Earthmoving Equipment Market Size, Share & Trends Analysis Report By Product (Dozer, Excavator, Loader, Motor Grader, Dump Truck), By Engine Capacity, By Type (ICE, Electric), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global earthmoving equipment market size was valued at USD 58.92 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.2% from 2023 to 2030. Increasing infrastructure development activities in developing countries and a rise in commercial and industrial construction activities is the primary factor expected to drive the growth of the global earthmoving equipment market. Countries such as India, China, and Australia are focused on improving the present infrastructure by initiating multiple projects related to roadway development, airport development, etc. This increasing infrastructure development activities and industrial construction projects call for heavy earthmoving equipment, such as excavators, loaders, dump trucks, etc. This machinery aids in tasks such as foundation digging, land leveling, and the transportation of heavy materials providing contractors an edge to overcome limitations pertaining to operations and time limitations.

The global demand for earthmoving equipment is also fueled by rapid urbanization. Urbanization involves the growth and expansion of cities and urban areas, which creates the need for infrastructure development and other construction activities. These changes in population lead to other changes in land use, economic activity, and culture. Various government initiatives undertaken for the development of infrastructure, coupled with increasing investments in the construction industry, are projected to drive consumption. For instance, in July 2022, the UAE government planned to invest AED 6,262.8 million (USD 23 billion) in infrastructure development. Hence, the rapid urbanization and population growth in various regions require the construction of residential and commercial buildings to accommodate the expanding population. As a result, these factors contribute to the growing demand for the earthmoving equipment market.

However, the high costs associated with purchasing and maintaining earthmoving equipment machines can deter potential buyers, especially Small and Medium-sized Enterprises (SMEs). The capital-intensive nature of the earthmoving equipment market restricts its growth and limits the accessibility of earthmoving equipment for these players. Furthermore, the increasing popularity of renting earthmoving equipment poses a significant challenge for OEMs. Renting offers access to high-quality equipment without substantial initial investments, reducing financial risks. Customers prefer flexible rental options that eliminate long-term ownership and maintenance costs. As rentals become more cost-effective and available, customers opt for them instead of outright purchases, resulting in decreased sales volume and revenue for OEMs. Adapting to these changing customer preferences is crucial for OEMs to meet evolving earthmoving equipment market demands.

The growing emphasis on environmental concerns and stricter regulations is fueling the demand for eco-friendly earthmoving equipment market. The industry is experiencing a notable transition towards electric and hybrid-powered equipment, effectively reducing carbon emissions and minimizing noise pollution at construction sites. Manufacturers are actively investing in research and development endeavors to enhance the energy efficiency and sustainability of earthmoving equipment. This trend presents a significant opportunity for companies to provide greener alternatives and distinguish themselves in the market. For instance, in June 2023, Volvo Group announced a collaboration with Heidelberg Materials, a building materials company. The collaboration aims to reduce carbon emissions in the construction industry by collaboratively researching and innovating approaches to address loading and hauling requirements using electric vehicles and associated solutions.

Product Insights

Amongst the product, the loaders segment accounted for the largest market share exceeding 48.0% in 2022, and is expected to register the highest CAGR over the forecast period. The loader segment encompasses various types such as wheeled loaders and skid-steer loaders. The demand for compact and versatile loaders has been driven by urbanization and limited working spaces in congested areas. The growth is anticipated owing to these machines offer enhanced maneuverability, agility, and the ability to operate in confined spaces. The construction industry, landscaping, and urban maintenance sectors are particularly significant markets for compact loaders. Manufacturers can capitalize on this opportunity by focusing on developing innovative designs, attachments, and technology solutions that cater to these specialized requirements.

Dump trucks segment is anticipated to expand at a significant CAGR during the forecast period. As economies continue to grow and urbanize, there is a consistent demand for new infrastructure, such as roads, bridges, and buildings. The mining industry heavily relies on dump trucks to transport minerals and ores from mining sites to processing facilities. Technological advancements in dump truck design, including increased payload capacities, improved fuel efficiency, and enhanced safety features, also contribute to the segment’s growth by offering more efficient and cost-effective solutions for industries that require heavy material transport.

Engine Capacity Insights

Amongst the engine capacity, up to 250 HP segment accounted for the largest market share of nearly more than 52.0% in 2022. Machines with a power range of up to 250 HP are commonly utilized for medium-scale projects that require a balance between power and manoeuvrability. These machines are designed to deliver adequate power to handle various tasks such as digging, lifting, and transporting materials while maintaining operational efficiency. Within the up to 250 HP range, the machines are typically designed to be compact and versatile, enabling easy transportation and manoeuvring in confined spaces. It is crucial for the engine's capacity to align with the overall size and weight of the machine, ensuring optimal balance, stability, and efficient performance.

The 250-500 HP is expected to register the highest CAGR during the forecast period. In forestry and logging operations, the need arises for machinery that can effectively navigate rough terrain and manage heavy loads. Earthmoving equipment with engine capacities ranging from 250 to 500 HP are highly useful in tasks such as land clearing, road construction, and timber handling. These machines offer the required power and versatility to operate efficiently and safely in challenging forest environments, enabling improved productivity and enhanced safety measures.

Type Insights

Amongst the type, ICE segment accounted for the largest market share of over 98.0% in 2022. The ICE segment is primarily driven by the need to meet these power and torque demands while ensuring optimal performance. Engine manufacturers provide a variety of engine models with different power outputs and torque capacities, allowing equipment manufacturers to select an engine that aligns with their machinery's performance needs. Additionally, ICE engines have seen notable advancements in fuel efficiency, incorporating technologies such as direct injection, turbocharging, and electronic control systems. Equipment manufacturers conduct thorough evaluations of various engine options to choose the one that offers the most favourable fuel economy while maintaining high performance levels, thereby minimizing operational costs.

The electric segment is anticipated to register the highest CAGR over the forecast period. The integration of electric engines in earthmoving equipment presents numerous opportunities and benefits. One key advantage of electric engines is their contribution to environmental sustainability. By substituting ICEs with electric motors, earthmoving equipment can substantially decrease greenhouse gas emissions and air pollution. Electric engines generate zero tailpipe emissions, leading to enhanced air quality, particularly in densely populated regions. This transition aligns with worldwide endeavors to combat climate change and minimize carbon footprints. As a result, such factors are expected to drive the growth for the segment over the forecast period.

Regional Insights

Asia Pacific region led the market share of nearly 41.0% in 2022 and is anticipated to register the highest CAGR during the forecast period. Asia Pacific is witnessing an extensive surge in infrastructure development, driven by the need to accommodate increasing urban populations and support economic growth. Governments in countries such as China, India, and Southeast Asian nations are making substantial investments in the construction of roads, highways, airports, railways, and urban development initiatives. As a result, there is a corresponding increase in demand for earthmoving equipment, including excavators, loaders, bulldozers, and graders, to meet the requirements of these extensive infrastructure projects.

Moreover, Europe is expected to register a considerable growth rate during the forecast period. Europe's urban centers are witnessing rapid population growth, leading to increased demand for residential and commercial construction projects. This urbanization trend drives the need for earthmoving equipment, especially in tasks such as excavating foundations, levelling land, and creating building sites. As cities expand and modernize, there is significant growth potential in the earthmoving equipment market, including compact excavators, skid steer loaders, and backhoe loaders. Moreover, the region has stringent environmental regulations and a strong commitment to sustainable development. The construction and mining industries are facing pressure to adopt cleaner and more energy-efficient practices. This shift presents opportunities for manufacturers of earthmoving equipment that offer hybrid or electric-powered equipment. Companies that prioritize the development of environmentally friendly solutions is expected to have a competitive advantage in this evolving market.

Key Companies & Market Share Insights

The key market players in the global earthmoving equipment market include AB Volvo; BEML LIMITED.; Bobcat Company; Caterpillar; CNH Industrial N.V.; Deere & Company; Doosan Corporation; Hitachi Construction Machinery Co., Ltd.; Hyundai Construction Equipment Co., Ltd.; J C Bamford Excavators Ltd.; Kobelco Construction Machinery Co. Ltd; Komatsu Ltd.; LIEBHERR; SANY Group; Sumitomo Heavy Industries, Ltd.; Terex Corporation; XCMG Group; and Zoomlion Heavy Industry Science&Technology Co., Ltd.

Companies are undertaking mergers & acquisitions activities to accommodate the changing technological trends in the industry. Further strategic expansions, heavy investments in R&D, and new product development have been adopted to bridge the gap in the geographical constraints, end-use requirements, and product offerings. For instance, in April 2022, Doosan Corporation introduced DX27Z-7 2.8 ton and DX35Z-7 3.9-ton Stage V mini-excavators. Both the models have a greater operating range than the prior generation equipment and competing mini excavators in the market, along with stronger lifting capacity and digging forces. These launches have enabled the company to cover a wide range of applications. Some of the prominent players in the global earthmoving equipment marketinclude:

• AB Volvo

• BEML LIMITED.

• Bobcat Company

• Caterpillar

• CNH Industrial N.V.

• Deere & Company

• Doosan Corporation

• Hitachi Construction Machinery Co., Ltd.

• Hyundai Construction Equipment Co., Ltd.

• J C Bamford Excavators Ltd.

• Kobelco Construction Machinery Co. Ltd

• Komatsu Ltd.

• LIEBHERR

• SANY Group

• Sumitomo Heavy Industries, Ltd.

• Terex Corporation

• XCMG Group

• Zoomlion Heavy Industry Science&Technology Co., Ltd.

Earthmoving Equipment Market Report Scope

Global Earthmoving Equipment Market Report Segmentation

The report forecasts revenue growth at global, regional, and at country level and provides an analysis on the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global earthmoving equipment market report on the basis of product, engine capacity, type, and region.

• Product Outlook (Revenue, USD Million; Volume Units; 2018 - 2030)

  • Dozer

    • Vehicle Weight

      • <10

      • 11 to 45

      • 46>

    • Engine Capacity

      • Up to 250 HP

      • 250-500 HP

      • More than 500 HP

    • Type

      • Wheel

      • Crawler

    • Drive Type

      • ICE

      • Electric

  • Excavator

    • Vehicle Weight

      • <10

      • 11 to 45

      • 46>

    • Engine Capacity

      • Up to 250 HP

      • 250-500 HP

      • More than 500 HP

    • Type

      • Wheel

      • Crawler

    • Drive Type

      • ICE

      • Electric

  • Loader

    • Type

      • Backhoe Loaders

      • Skid Steer Loaders

      • Crawler/Track Loaders

      • Wheeled Loaders

    • Drive Type

      • ICE

      • Electric

  • Motor Grader

    • Vehicle Weight

      • <10

      • 11 to 45

      • 46>

    • Engine Capacity

      • Up to 250 HP

      • 250-500 HP

      • More than 500 HP

    • Drive Type

      • ICE

      • Electric

  • Dump Truck

    • Engine Capacity

      • Up to 250 HP

      • 250-500 HP

      • More than 500 HP

    • Vehicle Type

      • Rigid Frame

      • Articulated Frame

    • Drive Type

      • ICE

      • Electric

• Engine Capacity Outlook (Revenue, USD Million, 2018 - 2030)

  • Up to 250 HP

  • 250-500 HP

  • More than 500 HP

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • ICE

  • Electric

• Region Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa (MEA)

    • U.A.E.

    • Saudi Arabia

    • South Africa