Heavy Construction Equipment Market Report 2028

The report "Heavy Construction Equipment Market by 2028," developed by MarketAndMarkets, forecasts growth from USD 190.25 billion to USD 190.225 billion by 2028, at a CAGR of 4.8%.

The increasing use of heavy construction equipment in the mining and construction industries is one of the key factors expected to drive market growth.

Key Market Players:

• Caterpillar (USA)
• Liebherr AG (Germany)
• Terex Corporation (USA)
• Volvo Group (Sweden)
• Komatsu (Japan)
• Hitachi Construction Machinery Co., Ltd. (Japan)

Opportunity: Equipment Rental and Leasing

Renting or leasing heavy construction equipment is considered beneficial for construction contracting firms as it meets client requirements for equipment without requiring full payment.

One of the advantages of rental/leasing is that it can be tailored to specific requirements, equipment specifications, and revenue expectations. The decision to rent or lease heavy construction equipment depends on factors such as the duration of asset use, technological advancements during its usage period, and tax benefits associated with leasing.

Due to these variables, contractors prefer renting rather than purchasing equipment unless it can be used for more than 75% of the year.

Businesses can also access a variety of equipment types while utilizing the latest available technologies through leasing. As a result, this provides market participants in the heavy construction equipment sector with the option to use machinery without incurring purchasing costs.

Fastest Growing End-Use Industry Segment: Trucking

The trucking industry will be the fastest-growing end-use industry segment in the global heavy construction equipment market in terms of value.

Largest Market Segment: Mining

The mining segment accounted for the largest market share by value in the global heavy construction equipment industry in 2022. This growth is driven by increasing global demand for consumer products, fueled by rising purchasing power.

The surge in demand has stimulated mining activities worldwide, enhancing the utilization of heavy construction equipment in the market. Mining is a primary economic activity that involves extracting minerals and rare earth metals from the earth.

The ongoing demand for minerals and rare earth metals has led to the expansion of this industry, playing a crucial role in encouraging mining equipment companies to provide technologically advanced equipment. These advancements enhance mining operations, including drilling, crushing, and demolition.

Equipment such as crawler excavators, crawler dozers, motor graders, articulated dump trucks, rigid dump trucks, wheel loaders, and mining trucks are used extensively in the mining industry.

Asia Pacific Remains the Largest Market for Heavy Construction Equipment

The Asia Pacific region is expected to remain the largest market for heavy construction equipment used in commercial buildings, owing to the high number of construction projects and the growing demand for advanced technology equipment with improved efficiency.

The electrification of heavy construction equipment is expected to rise with the increasing adoption of construction equipment, such as mini excavators and compact/skid loaders, driven by research and development efforts to improve battery capacity.

AB Volvo (Sweden) and Hitachi Construction Machinery Co., Ltd. (Japan) offer electrically powered construction equipment connected by cables, reducing charging limitations.

Thus, heavy construction equipment requiring higher power is now operating on hybrid-electric technology. The primary hybrid-electric construction equipment includes bulldozers and mining dump trucks.