U.S. Earthmoving Equipment Market (By Engine Capacity: Up To 250 HP, 250-500 HP, And More Than 500 HP; By Drive Type: Electric, ICE; By Product) - Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2024-2033

U.S. Earthmoving Equipment Market Size and Trends

The U.S. earthmoving equipment market size was estimated at around USD 11.43 billion in 2023 and it is projected to hit around USD 19.78 billion by 2033, growing at a CAGR of 5.64% from 2024 to 2033.

Key Pointers

• By Engine Capacity, the Up to 250 HP sub-segment captured the maximum market share of 46% in 2023.
• By Engine Capacity, the 250-500 HP sub-segment is estimated to expand the fastest CAGR from 2024 to 2033.
• By Drive Type, the ICE segment generated the maximum market share in 2023.
• By Drive Type, the electric segment is projected to grow at the fastest CAGR from 2024 to 2033.
• By Product, the loader sub-segment captured the maximum market share in 2023.
• By Product, the dump truck sub-segment is estimated to expand the fastest CAGR from 2024 to 2033.

U.S. Earthmoving Equipment Market Overview

The U.S. earthmoving equipment market is a pivotal sector within the construction industry, characterized by robust growth and technological advancements. Earthmoving equipment encompasses a variety of machinery designed for excavation, grading, and site preparation tasks, crucial for infrastructure development, residential construction, and mining operations.

U.S. Earthmoving Equipment Market Growth Factors

The growth of the U.S. earthmoving equipment market is driven by an ongoing infrastructure development projects across the country, spurred by government investments in transportation, utilities, and residential sectors, are fueling demand for advanced earthmoving machinery. Secondly, technological advancements in equipment design, such as the integration of GPS tracking, telematics systems, and automated functionalities, are enhancing operational efficiency and productivity on construction sites. Moreover, increasing environmental awareness and stringent regulatory standards are pushing manufacturers to innovate towards more sustainable and fuel-efficient equipment solutions, meeting both customer demands and regulatory requirements.

U.S. Earthmoving Equipment Market Trends:

• Rising Demand for Sustainable Solutions: Manufacturers focusing on eco-friendly designs to meet stringent environmental regulations and customer preferences for reduced emissions and fuel efficiency.
• Shift Towards Rental Services: Increasing preference among construction companies to rent equipment rather than purchase, driven by cost-effectiveness and flexibility.
• Innovation in Equipment Design: Development of compact and versatile models catering to urban construction projects and confined spaces.
• Impact of Infrastructure Investments: Government initiatives and funding towards infrastructure development projects driving demand for earthmoving machinery.
• Adoption of Electric and Hybrid Equipment: Growing interest in electric and hybrid earthmoving equipment due to lower operational costs and reduced environmental impact.
• Focus on Operator Safety: Enhanced safety features in equipment design to mitigate risks and improve job site safety standards.

U.S. Earthmoving Equipment Market Restraints:

• Maintenance and Operating Expenses: Ongoing costs related to maintenance, repairs, and fuel consumption add to the overall operational expenses, impacting profitability.
• Cyclical Nature of Construction Industry: Fluctuations in construction activity and economic downturns can lead to variability in equipment demand and utilization rates.
• Skill Shortages: Shortages of skilled operators proficient in handling advanced earthmoving equipment can limit adoption and efficiency on job sites.
• Competitive Rental Market: Growth in equipment rental services poses competition to equipment sales, affecting profitability margins for manufacturers and dealers.

Engine Capacity Insights

The Up to 250 HP sub-segment asserted its dominance in 2023, capturing 46% of the market share and is poised for significant growth in the forecast period. Machines with engine capacities up to 250 HP are well-suited for medium-scale projects that require a blend of maneuverability and power. These machines are designed to be compact and versatile, facilitating smooth operation and transportability. These advantages associated with this engine capacity are expected to drive its expansion over the forecast period.

The 250-500 HP sub-segment is forecasted to exhibit the highest CAGR from 2024 to 2033. These machines excel in handling heavy loads and navigating challenging terrains, making them ideal for applications such as land clearing, timber handling, and road construction. The broad applicability across various construction sectors and increasing demand for materials like timber are anticipated to propel this sub-segment throughout the forecast period. For example, according to the Softwood Lumber Board (SLB), the anticipated rise in demand for softwood lumber by 600 million board feet is linked to the projected use of mass timber panels in hybrid construction.

Drive Type Insights

In 2023, the ICE segment held the largest market share. ICE engines have seen significant improvements in fuel efficiency through technologies such as turbocharging, electronic control systems, and direct injection. The growth of the ICE sub-segment is primarily driven by the need to meet torque and power requirements while ensuring optimal performance. Moreover, end-users in various industries have a range of torque capacities and power outputs to choose from, aligning with their specific operational needs. These advantages associated with the ICE drive type are expected to drive its demand over the forecast period.

The electric segment is projected to grow at the fastest CAGR during the forecast period. Increasing focus on sustainability is a key driver for electric drive types. Regulations like the Environmental Protection Agency's (EPA) Tier 4 diesel engine standards and the broader Clean Air Act, combined with a growing emphasis on sustainable practices in the U.S., are expected to bolster the adoption of electric engines for earthmoving equipment. For instance, the Biden administration aims for electric engines to constitute 50% of all new vehicle sales by 2033, as stated on the White House website.

Product Insights

In 2023, the loader sub-segment accounted for the largest share of the market. Loaders are anticipated to grow at a substantial CAGR from 2024 to 2033, driven by the expansion of construction activities. According to Verdict Media Limited, construction spending in the U.S. is on the rise, with a projected year-on-year increase of 13.9% from $1.84 trillion USD in 2022 to $2.09 trillion USD in 2023.

The dump truck sub-segment is expected to witness the fastest CAGR during the forecast period. In the mining industry, dump trucks play a critical role in transporting materials from mining sites to processing facilities. The rising demand for gold is projected to contribute to the growth of this sub-segment. For example, the World Gold Council reported record-high gold demand in the U.S. in 2023, with expectations of further expansion as the Federal Reserve moves toward interest rate cuts.

U.S. Earthmoving Equipment Market Key Companies

• Unicorn Construction Enterprises, Inc.
• Caterpillar Inc.
• Deere & Company
• The Manitowoc Company, Inc.
• Oshkosh Corporation
• HD Hyundai Construction Equipment Co., Ltd.
• Manitou group
• Tomahawk
• AB Volvo
• New Holland Construction (CNH Industrial N.V.)
• Epiroc AB (Epiroc USA LLC)
• J. C. Bamford Excavators Ltd.
• Doosan Bobcat. (Doosan Corporation.)

Recent Developments

• In November 2023, Case Construction Equipment, a brand under CNH Industrial N.V., revitalized its wheel loader lineup with the introduction of four upgraded models in its F-Series. These machines feature enhanced operator cabins and increased travel speeds compared to their predecessors. Additionally, they are equipped with refined electrohydraulic controls that include smart functionalities and improved connectivity.
• In October 2023, Husqvarna Construction, Volvo Construction Equipment, and Atlas Copco Group announced a strategic partnership with the Sweden-US Green Transition Initiative. This initiative, established by Sweden’s innovation agency Vinnova, Business Sweden, Swedish Energy Agency, and the Swedish Embassy in the USA, aims to accelerate the shift towards an electrified construction industry. Initially, the consortium will focus on developing electric vehicle (EV) charging infrastructure across the United States.
• In October 2022, Epiroc AB announced the acquisition of Wain-Roy, a prominent manufacturer of excavator attachments based in the U.S. This acquisition is part of Epiroc's strategy to bolster its presence in the North American construction market and expand its capacity for manufacturing advanced attachments locally.

U.S. Earthmoving Equipment Market Segmentation:

By Engine Capacity

• Up to 250 HP
• 250-500 HP
• More than 500 HP

By Drive Type

• Electric
• ICE

By Product

• Dozer
• Excavator
• Loader
• Motor Grader
• Dump Truck