Construction Equipment Finance Market size was valued at USD 97.8 billion in 2024 and is estimated to reach USD 212.9 billion by the end of 2037, expanding at a CAGR of 6.7% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of the construction equipment finance is assessed at USD 104.3 billion.
Growing infrastructural developments are one of the major growth drivers in the market. Efforts to fasten urbanization in developing countries are accumulating massive investments in this sector. The increasing need for efficient equipment in these construction projects is further fueling the demand for finance solutions. According to a report published by government of the UK, in June 2021, 28% of the total global population is expected to live in cities with at least 1 million inhabitants by the end of 2030. The report further states, that the number of megacities with more than 10 million inhabitants is projected to grow significantly, reaching 43 in 2030.
The growing population is compelling a trend of investing heavily in the construction industry, creating opportunities for investors in the construction equipment finance market. According to Census Bureau of the U.S. report, published in December 2024, the world population reached 8.0 billion. The report marks the most populated countries being India, China, the U.S., Indonesia, Pakistan, Nigeria, Brazil, Bangladesh, Russia, and Mexico. The emphasized volume of people worldwide is forcing governing authorities to allocate living spaces for each citizen, raising the need for new constructions. Furthermore, emerging economies are heavily investing in this sector with the goal of improving their capital efficiency.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
6.7% |
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Base Year Market Size (2024) |
USD 97.8 billion |
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Forecast Year Market Size (2037) |
USD 212.9 billion |
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Regional Scope |
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Financing Type (Loans, Leases, Mortgage)
The loan segment is projected to account for around 55.3% construction equipment finance market share by 2037. The heavy participation of large lenders such as banks and capital investors is the key driver in this segment. The supportive tendency and growing interest in regional or international infrastructural development projects have encouraged these financial forums to invest. For instance, in February 2024, Japan International Cooperation Agency signed an ODA loan agreement of USD 1.5 billion with the Government of India in Delhi for developmental projects in India. Further, IoT integration has created unified platforms for these financial options, increasing accessibility.
Industry Vertical (Construction, Mining, Government & Public, Rental)
Based on industry vertical, the construction segment is projected to hold a significant share of the construction equipment finance market by the end of 2037. Demand in this segment is inflated by the rapid growth in the global construction industry. The increasing number of construction projects creates a need for specialized and heavy equipment. This further encourages many economic firms to finance these requirements. For instance, in June 2022, SBI Africa partnered with Komatsu Europe to offer a real asset finance scheme in the Africa region. According to the agreement, both parties aim to put their efforts into leveraging the marketplace for exporting and selling new Komatsu construction equipment in this region.
Our in-depth analysis of the global market includes the following segments
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Financing Type |
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Equipment |
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Industry Vertical |
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APAC Market Statistics
By the end of 2037, Asia Pacific construction equipment finance market is set to dominate around 39.7% revenue share. The rapid industrial expansion of construction supplies and projects has inflated the need for financial assistance and support in this region. This is further creating a scope of collaboration between financial firms and equipment manufacturers, attracting more capital investors to participate in this sector. For instance, in November 2022, Federal Bank partnered with JCB India to boost the financing options for customers. The partnership offers an option to borrow loans at competitive interest rates to purchase a wide range of world-class equipment from JCB.
India is taking the fast-paced infrastructural development as an opportunity to oppose excessive liquidity in the domestic economy. The country considers investments in the market as accumulating assets for its economic growth. This is further inspiring several equipment suppliers and financial institutions to strengthen their trading relationships to broaden their offerings. For instance, in February 2024, Mahindra Construction Equipment signs an MoU with the Bank of Maharashtra to provide customers with the best interest rate and loan tenure. The partnership aims to offer unique financial assistance for the purchase of current and forthcoming BSV range of construction equipment.
China is showcasing notable progress in the market with the support of government subsidies, plans, and incentives. For instance, in July 2024, the State Council of China released a five-year action plan for deepening the people-centered new urbanization strategy. The plan includes the construction of affordable houses and underground pipelines and the renovation of urban infrastructure to improve intercity commuting efficiency. The country is further promoting sustainable options in manufacturing and adopting construction equipment due to the increasing emissions. This is further creating a new business line for both the domestic and international leaders of this sector.
North America Market Analysis
North America is estimated to become one of the fastest-growing regions in the construction equipment finance market during the forecast period, 2025-2037. The growing demand for construction machinery in both residential and commercial sectors is contributing to the progress of this region. This is attracting many global leaders to invest in this region to empower the construction field of this region. For instance, in November 2021, Hitachi partnered with ITOCHU Corporation and Tokyo Century Corporation to build a joint venture company to offer financial support for construction machinery in North America. The JV company, ZAXIS Financial Services Americas, LLC provides financing for sales of equipment sold by the Hitachi Construction Machinery Group.
The U.S. construction equipment finance market is expected to grow exponentially due to its contribution to availing financial support for its robust construction machinery industry. The manufacturers of this country are eager to promote their product line by offering lucrative financial options to the customers. This has attracted many lending firms to arrange maximum funding to serve this sector. For instance, in December 2023, Machinery Partner raised USD 11 million to offer procurement, financing, and support for a wide range of industrial equipment and heavy machinery.
Canada is also expected to experience significant growth in the market due to its positive impact on the economic growth of this country. The increased number of construction projects in this country is inflating the demand for machinery. Thus, the need for purchasing and leasing these equipment is further expanding the marketplace for investors. For instance, in February 2023, BMO Financial signed a bilateral agreement with BNP Paribas to provide clients with continuity of leasing services across Canada and the U.S. for construction equipment.
The market has become a key medium of promotion and expansion for machinery manufacturers. This raises a surge in companies to avail good financing options for their consumers, particularly builders with limited budgets to attain maximum adoption. Many leading manufacturers are now binding collaboration with financing institutions to offer better financial solutions, solidifying their grip on consumer loyalty. For instance, in March 2024, Sany India partnered with J&K Bank to offer its customers comprehensive financial solutions such as competitive interest rates and flexible repayment plans for construction equipment. Such key players include:
Author Credits: Shweta Patidar
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