The increasing migration trend among the young population has given a rise in housing demand globally, resulting in more usage of efficient construction equipment.

The construction equipment market has been a vital part of the economy globally.  These equipments not only helps in decreasing the time involved in the process, but also increases the efficiency of the process with less human intervention. Undoubtedly, these equipments are the most capital-intensive investments by the company. Yet, the construction companies are investing heavily in these equipments, in order to control the indirect cost in the long run. The worldwide rise in construction activity is anticipated to drive the demand for the construction equipment. The high capital-intensive investment requiring construction machineries has been a vital part of the economy globally.  These equipments not only helps in decreasing the time involved in the process, but also increases the efficiency of the process with less human intervention. The work efficiency has increased quite well with the inclusion of the machineries which have made it possible for the construction contractors to complete multiple projects at a time. The need for abrupt and flawless constructions has propelled the demand in the construction equipment market across the world.

According to the report, recently published by Bonafide Research, titled 'Global Construction Equipment Market Outlook, 2027’; the need for abrupt and flawless constructions has propelled the demand in the construction equipment market across the world. The overall global construction market was recorded around USD 147 Billion in the year 2021, owing to the increasing demand for the infrastructural construction worldwide. Further, the market is anticipated to reach nearly around USD 211 Billion, registering CAGR of more than 6% for 2022-2027. The higher productivity with optimum fuel usage is the prime factor that the customer looks for in such construction support equipments, as the investment made behind such purchase are high.

The dominating earthmoving machinery sector is expected to show a decline in the market share by the forecasted period, while the road construction equipment is expected to show a growth of more than 7%. While the developed countries are expected to increase in demand for the material handling machineries, the economically backward governments are to shift their concentration towards road transportation development, which would be a great support the economic boost.  As the global economy is becoming increasingly digitalized and more transformations are occurring with recent advancements, it brings in more challenges related to the future of work. Asia is seen embracing the digital revolution, though, with a significant dissimilarity across the region. With the advancement in technology and the shift in the concentration of governments towards the improvement of the infrastructure, the market for construction equipment is set to bloom in the Asia-Pacific market.

In addition to that, a rapidly growing construction industry is a key factor expected to drive growth of the global earth moving equipment market over the forecast period. The increase in the demand for more housing units and better infrastructure has been a reason for the increase in demand for earth moving equipment. Apart from the construction industry, these machines are widely used in other industries such as mining, the oil industry, forestry, agriculture, etc. Earth moving equipment is typically heavy-duty vehicles designed for a variety of tasks associated with construction operations. Earthmoving equipment is generally used in tasks where a large amount of earth is to be dug up, such as laying foundations, grading soil, removing dirt and rocks, digging trenches, etc. This heavy equipment helps in completing the tasks in the easiest way possible with minimal risk and less manual labour.

Further, the rising need for global production companies to automate operations and foster the flow of goods in an efficient manner is the key force driving the market at present. Growth in the market is also driven by improving investment in the construction and industrial sectors, growing consumer spending on non-durable as well as durable products, improvement in fixed investment spending, and a rise in mining activities worldwide. Growth in the material handling equipment industry is further underpinned by the replacement of antiquated machinery with new automated systems and robotics amid the increasing production shift towards artificial intelligence and Industry 4.0.

On the other hand, concrete and road construction equipment are majorly used in mixing various ingredients and transportation of the same. For many decades, the use of concrete and stones has been popular among road building materials due to their high durability and resistance to extreme weather conditions. The demand for this type of machinery has been in a growing pattern with the increasing need for better land connectivity among the cities and the nations, which in turn is to offer better support to the economy. Infrastructure development in emerging and developed countries has propelled the building and road construction equipment market. Emerging and developed countries' governments and private sectors are focusing on developing the infrastructure to keep up the GDP, meet the growing population's needs, meet the levels of urbanization, and increase connectivity by developing highways and expressways.

The infrastructure in the region is experiencing government and private investments as a part of the national development and urbanization strategies. Aside from that, the efforts of enhancement projects for development in Asia Pacific's rural regions are the primary drivers of the market. Moreover, the economic stability and increasing income of several countries, including Nepal, Sri Lanka, and Bangladesh, in recent years have supported the development of roads, irrigation systems, airports, and hydropower plants, further adding to the demand for machinery. Considering the individual countries, Japan dominates the Asia-Pacific market for construction equipment, which is to lose its dominance to China during the forecast period. The construction equipment market in India has shown considerable growth over the years, with the highest growth rate in individual country terms.

In North America, the construction industry is a primary contributor to the overall economy and is forecasted to grow more in the forecasted period. The need for economic prosperity has channelled the finances towards the manufacturing of construction equipment, which will lead it to grow in the future. North America is well known to be a developed economy in terms of the construction industry and is considered the second major market in the construction industry. With the tag of a developed economy and high disposable income, North America has become a developed market for the construction industry. Even though the region is considered to be highly developed, the demand for large-scale earth-moving equipment is increasing constantly. It is the world’s largest dozer and grader market in volume terms; more than other major emerging markets, where such equipment would be expected to be sold in large numbers for new-build infrastructure projects.

Further, known to be the second smallest continent in the world, Europe occupies nearly one-fifteenth of the world's total land area and is composed of the Eurasia peninsula projecting westward. A steady increase in the market can be owed to the increase in developments in infrastructure, including the construction of more commercial buildings, renovations in the existing residential models, and the construction of road transport in the region. As the demand for technologically advanced equipment has picked up a pace around the region, the production capacities of the equipment manufacturers have not sped up. Many manufacturers have already reported being insufficient in obtaining components at the required rate. Currently, such equipment is being utilized the most for building residential units because of Europe's growing population, which is increasingly moving to the cities. Overall, the European market has shown impressive growth, but the progress is not evenly distributed over the region. Southern Europe is still comparatively at a low level, but the gap between the north and south markets has started to get smaller with governments' efforts to improve the infrastructure in the overall region.

In the South America region, there is robust demand for construction equipment. Contractors, mining, and construction companies are the major consumers of the South American construction equipment rental market. Rental companies such as Carlyle Group, Grupo Orguel, and BigRentz have a fair share of the market. An upsurge in global commodities prices is expected to positively drive South America's mining sector. Enhanced demand for natural resources in recent years will positively impact demand for construction equipment used in the mining industry, such as excavators, loaders, and cranes. Apart from this, the major market drivers in the South America region are the recovery in the construction industry, the surge in private-public partnerships, and rapid urbanization.

The Middle East construction equipment market is likely to witness moderate growth, primarily driven by government initiatives towards new development projects such as the expansion of metro networks and airports as well as the construction of smart cities, shopping malls and hotels in the region. Additionally, the recovery of oil prices has resulted in growth in the construction sector with increased infrastructure spending in major cities such as the UAE and Qatar for upcoming events such as Dubai Expo 2020 and FIFA World Cup 2022. These factors will further spur the growth of the construction equipment market in the Middle East region. Mobile cranes and earthmoving equipment dominate the overall Middle East construction equipment market share due to their wide application at construction sites for excavation and lifting heavyweights. Additionally, the construction application segment is likely to witness a substantial rise as a result of numerous upcoming infrastructure projects in the region over the coming years.

The rising popularity of electric construction equipment is expected to create new revenue streams for the OEMs over the next few years. This equipment are operated on batteries and offer various attributes such as lower maintenance, reduced noise, lesser vibration and provides greater convenience for labourers to operate on the field. They are currently at the nascent stage and are expected to gain momentum over the forecast period. OEMs such as AB Volvo, Caterpillar, and Komastu have already commercialized compact electric excavators and wheel loaders in the market. However, the high initial upfront cost is expected to be one of the bottlenecks for its adoption during the forecast period.

Covid-19 Impacts:
Construction is among the significantly impacted industries due to the COVID-19 pandemic. Sales of construction equipment have fallen globally. Factors impacting construction equipment manufacturers include investments in infrastructure, residential, commercial, and industrial construction, mine and well construction, and institutional spending. Countries such as the US, UK, China, and India are among the significantly affected countries. However, there is significant demand for projects such as hospitals and other medical facilities, laboratories, and shipping and logistics infrastructure. In addition, some countries have begun moderately reopening activities across sectors, including the construction industry. For instance, China has begun industrial and commercial construction projects. Industrial output increased in April since January as the country began introducing new projects, and demand for construction equipment such as excavators increased significantly. The COVID-19 outbreak hampered the growth of the market, due to supply chain disruptions and temporary shutdowns of dealer stores. However, in 2021, there was a sudden increase in demand for construction equipment due to the resumption of construction activity for halted and new projects.