DUBLIN — The North American construction equipment industry is set for steady growth over the next five years, as new research highlights the combined impact of major infrastructure investments, rental model expansion, and the adoption of sustainable and digital technologies.
According to the new report “North America Construction Equipment Market, By Country, Competition, Forecast & Opportunities, 2020-2030F” from Research and Markets, the sector was valued at USD 22.11 billion in 2024 and is projected to climb to USD 26.92 billion by 2030, growing at a compound annual growth rate (CAGR) of 3.34%.
The report points to a confluence of factors driving demand. The U.S. Census Bureau reported total construction spending reached USD 2.07 trillion at a seasonally adjusted annual rate in April 2025, reflecting growth across residential, commercial, and public projects. Private investment in equipment also strengthened, with the U.S. Bureau of Economic Analysis noting a 4.1% increase in Q1 2025.
“Federal and state funding initiatives for bridges, rail networks, and renewable energy installations are translating into new machinery purchases,” the study notes, underscoring the role of infrastructure in equipment demand.Highway and street construction remains a cornerstone, with spending on those projects alone hitting USD 136.9 billion annualized as of April 2025, according to U.S. Census data. These projects sustain long-term demand for excavators, loaders, dozers, and material-handling machinery.
The market is also undergoing a technological shift as governments enforce stricter emissions regulations. The U.S. Energy Information Administration reported a 13% increase in renewable energy consumption in 2024, pushing contractors to adopt electric and hybrid machinery. Equipment makers from Caterpillar to Volvo are expanding electric product lines, banking on demand for low-emission, quieter machines for urban construction.
Flexibility and cost efficiency are also driving the market toward rentals. The American Rental Association projects U.S. equipment rental revenues will hit USD 74.2 billion in 2025. Rentals allow contractors to access advanced machinery without the heavy capital costs of ownership.
Digital tools such as telematics and machine control systems are transforming operations. Predictive maintenance reduces downtime, while automated monitoring enhances efficiency on job sites. This aligns with broader modernization efforts across construction, especially as skilled labor shortages weigh on productivity.
The U.S. Bureau of Labor Statistics reported over 440,000 open positions in construction nationwide as of early 2025, leaving both contractors and manufacturers scrambling for talent. Skilled technicians for assembly and advanced equipment servicing remain particularly scarce, slowing the adoption of newer technologies.
Volatile steel prices and heightened emissions standards are adding pressure to manufacturers. The Federal Reserve Bank notes commodity fluctuations continue to raise production costs, while compliance with stricter environmental regulations requires heavy investment in R&D.
While higher upfront costs remain a barrier, falling battery prices are making electric excavators, loaders, and compact machines more competitive. “Contractors view electrification as a pathway to meet sustainability goals and future-proof their fleets,” the report highlights. Lower maintenance needs and reduced operating costs are accelerating this trend, especially in urban and regulated environments.
To counter workforce shortages, many manufacturers are introducing semi-autonomous and AI-enabled equipment. Automated features not only enhance precision but also compensate for gaps in skilled labor availability.
Despite challenges tied to labor, materials, and regulation, the sector is positioned for steady advancement through 2030. “Large-scale infrastructure undertakings ensure sustained investment in advanced, efficient construction equipment across North America,” the report concludes.
Originally reported by Global News Wire.
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