Excavation and Demolition Market Opportunities and Strategies to 2034

This report describes and explains the excavation and demolition market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global excavation and demolition market reached a value of nearly $526.81 billion in 2024, having grown at a compound annual growth rate (CAGR) of 2.20% since 2019. The market is expected to grow from $526.81 billion in 2024 to $605.82 billion in 2029 at a rate of 2.83%. The market is then expected to grow at a CAGR of 2.30% from 2029 and reach $678.71 billion in 2034.

Growth in the historic period resulted from the rising smart city initiatives, government infrastructure investments, rising demand for oil and gas and expansion of industrial zones. Factors that negatively affected growth in the historic period were high operational costs and skilled labor shortage.

Going forward, the growth of the construction industry, increasing growth of the mining industry, urban redevelopment and renovation projects and rise in disaster management and emergency demolition needs will drive the growth. Factors that could hinder the growth of the excavation and demolition market in the future include stringent environmental regulations, safety concerns and liability risks and impact of trade war and tariff.

Asia Pacific was the largest region in the excavation and demolition market, accounting for 37.21% or $196.01 billion of the total in 2024. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the excavation and demolition market will be Africa and Middle East where growth will be at CAGRs of 10.92% and 5.48% respectively. These will be followed by South America and Asia Pacific where the markets are expected to grow at CAGRs of 4.30% and 3.18% respectively.

The global excavation and demolition market is fragmented, with large number of small players operating in the market. The top 10 competitors in the market made up 6.11% of the total market in 2023. China State Construction Engineering Corporation (CSCEC) was the largest competitor with a 1.82% share of the market, followed by VINCI SA with 1.40%, Skanska AB with 0.80%, Balfour Beatty plc, with 0.400%, Actividades de Construcción y Servicios S.A. (ACS) (Hochtief AG), with 0.396%, Bouygues Construction SA with 0.35%, Kiewit Corporation with 0.33%, Royal BAM Group (Koninklijke)with 0.21%, Laing O’Rourke plc with 0.203%. and Eiffage SA with 0.198%.

The excavation and demolition market is segmented by type into building construction, heavy and civil engineering construction, specialty trade contractors and land planning and development. The building construction market was the largest segment of the excavation and demolition market segmented by type, accounting for 43.68% or $230.13 billion of the total in 2024. Going forward, the heavy and civil engineering construction segment is expected to be the fastest growing segment in the excavation and demolition market segmented by type, at a CAGR of 3.25% during 2024-2029.

The excavation and demolition market is segmented by equipment type into earthmoving equipment, material handling equipment, heavy construction vehicles and other equipment. The earthmoving equipment market was the largest segment of the excavation and demolition market segmented by equipment type, accounting for 57.24% or $301.54 billion of the total in 2024. Going forward, the earthmoving equipment segment is expected to be the fastest growing segment in the excavation and demolition market segmented by equipment type, at a CAGR of 3.13% during 2024-2029.

The excavation and demolition market is segmented by end-user into residential, commercial, infrastructure, oil & gas and mining, institutional and others. The infrastructure market was the largest segment of the excavation and demolition market segmented by end-user, accounting for 35.26% or $185.73 billion of the total in 2024. Going forward, the infrastructure segment is expected to be the fastest growing segment in the excavation and demolition market segmented by end-user, at a CAGR of 4.03% during 2024-2029.

The top opportunities in the excavation and demolition markets segmented by type will arise in the building construction segment, which will gain $35.84 billion of global annual sales by 2029. The top opportunities in the excavation and demolition markets segmented by equipment type will arise in the earthmoving equipment segment, which will gain $50.29 billion of global annual sales by 2029. The top opportunities in the excavation and demolition markets segmented by end-user will arise in the infrastructure segment, which will gain $40.55 billion of global annual sales by 2029. The excavation and demolition market size will gain the most in the USA at $13.39 billion.

Market-trend-based strategies for the excavation and demolition market include focus on developing single-shaft shredder, to enhance material processing efficiency and handle contaminated waste streams, focus on developing hydraulic excavator, to improve operational efficiency and enable precision in confined spaces, focus on developing advanced hydraulic excavator, to improve operational efficiency and enhance precision in heavy-duty tasks and focus on developing demolition excavator, to enhance operational versatility.

Player-adopted strategies in the excavation and demolition market include focus on expanding operational capabilities through new launches.

To take advantage of the opportunities, the analyst recommends the excavation and demolition market companies to focus on advanced shredding equipment to improve processing efficiency, focus on compact hydraulic excavators to improve urban project efficiency, focus on advanced hydraulic excavators for heavy-duty applications, focus on versatile demolition excavators to expand project capabilities, focus on heavy and civil engineering construction to drive sustainable growth, focus on earthmoving equipment to capture high-growth opportunities, expand in emerging markets, focus on expanding regional partnerships and strategic site positioning, focus on competitive, tiered pricing aligned with project scale and urgency, focus on prioritizing localized digital promotion to reach high-intent buyers, focus on strengthening direct outreach and industry partnerships to increase referral volume and focus on infrastructure to maximize growth and scale.