Construction Equipment Market Outlook:
Construction Equipment Market size was valued at USD 238.9 billion in 2025 and is projected to reach a valuation of USD 424.5 billion by the end of 2038, rising at a CAGR of 4.5% during the forecast period, i.e., 2026-2038. In 2026, the industry size of construction equipment is assessed at USD 248.1 billion.
The market is evolving rapidly, with digitalization and sustainability driving industry innovation. In January 2023, John Deere launched a battery-powered equipment line, which responds to challenges of population growth, shrinking arable land, and rising greenhouse gas emissions. The move signals the end of traditional machines and makes John Deere the leader in innovation. Governments are also investing in infrastructure, as in March 2023, when Singapore launched Changi Airport Terminal 5, fueling demand for road-construction equipment and material handling machines.
One of the lucrative opportunities in the sector is the adoption of advanced operator-aid and safety technologies. Volvo Construction Equipment introduced digital solutions like Lift Assist, Operator Coaching, and Load Ticket in April 2024, which complement one another to enhance productivity and safety. Urbanization and the demand for low-emission equipment are driving partnerships, such as Hitachi's September 2024 partnership with Dimaag-AI for electrified compact excavators with an urban site focus. Cities like Oslo are among the leaders in adopting electric construction equipment, according to the E-Visionary Award for Europe in June 2023. The market is also driven by government regulations for emission-free machinery and by manufacturers' investments in modular and autonomous solutions.
