Expectations are growing that the construction equipment industry will enter an upcycle after a prolonged downcycle. This is because demand for construction equipment is increasing, centered on the non-housing market, as mining investments expand around non-ferrous metals and artificial intelligence (AI) data center construction joins in.
According to industry sources on the 12th, India's infrastructure investment scale is projected to reach approximately 143 trillion rupees (approximately 1,983 trillion won) from 2024 to 2030. This is more than double the investment amount of the previous seven years (67 trillion rupees). Based on large-scale infrastructure investment, India's excavator market also appears set to continue its growth trend. In Latin America, mining investments are expanding as demand for non-ferrous metals such as copper and nickel increases due to the growth of electric vehicles and AI data centers.
The African excavator and wheel loader market is also expected to grow from 10,000 to 20,000 units in the past to approximately 30,000 units this year. In North America and Europe, where construction equipment demand had been sluggish due to a housing market slump, AI data centers and energy transition projects are emerging as growth drivers, respectively. Indeed, according to Off-Highway Research, a specialized construction machinery market research firm, the global construction machinery market, which contracted through 2024, is predicted to grow by 1% this year and 2% next year, before expanding by 3% annually in 2028–2029.
Domestic construction equipment companies such as HD Construction Equipment and Doosan Bobcat, which have been struggling amid slowing demand, are being assessed to have hit bottom. HD Construction Equipment is boosting its performance by leveraging high market share in some African countries, including Ethiopia. This is due to the impact of operating profit surging 92% year-on-year in the second quarter last year and expanding sales in Africa driven by gold mine development in Ethiopia and Sudan. The company also recorded a top position with a 20.5% market share in India's excavator market in May, overtaking Japan's Hitachi and the UK's JCB, among others.
HD Construction Equipment is diversifying its business portfolio through region-specific strategies. This year, the company expanded its annual excavator production capacity in India to 9,000 units and plans to increase it to 13,000 units by 2030. In Europe, it is working to expand sales by broadening its mini excavator lineup, launching eco-friendly products, and strengthening the competitiveness of wheel excavators.
The expansion of AI data center investment is also seen as a new opportunity for HD Construction Equipment's engine business. This is because power generation engines produced by HD Construction Equipment are utilized in data centers. The market anticipates that demand for power generation facilities for data centers will increase sixfold in North America, 2.3-fold in Europe, the Middle East, and Africa, and 2.4-fold in Asia-Pacific, based on total capacity. Concrete results have also emerged recently, such as securing orders for main bodies of power generation engines for U.S. data centers.
Doosan Bobcat, which has a high share of the North American market, is also expected to benefit from AI data center growth. Approximately 75% of its total sales are generated in North America, and non-housing-related demand, including commercial facilities, infrastructure, utilities, manufacturing, and mining, accounts for about 32%. Analysts say that if non-housing investment in North America expands centered on AI data centers, demand for small construction equipment will increase, gradually reducing dependence on the housing market.
An industry official said, "AI data centers are being built in India, Brazil, Australia, and elsewhere, so related infrastructure investment can drive demand," adding, "The strength of recovery among major global construction equipment companies has also increased, not just domestically."
in INDUSTRY
