US CONSTRUCTION EQUIPMENT MARKET

KEY FINDINGS

1. Construction equipment sales in North America fell 16% in 2020 compared to 2019.
2. Recently the U.S government approved an infrastructure deal worth $947 Billion over the next five years.
3. The INVEST in America Act authorizes $343 billion for roads, bridges and safety measures, $109 billion for transit, $95 billion for passenger and freight rail, $117 billion for drinking water infrastructure resources and roughly $51 billion for wastewater infrastructure, according to the bill.
4. The COVID-19 global pandemic has made this year very challenging across most industries. This includes the production of agricultural (AG) machinery, construction equipment and industrial products in North America with declined production in 2020.
5. The U.S. Department of Commerce recently announced that construction projects put into place and annualized for 2021 amount to more than $1.5 trillion.
6. In response to the growing demand, construction equipment market players are launching new equipment integrated with advanced technologies such as IoT and AI.
7. As per the American Road & Transportation Builders Association (ARTBA), the construction of parking lots, private highways, driveways, and bridges is estimated at a value of approximately USD 72 billion in 2020.
8. The market leader – Caterpillar’s full-year sales and revenues in 2020 were $41.7 billion, down 22% compared with $53.8 billion in 2019.
9. Caterpillar Incorporation announced the launch of CAT generator sets that will be capable of operating on 100% hydrogen which includes fully renewable green hydrogen.
10. Liebherr announced the launch of its new range of LTM 1400-7.1 heavy-lifting cranes.
11. Liebherr announced the development of an advanced driver assistance system and onboard analytics solution to assist site operations to achieve higher safety, maintenance and overall efficiency and effectiveness.
12. Hitachi Construction Machinery invested in Baraja where the company is set to make use of Baraja’s spectrum scan LiDAR technology to accelerate the development of the autonomous haulage system.
13. Caterpillar Incorporation announced an agreement with BHP which is the leading resources company to develop zero-emission battery-powered large mining trucks.

US CONSTRUCTION EQUIPMENTMARKETOVERVIEW

The US construction equipment market is a dynamic sector driven by various factors including infrastructure development, residential and commercial construction projects, and technological advancements. With an ever-expanding construction industry, there's a consistent demand for a wide array of equipment ranging from earthmovers and excavators to cranes and concrete equipment. The market encompasses both heavy machinery used in large-scale construction projects as well as smaller equipment utilized in residential and commercial renovations. Key players in the market include established manufacturers such as Caterpillar Inc., Komatsu Ltd., and Deere & Company, alongside a plethora of smaller firms catering to niche segments. Government infrastructure spending, private investments in real estate, and trends in sustainable construction practices significantly influence the trajectory of the US construction equipment market.

Moreover, the market is witnessing a shift towards technologically advanced equipment incorporating features like automation, telematics, and IoT connectivity. These advancements not only enhance efficiency and productivity on construction sites but also contribute to improved safety standards. Rental services are also gaining traction, offering flexibility to construction firms in managing their equipment needs without heavy upfront investments. However, challenges such as regulatory complexities, volatility in raw material prices, and fluctuations in construction activity levels pose significant hurdles to market players. Overall, the US construction equipment market presents opportunities for growth and innovation, driven by the evolving needs of the construction industry and advancements in technology.

INTRODUCTION

The US construction equipment market stands as a pivotal sector within the country's economy, serving as the backbone for various infrastructure development projects across urban and rural landscapes. Boasting a diverse array of machinery ranging from heavy earth movers to specialized construction vehicles, this market caters to the evolving needs of construction projects, from residential buildings to expansive transportation networks. The market's significance extends beyond domestic borders, influencing global construction trends and contributing to technological advancements in the field.

With a burgeoning population and growing urbanization, the demand for construction equipment in the US continues to surge, driven by infrastructure upgrades, commercial developments, and residential construction projects. Government initiatives aimed at revitalizing aging infrastructure, coupled with private sector investments in real estate and commercial ventures, fuel the expansion of this market. Additionally, technological innovations such as telematics, automation, and electrification are reshaping the landscape, enhancing efficiency, safety, and environmental sustainability within the construction sector. As the US construction equipment market embraces these advancements and adapts to changing market dynamics, it remains a key player in driving economic growth and shaping the nation's infrastructure landscape for the future.

US CONSTRUCTION EQUIPMENT MARKET POWERTRAIN TRENDS

The US construction equipment market is experiencing a notable trend towards technological advancement and innovation. With the rise of digitalization and automation across industries, construction equipment manufacturers are increasingly integrating cutting-edge technologies into their products to enhance efficiency, safety, and productivity on job sites.

Key technological trends include the adoption of telematics, IoT (Internet of Things), and AI (Artificial Intelligence) to enable real-time monitoring of equipment performance, predictive maintenance, and autonomous operation. Additionally, there's a growing emphasis on sustainability in construction practices, driving the development of eco-friendly and energy-efficient equipment solutions.

Furthermore, the shift towards rental and leasing models in the construction industry is influencing market dynamics, with contractors preferring flexible options over outright purchases. Overall, the US construction equipment market is evolving rapidly in response to technological advancements, sustainability concerns, and changing customer preferences, shaping the future landscape of the industry.

A growing global population and increased urbanization will help drive electrification, as well. The construction industry will have a stronger focus on infrastructure and housing projects in urban centres, requiring the use of equipment—particularly compact equipment—which meets standards for reduced exhaust, particulate and noise emissions

1. Allison Transmission announced the launch of the Allison FracTran hydraulic fracturing transmission. The purpose-built FracTran provides a power rating of 3,300 hp and 10,000 lb.-ft. of input torque.
2. ZF  introduced its eTRAC electric drives for wheeled excavators. The newly launched system consists of a 2-speed powershift transmission, electric motor and inverter. It can be scaled up to a peak torque of 850 Nm and continuous power of 80 kW.
3. Kubota Engine America has introduced its first electronically controlled engine below the 19 kW (25.5 hp) power rating, the D902-K.
4. Cummins Inc. and Cummins Westport Inc. announced the ISX12N+Endurant HD N powertrain is a fully integrated natural gas powertrain which is now available for heavy-duty vehicles. Combines ISX12N near-zero natural gas engine and Endurant HD N 12-speed automated transmission and is available with a rating of 400 hp (298.3 kW) and 1,450 lb.-ft. (1,965.9 Nm) torque.

US CONSTRUCTION EQUIPMENT MARKET NEW PRODUCT DEVELOPMENT

In the US construction equipment market, new product development is vital for manufacturers to stay competitive and address evolving industry needs. One significant trend in product development revolves around enhancing equipment efficiency and sustainability. Manufacturers are increasingly focusing on incorporating advanced technologies such as electrification and hybridization into construction machinery.

Electric-powered excavators, bulldozers, and cranes are gaining traction due to their lower emissions, reduced operating costs, and quieter operation, aligning with the industry's push towards environmental responsibility. Moreover, the integration of telematics and IoT (Internet of Things) solutions into construction equipment enables real-time monitoring of machine performance, predictive maintenance, and improved fleet management, thereby enhancing productivity and reducing downtime for construction projects.

Another key area of new product development in the US construction equipment market is the emphasis on safety and operator comfort. Manufacturers are investing in designing equipment with enhanced safety features such as collision avoidance systems, automatic braking, and 360-degree camera systems to mitigate accidents and injuries on construction sites. Additionally, ergonomic improvements are being made to construction machinery to reduce operator fatigue and improve overall efficiency.

Comfortable cabs equipped with adjustable seats, climate control, and advanced control interfaces enhance operator experience, leading to increased productivity and job satisfaction. By focusing on innovation in sustainability, technology integration, safety, and operator comfort, manufacturers in the US construction equipment market aim to meet the evolving demands of the industry while contributing to its overall growth and development.

The new Noblelift Lithium Iron Phosphate LFP/LiFePO4 electric 60Q and 70Q Series forklifts are designed with an IP4 rating waterproof design for indoor-outdoor applications to contend with traditional IC forklifts while being emissions-free, cost-effective, and designed for energy proficiency.The John Deere 210G LC and 350G LC Excavators are equipped with factory-installed and calibrated SmartGrade technology with 2D and 3D grade control options. The SmartGrade system delivers increased productivity and accuracy on the job and provides benefits to contractors at all levels.

Volvo CE Adds Entry-Level Package for Compact Assist Intelligent Compaction System, The Entry-level Compact Assist Start helps customers take the first step into Intelligent Compaction.In Komatsu's New D39i-24 Dozer, The 3D Design Data Can Be Programmed Directly, Integrated grade control enables automatic dozing, and proactive dozing control measures terrain the dozer crosses to plan the next pass so even less experienced operators can automatically cut/strip from existing terrain.

CASE Construction Equipment introduced factory-fit machine control on its 750M through 2050M dozers. The new offering includes factory-installed and calibrated 2D, dual mast 3D and SiteControl CoPilot precision construction solutions from Leica Geosystems.

US CONSTRUCTION EQUIPMENTMARKET SIZE AND FORECAST

The US Construction Equipment market is estimated to be worth $ XX billion by 2030, and is expected to grow at a compound annual growth rate (CAGR) of YY%. Another report projects that the market will reach $XX billion by 2030, growing at a CAGR of YY% from 2024 to 2030.

US CONSTRUCTION EQUIPMENT MARKET GROWTH DRIVERS

• Integration of advanced technologies in construction machinery.
• Increasing investments in infrastructure development.
• Rising demand for equipment rental in the US.
• Rising number of infrastructural and industrial projects in the US.
• Increasing implementation of Li-Fi Technology.
• Growing number of refurbishment activities in the US.
• Growing investments in mining projects in the US.
• Forming exponential and extensive partnerships with companies for strategic establishments
• Government initiatives to provide telecommunication facilities to small towns are driving demand across the telecom sector

US CONSTRUCTION EQUIPMENTMARKET DYNAMICS

TECHNOLOGY ADVANCEMENTS

Technology has been a disruptor in how machines have become more efficient and reduced the cost and labour adoption. The embarkment of new technology into machines makes them smarter, easier to use, automates the processes and also reduces on-site accidents.

The construction industry’s digital workforce management platforms provide real-time information about people’s skills, certifications, location and more, while also communicating project updates to your entire team, or only to those who need to know. Having one source of truth you can access at your fingertips builds confidence within your organization, makes bidding for future jobs more accurate and gives you extra insight into what makes sense for your business.

Drones, or UAVs (unmanned aerial vehicles), are starting to see rapid adoption in the heavy civil construction industry. Innovative companies use construction drone mapping and reporting software to transform how they perform and deliver surveying, planning, and worksite data.

The expansion of the Internet and mobile connectivity in the US has been a major factor promoting the market growth of material handling equipment and cranes. Internet connectivity is a prerequisite for smart homes and IoT applications. The installation and maintenance of telephone lines are driving the adoption of advanced cranes with pre-installed technologies such as telematics.

In August 2021, Caterpillar announced the development of dynamic gas blending engines that can use natural gas and diesel fuel to power an application. The dual-fuel technology will allow engines to automatically maximise the amount of natural gas used to displace diesel.

In September 2021, Liebherr announced the development of an advanced driver assistance system and on-board analytics solution to assist site operations to achieve higher safety, maintenance and overall efficiency and effectiveness. The company developed the world’s first fully battery-powered crawler crane LR 1250.1 as well as fully electric truck mixers ETM 1005 and ETM 1205. They also developed a trolley assist system for the T236 diesel-electric mining truck along with VA Erzberg.

Hitachi Construction Machinery signed a memorandum of understanding with ABB to explore opportunities and develop machinery targeted towards net-zero emissions for the construction and mining industry. The company also invested in an Australian startup named Baraja where the company is set to make use of Baraja’s spectrum scan LiDAR technology to accelerate the development of the autonomous haulage system for dump trucks and autonomous operation of ultra-large hydraulic excavators.

Sustainability and Green Technology Adoption: The construction sector has been putting more and more emphasis on sustainability and green technology adoption. Construction equipment is following this trend, with a rise in interest in machines that are environmentally and economically beneficial. To satisfy these needs, manufacturers are creating machinery with lower emissions, hybrid and electric choices, and fuel-efficient engines.

Automation and digitization: The market for construction equipment is transitioning to automation and digitization. asset is using digital tools like telematics, GPS tracking, and IoT connectivity to increase productivity, enable remote monitoring, optimize maintenance schedules, and improve asset management. To increase productivity and safety, automation is now being used for operations like grading, earthmoving, and placing concrete.

Data-driven Decision Making: Telematics and sensors on construction equipment are producing enormous amounts of data. Utilizing this data for data analytics yields insightful information on operator behaviour, fuel usage, machine performance, and maintenance requirements. Making decisions based on data helps to maximize equipment use, save downtime, and improve overall project efficiency.

Sharing and Renting of Equipment: The construction sector has seen a surge in sharing and renting of equipment models. Instead of buying equipment, contractors and construction companies are choosing rental services. This allows them to access specialized equipment as needed while saving money up front and on maintenance duties. Platforms for sharing equipment are also starting to emerge, allowing several parties to share it and maximize its use.

Virtual and augmented reality are becoming more and more popular in the market for construction equipment. They are utilized for training, enabling users to imitate equipment operations in a virtual setting, enhancing safety, and lowering the likelihood of mishaps. Additionally, AR and VR help personnel maintain equipment by improving their ability to see and recognize problems.

Concentration on Operator Safety and Ergonomics: Manufacturers are paying more attention to operator safety and ergonomics. Improved visibility, operator-assist technology, ergonomic controls, and increased safety measures are being included in the design of construction equipment. As a result, accidents and operator fatigue are decreased, and overall productivity is increased.

Construction equipment that is modular and multifunctional is becoming more and more in demand. To do several jobs with a single machine, operators can swap between various attachments on modular machines, which offer flexibility and customisation. This boosts productivity, cuts downtime, and maximizes equipment use.

US CONSTRUCTION EQUIPMENT MARKET FUTURE OUTLOOK

The future of the U.S. construction equipment industry would witness substantial growth owing to growing investments by suppliers & manufacturers in the installation of automated equipment in distribution centres and warehouses.

Major players, like Amazon and eBay, are investing significant amounts in the construction of warehouses for the storage of inventory. In 2020, Amazon announced that it plans to construct over 1,000 warehouses and delivery hubs in the suburban areas of the U.S. Due to COVID-19, the regional markets have witnessed considerable growth owing to the emergence of e-commerce companies.

Currently, the industry is ready to welcome this investment boom as they have been faced with funding uncertainty for years. Profits for many companies tied to the construction or industrial sector are already projected to gain ground over the next several years as the economy recovers. Any spending measure spread out over the years will help secure and boost that growth through contracts for projects and orders for supplies and equipment.

Boosting productivity is still a dominant challenge for the engineering, construction and infrastructure sector and with the number of construction projects declining, companies are looking to redefine their business models to future-proof their organization.

US CONSTRUCTION EQUIPMENT MARKET COVID IMPACT

The COVID-19 pandemic has impacted the economy across the globe disrupting manufacturing activities due to lockdown and pandemic protocols. The construction industry has also been impacted severely by the pandemic which includes the contractors, manufacturers of equipment, developers as well as supply chain vendors who supply raw materials.

The transportation of raw materials and equipment for construction activities is the primary service on which an infrastructure project depends, due to the lockdown and pandemic protocols transportation slowed down which caused delays in the delivery and further cancellation of construction projects. These reasons have plunged the demand for construction equipment and the manufacture of new technologies and heavy-duty vehicles. The construction contractors who partner with Chinese companies for raw materials and goods faced a whopping increase in the cost of raw materials and goods due to a shortage of construction materials which in turn caused many infrastructure projects to be cancelled.

The revenue of the companies manufacturing construction equipment also suffered due to low demand. For instance, the Liebherr Group recorded sales worth EUR 10,341 million in the year 2020 which was a 12% decline from the sales of the year 2019. The company Caterpillar recorded sales and revenue worth $41.7 billion in the year 2020 which was a 22% decline from the year 2019 which recorded sales and revenue worth $53.8 billion. However, the department for construction equipment recorded revenue worth $16.9 billion which was due to weaker than estimated demand and sales primarily in North America.

US CONSTRUCTION EQUIPMENT MARKET COMPETITIVE LANDSCAPE

Researchers from Baidu Research Robotics and Auto-Driving Lab (RAL), have introduced an autonomous excavator system (AES) that can perform material loading tasks for a long duration without any human intervention while offering performance closely equivalent to that of an experienced human operator.

Caterpillar is rolling out four models in its Next Gen wheel loader line – the 980, 980 XE, 982 and 982 XE. These 9- to 11-tonne (10- to 12-ton) wheel loader class machines include an expanded technology platform to increase machine performance and improve operating efficiency. The XE models will feature a parallel path continuous variable transmission (CVT) that will increase fuel efficiencies by up to 35% compared to the previous 980M and 982M powershift models when comparing tons of material moved per gallon of fuel burned.

Caterpillar Incorporation has announced a collaboration with Rio Tinto, a mining company to develop zero-emission site solutions to help Rio Tinto achieve the goal of net-zero carbon emissions by the year 2050. The agreement is set to develop the company's CAT 793 zero-emission autonomous haul trucks to support Rio Tinto’s mining operations in Australia. The company in August 2021, announced an agreement with BHP which is the leading resources company to develop zero-emission battery-powered large mining trucks. The trucks will be built and designed by Caterpillar and facilitate the path towards zero-emissions mining across the globe. They recently announced the financial results for the second quarter of the year 2021 with sales and revenue worth $12.9 billion which was an increase of 29% from the revenue of the same term last year which reported $10 billion.

Liebherr, which is the largest company manufacturing construction and mining equipment, has agreed with ABB, the leader in automation and electrification. The two companies have signed a memorandum of agreement according to which they will develop solutions for the electrification of construction and mining equipment to reduce greenhouse gases and emissions associated with using heavy machines. The company has also partnered with Hexagon to deliver the next-generation software and autonomous technology for construction and mine automation.

The company released its report for the fiscal year 2021 which reported a total sales of EUR 10,341 million which was a decline of 12% representing EUR 1,409 million declines for the sales reported for the fiscal year 2020. The company also invested about EUR 512 million in the research and development department with the main focus on the development of new products and technologies. The company developed the world’s first fully battery-powered crawler crane LR 1250.1 as well as fully electric truck mixers ETM 1005 and ETM 1205.

Volvo Construction recently released the financial statement for the second quarter of the year 2021 with the total net sales worth $2.9 billion which was a 13% increase from the results of the same quarter of 2020 worth $2.6 billion.

Doosan Heavy Industries and Construction have entered a contract with X-energy based in the US, which is developing a high-temperature gas-cooled reactor. The agreement is set to perform engineering services for the manufacturing study of the equipment. The company will support the agreement by performing a study for optimum design. The company has also signed a contract with China Technology Company which is a subsidiary of the state-owned energy corporation CGN. According to the agreement, the company will supply industrial anti-seismic protection systems that will be installed at Tianwan units 7&8.

Hitachi Construction Machinery announced in August 2021, that they have dissolved the joint venture alliance with Deere, the construction machinery giant. Upon the dissolution of the agreement in March 2022, the company will be able to provide new products and technologies directly to customers through an independent dealer network across North, Central and South America. The company recently announced the financial results for the first quarter of the fiscal year 2022 with revenue worth $2.08 billion which was a 34.1% increase from the revenue recorded for the same term last year worth $1.5 billion.

Doosan Infracore North America showcased a new -7 Series wheel loader at World of Concrete 2021.  A new look and all-new, redesigned cabs with enhanced comfort features, increased bucket capacities and new fuel-saving technologies are highlights of this next generation of Doosan wheel loaders. Every -5 Series Doosan wheel loader will eventually be replaced by a -7 Series machine — from the DL200-7 to the DL580-7.

Terex designed the new TRT 80US, an 88-ton rough terrain crane. The model features the TEOS Terex Operating System with an improved interface — increasing flow and efficiency.

Caterpillar announced the latest additions to its Next Generation lineup with the introduction of the 302.7 CR, 303 CR and 303.5 CR compact radius hydraulic mini-excavators, which incorporate “industry-first features” for the 2.7- to 3.5-tonne class. These brand new models replace the 20-year-old 302.7 D, 15-year-old 303 E and 10-year-old 303.5 E2 designs.

Trimble and Doosan Infracore North America, LLC, announced that Doosan will offer the Trimble Earthworks Grade Control Platform for Excavators as an optional factory-installed machine control solution for the North American market.

US CONSTRUCTION EQUIPMENTMARKET SEGMENTATION

US Construction Equipment Market By Equipment Type

1. Articulated Dump Truck
2. Asphalt Finisher
3. Backhoe Loader
4. Crawler Dozer
5. Crawler Excavator
6. Crawler Loader
7. Mini Excavators
8. Motor Grader
9. Motor Scraper
10. Road Roller
11. Rigid Dump Truck
12. Skid-Steer Loader
13. Wheeled Excavator
14. Wheeled Loader

US Construction Equipment Market By Application

1. Construction
2. Oil and Gas
3. Mining
4. Others

US Construction Equipment Market By Power Output

1. <100 HP
2. 101–200 HP
3. 201–400 HP
4. >400 HP

US Construction Equipment MarketBy End-User:

1. Construction Companies
2. Mining Companies
3. Government & Municipalities
4. Rental Agencies
5. Others (such as landscaping companies, agriculture sector)

US Construction Equipment MarketBy Power Source:

1. Diesel-powered Construction Equipment
2. Electric-powered Construction Equipment
3. Hybrid Construction Equipment
4. Gas-powered Construction Equipment

US Construction Equipment MarketGeographic Segmentation:

1. North America
2. Europe
3. China
4. Asia Ex China

US CONSTRUCTION EQUIPMENT MARKET COMPANY PROFILES

• Liebherr Group 
• CNH Industrial N.V.
• Hyundai Construction Equipment Co., Ltd.
• SANY Group
• AB Volvo 
• Caterpillar Inc
• Komatsu Ltd.
• Doosan Infracore Co. Ltd.
• Hitachi Construction Machinery Co., Ltd.
• J.C. Bamford Excavators Ltd. 

US CONSTRUCTION EQUIPMENT MARKETREPORT WILL ANSWER FOLLOWING QUESTIONS

1. What is the current size and growth rate of the US construction equipment market?
2. Which factors are driving the growth of the construction equipment market in the United States?
3. What are the key challenges faced by manufacturers and suppliers in the US construction equipment market?
4. Which segments within the construction equipment market are experiencing the highest demand in the US?
5. What impact is technological advancement having on the evolution of construction equipment in the US?
6. How does the regulatory environment influence the US construction equipment market?
7. What are the major trends shaping the US construction equipment rental market?
8. How are factors like urbanization and infrastructure development affecting the demand for construction equipment in the US?
9. What are the regional dynamics within the US construction equipment market?
10. What strategies are leading companies employing to gain a competitive edge in the US construction equipment market?
11. What are the most commonly used types of construction equipment in the US market?
12. How does the US market for construction equipment compare to other major global markets?
13. What role does sustainability play in the decision-making process for construction equipment buyers in the US?
14. How are factors like labor shortages impacting the adoption of construction equipment in the US?
15. What is the outlook for the US construction equipment market in terms of future growth and development?
16. What are the emerging opportunities for investment and innovation within the US construction equipment market?