HYDERABAD, India, Jan. 19, 2026 /PRNewswire/ — According to the latest report by Mordor Intelligence, the global construction equipment market is poised for robust growth, valued at USD 192.59 billion in 2025 and expected to expand from USD 205.38 billion in 2026 to USD 283.22 billion by 2031, registering a CAGR of 6.64% during the forecast period. This growth is driven by sustained infrastructure expansion, the accelerating shift toward electrification, and large-scale public and private investments in transportation networks, energy infrastructure, and advanced manufacturing facilities worldwide. Mega projects across Asia continue to dominate demand for earthmoving, material-handling, and concrete equipment, while Europe and North America are increasingly adopting electric and hybrid machines. Regulatory frameworks like Stage V and EPA Phase 3 emissions standards are accelerating fleet modernization, and rental-led procurement models are reshaping market dynamics, offering contractors flexible equipment access and improved fleet utilization.
Key Trends Shaping the Construction Equipment Market
Rental-Led Procurement Enhances Fleet Efficiency:
The construction equipment market trends indicate a clear shift toward rental-based models. Contractors increasingly prefer renting machinery rather than owning, optimizing usage and reducing capital expenditure. Connected rental fleets enable predictive maintenance and longer machine lifecycles, prompting OEMs to integrate telematics and expand service-based revenue streams.
Supply Chain Challenges and OEM Adaptation:
Tightening availability of critical components, including hydraulic systems and engine parts, is extending lead times and impacting project schedules. Leading manufacturers are bringing production in-house to stabilize supply chains. While these constraints may temporarily affect growth, they are driving innovation in parts management and equipment reliability.
Electrification and Sustainable Solutions:
Hybrid, battery-electric, and hydrogen fuel-cell equipment are gaining traction, particularly in urban and environmentally sensitive projects. This transition is shaping the construction equipment market analysis, as OEMs balance operational efficiency with compliance to increasingly stringent environmental regulations.
Construction Equipment Market Share by Region
Asia Pacific: Dominates the global market due to extensive infrastructure initiatives in China, India, and Southeast Asia. Diesel-powered heavy machinery remains prevalent, while compact electric equipment is deployed in urban centres like Japan and South Korea.
North America: Growth is fuelled by domestic manufacturing and infrastructure spending. Emission regulations and urban construction projects are driving adoption of hybrid and electric compact machines. Large rental companies are consolidating operations, optimizing dealer networks, and reshaping access to construction equipment.
Leading Companies in the Construction Equipment Market
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