U.S. Construction Machinery Market to Hit USD 73.4 Billion by 2032, Driven by Infrastructure Boom

(MENAFN- P&S Intelligence) According to the latest market research study published by P&S Intelligence, the U.S. construction machinery market reached a valuation of USD 42.9 billion in 2024 and is projected to surge to USD 73.4 billion by 2032, driven by a robust CAGR of 7.1% during 2025–2032. This growth is underpinned by a renewed wave of infrastructure investment—spanning transportation networks, utilities, and green initiatives—coupled with accelerating urbanization and a rebound in residential and commercial construction. At the same time, evolving market dynamics—including increasing labor shortages—are propelling adoption of automation, telematics, GPS-based control systems, and electric/hybrid machinery. Manufacturers are responding by enhancing fuel efficiency, tackling emissions compliance, and embedding intelligence into their equipment. Meanwhile, rental services are becoming an essential pillar of the market, especially for small to mid sized contractors seeking flexibility amid rising costs and maintenance concerns.

Key Insights

• Earth moving machinery commands a dominant 45% market share, as excavators, loaders, skid steers, and wheel loaders are central to infrastructure and commercial expansion efforts. Smart city and transportation developments are accelerating integration of GPS, automation, and telematics in these systems.
• Material handling machinery is emerging as the fastest growing product category, with demand increasing for crawler, trailer mounted, and truck mounted cranes.
• The concrete and road construction segment—comprising concrete mixers, pavers, pumps, and related equipment—is seeing solid uptake, especially in infrastructure projects.
• On propulsion types, internal combustion engine (ICE) machinery represents 85% of revenue share, favored for its reliability and power in heavy applications. However, electric machinery is the fastest growing propulsion segment, reflecting manufacturers’ moves toward hybrid models and cleaner diesel solutions to navigate rising emissions regulations.
• In applications, the commercial construction sector leads with a 45% share, propelled by growing demand for offices, retail spaces, healthcare facilities, hotels, and e commerce logistics hubs. The residential segment is the fastest growing, while industrial construction remains steady.
• Regarding power output, machines in the 201–400 hp range dominate the market with a 50% share, serving most commercial and infrastructure needs with mid to large excavators, wheel loaders, and bulldozers. Conversely, the <100 hp category is the fastest growing sector.
• Regionally, the South holds the largest market share at 35%, driven by population boom, urban densification, and infrastructure initiatives across Texas, Florida, and Georgia. The West region is identified as the fastest growing market.
• Competitive dynamics reflect a moderately consolidated market: leading players like Caterpillar, John Deere, CNH Industrial, Komatsu, HD Hyundai, Hitachi, Liebherr, Terex, Volvo, and Manitou dominate through breadth of offerings, brand equity, and distribution networks. Still, niche and mid sized manufacturers, along with rental and aftermarket service providers, contribute meaningful fragmentation.
• Rental services are a key market trend, as contractors favor renting over owning to optimize cost and flexibility. The practice is especially prevalent among small to mid sized firms who rely on well maintained, modern equipment without long term commitment. Rental firms’ value-adds—delivery, maintenance, operator training—and leveraging digital platforms for real-time reservation and tracking further power penetration across earth-moving, lifting, material handling, and road building machinery. A growing focus on sustainability is prompting rental companies to invest in low emission and electric equipment.
• M&A activity underscores the vibrancy of the sector. In January–June 2025, Herc Holdings executed a landmark USD 5.3 billion acquisition of H&E Equipment Services, strengthening its position as a dominant rental provider. In June 2025, Allison Transmission acquired Dana’s Off Highway business for USD 2.7 billion, expanding its propulsion solutions portfolio for construction and industrial applications.

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