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Construction Machinery Market Report Overview

The global construction machinery market attained a value of USD 294.44 Billion in 2025 and is projected to expand at a CAGR of 8.90% through 2035. The market is further expected to achieve USD 690.68 Billion by 2035, driven by infrastructure and urbanisation spending, replacement of ageing fleets, rental fleet expansion, and the shift toward electric, hybrid, and digitally connected equipment worldwide.

Key Market Trends and Insights

  • Hydraulic, the dominant drive type, underpins the excavator boom in China, with the China Construction Machinery Association (CCMA) reporting in June 2026 that excavator sales reached 126,875 units in January to May 2026, up 24.7% year on year.
  • The fastest-growing drive type, Electric and Hybrid, is gaining quickly in China, where CCMA data published in June 2026 showed electric loader sales of 20,819 units in January to May 2026, up 90.9%.
  • Asia Pacific is the fastest-growing regional market, with CNH Industrial N.V. reporting in August 2026 that Asia Pacific construction equipment demand rose 16% in the three months ended June 2026, the strongest gain of any region it tracks.

Market Size & Forecast

  • Market Size in 2025: USD 294.44 Billion
  • Projected Market Size in 2035: USD 690.68 Billion
  • CAGR from 2026 to 2035: 8.90%
  • Fastest-Growing Regional Market: Asia Pacific

Demand momentum is visible in manufacturer results. Volvo Construction Equipment reported in July 2026 that organic net sales rose 13% in the three months ended June 2026, with machine sales up 14%, service sales up 9%, and an adjusted operating margin of 14.4%. Infrastructure investment, high machine utilisation, and fleet replacement supported demand in Europe, while data centres and energy projects kept North America resilient. These results show that manufacturers with strong service businesses and healthy margins are well placed to benefit while demand stays firm across both regions.

Policy and pricing shape the outlook as much as volume. Deere and Company said in August 2026 that it expects construction equipment industry sales in the United States and Canada to rise 5% to 10% in 2026, with global roadbuilding up about 10% and compact construction equipment up about 5%. It also recorded tariff recoveries of USD 110 million in the three months ended August 2026. Together these points show that equipment makers must weigh industry growth against trade costs, and that roadbuilding and compact equipment may move at different speeds across the market.

Emerging markets add a different growth profile. The Indian industry body ICEMA reported in May 2026 that construction equipment sales in the year ended March 2026 were 136,995 units, down about 2%, while exports rose about 32%. It attributed the dip to slower infrastructure execution rather than structural weakness, expects demand to recover as project implementation improves, and pointed to a new incentive scheme for equipment makers. Suppliers watching this market need to balance a soft near-term domestic picture against export momentum and the prospect of faster project execution, which is why buyers and manufacturers follow these indicators.

Construction Machinery Market Graph

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Key Trends and Recent Developments

Construction Machinery Industry Segmentation

This Expert Market Research's Report titled "Construction Machinery Market Report and Forecast 2026-2035" offers a detailed analysis of the market based on the following segments:

Market Breakup by Machinery Type

Key Insight: Crane demand is anchored by heavy lifting projects, with Liebherr delivering an LR 1700-1.0 crawler crane to Big B Crane at CONEXPO in March 2026, a model offering up to 15% more lifting capacity than the LR 1600/2 it was based on; Telescopic Handlers face softer North American demand, with Oshkosh reporting in August 2026 that telehandler sales fell 19% to USD 263.3 million in the three months ended June 2026; Excavator is the leading type, with Kubota reporting in May 2026 that its construction machinery revenue rose 28.6% to just over USD 1 billion in the three months ended March 2026, helped by new model launches in North America; Loader and Backhoe demand is supported by the recovery in compact equipment, with Doosan Bobcat reporting in July 2026 that revenue rose 4.1% to USD 1.63 billion in the three months ended June 2026, including a 10% gain in Europe, the Middle East, and Africa; Motor Grader supply into emerging regions is expanding, with the China Construction Machinery Association reporting in August 2026 that grader sales rose 16% to 5,763 units in January to July 2026, with exports up 24.3% to 5,036 units; and Others, including road machinery, are being refreshed, with Wirtgen Group announcing in September 2026 a W 215 P milling machine, a Vögele SUPER 3000-3i paver, and a Hamm HC 268i VC compactor for bauma China 2026.

Market Breakup by Drive Type

  • Hydraulic
  • Electric and Hybrid

Key Insight: Hydraulic is the leading drive type, with Hitachi Construction Machinery reporting in July 2026 that European demand for hydraulic excavators remained stable and that value-chain revenue from parts, maintenance, rentals, and used equipment rose 17.2% to 48% of total revenue in the three months ended June 2026; and Electric and Hybrid is the fastest-growing drive type, with XCMG Machinery's September 2026 interim report showing new energy product revenue up 25.82% to nearly RMB 10 billion.

Market Breakup by Region

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East and Africa

Key Insight: North America is a high-volume market, with Tadano reporting in August 2026 record net sales of JPY 182.6 billion for the six months ended June 2026, up 10.8%, as resilient North American demand supported results; Europe is a steady replacement market, with CECE, the European construction equipment committee, reporting in March 2026 that European sales rose 4.6% in 2025 and forecasting growth of 2% to 2.5% in 2026; Asia Pacific is the fastest-growing region, with the China Construction Machinery Association reporting in July 2026 that China's domestic excavator sales rose 20.4% to 79,025 units in the six months ended June 2026; Latin America is a recovering market, with Sobratema reporting in July 2026 that Brazilian yellow-line machine sales are expected to rise 4% to about 35,843 units in 2026; and Middle East and Africa is an emerging market, with Komatsu saying in July 2026 that Africa remained one of its strongest markets on gold-mining investment while Middle East sales were expected to be lower.

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Construction Machinery Market Share

By Machinery Type, Excavator leads the market while Crane grows fastest because infrastructure and heavy-lift projects keep demand for large lifting equipment rising.

Excavator leads because the machine suits almost every earthmoving task, from trenching to quarry loading. Zoomlion reported in August 2026 that earthmoving, mining, aerial work platforms, and agricultural machinery together generated about RMB 12.5 billion in the six months ended June 2026, up roughly 10%, with earthmoving alone about 20% of revenue and the largest contributor to its international sales, which shows how strongly overseas customers are buying earthmoving machines. That pull matters for suppliers planning dealer coverage and parts.

Construction Machinery Market Segment Machinery Type

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Crane grows fastest as heavy-lift demand rises with energy and industrial projects. Manitowoc reported in August 2026 that orders for the three months ended June 2026 rose 56.1% to USD 708.7 million, lifting backlog to USD 1,050.1 million and raising its 2026 net sales outlook to USD 2.3 billion to USD 2.4 billion. Rising orders widen the project base open to large crane makers and give buyers more choice in heavy-lift capacity. Buyers value that breadth when scheduling large lifts.

By Drive Type, Hydraulic leads the market while Electric and Hybrid grows fastest because operators are adding lower-emission machines to meet site and fleet requirements.

Hydraulic leads because hydraulic circuits deliver the breakout force, precision, and durability that earthmoving work requires. ICEMA reported in May 2026 that earthmoving equipment accounted for 97,236 of the 136,995 construction equipment units sold in India in the year ended March 2026, about 71% of the market, the category in which hydraulic machines dominate, even as domestic demand softened, with public capital spending of INR 12.2 lakh crore planned for the year ending March 2027 expected to sustain earthmoving demand.

Construction Machinery Market Segment Drive Type

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Electric and Hybrid grows fastest as fleets add zero-emission machines. Volvo Construction Equipment said in July 2026 that it had delivered the world's first serial-produced A30 Electric articulated haulers to the Norwegian customer LNS, a milestone showing electric drivelines moving from trials to series production, where lower noise and zero tailpipe emissions help contractors work in emission-restricted zones and meet customer emissions targets on both public and private projects. Suppliers that master battery packs and charging integration gain an edge.

Construction Machinery Market Regional Analysis

Asia Pacific commands the largest regional share of the construction machinery market in 2025, shaped by rapid infrastructure development, urbanisation, and the manufacturing scale of China, India, and ASEAN.

This is supported by Sany Heavy Industry's September 2026 disclosure that revenue from Asia and Australia reached USD 1.98 billion in the six months ended June 2026, up 17.38% and the largest overseas region in its accounts, ahead of Europe at USD 1.02 billion and the Americas at USD 0.93 billion. The figure shows Chinese manufacturers growing outside their home market while the customer base across Southeast Asia, Australia, India, and the wider subcontinent keeps expanding.

Construction Machinery Market Regional Analysis

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Asia Pacific is also the fastest-growing regional market, with the China Construction Machinery Association reporting in July 2026 that China's excavator exports rose 33.5% to 73,295 units in the six months ended June 2026. Elsewhere, Hitachi Construction Machinery said in July 2026 that its Central and South America revenue more than doubled to USD 95.5 million in the three months ended June 2026 on mining activity, while North American revenue fell 7.4% to USD 413.2 million on lower sales to original equipment manufacturers.

Competitive Landscape

The global construction machinery market is moderately consolidated at the top, with a handful of multinational manufacturers from the United States, Europe, Japan, and China holding large shares alongside many regional producers serving local contractors and rental fleets.

Competitive dynamics are increasingly shaped by electrification and hydrogen trials, expansion of overseas manufacturing and service networks, tariff management, and investment in digital and autonomous technologies, as manufacturers seek to protect margins while demand shifts between regions.

Caterpillar Inc.

Headquartered in Irving, Texas, Caterpillar Inc. makes excavators, wheel loaders, backhoe loaders, motor graders, and other construction machinery. In August 2026, it reported adjusted profit per share of USD 8.17 for the three months ended June 2026, up from USD 4.72 a year earlier, on total sales and revenues of USD 20.54 billion, up 24%.

Deere and Company

Deere and Company builds construction and forestry equipment, including excavators, alongside its agricultural machinery. In August 2026, its Construction and Forestry segment reported net sales of USD 3,618 million, up 18%, and operating profit of USD 436 million, a 12.1% margin, for the three months ended August 2026, as higher shipment volumes and favourable price realisation lifted results.

Manitou Group

Manitou Group makes telehandlers and other handling equipment for construction, agriculture, and industry. In July 2026, it reported revenue of EUR 1,428 million for the six months ended June 2026, up 12%, and recurring operating income of EUR 87 million, a 6.1% margin, and raised its 2026 revenue growth outlook to between 6.5% and 8.0%.

J.C Bamford Excavators

J.C Bamford Excavators builds backhoe loaders and Loadall telehandlers, and describes itself as the world's number one backhoe loader manufacturer. In May 2026, it launched its first production 3CX Hydrogen backhoe loader, powered by a 55 kW hydrogen combustion engine and backed by more than GBP 100 million of investment in hydrogen engine technology over five years.

Other key players in the construction machinery market include CNH Industrial N.V., Zoomlion Heavy Industry Science and Technology Co., Ltd., and Hitachi Construction Machinery Co., Ltd., among others.

*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*

Key Highlights of the Construction Machinery Market Report

  • Excavator leads the Machinery Type segmentation, while Crane is the fastest-growing type as heavy-lift and infrastructure projects expand.
  • Hydraulic remains the leading drive type, while Electric and Hybrid machines gain ground as fleets add lower-emission equipment.
  • Asia Pacific holds the leading regional position on infrastructure development and manufacturing scale, and is also the fastest-growing region.
  • Leading participants including Caterpillar Inc., Deere and Company, Manitou Group, and J.C Bamford Excavators continue to invest in electrification, hydrogen engines, and regional production capacity.

Why Rely on Expert Market Research?

  • In-depth, segment-level analysis of the global construction machinery market across machinery type, drive type, and regional dimensions.
  • Research grounded in verified, up-to-date industry data and company-level developments across the construction equipment value chain.
  • Clear coverage of competitive dynamics, electrification, tariffs, and capacity expansion shaping the construction machinery market.
  • Actionable insights designed to support product planning, capacity decisions, and go-to-market strategy for construction machinery market participants.
  • A dedicated team of analysts providing ongoing support and customization for construction machinery market research requirements.

Call to Action

For a detailed assessment of opportunities across the construction machinery market's machinery type, drive type, and regional segments through 2026 and beyond, connect with Expert Market Research for a customized consultation.

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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*

Frequently Asked Questions About This Report

The construction machinery market is projected to grow at a CAGR of 8.90% from 2026 to 2035.

Key strategies include expanding overseas production and service networks, launching electric, hybrid, and hydrogen models, localising manufacturing to manage tariffs, and growing rental, parts, and digital services alongside new machine sales.

Rapid developments in the infrastructure sector is a key trend propelling the growth of the market.

The major regions in the market are North America, Latin America, the Middle East and Africa, Europe, and the Asia Pacific.

The leading machinery types in the global construction machinery market are crane, telescope handlers, excavator, loader and backhoe, and motor grader, among others.

The drive types in the market are hydraulic, electric, and hybrid.

Key players in the construction machinery market include CNH Industrial N.V., Deere and Company, Manitou Group, Zoomlion Heavy Industry Science and Technology Co., Ltd., Hitachi Construction Machinery Co., Ltd., J.C Bamford Excavators, and Caterpillar Inc., among others.

The global construction machinery market attained a value of USD 294.44 Billion in 2025.

Key challenges include tariff-driven cost pressure, uneven regional demand, volatile currencies, the cost and charging or fuelling infrastructure needed for electric and hydrogen machines, and the cyclical nature of construction and infrastructure spending.

Report Summary

Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.

Key Highlights of the Report

Please note that the figures mentioned in the description serve as estimates and may vary from the actual figures presented in the final report.

REPORT FEATURES DETAILS
Base Year 2025
Historical Period 2019-2025
Forecast Period 2026-2035
Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:

  • Machinery Type
  • Drive Type
  • Region
Breakup by Machinery Type
  • Crane
  • Telescopic Handlers
  • Excavator
  • Loader and Backhoe
  • Motor Grader
  • Others
Breakup by Drive Type
  • Hydraulic
  • Electric and Hybrid
Breakup by Region
  • North America
    • United States of America 
    • Canada
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Australia
    • Others
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • United Arab Emirates
    • Nigeria
    • South Africa
    • Others
Market Dynamics
  • SWOT Analysis
  • Porter's Five Forces Analysis
  • Key Indicators for Demand
  • Key Indicators for Price
Competitive Landscape
  • Supplier Selection
  • Key Global Players
  • Key Regional Players
  • Key Player Strategies
  • Company Profiles
Companies Covered
  • CNH Industrial N.V.
  • Deere and Company
  • Manitou Group
  • Zoomlion Heavy Industry Science and Technology Co., Ltd.
  • Hitachi, Ltd.
  • J.C Bamford Excavators
  • Caterpillar Inc.
  • Others

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