As the New Year approaches, has your shopping cart already been filled with New Year goods? Those wonderful items from all over the country have to go through a "long journey over mountains and through rivers" before reaching your hands.
According to data from the international industry research institution Off-Highway Research, global construction machinery sales reached approximately 1.36 million units in 2021, mainly due to the low-interest rate and fiscal stimulus policies implemented by various countries during the pandemic. In 2025, most markets are expected to show a flat or slight decline, and the global total sales are projected to decrease by 2%.
Looking back at this critical juncture when the industry is moving from short-term recovery to long-term high-quality development, what will be the specific performance of the major global construction machinery markets in 2025? And what challenges and opportunities do different regions face?
This article is published in KHL - Power Progress
The Chinese market
The "eye of the storm" in the global electric transformation
Although the adjustment of the traditional real estate sector is still ongoing, the Chinese construction machinery market in 2025 demonstrates strong structural resilience and new growth momentum. According to Off-Highway Research's prediction, the Chinese market is expected to achieve a 12% growth in 2025, with the growth driven mainly by electric equipment. China has become the only global market where electric construction machinery has formed a scale and continued to expand. In key categories such as wheel loaders, the sales of electric products are expected to surpass diesel models within the next one or two years.
Behind this leading position lies the result of the joint effect of clear industrial policies and full market competition: the elimination policy for old and high-emission diesel equipment is continuously implemented, the electricization support orientation paves the way for technological upgrading, and the technological competition among local OEMs accelerates the marketization process of electric products.
Looking forward to 2026, driven by policies such as "massive equipment renewal", the demand for higher-quality, more environmentally friendly, and more intelligent equipment in the Chinese market will be further released. Its transformation path and growth quality will provide important references for the global industry.
Global regional markets are deeply differentiated
Challenges vary, resilience differs
North America: Growth resistance under high tariffs
In 2024, the North American market benefited from residential construction and projects such as data centers and chip factories, with only a slight 5% decline. However, in 2025, the high import tariff policy severely affected supply chain costs and investment confidence, leading to the postponement of many capital expenditure plans.
It is expected that the North American market will decline by approximately 11% in 2025, becoming the region with the largest adjustment range. Looking ahead to 2026, the housing shortage and demand for digital infrastructure remain strong, but whether the policies will become clear will be the key to whether the market can recover.
Europe: Dual Challenges of Economic Pressure and Political Turmoil
High interest rates and long-term construction costs have suppressed European market demand. From the end of 2024 to 2025, political uncertainties in countries such as Austria, France, and Germany further dampened the market. France was particularly affected.
Although there have been mild improvements in Germany and the UK, the southern European regions maintained growth resilience. However, due to the drag from core markets, it is expected that the overall Europe will still shrink by approximately 2% in 2025. The pace of future recovery will depend on the rhythm of political stability and the shift in monetary policies.
India: Short-term adjustments do not alter long-term potential
In 2024, India's market sales increased by 10%, reaching a new high and further consolidating its position as the world's third-largest market. Part of the growth was due to "pre-purchase" before the implementation of emission regulations, which also led to a demand digestion period in 2025, with sales expected to decline by 9% as a result. Additionally, the reduction in government bidding projects may slow down the pace of road construction.
In the long term, the extensive infrastructure planning and continuous urbanization process will continue to support the active performance of the Indian market in the medium and long term.
Japan: The Lull Period in the Post-Variation Era
After being exceptionally active in 2023 (+7%), the Japanese market underwent a deep adjustment in 2024 (-9%), with sales falling below the long-term equilibrium level. In 2025, the market entered a relatively stable phase. On one hand, the accumulated equipment inventory during the pandemic period suppressed new demand; on the other hand, the wait-and-see attitude towards global economic policies also affected investment decisions. It is expected that 2026 will remain within this relatively low range.
South America and other resource-based markets:
Deeply linked to the commodity cycle
These markets are highly correlated with global commodity prices. After a decline in 2023, they rebounded in 2024 as commodity prices recovered. Although sales growth in 2025 may slow down due to the previous peak update, with the expectation of maintaining high resource prices, the demand for high-value equipment related to mining and energy extraction will provide a solid support, and the overall market value will remain healthy.
Off-Highway Research predicts that from 2026, global and regional sales of construction machinery will enter a steady growth path and are expected to reach a new cycle
peak in the early 2030s, with a scale possibly exceeding the historical peak of 2021.
Although there are short-term fluctuations, the growth foundation of the construction machinery market remains solid. The continuous increase in global population is driving the demand for infrastructure and housing, and the mechanization level of the construction industry is also constantly improving. After smoothing out the cyclical fluctuations, the long-term compound annual growth rate of the industry is expected to remain at around 2%.
Looking globally, greenification has become the "new ticket" for market access; intelligence and automation are accelerating their implementation, becoming the core solutions for enhancing efficiency and safety; globalization has also entered a new stage characterized by deep integration of technology, supply chains and business models.
As an industry event rooted in China and radiating globally, bauma CHINA always gathers global buyers and industry experts, jointly building an efficient platform for information exchange and knowledge sharing, and becoming an important window for the world to understand the Chinese market and for Chinese enterprises to connect with global opportunities. In the future, we will continue to promote the mutual trust of the global industrial chain, and help build a more open and integrated new ecosystem for the construction machinery industry.