July 17, 2024

Growing Infrastructure Projects To Drive Growth In The U.S. Heavy Duty Construction Equipment Market

The U.S. heavy duty construction equipment market consists of heavy-duty vehicles and equipment used for infrastructure projects and commercial/ industrial construction. Key products in this market include earthmoving equipment such as loaders, excavators, backhoes, and scrapers, material handling machines like cranes and forklifts, and road construction equipment such as pavers, graders, and rollers. Heavy duty construction equipment provides high productivity and efficiency in tasks like excavation, hauling, lifting, and compacting heavy materials. They enable faster completion of large construction projects like roads, bridges, dams, buildings, and factories. The growing infrastructure sector in the U.S. is driving significant demand for reliable and powerful heavy construction machinery.

The global 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 key trends:
One of the major trends in the U.S. heavy duty construction equipment market is advancing technologies for connectivity and automation. Equipment manufacturers are integrating their machines with technologies like telematics, remote monitoring, autonomous functions, and advanced driver-assistance systems (ADAS). This allows for real-time fleet management, preventive maintenance, fuel efficiency, and improved safety. Another key trend is the increasing demand for hybrid and electric heavy equipment. Strict emission regulations are propelling OEMs to develop electric and hybrid-electric variants of loaders, excavators, haul trucks, pavers, and other machinery. Eco-friendly electric models offer numerous benefits like zero tailpipe emissions, lower operating costs, and reduced noise levels. The growing emphasis on sustainability and environmentalism is likely to accelerate the adoption of green construction equipment in the coming years.

Porter’s Analysis

Threat of new entrants: The heavy capital requirements and economies of scale in production and distribution pose significant barriers to entry in the U.S. heavy duty construction equipment market.

Bargaining power of buyers: Individual buyers have low bargaining power compared to large equipment manufacturers due to the availability of substitute products.

Bargaining power of suppliers: The industry faces moderate bargaining power of suppliers as raw material prices and component costs significantly impact equipment pricing.

Threat of new substitutes: Technological advancements introduce potential substitute products, such as equipment with hybrid-electric systems.

Competitive rivalry: The market is highly competitive due to the presence of numerous manufacturers competing on product quality, pricing, distribution, and promotional strategies.

Key Takeaways

The Global U.S. Heavy Duty Construction Equipment Market is expected to witness high growth, exhibiting a CAGR of 6.0% over the forecast period, due to increasing infrastructure development projects.

The Midwestern region is expected to witness the fastest growth in the U.S. heavy duty construction equipment market during the forecast period. Major federal investment programs are ongoing in states like Texas, Ohio, Illinois, and Michigan for construction of roads, bridges, rail networks and utility infrastructure.

Key players operating in the U.S. Heavy Duty Construction Equipment Market are Atlas Copco, Caterpillar, Inc., 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. Caterpillar maintains its leading position with a wide product portfolio catering to diverse construction needs.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it