The U.S. Heavy Duty Construction Equipment Market is estimated to be valued at US$ 79.09 Mn in 2023 and is expected to exhibit a CAGR of 6.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
The heavy duty construction equipment market includes heavy machineries utilized in civil engineering and construction projects. The key equipment covered includes cranes, earthmoving equipment, material handling machinery and road construction equipment. These heavy duty equipment provide high power and productivity for large scale infrastructure projects and heavy construction activities. Growing infrastructure development has fueled the demand for powerful construction machinery in the country.

Market key trends:
One of the key trends driving growth in the U.S. heavy duty construction equipment market size is increased public and private investment in infrastructure development. The country is witnessing large public and private investments in construction of roads, bridges, railroads, airport runways, utility networks and energy projects. As per the American Society of Civil Engineers, an investment of $4.59 trillion is required by 2025 to upgrade the current infrastructure in the country. This rising infrastructure activity has created significant demand for heavy duty earth moving, lifting and material handling machinery. The heavy equipment facilitate large scale projects by efficiently moving huge volumes of earth, lifting and shifting heavy components. Owing to advantages like high productivity, the sales of heavy duty construction equipment are estimated to surge substantially over the coming years.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate. Construction equipment is highly capital intensive requiring large investments in R&D, manufacturing plants and distribution network. Established players enjoy advantages of economies of scale making it difficult for new players to enter.

Bargaining power of buyers: The bargaining power of buyers is moderate to high. Buyers have several equipment options from key manufacturers. Buyers can negotiate on price and equipment specifications.

Bargaining power of suppliers: The bargaining power of suppliers is low to moderate. Key players have established long term relationships with a diversified supplier base reducing dependence on a single supplier.

Threat of new substitutes: Threat from substitutes is low as construction equipment have no close substitutes and play a crucial role in construction projects.

Competitive rivalry: Intense due to presence of key global players competing on basis of product differentiation, pricing and customer service.

SWOT Analysis
Strength: Strong distribution network of key players across regions. Construction equipment offer durability, reliability and fuel efficiency providing value to customers.

Weakness: Significant maintenance and repair costs of heavy duty equipment. Construction activity is susceptible to economic cycles.

Opportunity: Government investments in infrastructure projects across regions. Adoption of telematics, robotics and AI in equipment.

Threats: Rise in raw material prices. Shortage of skilled labor increases project costs. Stringent emission standards require technology upgrades.

Key Takeaways
The global U.S. Heavy Duty Construction Equipment Market is expected to witness high growth, exhibiting CAGR of 6.0% over the forecast period, due to increasing governmental investments in public infrastructure projects. Regionally, the market in western U.S. dominates currently holding around 30% share owing to high demand from commercial and residential sector. The market in southern U.S. is expected to grow at fastest pace over next 8 yearswith development of transport networks in states like Texas and Florida.

Key players operating in the U.S. Heavy Duty Construction Equipment are Atlas Copco, Caterpillar, Inc., CNH Industrial N.V., Deere & Company, Doosan Infracore, Hitachi Construction Machinery Co. Ltd., Hyundai Construction Equipment Americas, Inc., J C Bamford Excavators Ltd. (JCB), Komatsu America Corp., Liebherr Group, Sany Heavy Industries Co. Ltd, Terex Corporation, Ahern Rentals, Herc Rentals Inc., and United Rentals, Inc. Caterpillar and Deere are currently dominating the market with around 45% share owing to wide product portfolio catering diverse construction needs.

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