United States Construction Equipment Market Size, Share, Trends and Forecast by Solution Type, Equipment Type, Type, Application, Industry, and Region, 2026-2034

United States Construction Equipment Market Summary:

The United States construction equipment market size was valued at USD 6,4396.6 Million in 2025 and is projected to reach USD 9,2865.2 Million by 2034, growing at a compound annual growth rate of 4.15% from 2026-2034.   

The market is driven by substantial infrastructure development initiatives, including the modernization of roads, bridges, airports, and public transportation systems. Rising urbanization and the growing demand for residential and commercial construction projects further bolster equipment demand. The integration of advanced technologies, such as automation, telematics, and remote monitoring systems, is revolutionizing construction operations. Additionally, government initiatives and private sector investments are stimulating construction activities across various industries, collectively contributing to United States construction equipment market share.

Key Takeaways and Insights:

• By Solution Type: Products dominate the market with a share of 82% in 2025, driven by its vital role in infrastructure development and highway construction activities.
   
• By Equipment Type: Heavy construction equipment leads the market with a share of 70% in 2025, owing to its key application in huge infrastructure development projects and construction of highways.
   
• By Type: Excavator represents the largest segment with a market share of 31% in 2025, driven by its flexibility to undertake various tasks such as excavating, trenching, and demolitions.
   
• By Application: Earth moving dominates the market with a share of 35% in 2025, owing to extensive infrastructure development projects requiring site preparation and foundation excavation activities.
   
• By Industry: Construction and infrastructure represent the largest segment with a market share of 40% in 2025, driven by government’s continued funding for public sector programs, road development, and urban expansion projects.
   
• By Region: South leads the market with a share of 35% in 2025, owing to rapid population growth, favorable business climates, extensive commercial development, and significant transportation infrastructure investments.
   
• Key Players: The United States construction equipment market exhibits a highly consolidated competitive landscape, with established global manufacturers competing alongside domestic players across diverse product portfolios. Market participants focus on technological innovation, strategic partnerships, dealer network expansion, and comprehensive after-sales service offerings to strengthen their competitive positioning.

The United States construction equipment market is experiencing robust growth, propelled by a convergence of factors transforming the construction landscape. Extensive government-funded infrastructure modernization programs are creating sustained demand for advanced machinery across the nation. As per sources, in 2025, Volvo Construction Equipment announced a USD 261 Million global investment to expand crawler excavator and large wheel loader production in Shippensburg, Pennsylvania, strengthening domestic manufacturing capacity to meet rising infrastructure and construction demand. Moreover, the ongoing expansion of urban centers is necessitating comprehensive residential and commercial construction projects that rely heavily on sophisticated equipment solutions. Private sector investments in industrial facilities, data centers, and manufacturing plants are further amplifying equipment requirements. The construction industry's shift toward mechanization to address labor shortages is accelerating equipment adoption. Additionally, the growing emphasis on operational efficiency and project timeline optimization is driving contractors to invest in modern, high-performance machinery. The mining sector's expansion and energy infrastructure development projects are also contributing significantly to equipment demand across multiple categories.

United States Construction Equipment Market Trends:

Adoption of Telematics and Connected Equipment Solutions

The construction equipment industry is witnessing a transformative shift toward telematics-enabled machinery offering real-time monitoring capabilities. Fleet managers increasingly rely on connected equipment to track machine location, monitor fuel consumption, and assess operational performance remotely. According to sources, in October 2025, EquipmentShare was named Fleet Management Technology Company of the Year by AutoTech Breakthrough and featured in Construction Executive’s Top Tech report, showing telematics adoption visibility and maintenance. These intelligent systems enable predictive maintenance scheduling, reducing unplanned downtime and extending equipment lifespan.

Rise of Electric and Hybrid Construction Equipment

Environmental consciousness and regulatory pressures are driving significant interest in alternative-powered construction equipment across the industry. As per sources, in 2025, Volvo Construction Equipment introduced mid-size electric machines, including the L120 Electric wheel loader and EC230 Electric excavator, in North America, expanding zero-emission options for construction sites. Furthermore, electric and hybrid machines offer substantial advantages, including reduced noise pollution suitable for urban construction sites and indoor applications. These zero-emission or low-emission alternatives align with sustainability goals increasingly mandated by project specifications and corporate environmental commitments. Battery-powered compact equipment is gaining traction in residential construction and landscaping applications where noise restrictions apply.

Integration of Autonomous and Semi-Autonomous Technologies

Construction equipment manufacturers are incorporating advanced automation capabilities that transform traditional machine operations. Semi-autonomous features, including automated grading systems, collision avoidance technology, and intelligent machine control, are becoming standard offerings. In January 2026, Caterpillar unveiled intelligent and autonomous construction machines at CES, showcasing automated trenching, grading, and material-handling capabilities aimed at reducing operator dependency. These technological advancements address skilled operator shortages by simplifying complex operations and reducing training requirements. Automated systems enhance safety by minimizing human error in hazardous working conditions and repetitive tasks, improving productivity while maintaining consistent quality standards.

Market Outlook 2026-2034:

The United States construction equipment market is positioned for sustained revenue expansion throughout the forecast period, underpinned by robust infrastructure investment commitments and evolving construction practices. Market revenue is anticipated to demonstrate consistent growth driven by continuing urbanization trends and the modernization of aging infrastructure assets. The replacement cycle for existing equipment fleets presents ongoing revenue opportunities as contractors upgrade to technologically advanced machinery. Expanding applications in renewable energy construction, data center development, and manufacturing facility construction will diversify revenue streams. The market generated a revenue of USD 64,396.6 Million in 2025 and is projected to reach a revenue of USD 92,865.2 Million by 2034, growing at a compound annual growth rate of 4.15% from 2026-2034.

United States Construction Equipment Market Report Segmentation: 

Solution Type Insights:

• Products
• Services

Products dominate with a market share of 82% of the total United States construction equipment market in 2025.

The products command the dominant market position, reflecting the fundamental importance of physical equipment in construction operations. According to reports, in 2025, CNH Industrial announced a $5 Billion investment in U.S. manufacturing and research to enhance construction and farm equipment capabilities, signaling increased focus on advanced product development. Contractors depend on a comprehensive range of machinery, including excavators, loaders, dozers, and cranes, to execute diverse project requirements effectively. The continuous advancement in equipment design enhances operational capabilities while improving fuel efficiency and operator comfort.

Equipment manufacturers focus on developing versatile machines capable of performing multiple functions, maximizing value for construction companies. The durability and performance specifications of construction products directly influence project execution timelines and cost structures. Technological enhancements embedded in modern equipment products improve precision, safety, and environmental compliance. These benefits from the consistent replacement of demand as existing machinery reaches operational lifecycle endpoints, ensuring sustained market growth throughout the forecast period.

Equipment Type Insights:

• Heavy Construction Equipment
• Compact Construction Equipment

Heavy construction equipment leads with a share of 70% of the total United States construction equipment market in 2025.

Heavy construction equipment dominates market share, essential for executing large-scale infrastructure and commercial construction projects across the nation. This segment encompasses high-capacity machinery designed for demanding applications, including highway construction, mining operations, and industrial development. In April 2025, Komatsu broke ground on a new 215,000‑square‑foot sales and service facility in Mesa, Arizona, nearly tripling its operational footprint to enhance support for heavy equipment customers. Furthermore, the substantial productivity advantages of heavy equipment make it indispensable for projects requiring significant earth moving, lifting, or material handling capabilities.

Contractors investing in heavy equipment prioritize reliability, durability, and total cost of ownership considerations across extended operational lifecycles. The complexity of heavy equipment necessitates comprehensive dealer support networks providing maintenance, parts availability, and technical assistance services. Heavy equipment specifications continue advancing, incorporating improved engine efficiency, enhanced operator comfort features, and sophisticated control systems. The segment's growth trajectory reflects ongoing investment in projects requiring substantial construction machinery capabilities, supported by government funding and private sector development initiatives.

Type Insights:

• Loader
• Cranes
• Forklift
• Excavator
• Dozers
• Others

Excavator exhibits a clear dominance with a 31% share of the total United States construction equipment market in 2025.

Excavators maintain market leadership through exceptional versatility that enables deployment across virtually all construction applications nationwide. These machines perform critical functions, including digging, trenching, demolition, material handling, and grading operations with interchangeable attachments enhancing functionality. In May 2025, Caterpillar announced annual product updates for its hydraulic excavator line, including real‑time grading guidance and Advanced Payload options to boost productivity and precision on job sites. The excavator category encompasses various sizes from compact models for residential projects to large mining excavators for heavy extraction operations.

Construction project requirements universally include excavation activities, ensuring consistent excavator demand across all market conditions and project types. Manufacturers continuously refine excavator designs to improve cycle times, fuel efficiency, and operational precision for enhanced productivity. The rental market demonstrates particularly strong excavator demand as contractors seek flexible access to various size configurations without capital commitments. Excavator versatility positions this equipment type for continued market leadership as construction practices evolve and infrastructure development programs expand across regions.

Application Insights:

• Excavation and Mining
• Lifting and Material Handling
• Earth Moving
• Transportation
• Others

Earth moving leads with a market share of 35% of the total United States construction equipment market in 2025.

Earth moving represent the largest equipment deployment category, fundamental to virtually all construction project types across the United States. Site preparation activities, including clearing, grading, and excavation, require substantial equipment utilization throughout project lifecycles. Infrastructure construction specifically generates intensive requirements for roadway development, foundation preparation, and utility installation projects. The segment benefits from consistent demand across residential, commercial, and public construction sectors, ensuring sustained equipment utilization regardless of economic fluctuations.

Construction project timelines depend critically on efficient earth moving operations that establish foundations for subsequent building phases and structural development. Equipment advancements improve the productivity through enhanced bucket capacities, faster cycle times, and precision control systems delivering superior operational performance. Environmental considerations increasingly influence the practices, with contractors adopting techniques that minimize site disturbance and soil erosion. The segment's dominant position reflects the irreplaceable role of earth moving activities in construction project execution across infrastructure, residential, and commercial applications.

Industry Insights:

• Oil and Gas
• Construction and Infrastructure
• Manufacturing
• Mining
• Others

Construction and infrastructure dominate with a market share of 40% of the total United States construction equipment market in 2025.

The construction and infrastructure maintain dominant equipment demand, driven by comprehensive building activity across public and private sectors nationwide. Government infrastructure programs allocate substantial funding toward transportation networks, public facilities, and utility systems requiring extensive equipment deployment. According to reports, in January 2025, the U.S. Department of Transportation announced USD 1.32 Billion in RAISE grants for 109 projects across the country, fueling widespread construction activity and machinery requirements. Furthermore, commercial and residential construction projects generate consistent equipment requirements as development responds to population growth and economic expansion.

The construction and infrastructure equipment requirements span all machinery categories, from compact equipment for interior finishing to heavy machinery for structural operations. Infrastructure maintenance activities ensure ongoing equipment demand beyond new construction projects, creating sustained market opportunities. The industry's growth trajectory correlates with broader economic conditions while benefiting from dedicated infrastructure funding commitments and urbanization trends. Construction and infrastructure applications will continue dominating equipment demand, supported by government initiatives, private sector investments, and expanding urban development projects.

Regional Insights:

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• Northeast
• Midwest
• South
• West

South leads with a market share of 35% of the total United States construction equipment market in 2025.

South commands market leadership through dynamic population growth, favorable business environments, and extensive construction activity across multiple states. Major metropolitan areas throughout Texas, Florida, Georgia, and the Carolinas experience sustained residential and commercial development driven by population migration patterns. Industrial construction flourishes across the region, supported by competitive operating costs and available workforce resources. Infrastructure investment addresses the demands of rapidly growing communities while modernizing existing transportation networks, reinforcing the region's dominant market position.

Energy sector activities, including oil and gas operations and renewable energy development, contribute substantial equipment demand throughout the South. The climate permits year-round construction operations, maximizing equipment utilization rates and project throughput across diverse applications. Manufacturing facility construction responds to supply chain restructuring trends favoring southern locations with business-friendly regulatory environments. The region's economic dynamism and continued investment attraction position it for sustained market leadership across equipment categories throughout the forecast period.

Market Dynamics:

Growth Drivers:

Why is the United States Construction Equipment Market Growing? 

Expansion of Infrastructure Modernization Programs

The United States is undertaking comprehensive infrastructure modernization initiatives that create unprecedented demand for construction equipment across multiple categories. Federal funding commitments target the rehabilitation of aging bridges, highway expansions, airport improvements, and public transit enhancements nationwide. As per sources, in May 2025, the U.S. Federal Highway Administration issued $1.5 Billion through the Emergency Relief program to repair roads and bridges in 36 states, Puerto Rico, Guam, and the U.S. Virgin Islands, boosting construction activity and equipment utilization. Moreover, these multi-year programs provide construction companies with sustained project visibility supporting equipment investment planning and fleet expansion decisions.

Urbanization and Residential Construction Expansion

Continuing urbanization trends across the United States generate substantial construction equipment demand as metropolitan areas accommodate growing populations. Residential construction responds to housing shortages prevalent in major urban centers and high-growth regions attracting domestic migration. According to reports, U.S. housing starts reached 1,428,000 units, up 12.9% from July 2024, while building permits totalled 1,354,000 units, reflecting ongoing residential construction growth. Furthermore, mixed-use development projects combine residential, commercial, and retail components requiring diverse equipment capabilities throughout construction phases. Suburban expansion creates demand for site development equipment preparing land for residential community construction, ensuring sustained activity regardless of short-term economic fluctuations.

Technological Advancement and Equipment Modernization

Rapid technological advancement in construction equipment drives fleet modernization as contractors seek competitive advantages through operational efficiency improvements. Environmental regulations mandate emissions compliance that necessitates equipment replacement or retrofit investments across contractor fleets. In March 2025, Caterpillar partnered with lidar maker Luminar to integrate advanced LiDAR sensors into its autonomous construction equipment, improving machine safety and navigation on U.S. jobsites. Safety requirements increasingly favor equipment equipped with advanced protection systems and operator monitoring capabilities. The productivity differential between legacy equipment and current-generation machinery creates compelling economic incentives for modernization investments, ensuring ongoing replacement demand as contractors update fleets to maintain competitiveness.

Market Restraints:

What Challenges the United States Construction Equipment Market is Facing? 

High Equipment Acquisition and Operating Costs

Construction equipment represents substantial capital investment that challenges smaller contractors and creates barriers to market participation. The sophisticated technology integrated into modern machinery commands premium pricing that extends payback periods and complicates financing decisions. Operating expenses, including fuel consumption, maintenance requirements, and operator training, compound total ownership costs throughout equipment lifecycles. Economic uncertainty amplifies contractor reluctance to commit capital toward equipment purchases, favoring rental alternatives that preserve financial flexibility.

Skilled Operator Shortage and Training Requirements

The construction industry confronts persistent skilled labor shortages that constrain equipment utilization and project execution capacity. Modern equipment complexity demands specialized operator training that requires time investment and certification programs. Demographic trends indicate declining workforce entry rates into construction trades, exacerbating existing operator availability challenges. Competition for qualified operators drives wage inflation that increases project costs and compresses contractor profit margins.

Supply Chain Disruptions and Component Availability

Construction equipment manufacturers face ongoing supply chain challenges affecting component availability and production scheduling. Semiconductor shortages and specialized material constraints extend equipment delivery timelines and complicate fleet planning for contractors. Global supply chain complexities introduce uncertainty regarding parts availability for maintenance and repair operations. These disruptions impact equipment pricing as manufacturers pass through increased component costs to end customers.

Competitive Landscape:

The United States construction equipment market features an intensely competitive environment characterized by established global manufacturers, regional dealers, and specialized rental providers competing for market position. Industry participants differentiate through product innovation, service quality, dealer network coverage, and financing solutions tailored to contractor requirements. Strategic partnerships between manufacturers and technology providers accelerate the integration of advanced features into equipment offerings. Market consolidation continues as larger entities acquire complementary capabilities and expand geographic coverage. The competitive landscape emphasizes total customer value, encompassing equipment performance, lifecycle support, and resale value retention. Dealer relationships prove critical as contractors depend on responsive parts availability and technical support for fleet operations.

Recent Developments:

• In August 2025, CASE Construction Equipment has released the industry’s first electric backhoe loader, the 580EV, matching the performance of its diesel counterpart while delivering zero emissions and up to eight hours runtime. CASE also plans commercial releases of the CX25EV mini excavator and CL36EV compact wheel loader.

United States Construction Equipment Market Report Coverage: