Latin America construction equipment market size is expected to grow from USD 8,676.6 Million in 2022 to USD 13,586.7 Million by the end of 2032. Furthermore, with increasing government spending in construction and mining activities, the overall sales of construction equipment across Latin America are projected to surge at 4.6% CAGR between 2022 and 2032.
Construction equipment refers to heavy machines designed to execute construction tasks, most frequently involving earthwork operations and other large construction tasks. This equipment helps in increasing the rate of output through work progress with the best effective and efficient methods. They help construction companies significantly improve their productivity, reduce labor costs, and minimize errors.
In civil construction and infrastructure development, construction equipment is mostly utilized for loading and unloading, extraction services, etc. Increasing investments in the construction of infrastructure, including roads, bridges, and railroads are providing a major impetus to the growth of the Latin America construction equipment industry.
In recent years, governmental organizations across nations like Brazil, Mexico, and Peru have all increased their investments to strengthen their economies. They are committed to developing and expanding the public infrastructure. This in turn is creating growth prospects for the Latin America construction equipment industry.
Similarly, the growing penetration of mechanization in the construction industry for reducing labor requirements and costs, improving productivity, and eliminating the risk of errors is expected to generate lucrative opportunities for construction equipment manufacturers.
To cope with this rising trend of mechanization, manufacturers are continuously innovating to develop high-tech construction machines with enhanced features.
Currently, the Latin America construction equipment industry accounts for 5 to 7% of the global construction equipment market on a value basis and this number is likely to further increase during the forthcoming decade on the back of flourishing residential and construction sectors.
With Latin America, Mexico is expected to hold a dominant share during the forecast period owing to the increasing construction activities and favorable government support. Mexico’s government is committed to transforming the country into a world-class logistics platform by promoting the development of infrastructure as well as maintaining the existing one while encouraging balanced regional development and sustainable urban growth. This is creating lucrative opportunities for construction equipment manufacturers.
Thriving Construction Sector Bringing Technological Advances in Construction Equipment
The construction industry’s growth is in the midst of a dynamic period of fast modernization. In many respects, construction equipment manufacturers are beginning to resemble Silicon Valley tech businesses that are making advances in low-emission equipment, equipment automation, and informatics.
Construction equipment like mini cranes is gaining wider popularity due to their compactness, relatively lightweight, and ability to run on electric power & closed spaces.
Furthermore, the increasing investment in the construction and mining industries boosts the use of the latest technology in construction equipment, allowing projects to be completed efficiently which is among the economic recovery strategy.
Other manufacturers of construction equipment, like LiuGong and Hyundai, are anticipated to follow the same pattern in the Argentine market. During the projection period, the construction industry is anticipated to generate the highest demand for construction equipment as a result of various construction projects launched by governments.
| Attribute | Key Insights |
|---|---|
| Latin America Construction Equipment Market Base Value (2021A) | USD 8,335.9 Million |
| Estimated Market Value (2022E) | USD 8,676.6 Million |
| Projected Market Value (2032F) | USD 13,586.7 Million |
| Value-based CAGR (2022 to 2032) | 4.6% |
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According to Future Market Insights, the global demand for construction equipment increased by volume at a CAGR of 2.2% during the historical period from 2017 to 2021 and totaled a valuation of USA USD 8,335.9 Million at the end of 2021.
However, with the rapid growth of residential, commercial, and industrial sectors across countries like Mexico, Brazil, and Chile, the overall market for construction equipment is projected to grow at 4.6% CAGR between 2022 and 2032.
Construction operations formerly relied on sluggish, conventional techniques which would incur huge labor costs. In order to make construction easier, faster, and cost-efficient, companies across Latin America are increasingly opting for advanced construction equipment like excavators, cranes, loaders, concrete mixers, etc. This is playing a key role in boosting the Latin America construction equipment industry.
Construction equipment helps end users in the timely completion of projects, quality output, increased productivity, reliability, and safety. As a result, more and more construction companies across countries like Brazil, Argentina, and Mexico have now shifted their focus toward advanced construction technologies.
Similarly, due to the necessity for modernized and automated building processes, there is a growing need for construction equipment with more sophisticated intelligent characteristics, such as remote access devices, automatic controls, and more sophistication as compared to human labor.
Estimates state that with every 0.5% growth in mechanization, the need for construction equipment would rise by USD 30 to 35 billion during the forecast period between 2022 and 2032.
Innovation in Construction Equipment to Expand the Latin America Market
The overall market for construction equipment in Latin America is projected to create an incremental dollar opportunity of USD 4,910.1 Million between 2022 and 2032. One of the key trends driving the construction equipment industry forward in Latin America is the development of technologically advanced construction equipment. The demand for these automated solutions is rising owing to their increased productivity with minimum errors and reduced effort.
Autonomous operating technology is becoming more popular in construction equipment as it improves productivity, ensures safety, and lowers unscheduled maintenance. During the projected period, this will produce possibilities for the market to expand and change.
For instance, XCMG promoted its digital transformation based on the new Intelligent Manufacturing 4.0 model, bolstering the design and development of the new generation of information technologies, including big data, artificial intelligence, 5G, industrial internet, and digital twin, as well as accelerating intelligent manufacturing to reach the leading position.
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Flourishing Construction Industry Generating High Demand in Mexico
By 2032, Mexico is anticipated to account for around 30% of the Latin America market and is projected to expand at a CAGR of 4.8%. The government's investments in public infrastructures, such as roads, airports, public transportation infrastructure, and the energy sector, are expected to fuel growth in Mexico’s construction equipment industry.
Due to the government's plan to achieve carbon-neutral targets by 2040, investment in renewable energy projects has increased substantially in Latin America. This will continue to generate high demand for construction equipment.
Similarly, the booming construction industry in the country is expected to generate high demand for construction equipment like excavators, cranes, concrete mixers & pavers, construction pumps, and asphalt finishers during the forecast period.
According to a report published by the International Trade Administration, the construction industry value in Mexico reached USD 88.14 billion in 2021 and is likely to surpass USD 96.77 Billion by 2022. This will eventually create prospects for construction equipment manufacturers during the assessment period.
Increasing Investments in Commercial Construction Activities Boosting Market in Brazil
Brazil's construction equipment market size reached USD 1,700.2 Million in 2021 and it is expected to grow by 150 basis points between 2022 and 2032.
The growth prospects of Brazil’s construction industry are highly supported by the increasing investments in telecommunication, transport, renewable energy, and the housing sectors, which are estimated to create significant opportunities for Brazilian construction equipment manufacturers during the forecast period.
In addition to these, the rapid growth of the commercial construction sector, improvement in retail and tourism activities, and increasing private and public investment to modernize the country’s transport sector, are expected to boost sales of construction equipment in the Brazilian market. A CAGR of 5.4% has been predicted by FMI for the Brazilian construction equipment industry for the projection period (2022 to 2032).
End Users in Latin America Prefer Hydraulic Construction Equipment
Based on the drive type, the hydraulic segment is expected to account for more than 60% share of the overall market, and this dominance is expected to continue throughout the forecast period. This can be attributed to the rising end-user preference for hydraulic construction equipment due to various benefits.
The benefits of hydraulic construction equipment like its versatile control, reliability, and power density make it the best choice for construction sites that require long-lasting reliability, power, and control. The development of the construction sector and integration of automation in hydraulic equipment will further boost the growth of this segment during the forecast period.
On the other hand, the electric & hybrid construction equipment segment is expected to grow at the highest rate of 5.1% and is expected to create an absolute dollar opportunity of USD 1,902.0 Millionbetween 2022 and 2032.
Earth Moving Machinery to Remain the Highly Sought-After Equipment Type
Based on equipment type, the earth-moving machinery segment size stood at USD 5,597.5 Millionin 2022 and it is projected to reach USD 8,962.2 Millionin 2032. Furthermore, a steady CAGR of 4.8% has been predicted by FMI for earth moving machinery segment for the forecast period of 2022 to 2032.
This growth is driven by the high demand for equipment such as excavators, loaders, and other heavy equipment, which are considered to be important resources for quarrying and demolishing activities in the construction sectors.
Similarly, a rise in the number of new mining and construction projects across countries like Brazil, Chile, Mexico, and Argentina will further boost the sales of earth-moving machines during the forecast period.
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Key players are increasingly adopting a wide range of organic and inorganic strategies such as new product launches in Latin American countries, strengthening distribution channels, mergers, acquisitions, and partnerships to gain a competitive edge in the market.
Potential opportunities for prominent players depend upon their understanding of regional schemes and marketing tactics, in which new product launches are one of the prime strategies, including highly innovative products with reduced product costs, which enhance their product portfolio and help them gain market compatibility with future market trends. Some of the recent development in the market are given below:
| Attribute | Details |
|---|---|
| Estimated Market Size (2022) | USD 8,676.6 Million |
| Projected Market Size (2032) | USD 13,586.7 Million |
| Anticipated Market Size (2022 to 2032) | 4.6% CAGR |
| Forecast Period | 2022 to 2032 |
| Historical Data Available for | 2017 to 2021 |
| Market Analysis | USD Million for Value |
| Key Countries Covered | Brazil, Mexico, Argentina, Peru, Chile, Rest of Latin America |
| Key Market Segments Covered | Equipment Type, Drive Type, Diameter, Power Output, Sales Channel, End Use, and Countries |
| Key Companies Profiled | Caterpillar Inc.; Komatsu Ltd.; Deere & Company; CNH Industrial N.V; Sany Heavy Industry Co., Ltd.; Zoomlion Heavy Industry Science & Technology co, ltd; Liebherr-International AG; Zoomlion Heavy Industry Science and Technology Co., Ltd.; KOBELCO Construction Machinery Co., Ltd. |
| Report Coverage | Market Forecast, brand share analysis, competition intelligence, Drivers, Restraints, Opportunities, and Threats analysis, Market Dynamics and Challenges, Strategic Growth Initiatives |
The Latin America construction equipment market is currently valued at USD 8,676.6 Million.
Demand for construction equipment across Latin America is poised to rise at 4.6% CAGR between 2022 and 2032.
The overall market for construction equipment in Latin America is expected to reach a valuation of USD 13,586.7 Million by 2032.
Caterpillar Inc., Komatsu Ltd., Deere & Company, Sany Heavy Industry Co., Ltd., and Liebherr-International AG are the top manufacturers of construction equipment.
The earth-moving equipment segment leads the global market with a volume share of more than 40% in 2022.
Residential and industrial & institutional construction segments are estimated to collectively account for about 65% of the total market share in 2022.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Market Demand Analysis 2017 to 2021 and Forecast, 2022 to 2032 6. Market - Pricing Analysis 7. Market Demand (in Value or Size in USD Million) Analysis 2017 to 2021 and Forecast, 2022 to 2032 8. Market Background 9. Market Analysis 2017 to 2021 and Forecast 2022 to 2032, by Equipment Type 9.1. Earth Moving Machinery 9.1.1. Excavator 9.1.2. Loader 9.1.3. Others 9.2. Construction Material Handling Machinery 9.2.1. Crawler Cranes 9.2.2. Trailer Mounted Cranes 9.2.3. Truck-Mounted Cranes 9.3. Concrete and Road Construction Machinery 9.3.1. Concrete Mixer & Pavers 9.3.2. Construction Pumps 9.3.3. Articulated Dump Truck 9.3.4. Asphalt Finisher 9.3.5. Backhoe Loader 9.3.6. Road Roller 9.3.7. Others 10. Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Drive Type 10.1. Hydraulic 10.2. Electric and Hybrid 11. Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Power Output 11.1. <100 HP 11.2. 101–200 HP 11.3. 201–400 HP 11.4. >400 HP 12. Market Analysis 2017 to 2021 and Forecast 2022 to 2032, by Sales Channel 12.1. New 12.2. Used 13. Market Analysis 2017 to 2021 and Forecast 2022 to 2032, by End Use 13.1. Residential 13.2. Commercial 13.3. Industrial and Institutional 14. Market Analysis 2017 to 2021 and Forecast 2022 to 2032, by Country 14.1. Brazil 14.2. Mexico 14.3. Argentina 14.4. Peru 14.5. Chile 14.6. Rest of latin America 15. Brazil Market Analysis 2017 to 2021 and Forecast 2022 to 2032 16. Mexico Market Analysis 2017 to 2021 and Forecast 2022 to 2032 17. Argentina Market Analysis 2017 to 2021 and Forecast 2022 to 2032 18. Peru Market Analysis 2017 to 2021 and Forecast 2022 to 2032 19. Chile Market Analysis 2017 to 2021 and Forecast 2022 to 2032 20. Rest of Market Analysis 2017 to 2021 and Forecast 2022 to 2032 21. Market Structure Analysis 22. Competition Analysis 22.1. Caterpillar Inc 22.2. CNH Industrial N.V 22.3. Doosan Corporation 22.4. Escorts Limited 22.5. Hitachi Construction Machinery Co. Ltd. 22.6. Hyundai Co. Ltd. 22.7. J C Bamford Excavators Ltd. 22.8. Deere & Company 22.9. Kobelco Construction Machinery Co. Ltd. 22.10. Komatsu Ltd. 22.11. Liebherr-International AG 22.12. Manitou BF 22.13. Sany Heavy Industry Co., Ltd. 22.14. Sumitomo Heavy Industries, Ltd. 22.15. Terex Corporation 22.16. Volvo AB 22.17. Zoomlion Heavy Industry Science & Technology Co., Ltd 22.18. Xuzhou Construction Machinery Group 22.19. ULMA Group 22.20. Schaeffler 23. Assumptions and Acronyms Used 24. Research Methodology
Industrial Automation
May 2024
REP-LA-68
221 pages
Industrial Automation
November 2022
REP-GB-15782
156 pages
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Latin America Construction Equipment Market
