling and earthmoving tasks across diverse applications.

By Application:

• Excavation and Mining
• Lifting and Material Handling
• Earth Moving
• Transportation
• Others

Earthmoving equipment represents the largest application segment, essential for projects from digging building foundations to creating utility trenches.

By Industry:

• Oil and Gas
• Construction and Infrastructure
• Manufacturing
• Mining
• Others

Construction and infrastructure is the leading industry segment, encompassing residential and commercial buildings, roads, bridges, airports, and utilities.

Regional Insights:

• North America (United States, Canada)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Europe (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Asia Pacific dominates with over 43.8% market share in 2024, driven by rapid urbanization and massive infrastructure development in China and India.

Recent News and Developments in Construction Equipment Market

• August 2025: Mahindra Construction Equipment Division introduced its innovative CEV-V range of machines aimed at setting new standards with enhanced features and greater comfort while adhering to latest industry regulations.
• July 2025: Daimler India Commercial Vehicles unveiled its latest BharatBenz construction and mining series, featuring HX and Torqshift models, aimed at India's rapidly growing construction and mining equipment market.

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