Excavator Market Size, Share & Trends Analysis growing rate (CAGR) of 5.0% from 2024 to 2030
The global excavator market size was estimated at USD 75.85 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 5.0% from 2024 to 2030. Due to increasing investments in the construction sector mainly from the growing countries such as India, China, and South Korea, the market has experienced significant growth. Global demand for excavators has increased as a result of an increase in the number of major projects in the road and port construction, mining, and oil and gas construction industries. Moreover, technological advancements in excavator design and functionality, such as improved fuel efficiency and enhanced performance, further contribute to their widespread usage and market growth.
Request a free sample copy or view report summary:
In enclosed spaces such as forestry, agriculture, and small-scale construction projects, excavators are employed. The instrument is practical for accelerating construction activities and is built to offer greater operational skills, thus elevating the market growth. For instance, in May 2023 Hitachi Construction Machinery Co., Ltd. launched ZAXIS-7 compact excavators designed to enhance task efficiency on urban work sites. The company also launched ZX75US-7 model that featured an ultra-short-tail swing radius, which allowed access to small spaces. In addition, the ZX85USB-7 model, with its swing boom and ultra-short-tail swing radius, enabled productive excavation near walls and guardrails.
Mini excavators are anticipated to have new technological characteristics and offer lower emissions due to the integration of cutting-edge hydraulic systems and electrification. A growing number of smart infrastructure projects are being launched in underdeveloped countries with significant government backing. Strong consumer real estate investments and increased disposable income will increase the need for hydraulic excavators in the construction industry. For instance, in September 2023, Hyundai Construction Equipment Co. Ltd. North America unveiled the immediate availability of three additional excavator models, namely HX40A, HX35AZ, and HX48AZ, within its HX-A series of compact hydraulic excavators in the region.
Additionally, strict emission control requirements have mandated the use of eco-friendly machinery, opening up lucrative growth prospects for the world market for Crawler excavators. Diesel is the fuel of choice for most excavators utilized in various industrial sectors. Numerous governing authorities have enacted strict emission requirements that all market participants must follow in order to reduce air pollution brought on by heavy machinery with ignition engines, such as excavators. For manufacturers in the excavator sector, the U.S. Environmental Protection Agency (EPA) has set Tier 4 emission regulations, certification criteria, and other compliance restrictions.
The Regulation (EU) 2016/1628 and the European Commission’s non-road mobile machinery emission standards force firms to alter their manufacturing processes, which could raise the overall cost of production. Manufacturers of excavators continue to be impacted by the strict legislation and quality standards that are being imposed. However, a few of the factors that are anticipated to impede the market’s growth include costly installation and maintenance costs, as well as the requirement for ongoing technical assistance.
Market Concentration & Characteristics
Market growth stage is medium, and pace of the market growth is accelerating. The market is characterized by a high degree of innovation owing to the rapid technological advancements driven by factors such as advancements in sensors, cameras, and AI-driven algorithms which enable them to detect and navigate through obstacles, enhancing precision and reducing the risk of accidents.
The market is also characterized by a high level of merger & acquisition (M&A) activity by the market players. This is due to several factors, including the desire to gain access to new regions, need to consolidate the growing market demand for excavators, and establishing strong brand position in the market.
The market is also subject to increasing regulatory scrutiny. Increasing environmental regulations and a growing emphasis on eco-friendly construction practices are driving the shift toward electric excavators. As a result, construction and mining industry is witnessing a broader trend of electrifying heavy equipment, including excavators, to reduce emissions and enhance sustainability.
