According to a new report from Meticulous Research®, the global construction equipment market is set to exceed $236.9 billion by 2031, growing at a CAGR of 5.3% from 2024 to 2031. This growth is driven by increasing government investments in infrastructure and construction projects, along with a rising need for enhanced efficiency, productivity, and safety in construction operations. The report highlights the growing automation of construction equipment as a key opportunity for market expansion.

Despite these opportunities, the market faces challenges such as stringent international trade policies, high equipment costs, and a shortage of skilled operators. Additionally, emerging trends such as the demand for compact and electric construction equipment are shaping the market dynamics.

The report segments the market by type, propulsion type, and end user. Material handling equipment is anticipated to hold the largest market share of 40.0% in 2024, driven by rapid industrialization and modernization efforts. In contrast, the earth-moving equipment segment is expected to witness the highest CAGR during the forecast period due to increased investments in construction projects.

Regarding propulsion types, Internal Combustion Engines (ICE) are projected to dominate with a 53.0% market share in 2024. However, electric construction equipment is anticipated to grow the fastest, driven by its lower operating costs and minimal maintenance requirements. Notable industry developments include Hyundai Construction Equipment India's recent product launches and Action Construction Equipment Ltd.'s introduction of a new electric crane.