Industrial Equipment Market

Market Definition

The market involves the manufacturing, distribution, and sale of machinery and equipment used across various industrial sectors such as construction, manufacturing, mining, agriculture, and energy. 

This market encompasses a wide range of products, including heavy machinery, tools, automation systems, and material handling equipment, all designed to support and enhance industrial operations. The report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.

Industrial Equipment Market Overview

The global industrial equipment market size was valued at USD 894.67 billion in 2024 and is projected to grow from USD 917.13 billion in 2025 to USD 1158.09 billion by 2032, exhibiting a CAGR of 3.15% during the forecast period. 

This growth is attributed to increasing industrialization and the rising demand for automation across key sectors such as manufacturing, construction, energy, and mining. The widespread adoption of smart technologies, including the Industrial Internet of Things (IIoT), robotics, and advanced control systems, is enhancing operational efficiency and productivity, thereby driving the market.

Major companies operating in the industrial equipment industry are Caterpillar, Terex Corporation, Komatsu Ltd., Siemens, SANY Group, CNH Industrial N.V., Liebherr, AB Volvo, Hitachi Construction Machinery Co., Ltd., ABB, XCMG Group, MITSUBISHI HEAVY INDUSTRIES, LTD., J C Bamford Excavators Ltd., The Manitowoc Company, Inc., and Bharat Heavy Electricals Limited.

Advancements in equipment design, energy efficiency, and predictive maintenance technologies, coupled with government initiatives promoting smart factories and digital transformation, are further contributing to the market growth. 

The integration of AI, data analytics, and cloud-based solutions across industrial operations is also accelerating innovation and strengthening the global demand for industrial equipment.

• In May 2024, FUJIFILM Wako Pure Chemical Corporation revealed plans to install new equipment at its Osaka plant, aiming to triple the production capacity of GMP-compliant raw materials for pharmaceuticals. This upgrade responds to the increasing demand for stabilizers and buffers essential in biopharmaceuticals, aiding the advancement of antibody and gene therapies.

Key Highlights

1. The industrial equipment market size was valued at USD 894.67 billion in 2024.
2. The market is projected to grow at a CAGR of 3.15% from 2025 to 2032.
3. North America held a market share of 35.95% in 2024, with a valuation of USD 321.62 billion.
4. The manual segment garnered USD 344.02 billion in revenue in 2024.
5. The machining & fabrication segment is expected to reach USD 281.31 billion by 2032.
6. The construction segment is anticipated to register the fastest CAGR of 3.99% over the forecast period.
7. The market in Asia Pacific is anticipated to grow at a CAGR of 3.98% through the projection period.

Market Driver

Rapid Infrastructure Development in Emerging Economies

The market is propelled by rapid infrastructure development across emerging economies. Amid increasing urbanization and industrialization, governments and private sectors are investing heavily in large-scale construction projects such as roads, bridges, airports, and smart city initiatives. 

This development drives substantial demand for heavy machinery, construction equipment, and material handling systems necessary to build and maintain these infrastructures efficiently and safely. The increasing focus on modernizing infrastructure to support economic growth and improve quality of life is further boosting the adoption of advanced industrial equipment. 

The growing investments in infrastructure development by governments and key industries are accelerating the expansion of the global market.

• In April 2024, Rockwell Automation launched the FLEXLINE 3500 motor control center, a low-voltage system that enhances productivity and energy efficiency. It offers real-time data for improved maintenance and reduced downtime, supporting smarter industrial operations.

Market Challenge

Rapid Technological Changes

The rapid pace of technological innovation presents a significant challenge to the industrial equipment market, particularly in manufacturing, construction, and energy sectors. Frequent advancements in automation, artificial intelligence, and digital integration can quickly render existing machinery obsolete, forcing companies to continuously invest in upgrades and new technologies. 

Complexities in integrating emerging technologies with legacy systems often lead to operational disruptions and increased costs. Furthermore, the accelerated product lifecycle requires manufacturers to balance innovation with reliability and cost-efficiency.

Companies are gradually adopting modular designs and scalable platforms that facilitate easier upgrades and integration. 

Additionally, enhanced training programs and strategic planning are being implemented to manage technology transitions and reduce downtime. These efforts collectively help industries adapt to technological shifts while maintaining productivity and competitiveness in a dynamic market environment.

Market Trend

Advancements in Industrial Automation and Smart Technologies

Advancements in industrial automation and smart technologies are revolutionizing the market by enhancing operational efficiency, precision, and flexibility across manufacturing and production sectors. 

These technologies integrate Industrial Internet of Things (IIoT), artificial intelligence (AI), machine learning, and advanced robotics to enable real-time monitoring, predictive maintenance, and autonomous process control, minimizing downtime and optimizing resource utilization.

This transformation supports highly adaptive and efficient manufacturing environments suited for a wide range of industries. Moreover, sustained investments in research and development by technology providers, research institutions, and industrial innovators are driving the evolution of intelligent, connected equipment.

These efforts focus on developing interoperable, scalable, and data-driven automation solutions that improve system integration, boost productivity, and advance sustainable manufacturing practices.

• In January 2025, Ranpak Holdings Corp. launched three new automated packaging solutions to boost productivity and sustainability. These include the PadPak Multi-Station for centralized paper cushioning delivery, the DecisionTower with FillPak Trident that reduces material use by up to 35% through precise void filling, and the Pad’it! system for automated paper pad insertion, improving package protection and processing speed.

Industrial Equipment Market Report Snapshot

Segmentation	Details
By Technology	Manual, Semi-automated, and Fully Automated
By Application	Machining & Fabrication, Assembly & Packaging, Lifting & Moving, Power Generation, Process Control & Automation, Heating, Ventilation, and Cooling (HVAC), and Others
By End Use	Manufacturing, Construction, Oil & Gas, Energy & Utilities, Food & Beverages, Pharmaceuticals, Chemicals, Aerospace & Defense, and Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Technology (Manual, Semi-Automated, and Fully Automated): The manual segment earned USD 344.02 billion in 2024, mainly due to its widespread use in small-scale operations and industries with lower automation requirements.
• By Application (Machining & Fabrication, Assembly & Packaging, Lifting & Moving, Power Generation, Process Control & Automation, Heating, Ventilation, and Cooling (HVAC), and Others): The machining & fabrication segment held 24.20% share of the market in 2024, fueled by its critical role in manufacturing components and parts across diverse industries, driving consistent demand for precision equipment.
• By End Use (Manufacturing, Construction, Oil & Gas, Energy & Utilities, Food & Beverages, Pharmaceuticals, Chemicals, Aerospace & Defense, and Others): The manufacturing segment is projected to reach USD 195.58 billion by 2032, owing to the increasing adoption of advanced machinery and automation to enhance production efficiency and meet rising global demand.

Industrial Equipment Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America accounted for 35.95% share of the industrial equipment market in 2024, with a valuation of USD 321.62 billion. This dominance is attributed to the presence of advanced manufacturing facilities, strong industrial automation adoption, and substantial investments in upgrading infrastructure across various sectors in North America. 

Additionally, the increasing demand for smart factory solutions, predictive maintenance technologies, and energy-efficient equipment is driving the market in this region. Supportive government initiatives promoting Industry 4.0 and digital transformation, coupled with the presence of major industrial equipment manufacturers and technology providers, are further fueling the market. 

Furthermore, continuous innovation and collaborations between private enterprises and research institutions are strengthening the region’s industrial capabilities, thereby accelerating the overall market growth.

• In April 2025, Volvo Construction Equipment introduced its mid-size EC230 Electric excavator and L120 Electric wheel loader in North America. These zero-emission machines mark Volvo CE’s entry into the medium-sized electric construction equipment segment, highlighting its commitment to sustainable solutions.

The industrial equipment industry in Asia Pacific is set to grow at a CAGR of 3.98% over the forecast period. This growth is attributed to rapid industrialization and expanding manufacturing activities across the region. 

Favorable government policies supporting infrastructure development, automation, and smart factory initiatives are driving the increased adoption of advanced industrial equipment. Growing investments in renewable energy projects and urban infrastructure are also fueling demand across various end-use sectors. 

Additionally, technological advancements and strategic partnerships between local manufacturers and global technology providers are enhancing equipment efficiency and customization, thereby propelling the market in this region.

• In April 2025, Japan-based Hitachi Industrial Equipment Systems Co., Ltd. introduced a next-generation Grid Forming Inverter at its Narashino Works facility. This innovative power conditioner improves grid stability by mimicking the inertia of conventional power plants, facilitating greater renewable energy integration and a more dependable power grid.

Regulatory Frameworks

• In the U.S., the Occupational Safety and Health Administration (OSHA) standards regulate workplace safety and health. They ensure the safe design, operation, and maintenance of industrial equipment to protect workers from hazards in industrial environments.
• In the European Union (EU), the Machinery Directive (2006/42/EC) regulates the safety requirements for machinery placed on the market. It mandates conformity to essential health and safety standards to minimize risks associated with industrial equipment.
• The ISO 12100:2010 – Safety of Machinery – General Principles for Design regulates machinery safety. It provides a comprehensive framework for designing safe machinery by specifying basic terminology, principles, and methodologies for risk assessment and risk reduction throughout the machine's lifecycle.

Competitive Landscape

The industrial equipment market is characterized by a diverse mix of well-established global corporations and innovative regional firms, each focusing on expanding their product portfolios and market presence through technological innovation, geographic expansion, and strategic partnerships. 

Leading companies are heavily investing in research and development to improve equipment efficiency, automation capabilities, and sustainability, with an emphasis on integrating advanced technologies such as the Industrial Internet of Things (IIoT), robotics, and predictive maintenance. 

They are also developing scalable and customized solutions to meet the growing demand across manufacturing, construction, energy, and other key end-use industries. Additionally, firms are forming alliances with key stakeholders in supply chains, technology providers, and government agencies to enhance product offerings and accelerate adoption of advanced industrial equipment across diverse applications.

• In April 2025, Hyundai Construction Equipment unveiled its new HX300A-11 excavator, featuring improved fuel efficiency, enhanced operator comfort, and advanced safety systems. This model aims to boost productivity while reducing environmental impact in construction operations.

List of Key Companies in Industrial Equipment Market:

• Caterpillar
• Terex Corporation
• Komatsu Ltd.
• Siemens
• SANY Group
• CNH Industrial N.V.
• Liebherr
• AB Volvo
• Hitachi Construction Machinery Co., Ltd.
• ABB
• XCMG Group
• MITSUBISHI HEAVY INDUSTRIES, LTD.
• J C Bamford Excavators Ltd.
• The Manitowoc Company, Inc.
• Bharat Heavy Electricals Limited

Recent Developments (M&A/Product Launch)

• In April 2025, Applied Materials announced a strategic investment by acquiring 9% of BE Semiconductor Industries N.V. (Besi), a leading semiconductor assembly equipment manufacturer, to strengthen their collaboration on hybrid bonding technology for advanced semiconductor packaging. This partnership aims to improve chip performance and reduce costs for AI applications by combining Applied Materials’ wafer processing with Besi’s assembly expertise.
• In March 2025, Valmet launched the High Yield Pulping Optimizer, an advanced process control system designed to improve pulping efficiency by optimizing cooking and refining. This technology helps mills increase production, reduce costs, and enhance sustainability, making it relevant to the market.
• In July 2024, Honeywell completed the purchase of Air Products' liquefied natural gas (LNG) process technology and equipment division for USD 1.81 billion. This acquisition expands Honeywell’s capabilities in LNG liquefaction, digital automation, and aftermarket support, advancing its commitment to the global energy transition.