North America Construction Equipment Market Growth Insights – Equipment Demand to Reach 513.36 Thousand Units by 2031, Driven by Continued Investments in Public Infrastructure, Housing, Manufacturing, Mining, Renewable Energy, and Data Center Development Across the Region (2026–2031)

NORTH AMERICA CONSTRUCTION EQUIPMENT MARKET SIZE

The North America construction equipment market size was estimated at 406.53 thousand units in 2025 and is projected to reach 513.36 thousand units by 2031, expanding at a CAGR of 3.97% during the forecast period. The market is expected to record steady growth over the forecast period, supported by continued investments in public infrastructure, housing, manufacturing, mining, renewable energy, and digital infrastructure, such as data centers.

Government investment in infrastructure remains a key source of construction activity across North America in 2026. In the US, funding through the Infrastructure Investment and Jobs Act (IIJA) continues to support transportation, bridge, water, airport, and digital infrastructure projects, sustaining demand for construction equipment.

In addition, in Canada, federal and provincial programs are supporting investment in transportation, clean energy, public transit, housing, and critical minerals, creating additional opportunities for contractors and equipment suppliers in 2026.

KEY TAKEAWAYS

1. Equipment Type: Earthmoving equipment accounted for the largest market share of around 53% in 2025
2. Earthmoving Equipment: Excavators accounted for the largest North America construction equipment market share in 2025.
3. Road Construction Equipment: Road rollers account for the largest share and show significant growth, with the fastest-growing CAGR of 3.41% during the forecast period.
4. Material Handling & Lifting Equipment: In 2025, the cranes segment accounted for the largest share of the North America construction equipment market
5. Other Construction Equipment: The articulated dump trucks accounted for the largest market share in 2025
6. End-Users: The construction segment accounted for 43% of North American construction equipment usage in 2025.

RECENT DEVELOPMENT IN THE NORTH AMERICAN CONSTRUCTION EQUIPMENT MARKET

1. In 2026, at the Consumer Electronics Show (CES) 2026 in Las Vegas, US, Caterpillar showcased a new generation of AI-powered and autonomous technologies. The company introduced an AI Assistant and unveiled advanced equipment across key categories, including excavators, loaders, haul trucks, dozers, and compactors, leveraging NVIDIA-driven AI and edge computing capabilities.
2. In February 2026, Komatsu announced its acquisition of the assets of SRC of Lexington, expanding its remanufacturing footprint in North America. The deal deepens Komatsu's reman capabilities closer to North American customers, improving responsiveness and supporting dealers with high-quality, cost-effective lifecycle solutions.
3. In 2026, Komatsu is expanding its customer support network in the Western US through a new 270,000-square-foot parts distribution center in Mesa, Arizona, scheduled to become operational by the end of 2026. The 270,000-square-foot facility will stock parts for construction, mining, forklift, and forestry equipment.
4. In 2026, Deere & Company completed its acquisition of Tenna, a construction technology company based in New Hope, Pennsylvania.
5. In 2026, Volvo Construction Equipment (Volvo CE) announced the launch of the new SD70 soil compactor, the latest addition to its industry-leading soil compaction range, at CONEXPO-CON/AGG 2026.
6. In 2026, Liebherr Group presented its latest range of mid-sized and large XPower wheel loaders in North America at the Conexpo 2026, highlighting advancements in performance, safety, and operator efficiency. A key highlight was the mid-sized L 546-wheel loader, which was featured in a live demonstration.
7. In 2026, SANY America was named a recipient of the Specialized Carriers & Rigging Association (SC&RA) 5-Year Longevity Award, recognizing the sustained membership of the company and dedication to the mission of the association.
8. In 2026, XCMG showcased a wide range of construction equipment at CONEXPO-CON/AGG 2026 (Las Vegas), emphasizing localized solutions for the North American market and integrated jobsite applications. It introduced excavator models like XE27U PRO and XE45U PRO, among other equipment lineups.

NORTH AMERICA CONSTRUCTION EQUIPMENT MARKET TRENDS

Electrification of Construction Equipment

The North American construction machinery market is steadily moving toward electrification as sustainability, emissions regulations, and operating-cost advantages accelerate adoption of electric equipment. EPA Tier 4 standards continue to regulate emissions from new diesel-powered nonroad machinery in 2026, supporting demand for lower-emission alternatives, particularly in urban and air-quality-sensitive areas. California is likely to lead this transition, with CARB developing proposed Tier 5 standards that would impose stricter requirements on off-road diesel engines.

OEM innovation is also strengthening market momentum. At CONEXPO-CON/AGG 2026, CASE CE, HD Hyundai Construction Equipment, and Takeuchi introduced or showcased electric and remotely operated equipment. In May 2026, Volvo CE and Hitachi Energy partnered to integrate battery-electric machinery with charging, power infrastructure, and energy management systems.

Adoption of Automation Technologies in Construction Equipment

The North American construction equipment market is increasingly adopting automation to address labor shortages, improve productivity, enhance equipment utilization, and strengthen jobsite safety. Contractors are deploying technologies such as remote operation, machine control, real-time monitoring, and autonomous functions. At CONEXPO-CON/AGG 2026, Caterpillar introduced AI-powered autonomous solutions using computer vision, LiDAR, radar, GPS, and edge computing. Hitachi Construction Machinery demonstrated autonomous capabilities using Gravis Robotics’ retrofit technology, while Bluelight Machines expanded its Autopilot platform across Volvo and Caterpillar equipment. These developments highlight growing demand for retrofit solutions that enable automation without replacing existing fleets. Adoption is expected to accelerate in repetitive, labor-intensive, and safety-sensitive applications.

NORTH AMERICA CONSTRUCTION EQUIPMENT MARKET DRIVERS

Booming Construction Activity across North America

Infrastructure investment programs in the US and Canada are supporting construction equipment demand across North America in 2026. In the US, the IIJA authorized approximately $973 billion for 2022–2026, funding roads, bridges, railways, transit, airports, ports, energy, broadband, and water infrastructure. These investments are expanding equipment demand beyond traditional transportation projects into utilities and energy. Canada’s CAD 51 billion ($36.01 billion) Build Communities Strong Fund will support housing-enabling infrastructure, healthcare, education, transit, and climate resilience over the next decade. In addition, Canada expects $4.7 trillion in infrastructure investment by 2050, including significant spending on resource infrastructure. Together, these programs provide a sustained pipeline of construction activity and equipment utilization.

Increasing Investment in Hyperscale Data Center Construction Projects

North America’s data center construction is expanding rapidly in 2026, driven by AI, cloud computing, and digital infrastructure investment. The US remains the largest market, with data center construction starts reaching approximately $103.7 billion in the 12 months through January 2026, following 190% growth in 2025. Major technology companies, including Amazon, Microsoft, Meta, Alphabet, Oracle, and OpenAI, are investing heavily in expanding computing capacity. Canada is also emerging as a key market, supported by major investments from Meta, Microsoft, and AWS. Large-scale projects require extensive site preparation, earthmoving, lifting, material handling, and utility installation, creating sustained demand for construction equipment. Overall, data center development is becoming an increasingly important driver of construction machinery demand across North America.

NORTH AMERICA CONSTRUCTION EQUIPMENT MARKET RESTRAINTS

High Borrowing Costs and Tight Financing Conditions

Elevated interest rates and tighter financing conditions are restraining the North American construction equipment market by delaying projects and discouraging new equipment purchases. In the US, although the federal funds rate declined to 3.50%–3.75% by the end of 2025, borrowing costs remained relatively high in 2026, increasing financing and inventory-holding costs for contractors and dealers. Canada faces similar pressures despite the Bank of Canada’s policy rate falling to 2.25% by mid-2026. Persistent inflation, cautious lending, and economic uncertainty are particularly affecting small and mid-sized contractors. As a result, many contractors are delaying capital investments, extending equipment replacement cycles, or relying more heavily on rental fleets and existing machinery. Consequently, tight credit conditions are expected to remain a key market restraint through 2031.

Workforce Shortage in Construction Sector

The persistent skilled labour shortage remains a major restraint on North America’s construction equipment market in 2026. In the US, the Associated Builders and Contractors estimate that the industry will need 349,000 additional workers in 2026 and 456,000 in 2027 to meet construction demand. Canada faces similar pressures, with more than 270,000 workers expected to retire over the next decade and an estimated need for 410,000–520,000 additional workers by 2030. An aging workforce, retirements, demographic shifts, and immigration challenges are widening the labor gap. Rising wages are also increasing project costs and squeezing contractor margins. Consequently, some contractors are delaying projects, extending equipment replacement cycles, or relying more heavily on rentals, limiting new equipment purchases.

NORTH AMERICA CONSTRUCTION EQUIPMENT MARKET SEGMENTATION INSIGHTS

INSIGHTS BY EQUIPMENT TYPE

The North America construction equipment market by type is segmented into earthmoving equipment, road construction equipment, material handling & lifting equipment, and other construction equipment. Earthmoving equipment accounted for the largest market share of around 53% in 2025, supported by continued investment in residential construction and public infrastructure.

This demand is further supported by major infrastructure and mining investments across North America. In the U.S., the IIJA continues to drive earthmoving equipment demand, with $350 billion allocated to federal highway programs through September 2026, accelerating road and infrastructure construction.

In Canada, a C$73.9 million ($52.08 million) investment announced in June 2026 is strengthening critical minerals and clean energy projects. Together, these infrastructure and mining investments are supporting higher equipment utilization across North America.

INSIGHTS BY EARTHMOVING EQUIPMENT

Based on the earthmoving equipment, excavators accounted for the largest North America construction equipment market share in 2025. Excavators remain essential to North American infrastructure development, supporting excavation, trenching, demolition, and utility work. Demand is strengthened by highway, bridge, water, and flood-control projects, while rapid data center construction in Texas, Louisiana, Virginia, Mississippi, and Pennsylvania is further increasing excavator utilization.

Rising investment in data center construction is expected to drive demand for excavators in North America. Site preparation for hyperscale data centers, utility trench installation, and site grading require large excavator fleets. Several U.S. states, including Louisiana, Texas, Virginia, Mississippi, and Pennsylvania, are witnessing significant data center construction activity, further supporting excavator demand.

INSIGHTS BY ROAD CONSTRUCTION EQUIPMENT

Road rollers account for the largest share and show significant growth, with the fastest-growing CAGR of 3.41% during the forecast period. Road rollers are essential for soil, subgrade, base-course, and asphalt compaction, making them high-utilization equipment in road construction. At CONEXPO-CON/AGG 2026, BOMAG showcased autonomous and remote-operated roller technologies, including its BW 213 BVC-5 PL developed with ASI. The integration of autonomous operation with VARIOCONTROL intelligent compaction can improve compaction consistency and productivity, and reduce operator dependency, supporting greater automation adoption in North American road construction.

INSIGHTS BY MATERIAL HANDLING & LIFTING EQUIPMENT

In 2025, the cranes segment accounted for the largest share of the North America construction equipment market. Canada is witnessing a surge in high-rise construction projects in 2026, which is expected to drive demand for cranes, particularly tower cranes used in vertical construction. One Bloor West, the country's first supertall skyscraper, stands 308.6 meters tall with 85 stories in downtown Toronto. Its large scale and advanced structural design require extensive heavy lifting, driving demand for tower cranes during construction.

INSIGHTS BY OTHER CONSTRUCTION EQUIPMENT

Based on the other construction equipment, articulated dump trucks accounted for the largest market share in 2025. US infrastructure investment is sustaining demand for articulated dump trucks (ADTs), with major 2026 funding for roads, bridges, rail, maritime, and aviation projects requiring extensive earthmoving, excavation, embankment, and aggregate hauling. Mining projects in Canada, including the Grays Bay Road and Port development, are also supporting demand for high-payload off-road hauling equipment.

Mining is another important demand driver for ADTs, particularly in Canada. In May 2026, the Canadian government announced funding for projects such as the 230-km Grays Bay Road and Port project in Nunavut, which would provide access to future zinc and copper developments. Such projects involve substantial quantities of rock, aggregates and construction materials, supporting demand for high-payload off-road hauling equipment.

INSIGHT BY END-USER

The construction segment accounted for 43% of North American construction equipment usage in 2025. Construction activity is being supported by strong infrastructure investment across the region, particularly in the U.S., where federal and state governments are committing significant funding to upgrade transportation systems, bridges, and public facilities. Strong infrastructure spending, including IIJA-funded transportation and public projects, continues to support equipment demand.

In Canada, investments in innovative homebuilding technologies and housing infrastructure are further strengthening construction activity. Modernization of aging infrastructure, government-backed projects, and long-term development programs are expected to sustain equipment utilization.

NORTH AMERICA CONSTRUCTION EQUIPMENT MARKET REGIONAL ANALYSIS

The North America construction equipment market is expected to expand steadily from 2025 to 2031; the US is a major player with the largest share in the market. The US construction industry is experiencing a strong influx of investments in 2026, supported by federal infrastructure funding, private-sector manufacturing expansion, AI infrastructure, and industrial reshoring initiatives. These investments are accelerating activity across commercial, industrial, transportation, and utility construction, driving demand for heavy equipment such as excavators, cranes, wheel loaders, bulldozers, and dump trucks.

Canada is projected to experience significant growth in the North America construction equipment market, supported by investments in infrastructure, housing, mining and critical minerals, clean energy, and resource-related projects.

NORTH AMERICA CONSTRUCTION EQUIPMENT MARKET COMPETITIVE LANDSCAPE

The North American construction equipment market is moderately concentrated and highly competitive, led by major manufacturers such as Caterpillar, Deere & Company, Komatsu, CNH Industrial, Kubota, and Doosan Bobcat.

Caterpillar leads the market share, followed by Deere & Company, supported by broad product portfolios, strong dealer networks, and aftermarket capabilities.

Komatsu maintains a strong position in heavy equipment, particularly excavators, bulldozers, and wheel loaders, while Kubota, CNH Industrial, and Doosan Bobcat are strong in compact equipment.

Overall, extensive distribution networks, product breadth, technology, aftermarket services, and established customer relationships remain key competitive advantages in the market.