North America Construction Equipment Market Size, Share, Trends, And Forecast 2026-2031 AI, Electrification, Infrastructure, And Data Centers Fuel 3.97% CAGR
Dublin, Oct. 05, 2026 (GLOBE NEWSWIRE) -- "North America Construction Equipment Market Research Report 2026-2031" has been added to ResearchAndMarkets.com's offering.
The North America construction equipment market is projected to grow at a CAGR of 3.97% from 2025 to 2031. Market expansion is supported by large-scale infrastructure programs, data center development, housing investment, mining activity, clean energy projects, and the modernization of transportation and utility networks across the US and Canada.
Earthmoving equipment represented approximately 53% of the market in 2025, making it the largest equipment category. Excavators led the earthmoving segment, while road rollers held the largest share of road construction equipment and are forecast to record the category's fastest-growing CAGR of 3.41%. Cranes dominated material handling and lifting equipment, and articulated dump trucks accounted for the largest share of other construction equipment. By end-user, construction represented 43% of regional equipment usage in 2025.
Market Trends
Electrification is reshaping the North America construction machinery market as emissions requirements, sustainability targets, and operating-cost considerations encourage the adoption of electric equipment. EPA Tier 4 standards continue to regulate emissions from new diesel-powered nonroad machinery, while California is developing proposed Tier 5 standards for off-road diesel engines. At CONEXPO-CON/AGG 2026, CASE CE, HD Hyundai Construction Equipment, and Takeuchi showcased electric or remotely operated machinery. Volvo CE and Hitachi Energy also partnered to integrate battery-electric equipment with charging infrastructure and energy management systems.
Automation is gaining momentum as contractors address labor shortages, jobsite safety, equipment utilization, and productivity. Remote operation, machine control, real-time monitoring, and autonomous functions are increasingly being deployed across fleets. Caterpillar presented AI-powered autonomous technologies using computer vision, LiDAR, radar, GPS, and edge computing at CONEXPO-CON/AGG 2026. Hitachi Construction Machinery demonstrated autonomous functionality using Gravis Robotics retrofit technology, while Bluelight Machines expanded its Autopilot platform across Volvo and Caterpillar equipment. Retrofit systems are particularly attractive because they allow contractors to automate existing machinery without replacing entire fleets.
Key Growth Drivers
Infrastructure investment remains a primary driver of North America construction equipment demand. In the US, the Infrastructure Investment and Jobs Act authorized approximately $973 billion for 2022-2026, supporting roads, bridges, railways, airports, ports, broadband, energy, transit, and water infrastructure. Federal highway programs received $350 billion through September 2026, supporting demand for excavators, loaders, bulldozers, rollers, cranes, and hauling equipment.
Canada's CAD 51 billion ($36.01 billion) Build Communities Strong Fund will support housing-enabling infrastructure, healthcare, education, public transit, and climate resilience. Canada also expects approximately $4.7 trillion in infrastructure investment by 2050, including substantial spending on mining, critical minerals, clean energy, and resource infrastructure.
Hyperscale data center construction is another significant market catalyst. US data center construction starts reached approximately $103.7 billion during the 12 months through January 2026 after expanding 190% in 2025. Amazon, Microsoft, Meta, Alphabet, Oracle, and OpenAI are investing in additional computing capacity, while Canada is attracting projects from Meta, Microsoft, and AWS. These developments require extensive site preparation, grading, trenching, heavy lifting, utility installation, and material handling, creating sustained equipment demand.
Market Challenges
High borrowing costs and restrictive financing conditions are delaying projects and limiting new equipment purchases. Although the US federal funds rate declined to 3.50%-3.75% by the end of 2025 and Canada's policy rate fell to 2.25% by mid-2026, financing and inventory-holding costs remained elevated. Small and mid-sized contractors are particularly affected, leading many businesses to extend replacement cycles, retain existing machinery, or use rental fleets.
Skilled labor shortages also constrain market growth. The Associated Builders and Contractors estimates that the US construction industry will require 349,000 additional workers in 2026 and 456,000 in 2027. In Canada, more than 270,000 workers are expected to retire during the next decade, while the country may require 410,000-520,000 additional workers by 2030. Rising wages, demographic changes, retirements, and immigration challenges are increasing costs and encouraging investment in automation.
Segment Insights
- Earthmoving equipment: Excavators led the segment in 2025, supported by highway, bridge, utility, flood-control, mining, and data center projects. Major construction activity in Texas, Louisiana, Virginia, Mississippi, and Pennsylvania is strengthening fleet utilization. Road construction equipment: Road rollers hold the largest category share. Technologies such as autonomous operation, remote control, and intelligent compaction are improving consistency and reducing operator dependency. Material handling and lifting equipment: Cranes accounted for the largest segment share in 2025. High-rise developments, including Toronto's 308.6-meter, 85-story One Bloor West project, are supporting tower crane demand. Other construction equipment: Articulated dump trucks led this category in 2025. Transportation projects and Canadian mining developments, including the 230-km Grays Bay Road and Port project in Nunavut, are increasing demand for high-payload off-road hauling equipment. End-users: Construction remained the largest application segment, followed by mining, manufacturing, utilities, power generation, municipal operations, oil and gas, cargo handling, and waste management.
Regional Analysis
The US holds the largest share of the North America construction equipment market. Federal infrastructure funding, industrial reshoring, private manufacturing investment, AI infrastructure, and utility modernization are accelerating commercial, industrial, transportation, and energy construction. Canada is expected to record significant growth through investment in housing, infrastructure, mining, critical minerals, clean energy, and resource-related projects.
Recent Industry Developments
- Caterpillar showcased a new generation of AI-powered and autonomous equipment at CES 2026, including an AI Assistant and NVIDIA-driven technologies for excavators, loaders, haul trucks, dozers, and compactors. Komatsu acquired the assets of SRC of Lexington to expand its North American remanufacturing capabilities and announced a 270,000-square-foot parts distribution center in Mesa, Arizona. Deere & Company completed its acquisition of construction technology provider Tenna. Volvo CE introduced the SD70 soil compactor at CONEXPO-CON/AGG 2026. Liebherr presented mid-sized and large XPower wheel loaders, including the L 546-wheel loader. XCMG showcased localized equipment and integrated jobsite applications, including the XE27U PRO and XE45U PRO excavators. SANY America received the Specialized Carriers & Rigging Association 5-Year Longevity Award.
Competitive Landscape
The North American construction equipment market is moderately concentrated and highly competitive. Caterpillar leads the market, followed by Deere & Company, with both companies benefiting from extensive product portfolios, dealer networks, aftermarket services, and long-standing customer relationships. Komatsu maintains a strong position in excavators, bulldozers, and wheel loaders, while Kubota, CNH Industrial, and Doosan Bobcat have established capabilities in compact equipment.
Key vendors include Caterpillar, Komatsu, John Deere, Volvo CE, Liebherr, Hitachi Construction Machinery, SANY, CNH Industrial, XCMG, HD Construction Equipment Co. Ltd., Kobelco, Zoomlion, Kubota, and Doosan Bobcat Inc. Other prominent suppliers include Takeuchi, DEVELON, JCB, Terex, JLG, Yanmar, Manitowoc Cranes, Toyota Material Handling, Manitou Group, Wacker Neuson, LiuGong, Ammann Group, Link-Belt Cranes, Mecalac, Tadano, and GEHL.
Market Segmentation
- By equipment type: Earthmoving equipment, road construction equipment, material handling equipment, and other construction equipment. By product: Excavators, backhoe loaders, wheeled loaders, bulldozers, trenchers, motor graders, road rollers, asphalt pavers, cranes, forklifts, telescopic handlers, aerial platforms, dumpers, concrete mixers, and concrete pump trucks. By end-user: Construction, mining, manufacturing, power generation, utilities, municipal corporations, oil and gas, cargo handling, and waste management. By geography: US and Canada.
Key Topics Covered
1. RESEARCH METHODOLOGY
2. RESEARCH OBJECTIVES
3. RESEARCH PROCESS
4. INTRODUCTION
4.1 Market Coverage
4.2 Report Scope
5. MARKET AT A GLANCE
5.1 Market Overview
5.2 Market Snapshot
6. EXECUTIVE SUMMARY
7. MARKET LANDSCAPE
7.1 PESTEL Analysis
7.2 Economic Scenario
7.3 Key Projects
7.4 Market Dynamics
7.5 Import & Export Trend Analysis
7.6 Supply Chain Analysis
8. SEGMENTATION
8.1 Equipment Type
8.1.1 Equipment Definition (Earthmoving)
8.1.1.1 Earthmoving Equipment (Volume & Value)
8.1.1.2 Excavators
8.1.1.3 Backhoe Loaders
8.1.1.4 Wheeled Loaders
8.1.1.5 Bulldozers
8.1.1.6 Motor Graders
8.1.1.7 Compact Earthmoving Equipment
8.1.1.8 (Skid-steer Loaders, Compact Track Loaders, Mini-excavators)
8.1.2 Equipment Definition (Road Construction)
8.1.2.1 Road Construction (Volume & Value)
8.1.2.2 Road Rollers
8.1.2.3 Asphalt Pavers
8.1.3 Equipment Definition (Material Handling & Lifting Equipment)
8.1.3.1 Material Handling & Lifting Equipment (Volume & Value)
8.1.3.2 Cranes
8.1.3.3 Forklifts & Telescopic Handlers
8.1.3.4 Aerial Working Platforms (AWPs)
8.1.4 Equipment Definition (Other Construction Equipment)
8.1.4.1 Other Construction Equipment (Volume & Value)
8.1.4.2 Articulated Dump Trucks
8.1.4.3 Concrete Mixers
8.1.4.4 Concrete Pump Trucks
8.2 End-users
8.2.1 End-user Definition
8.2.2 Construction
8.2.3 Manufacturing
8.2.4 Mining
8.2.5 Others (Waste Management, Agriculture, Oil & Gas Extraction, Utilities & Energy, Power Generation, Disaster Management and Water Management)
9. GEOGRAPHICAL SEGMENTATION
10. TECHNOLOGY DEVELOPMENT
11. COMPETITIVE LANDSCAPE
11.1 Competitive Landscape Overview
11.2 Prominent Vendors
11.3 Other Prominent Vendors
11.4 Distributor Profiles
12. REPORT SUMMARY
12.1 Key Insights
12.2 Abbreviations
12.3 Exhibits
12.4 Related Reports
12.5 Database
12.6 Global Reach
12.7 Offerings
LIST OF GRAPHS [109]
LIST OF TABLES [17]
A selection of companies mentioned in this report includes, but is not limited to:
- Caterpillar Komatsu John Deere Volvo CE Liebherr Hitachi Construction Machinery SANY CNH Industrial XCMG HD Construction Equipment Co. Ltd. Kobelco Zoomlion Kubota Doosan Bobcat Inc. Takeuchi DEVELON JCB Terex JLG Yanmar Manitowoc Cranes Toyota Material Handling Manitou Group Wacker Neuson LiuGong Ammann Group Link-Belt Cranes Mecalac Tadano GEHL National Equipment Dealers Kirby-Smith Machinery Inc. Landmark Equipment Associated Supply Company Inc. Romco Equipment Co. B-C Equipment Bane Machinery McClung-Logan Equipment Company Inc Mico Cranes & Equipment LLC Cowin Equipment Company Inc. Scott Equipment Company LLC Doggett Equipment Services Group Nors Construction Equipment St Sms Equipment Inc. Wajax Limited. Headwater Equipment Brandt Group Toromont Industries Ltd.
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