1 Global Machinery and Equipment Market Size (Value) and CAGR (2024-2033)
In 2024, the global Machinery and Equipment market was valued at USD 457,647 million, with a CAGR of 6.87% from 2024 to 2033.
The term “Machinery and Equipment” encompasses a wide range of products and technologies that are essential for various industrial and commercial operations. This includes construction machinery such as excavators, loaders, and cranes; agricultural equipment like tractors, harvesters, and irrigation systems; packaging equipment for industrial and consumer goods; and plastic processing equipment for manufacturing plastic products. These machinery and equipment are crucial for improving productivity, enhancing operational efficiency, and driving economic growth in multiple sectors.
Figure Global Machinery and Equipment Market Size (M USD) and CAGR 2024-2033
2 Machinery and Equipment Market Drivers
Increasing Investment in Public Infrastructure
One of the primary drivers of the Machinery and Equipment market is the continuous increase in government investment in public infrastructure. Governments worldwide are focusing on developing and upgrading infrastructure to support urbanization, population growth, and economic development. This includes the construction of roads, bridges, airports, and public transportation systems. Such investments directly stimulate the demand for construction machinery, such as excavators, loaders, and cranes. For example, countries like China and India have been undertaking massive infrastructure projects, driving significant growth in the machinery market.
Demand for Equipment Updates
Environmental regulations and technological advancements have led to stricter standards for machinery performance and efficiency. As a result, there is a growing need for equipment updates to meet these standards. Older machinery is being phased out, and new, more efficient models are being introduced. This trend is particularly evident in the construction and mining sectors, where equipment upgrades can lead to significant improvements in productivity and reduced operational costs. The demand for updated machinery is expected to remain strong, driven by the need for compliance with environmental regulations and the desire for enhanced efficiency.
Growth in Global Consumer Demand for Plastic Products
The increasing global demand for plastic products is another significant driver of the Machinery and Equipment market. Plastic processing equipment is essential in various sectors, including construction, packaging, automotive, and electronics. As the global economy grows and consumer demand for plastic products increases, the need for advanced plastic processing machinery also rises. This trend is particularly prominent in emerging economies, where industrialization and urbanization are driving the demand for plastic products in construction and consumer goods.
3 Machinery and Equipment Market Restraints
Fluctuations in Raw Material Prices
The Machinery and Equipment market is highly sensitive to fluctuations in raw material prices. Key raw materials such as steel, iron, and other metals are subject to market volatility, influenced by factors such as supply and demand dynamics, geopolitical issues, and natural disasters. These price fluctuations can significantly impact the production costs of machinery and equipment manufacturers, reducing profit margins and affecting their ability to invest in research and development. For example, a sudden increase in steel prices can lead to higher production costs, which manufacturers may struggle to pass on to consumers without losing market share.
Intense International Competition
The global Machinery and Equipment market is highly competitive, with numerous players vying for market share. Major companies such as John Deere, Caterpillar, and CNH Industrial dominate the market, but they face intense competition from both established and emerging players. This competition is particularly fierce in emerging markets, where local manufacturers often have cost advantages and better access to local resources. As a result, companies must continuously innovate and improve their products to maintain a competitive edge.
4 Global Machinery and Equipment Market Size and Share by Type in 2024
Construction machinery is one of the most significant segments in the Machinery and Equipment market. In 2024, this segment is expected to generate a revenue of 162,117 M USD. This includes a wide range of equipment such as excavators, loaders, bulldozers, cranes, and other heavy machinery used in construction projects. The growth in this segment is driven by increasing infrastructure development, urbanization, and the need for modern construction techniques. Construction machinery is essential for large-scale projects such as roads, bridges, and buildings, contributing to the overall economic development of regions worldwide.
Agricultural equipment is another crucial segment, projected to achieve a revenue of 195,602 M USD in 2024. This segment includes tractors, harvesters, irrigation systems, and other machinery used in farming and agricultural operations. The demand for agricultural equipment is driven by the need to increase agricultural productivity, meet global food demands, and adopt modern farming techniques. Technological advancements in precision agriculture and the increasing use of automated machinery are also contributing to the growth of this segment.
Packaging equipment is a vital part of the Machinery and Equipment market, expected to generate a revenue of 60,487 M USD in 2024. This segment includes machinery used for packaging consumer goods, industrial products, and pharmaceuticals. The growth in this segment is driven by the increasing demand for efficient packaging solutions, especially in the food and beverage industry. The need for automation and precision in packaging processes is driving the adoption of advanced packaging machinery, which can handle high volumes and ensure product safety and quality.
Plastic processing equipment is another important segment, projected to achieve a revenue of 39,442 M USD in 2024. This segment includes machinery used for the production of plastic products, such as injection molding machines, extruders, and blow molding machines. The demand for plastic processing equipment is driven by the growing use of plastic materials in various industries, including construction, automotive, and consumer goods. The increasing focus on sustainability and recycling is also influencing the development of more efficient and environmentally friendly plastic processing machinery.
Table Global Machinery and Equipment Market Size and Share by Type in 2024
Type | Market Size (M USD) 2024 | Market Share 2024 |
Construction Machinery | 162117 | 35.42% |
Agricultural Equipment | 195602 | 42.74% |
Packaging Equipment | 60487 | 13.22% |
Plastic Processing Equipment | 39442 | 8.62% |
5 Global Machinery and Equipment Market Size and Share by Application in 2024
The agriculture application segment is projected to generate a revenue of 190,432 M USD in 2024. This segment includes machinery and equipment used in farming operations, such as tractors, harvesters, and irrigation systems. The growth in this segment is driven by the increasing need for efficient and sustainable farming practices to meet global food demands. Technological advancements in precision agriculture and the adoption of automated machinery are also contributing to the growth of this application.
The industry application segment is expected to achieve a revenue of 163,746 M USD in 2024. This segment includes machinery and equipment used in various industrial operations, such as manufacturing, mining, and construction. The demand for industrial machinery is driven by the need for increased productivity and efficiency in manufacturing processes. The adoption of advanced technologies, such as automation and robotics, is also influencing the growth of this segment.
The manufacturing application segment is projected to generate a revenue of 62,145 M USD in 2024. This segment includes machinery and equipment used in the production of goods, such as assembly lines, packaging machinery, and material handling equipment. The growth in this segment is driven by the increasing demand for efficient and automated manufacturing processes. The adoption of Industry 4.0 technologies, such as the Internet of Things (IoT) and artificial intelligence, is also influencing the development of this segment.
Table Global Machinery and Equipment Market Size and Share by Application in 2024
Application | Market Size (M USD) 2024 | Market Share 2024 |
Agriculture | 190432 | 41.61% |
Industry | 163746 | 35.78% |
Manufacturing | 62145 | 13.58% |
Others | 41324 | 9.03% |
6 Global Machinery and Equipment Market Size by Region in 2024
North America is expected to generate a revenue of 138,237 M USD in 2024. This region includes the United States, Canada, and Mexico, which have well-developed economies and significant demand for advanced machinery and equipment. The United States, in particular, is a major market for construction machinery, agricultural equipment, and manufacturing machinery. The growth in this region is driven by technological advancements, increasing investment in infrastructure, and the need for efficient and automated machinery.
Europe is projected to achieve a revenue of 123,258 M USD in 2024. This region includes countries such as Germany, the United Kingdom, France, Italy, and Spain, which have strong industrial bases and significant demand for machinery and equipment. Germany, in particular, is a major market for construction machinery and industrial equipment. The growth in this region is driven by the need for modernized infrastructure, increasing investment in manufacturing, and the adoption of advanced technologies.
The Asia-Pacific region is expected to generate a revenue of 158,581 M USD in 2024. This region includes countries such as China, Japan, South Korea, India, and Australia, which have rapidly growing economies and significant demand for machinery and equipment. China, in particular, is a major market for construction machinery and agricultural equipment. The growth in this region is driven by rapid urbanization, increasing investment in infrastructure, and the need for efficient and automated machinery.
Figure Global Machinery and Equipment Market Size by Region in 2024
7 Major Players in Global Machinery and Equipment Market
7.1 John Deere
Company Profile:
John Deere, established in 1837, is a leading global provider of machinery and equipment headquartered in the United States. The company is renowned for its extensive range of agricultural and construction machinery, including tractors, harvesters, loaders, and excavators. John Deere operates worldwide, serving customers in over 160 countries.
Business Overview:
John Deere’s business is centered around the design, manufacture, and distribution of machinery and equipment for agriculture, construction, forestry, and turf care. The company is committed to innovation, sustainability, and customer service, offering a comprehensive range of products and services to meet the diverse needs of its customers.
Products Introduction:
John Deere’s product portfolio includes a wide array of machinery and equipment. For example, the 1 Series Sub-Compact Tractors are designed for small farms and property owners, offering features such as a front loader, mower deck, and a compact design for versatile use. The company also offers advanced agricultural equipment like the ExactRate™ Liquid Fertilizer Application System and the 4M Heavy-Duty Compact Utility Tractor.
Recent Financial Performance:
In the most recent year, John Deere reported a revenue of 35,725 million US dollars, with a gross margin of 33.38%.
7.2 Caterpillar
Company Profile:
Caterpillar, founded in 1925, is a global leader in the design, manufacture, and marketing of construction, mining, and forestry machinery. Headquartered in the United States, Caterpillar operates worldwide, providing a diverse range of products and services to customers in over 180 countries.
Business Overview:
Caterpillar’s business encompasses the production of heavy machinery, engines, and related parts. The company is known for its commitment to innovation, sustainability, and customer satisfaction. Caterpillar’s products are widely used in construction, mining, and forestry operations, contributing to the company’s strong market presence.
Products Introduction:
Caterpillar’s product line includes a variety of heavy machinery and equipment. For example, the CAT® 7495 MINING SHOVELS feature upgrades that enhance operating efficiency and reduce cost per ton. The company also offers advanced construction machinery such as the 725C2 BARE CHASSIS, which is equipped with a powerful engine and advanced electronics for improved performance.
Recent Financial Performance:
In the most recent year, Caterpillar reported a revenue of 25,682 million US dollars, with a gross margin of 30.33%.
7.3 CNH Industrial
Company Profile:
CNH Industrial, established in 2012, is a global leader in the production and sale of agricultural and construction equipment. Headquartered in the United Kingdom, CNH Industrial operates worldwide, providing a diverse range of products and services to customers in over 170 countries.
Business Overview:
CNH Industrial’s business focuses on the design, production, and sale of trucks, commercial vehicles, buses, agricultural and construction equipment, and related parts. The company is committed to innovation, sustainability, and customer service, offering a comprehensive range of products and services to meet the diverse needs of its customers.
Products Introduction:
CNH Industrial’s product portfolio includes a wide array of agricultural and construction equipment. For example, the CASE brand offers a full line of construction equipment, including excavators, motor graders, wheel loaders, and compact track loaders. The company also offers advanced agricultural equipment such as tractors and harvesters.
Recent Financial Performance:
In the most recent year, CNH Industrial reported a revenue of 25,524 million US dollars, with a gross margin of 30.55%.