The top 10 largest construction machinery manufacturers worldwide – giants of the construction industry

With its historical roots dating back to the Industrial Revolution, Europe has been and remains a leader in the global market for construction and heavy machinery. Growing global economic ties, increasing industrialization, and urbanization in all countries have significantly contributed to the development of the construction industry worldwide. For example, global construction spending rose steadily between 2014 and 2019, reaching US$12 trillion by 2019. Sales of construction machinery also reached their peak in 2018, with over 1.1 million new units sold worldwide during this period. The economic rise of the Asia-Pacific region in recent decades has presented a challenge for European companies to maintain their position in global competition. In addition to global business dynamics, companies within Europe also compete fiercely due to the free trade agreement within the European Union (EU). While the share of German construction machinery sales increased between 2017 and 2020, the share of France and the United Kingdom declined.

European companies on the global market for construction machinery

Changes in regional economic performance have a significant impact on the overall business development of some companies in different regions. Although European companies paved the way for the development of construction machinery and the emergence of the heavy construction equipment market, they do not currently hold the most important positions in the global market. In 2019, Caterpillar (USA), Komatsu (Japan), and John Deere (USA) were the world's leading construction equipment manufacturers. Three of the twelve largest companies in this market are based in Europe, the largest being Volvo (Sweden). During the same period, Volvo Construction Equipment (Sweden), Liebherr (Germany), and Sandvik Mining and Rock Technology (Sweden) were the largest European companies in terms of revenue. Although Liebherr's global revenue stagnated between fiscal years 2008 and 2014, the company gained momentum in 2015. As a result, it increased its global revenue, reaching a peak in 2019 with a value added of over €11.7 billion.

Outlook for the European market after COVID-19

Estimates prepared before the coronavirus (COVID-19) pandemic predicted that the European market for construction equipment and heavy machinery would generate an economic value exceeding US$40 billion by 2026. Construction equipment sales in Europe had been steadily increasing, peaking in 2019. However, following the coronavirus pandemic that struck Europe in February 2020, the industry experienced a sharp decline in 2020. It is projected that sales in this market will not return to 2019 levels until 2025. Most European economies experienced a significant drop in construction equipment sales. Spain was among the hardest hit countries in the second quarter of 2020 compared to the same period in 2019, with a decline of almost 52 percent in construction equipment sales. Conversely, the Turkish construction equipment market recorded strong growth rates throughout 2020.
In a disaggregated market analysis, almost all sub-markets of the European light and heavy construction machinery market experienced a decline in 2020. Only the light compaction equipment segment recorded positive sales growth during this period, with a growth rate of approximately 5.3 percent. Otherwise, all segments and product groups experienced significant declines in 2020. The economic damage was more sustained in some product lines than in others. However, the road construction machinery product groups in the European construction machinery market recovered quickly in 2020. In the fourth quarter of 2020, road construction machinery product groups grew by approximately 30 percent compared to the same period in 2019.

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Largest construction machinery manufacturers worldwide by sales in 2020 – Image: Xpert.Digital

The statistic shows the largest construction machinery manufacturers worldwide by sales in 2020. In 2020, the Japanese machinery manufacturer Komatsu sold construction machinery worth approximately 20 billion US dollars.

Largest construction machinery manufacturers worldwide by sales in 2020 (in billion US dollars)

• Caterpillar (USA) – US$24.82 billion
• Komatsu (Japan) – 20 billion US dollars
• XCMG (China) – US$15.16 billion
• Sany (China) – US$14.42 billion
• Zoomlion (China) – US$9.45 billion
• John Deere (USA) – 8.95 billion US dollars
• Volvo Construction Equipment (Sweden) – US$8.85 billion
• Hitachi Construction Machinery (Japan) – $8.55 billion
• Liebherr (Germany) – US$7.81 billion
• Doosan Infracore (South Korea) – US$7.11 billion

Construction machinery – Largest manufacturers worldwide by market share 2020 – Image: Xpert.Digital

With a market share of 13 percent, Caterpillar was the world's largest construction equipment manufacturer in 2020. Its Japanese competitor Komatsu followed with approximately 10.4 percent in the same year. John Deere and Hitachi were also among the largest construction equipment manufacturers.

Caterpillar

The US company is a machinery manufacturer established in the market since 1925. Most recently, in addition to construction equipment, it also produced diesel and gas turbines. Caterpillar's revenue has fluctuated between 30 and nearly 70 billion US dollars in recent years. The majority of its revenue was generated in North America. Worldwide, the company has employed around 100,000 people annually.

Global construction machinery market

For the next five years, annual sales of construction machinery worldwide are projected to reach just over one million units. According to the forecast, most construction machinery will be sold in China and North America. Within Europe, Germany, France, and the United Kingdom were recently the largest buyers of construction machinery.

Largest construction machinery manufacturers worldwide by market share in 2020

• Caterpillar (USA) – 13%
• Komatsu (Japan) – 10.4%
• XCMG (China) – 7.9%
• Sany (China) – 7.5%
• Zoomlion (China) – 4.9%
• John Deere (USA) – 4.7%
• Volvo (Sweden) – 4.6%
• Hitachi (Japan) – 4.5%
• Liebherr (Germany) – 4.1%
• Doosan Infracore (South Korea) – 3.7%