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North America Construction Equipment Market Size, Share, Trends, and Forecast 2026-2031 | AI, Electrification, Infrastructure, and Data Centers Fuel 3.97% CAGR

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CAT Caterpillar is highlighted as a market leader benefiting from infrastructure investment, AI-powered autonomous technologies, and strong customer relationships. The company's products are in demand due to infrastructure projects and automation trends. DE Deere & Company is mentioned as a key player in the North American construction equipment market, benefiting from extensive product portfolios and dealer networks. Its position is strengthened by overall market growth drivers. HIT Hitachi Construction Machinery is mentioned for demonstrating autonomous functionality and its partnership with Volvo CE. The company is positioned to benefit from automation and electrification trends in the construction equipment market. AMZN Amazon is investing in additional computing capacity, which drives demand for construction equipment for data center development. This investment is a significant catalyst for market growth. MSFT Microsoft is investing in additional computing capacity and attracting data center projects, directly fueling demand for construction equipment. This makes it a key beneficiary of data center construction trends. GOOG Alphabet's investment in additional computing capacity is a driver for data center construction, which in turn increases demand for construction equipment. This positions Alphabet to benefit from infrastructure development. ORCL Oracle's investment in additional computing capacity is a catalyst for data center construction, driving demand for construction equipment. This indicates a positive outlook for companies involved in infrastructure development. OPEN OpenAI's investment in additional computing capacity is a key driver for data center construction, leading to increased demand for construction equipment. This positions OpenAI to benefit from infrastructure expansion. HD HD Hyundai Construction Equipment showcased electric or remotely operated machinery, indicating alignment with market trends towards electrification and automation. This positions them favorably for future growth. VMC While not explicitly mentioned, the article discusses electrification of construction equipment and partnerships for charging infrastructure. Volta, as an EV charging company, could indirectly benefit from this trend.

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

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

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

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:

For more information about this report visit https://www.researchandmarkets.com/r/mflc3t

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