Australia Construction Equipment Market Research Report 2025-2030

KEY HIGHLIGHTS

• Earthmoving equipment accounted for the largest market share of the Australia construction equipment market in 2024. Excavators in the earthmoving segment accounted for the largest share in 2024. The country’s investment in developing its public infrastructure and increased utilization of excavators in the mining sector drive the Australian earthmoving market.
• On the other hand, demand for material handling equipment is also growing due to the booming manufacturing sector, driving the development of warehouses and logistics parks across the country.
• The forklifts and telescopic handler segment holds the largest share among material handling equipment in Australia, driven by ongoing and upcoming warehouse developments. A notable example is the recent approval of Bisinella Developments' major industrial warehouse project in Geelong, which is set to boost demand for these machines over the forecast year.
• Toyota Material Handling Australia (TMHA) unveiled 22 new electric-powered products - including four electric pneumatic counterbalance models (3,000-17,500 lb capacity) - at CeMAT Australia 2025, featuring Toyota’s Smart Environment Sensor (SEnS) pedestrian-detection system and System of Active Stability (SAS) safety technology.
• Maritime infrastructure development is generating significant demand for heavy-lift crawler cranes across Western Australia. The Western Australian Government's allocation of $134.5 million through the 2025-26 State Budget for port infrastructure enhancement will substantially increase crane utilization requirements.
• The road construction equipment segment is estimated to reach $102 million by value by 2030, growing at a CAGR of 1.34%.
• Road roller sales are high in Australia in response to the rising renovation and expansion of transport networks. The Western Australian Government is forging ahead with a new road infrastructure project, promising to deliver jobs and reduce motorists’ travel times. Worth more than $1 billion, the Tonkin Highway Extension and Thomas Road Upgrade project is one of the largest road transport infrastructure investments delivered to Perth’s south-east corridor.
• Construction equipment utilization in the construction industry by end-user (volume) has the largest market share in 2024.
• In 2025, construction hotspots in Australia include cities such as Sydney, Melbourne, and Brisbane, where urbanization and population growth drive demand for residential, commercial, and infrastructure projects.
• Melbourne is witnessing a surge in construction activity, with an emphasis on transport infrastructure and mixed-use developments. Infrastructure projects like the Sydney Metro and the West Gate Tunnel Project in Melbourne are leading the way. Brisbane, driven by preparations for the 2032 Olympics, is experiencing unprecedented growth, particularly in commercial and sporting facilities.
• The construction equipment used in the mining industry is undergoing significant expansion, primarily due to the growing mining and mineral extraction activities of the country. Key construction equipment used in the mining sector, such as hydraulic excavators, wheeled loaders, dump trucks, bulldozers, and motor graders, is expected to witness significant sales with rising mining activity in the country.

AUSTRALIA CONSTRUCTION EQUIPMENT MARKET TRENDS & DRIVERS

Rising Demand for Electric Construction Equipment

• Early in 2024, Liebherr-Australia commissioned its R 9400 E 400-tonne electric excavator at BHP’s Yandi iron-ore mine in the Pilbara (BHP’s first electric excavator worldwide) replacing a diesel unit with a zero-emissions alternative.
• Following this milestone, Liebherr secured multiple orders for electric excavators slated for delivery in 2024 and 2025, highlighting accelerating demand from major miners pursuing decarbonization

Integration of Environment-Friendly Fuel in Construction Equipment

• The Australian government has committed AUD$1.1 billion ($0.72 billion) over ten years beginning in 2028 to develop a domestic low-carbon fuels industry. This substantial investment targets biodiesel and sustainable aviation fuel production, positioning Australia as a major player in the global biofuels market while supporting construction equipment decarbonization.
• Leading construction equipment manufacturers have provided official approval for HVO100 renewable diesel use, ensuring warranty protection for fleet operators. Caterpillar, Volvo, and John Deere have all confirmed HVO100 compatibility across their modern engine ranges. John Deere has expanded biodiesel approval to B30 blends across all Tier 4 engines, increasing from the previous B20 approval.

Increased Government Infrastructure Investment

• In FY 2024-25, infrastructure allocations soared to a record $10.8 billion, representing 2.2% of total government expenditure, underscoring a steadfast commitment to project delivery despite broader fiscal constraints.
• Meanwhile, as part of the 2025-26 Budget, the Infrastructure Investment Program has been expanded to include 37 Corridor Packages - clusters of geographically aligned land-transport initiatives designed to streamline management and procurement.
• Additionally, in September 2025, the Western Australian and Australian governments officially commenced the Tonkin Highway Extension and Thomas Road Upgrade, a road infrastructure project valued at over $650 million that is expected to generate approximately 4,400 jobs for the state’s south-eastern corridor.

Growing Utilization of Construction Equipment in the Mining Sector

• In December 2024, the government committed AUD 75 million ($49.0 million) under the Future Made in Australia strategy to boost supplies of lithium, nickel and copper for renewable-energy applications - advancing decarbonization and strengthening the battery-technology supply chain.
• In April 2025, the Albanese Government unveiled a AUD 1.2 billion ($0.7 billion) Critical Minerals Strategic Reserve to accelerate domestic processing of 31 designated critical minerals, extend Australia’s position beyond raw-material exporter toward integrated value-chain producer and foster downstream manufacturing capabilities.

INDUSTRY RESTRAINTS

Skilled Labour Shortage

• Ongoing national labour shortages, highlighted by the Australian Bureau of Statistics data showing more than 325,000 vacancies for over four consecutive years - including 19,500 within construction - underscore that productivity is being restricted across states and territories.
• In regions like the Northern Territory, vacancy levels are nearly double pre-pandemic figures, further slowing project delivery and limiting investment activity.
• The shortage has led to widespread project delays, heightened safety concerns, worker fatigue, and infrastructure bottlenecks that intensify the national housing crisis.

Housing Crises in the Country

• The government’s National Housing Accord, which aims to deliver 1.2 million new homes between July 2024 and June 2029, now looks increasingly unattainable. Projections for 2025 indicate the country will fall approximately 262,000 homes short of this five-year target, a gap of 21.8%.
• Dwelling values climbed sharply over 2024, rising 4.9% across the year and a further 0.7% in the first quarter of 2025.
• Residential land transactions also stalled in 2024, remaining close to decade-low levels. The September quarter saw just 9,364 land sales nationally, a drop of 18.4% year-on-year, driven largely by a 27.3% decline in capital-city land transactions.

AUSTRALIA CONSTRUCTION EQUIPMENT MARKET VENDOR LANDSCAPE

• Caterpillar, Komatsu, Volvo CE, Hitachi Construction Machinery, Liebherr and XCMG are the front-runners in the country’s construction equipment market. These companies have strong market share and offer a diverse set of equipment in the Australian market.
• Tadano, John Deere, JCB, Kubota, Zoomlion, Kobelco, Shantui, Kato Works, and Toyota Material Handling are niche market players in the market. These companies offer low product diversification and have a strong presence in the country’s market.
• SANY, Manitou, HD Hyundai, Takeuchi, Sumitomo, CNH Industrials, Bobcat, DEVELON, and LiuGong are emerging in the market. These companies are introducing new technologically advanced products to challenge the market share of market leaders in the country’s market.
• Merlo SPA, JLG, Terex, Sakai, Yanmar, and Bomag have low product diversification; these companies are lagging in adopting new technologies used in construction equipment.
• In 2025, Komatsu launched the PC88MR-11 midi excavator in Australia for tight-access applications, including excavation, rock work and utilities projects.
• Volvo Construction Equipment launched six new excavator models in Australia in July 2025, including the EC210, EC220, EC230, EC260, EC300, and EC360. These models feature engine-pump optimisation technology delivering up to 15% greater fuel efficiency compared to previous models.
• National Diesel Dirt and Turf Expo (DTT) 2025, XCMG showcased a grand lineup of intelligent and green construction machinery tailored for the Australian market. The upgraded XC968-EV electric loader, XE215LC hybrid excavator, and XE19UE mini excavator were the main focus.

Prominent Vendors

• Caterpillar
• Komatsu
• Volvo Construction Equipment
• Hitachi Construction Machinery
• Liebherr
• SANY
• Xuzhou Construction Machinery Group (XCMG)
• JCB
• Kobelco
• Zoomlion

Other Prominent Vendors

• HD Hyundai Construction Equipment Co. Ltd.
• Liu Gong
• CNH Industrial N.V.
• Toyota Material Handling International (TMHI)
• Sumitomo Construction Machinery Co., Ltd.
• Yanmar Holdings Co., Ltd.
• DEVELON
• Tadano
• Terex Corporation
• Manitou Group
• BOMAG GmbH
• KATO WORKS CO., LTD.
• SAKAI Heavy Industries
• Takeuchi Manufacturing Co., Ltd.
• Merlo S.p.A.
• Bobcat
• Kubota
• JLG
• Shantui Construction Machinery Co., Ltd.
• John Deere

Distributor Profiles

• CJD Equipment
• Semco Equipment Sales
• Tutt Bryant Group
• Conplant
• Capital Construction Equipment
• BPF Equipment
• CEA (Construction Equipment Australia)

Segmentation by Type

Earthmoving Equipment

• Excavator
• Backhoe Loaders
• Wheeled Loaders
• Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers, Motor Graders)

Road Construction Equipment

• Road Rollers
• Asphalt Pavers

Material Handling Equipment

• Crane
• Forklift & Telescopic Handlers
• Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)

Other Construction Equipment

• Dumper
• Concrete Mixer
• Concrete Pump Truck

Segmentation by End Users

• Construction
• Mining
• Manufacturing
• Others (Power Generation, Utilities, Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation Plants, Waste Management)

KEY QUESTIONS ANSWERED