The U.S. Heavy Duty Construction Equipment Market is estimated to be valued at US$ 79.09 Mn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Heavy duty construction equipment includes excavators, cranes, loaders, backhoe loaders, bulldozers, motor graders, off-highway trucks, and other heavy equipment used in construction activities. These equipment are used for tasks including earthmoving, hauling, lifting, material handling, drilling, paving, excavating, grading, and others. Major end users include construction, mining, forestry & agriculture, and others.
Market Dynamics:
The growing construction activities in the US driven by large investments in public infrastructure development such as roads, bridges, airports, railways, power plants etc. is a key driver for the market. As per the American Society of Civil Engineers, the US requires an investment of $2.59 trillion by 2025 to upgrade the nation’s infrastructure. This increased investment in infrastructure modernization will significantly drive demand for heavy construction equipment.
Furthermore, rapid urbanization is resulting in demand for new residential and commercial construction. According to the U.S. Census Bureau, the US urban population is expected to increase by over 70 million by 2050 which will further accelerate demand for construction equipment for activities like utility line installations, sewage systems construction, land development etc. These factors are expected to have a positive impact on the heavy construction equipment market over the forecast period.
Segment Analysis
The U.S. heavy duty construction equipment market is segmented into earthmoving equipment, material handling equipment, road building equipment and others. The earthmoving equipment segment currently dominates the market due to large scale infrastructure projects being undertaken in the country. Equipment such as excavators, loaders and backhoe loaders are widely used for construction activities.
PEST Analysis
Political: The government’s increased spending on infrastructure development such as roads, highways, bridges and commercial buildings is driving growth.
Economic: Rising urbanization and industrialization are increasing demand for construction equipment. Additionally, economic recovery is prompting private sector investment in development projects.
Social: Growing population is necessitating more housing and commercial construction. Rapid suburbanization is also boosting equipment procurement.
Technological: Equipment manufacturers are focusing on developing connected, autonomous and electric heavy machinery to improve productivity and reduce environmental impact.
Key Takeaways
The Global U.S. Heavy Duty Construction Equipment Market is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period, due to increasing infrastructure investment. The government’s US$ 1 trillion infrastructure bill will ramp up activity in road construction, rail transport and utilities over the coming decade.
Regionally, the western U.S. is projected to be the fastest growing market owing to large infrastructure renewals in states such as California and Texas. Major projects include high-speed rail lines, bridge replacements and utility upgrades.
Key players operating in the U.S. heavy duty construction equipment market include Atlas Copco, Caterpillar, CNH Industrial N.V., Deere & Company, Doosan Infracore, Hitachi Construction Machinery Co. Ltd., Hyundai Construction Equipment Americas, Inc., J C Bamford Excavators Ltd. (JCB), Komatsu America Corp., Liebherr Group, Sany Heavy Industries Co. Ltd, Terex Corporation, Ahern Rentals, Herc Rentals Inc., and United Rentals, Inc. The companies are focused on product innovations and expanding their dealer networks across the country.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it