According to findings from Grand View Research, the global construction equipment market size is projected to reach $208.36 billion by 2020, growing at a CAGR of over 5% from 2014 to 2020.

Rapid infrastructural growth along with urbanization is expected to drive industry growth over the forecast period. Further, increasing investments from government in the infrastructural sector and growing application of the advanced technology in operations including material handling, excavation and earth moving are expected to drive demand.

Growing impetus for developing infrastructure has triggered the demand for rental products combined with cost-competitive OEMs in developing markets of Asia Pacific is estimated to offer prominent opportunities for industry growth over the forecast period. However, unstable economic conditions and high initial costs are expected to hinder revenue by 2020.

The material handling segment is projected to grow at the fastest CAGR (5.7%) by 2020. This surge in demand can be attributed to growth in application areas and rise in the automation industry.

Earth moving products comprise loaders and excavators, whereas material handling machinery comprises trailer mounted, truck mounted and crawler cranes. Truck mounted cranes segment accounted for the largest market share of over 60% in 2013 and is expected to decline over the forecast period.

The concrete and road construction equipment market can be sub-segmented into construction pumps, concrete mixers and pavers. These machineries have their application in bridges, power plants, as well as residential and industrial structures. A growing number of highway construction projects combined with increasing demand from the mining industry are anticipated to further augment industry demand.

Various vendors in Europe and North America are increasing investment in R&D activities for lowering production costs along with meeting regulation emission for strengthening their global presence.