The U.S. Heavy Duty Construction Equipment Market was valued at US$ 69.84 Mn in 2020 and is expected to exhibit a CAGR of 6.0 % over the forecast period to reach US$ 113.70 Bn by 2030
The market is segmented into by type, by application, by sales channel, and by end-use industry. The U.S. Heavy Duty Construction Equipment Market growth is majorly driven by increasing government investment in the construction industry
Moreover, owing to COVID-19, the construction industry is affected majorly, therefore demand for heavy equipment is expected to drop in 2020, but the market is expected to show steady growth for the next 3 years
The rental segment in the heavy construction equipment market is expected to grow as companies will rent the equipment than buying new equipment, which will help the market to remain steady.
The construction industry is one of the largest industries in the U.S. According to the data published by The Associated General Contractors of America (AGC), a U.S.-based trade association, in 2019, the construction industry had over 680,000 employers, and it employs over 7 million workers across the U.S. Furthermore, in 2019, the construction industry contributed around US$ 1.3 trillion to the U.S. economy, which was over 4.1% of the total U.S. GDP. Therefore, to promote industry growth, the U.S. government is significantly investing in the construction industry. For instance, in February 2018, the president of the U.S. announced US$ 1.5 trillion of investment in the construction industry including US$ 200 billion federal funding over 10 years from 2018. This investment is for the development of rural infrastructure and reconstruction of roads, bridges and airports, public hospitals, wastewater treatment systems, and others. For instance, according to Worldwide Market Reports’ analysis, the U.S. construction industry is expected to increase with a CAGR 5.2% during the forecast period 2020-27. Thus, increasing government and private investment in the construction industry is expected to drive the U.S. Heavy Duty Construction Equipment Market during the forecast period.
U.S. Heavy Duty Construction Equipment Market - Impact of Coronavirus (Covid-19) Pandemic
COVID-19 pandemic has a massive impact on the construction industry. The U.S. and other major markets are in a state of lock down as a measure to combat the pandemic which has halted all the ongoing construction projects.
This will lead to delay in construction projects across the U.S. Furthermore, construction projects in the U.S. will also slow down due to several factors such as supply chain disruption, economic uncertainty, and labor shortage. According to Associated General Contractors of America (AGC), in April 2020, around 45% of contractors in the U.S. are experiencing delays in terms of material shortages, equipment, and others.
Major challenge that the U.S. construction industry is facing is material supply chain disruption, as several U.S. contractors are dependent on international material suppliers. In the Q1 and Q2 of the 2020, production in factories stopped or slowed down. This lead to supply chain bottlenecks of materials which will delay ongoing construction projects and possibly increase material costs. According to WMR’s estimates, around 33% of the U.S. building material imports come from China and the shutdown in China has impacted construction activity in the U.S. Delay in construction projects is one of the restraining factors that is negatively impacting the heavy-duty construction equipment market in the U.S.
U.S. Heavy Duty Construction Equipment Market Report Coverage
|Base Year:||2021||Market Size in 2021:||US$ 70.39 Mn|
|Historical Data for:||2017 to 2021||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||6.0%||2030 Value Projection:||US$ 113.7 Mn|
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.
|Restraints & Challenges:||
Figure 1 U.S. Heavy Duty Construction Equipment Market Share (%), By Application, 2021
Rental segment is expected to drive the market growth during the forecast period.
Among sales channel, rental segment is expected to hold dominant position in the U.S. heavy duty construction equipment market during the forecast period. Rental services is the most cost-effective option for construction equipment use in the construction industry. This is owing to the cost of various construction equipment being high and end users prefer rental services of component that is required for a particular period.
Various players in the heavy duty equipment market offer rental services of heavy duty construction equipment. For instance, Herc Rentals Inc., United Rentals (inc BlueLine), and H&E Equipment Services, etc. are some of the companies that offer rental services for construction equipment.
Construction equipment renting companies offer equipment on short-term and long-term renting or leasing options to their customers according to their requirements. Furthermore, companies are also providing equipment based on hourly, daily, and monthly basis, however, the consumers are charged more than the long term renting basis.
Figure 2: U.S. Heavy Duty Construction Equipment Market Value (US$ Mn) Analysis and Forecast and Y-o-Y Growth (%), 2017 - 2030
The U.S. heavy duty construction equipment market was valued at US$ 70.39 Mn in 2021 and is expected to reach US$ 113.70 Mn by 2030 at a CAGR of 6.0% between 2022 and 2030.
Major players operating in the U.S. heavy duty construction equipment market include AB Volvo, Atlas Copco, Caterpillar, Inc., CNH Industrial N.V., Deere & Company, Doosan Infracore, Hitachi Construction Machinery Co. Ltd., Hyundai Construction Equipment Americas, Inc., and others.
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