Report Summary:

Market Size (2030): 27.1 Thousand Units

Market Size (2024): 24.4 Thousand Units

CAGR- VOLUME (2024-2030): 1.80 %

MARKET SIZE- REVENUE (2030): USD 1.75 Billion

HISTORIC YEAR: 2021-2023

BASE YEAR: 2024

FORECAST YEAR: 2025-2030

EQUIPMENT TYPE: Earthmoving Equipment, Road Construction Equipment, Material Handling Equipment, and Other Equipment

END USERS: Construction, Mining, Manufacturing, and Others

What's Powering Australia's Shift from Diesel to Electric in Construction and Mining?

Australia's mining and construction sectors are witnessing a powerful shift toward electric equipment in 2025, driven by sustainability mandates, rising fuel costs, and stricter emissions targets. Liebherr-Australia marked a major milestone with the R 9400 E 400-tonne electric excavator at BHP's Yandi iron-ore mine, BHP's first global electric model, setting the pace for wider adoption across the industry.

This momentum is spreading through the construction space as well. Allworks deployed Volvo's L25 Electric Wheel Loader on the Whiteman Park Tramway Extension, while the ECR25 Electric Excavator is becoming a go-to for quiet, zero-emission urban projects. Adding to this, XCMG Australia is piloting its XLC220-E electric crawler crane on major infrastructure sites. With strong government incentives lowering upfront costs, electric fleets are fast becoming the foundation of Australia's net-zero 2050 ambition.

Key Highlights- Australia Construction Equipment Market

• Earthmoving Equipment Leads Market: Dominating Australia's construction equipment market in 2024, driven by infrastructure investments and strong excavator demand in mining.
• Material Handling on the Rise: Expanding manufacturing and logistics sectors boost demand for forklifts and telescopic handlers, led by major warehouse developments like Bisinella's Geelong project.
• Government Push Fuels Crane Demand: The $134.5 million port infrastructure investment in Western Australia is driving the need for heavy-lift crawler cranes.
• Urban Growth Drives Equipment Utilization: Major projects in Sydney, Melbourne, and Brisbane - including the Sydney Metro and West Gate Tunnel, are accelerating equipment demand nationwide.

Is the Australian Government's $1.1 B Bet on Low-Carbon Fuels the Spark for a Cleaner Future?

Australia's construction sector is entering a pivotal phase of energy transition as sustainability goals, rising fuel costs, and policy incentives accelerate the shift toward electric, biodiesel, renewable diesel, and hydrogen-powered equipment. The Australian government's AUD 1.1 billion investment in developing a domestic low-carbon fuels industry by 2028 is strengthening this momentum, positioning the nation as a key player in the global biofuels market.

Leading this transformation, CPB Contractors powered all machinery with biodiesel on the Sydney Metro Western Sydney Airport project, significantly cutting emissions and inspiring wider supply chain adoption, including Kennards Hire's transition to biodiesel blends nationwide. Supported by major manufacturers such as Caterpillar, Volvo, John Deere, JCB, and KOBELCO, the sector is advancing rapidly toward low-carbon operations. Collectively, these developments signal a defining moment for Australia's construction market as it builds a sustainable, future-ready pathway to net-zero 2050.

Autonomous Innovation Sets New Efficiency Standards in Australia's Construction Market

Australia's construction industry is advancing into a new era defined by automation, intelligence, and digital precision. Facing workforce shortages and rising safety and sustainability demands, contractors are increasingly relying on smart and autonomous equipment to sustain productivity and competitiveness. OEMs and tech leaders are leading this transformation through factory-integrated digital systems, IoT-enabled connectivity, and autonomous functionalities that enhance efficiency and operational control. Smart machinery with real-time monitoring and predictive maintenance has become a strategic asset, reducing downtime, optimizing fleet use, and improving project outcomes.

Setting a major precedent, Komatsu Smart Construction's 2025 rollout of factory-fitted 3D machine-guidance systems on its PC228 and PC240 crawler excavators redefines deployment speed and accuracy in the field. Together, these advancements are propelling Australia toward a data-driven, resilient, and future-ready construction ecosystem.