Europe Construction Equipment Market Size (2024 - 2029)

Europe Construction Equipment Market Analysis

The Europe Construction Equipment Market size is estimated at USD 50.92 billion in 2024, and is expected to reach USD 71.30 billion by 2029, growing at a CAGR of 6.96% during the forecast period (2024-2029).

Rapid urbanization and industrialization, as well as the growing government investments in infrastructure development and the expansion and growth of real estate and construction companies throughout the region, are some of the factors that are anticipated to boost demand in the market.

Additionally, emerging economies invest significantly in infrastructure development to address traffic congestion, population growth, and aging transportation infrastructure. They also focus on innovations such as the hyperloop and earthquake-resistant construction to upgrade their existing infrastructure. Due to these factors, the construction equipment market in Europe is experiencing sales growth.

The demand for cost-effective machines, combined with regulatory pressures for lower emissions, is pressuring construction equipment manufacturers to choose electric and hybrid vehicles over traditional hydraulic and mechanical vehicles. As a result, progress in the electrification of construction equipment is accelerating.

Some companies are adopting strategies to gain a significant market share, such as developing advanced technology and launching new construction equipment to cater to their customers better. For instance:

• In June 2023, Caterpillar Inc. introduced the advanced Cat 995 Wheel Loader. This new model boasts a significant 19% improvement over its predecessor. Additionally, it promises a reduction in hourly fuel consumption by up to 13% and an efficiency boost of 8%.
• In March 2023, Caterpillar announced the new Cat Smart Grader Blade and Smart Dozer Blade options. The new external control kit for the GB120 and GB124 smart grader blades expands the use of these blades to Cat D and D2 series SSL and CTL machines, enabling customers with previous model fleets to run smart blades.

Additionally, the emergence of technologically advanced equipment, both autonomous and electrified, and government initiatives promoting infrastructure development present new business opportunities for industry participants. The building industry is becoming more intelligent. Development is being accelerated by digitalization, connectivity, and automation, which have a significant impact on building projects.

It is also expected that rental companies will undercut sales of new equipment because they are prepared to invest in new technologies to meet the rising demand for sophisticated construction equipment and replace their outdated fleets with new or upgraded models.

Europe Construction Equipment Industry Segmentation

Construction equipment is used for the execution, completion, erection, operation, or maintenance of any construction project or work. Construction equipment is also used to construct roads, bridges, and dams in earthmoving works.

The European construction equipment market has been segmented by machinery type, drive type, and country. By machinery type, the market is segmented into cranes, telescopic handling, excavators, loaders and backhoes, motor graders, and other machinery types. The market is segmented by drive type into IC engines and electric and hybrid. By country, the market is segmented into Germany, the United Kingdom, France, Russia, Spain, and the Rest of Europe.

The report offers market size and forecasts for all the above segments in value (USD).