Brazil Construction Equipment Market Trends
The size of the Brazil construction equipment market was estimated at USD 6.50 billion in 2024 and is expected to grow with a CAGR of 5.7% from 2025 to 2030. Rapid urbanization, consistent growth in the construction industry, and well-established mining activities are the key driving forces that are stimulating demand for construction equipment in Brazil. Since it is among the leading mining nations in the world, heavy machinery, like earth-moving machines and material-handling machines, is widely used for mining purposes.
Since most of the country's population resides in urban areas, the huge growth of city infrastructure, i.e., construction of buildings and installation & maintenance of public facilities and urban mobility, also drives the demand for construction equipment industry in the nation. Technological innovations are transforming the market with a heavy emphasis on efficiency, sustainability, and automation. The need for electric and hybrid equipment is based mainly on strict environmental compliance and increasing fuel prices, leading manufacturers to produce energy-efficient solutions.
Technologies like telematics and IoT integration are becoming mainstream, allowing real-time tracking, predictive maintenance, and increased operational efficiency. These technologies assist in minimizing downtime, optimizing fuel usage, and optimizing fleet management for construction companies. Besides, automation and autonomous machines, such as drones and self-driven bulldozers, are revolutionizing large-scale projects by enhancing precision, safety, and productivity. The use of digital technology such as Building Information Modeling (BIM) is also on the rise, allowing for improved project planning, collaboration, and cost management. In addition, the employment of sophisticated materials in machinery manufacturing increases durability, decreases maintenance needs, and enhances fuel effectiveness, ultimately leading to smarter and more environmentally friendly construction.
The Brazilian construction machinery market is poised for massive growth with huge government spending on infrastructure. The government's plans target improved transport networks, urbanization, and energy projects, which open up immense opportunities for construction machinery like excavators, bulldozers, cranes, and concrete mixers. With an emphasis on modernization and expansion, the projects seek to enhance connectivity, stimulate economic growth, and attract local as well as foreign investments.
In December 2024, the mayor of Eldorado do Sul gave the go-ahead for the development of Scala AI City, Latin America's first data center city, in partnership with Scala Data Centers. The initiative seeks to create a big digital infrastructure and AI hub. It involves widening the city perimeter and streamlining bureaucratic processes to provide a business-friendly ecosystem for data center activities. The first investment of USD 500 million is set to create more than 3,000 direct and indirect employment opportunities, supporting the domestic economy and establishing Brazil at the forefront of technological innovation.
Still, Brazil's construction equipment sector is very responsive to the economy with inflation, interest rates, and exchange rate depreciation greatly influencing demand. Inflation raises raw material and machinery prices and thus the cost of construction projects, which becomes unattractive. High interest rates discourage business enterprises from borrowing to invest in new equipment, and as such, the market grows slowly. Moreover, currency depreciation increases the price of imported construction equipment, making it unaffordable for contractors and builders.
Product Insights
The road construction machinery and concrete segment maintained the highest revenue share of 55.24% in 2024. Brazil has one of the most rapidly developing road infrastructures in the world and is fourth in the world in terms of its road network, which covers around 2 million kilometers. Even with having a huge road infrastructure, Brazil perennially faces poor road conditions and traffic jams in its major cities. The government is undertaking a number of road infrastructure development projects to improve road conditions and quality. For instance, in 2024, the World Bank Board approved the first installment of USD 150 million out of a total package of USD 1.662 billion to support the development of country-level road infrastructure management to enhance transport conditions, access, and environmental sustainability. These operations understandably drive demand for concrete and road construction equipment in Brazil.
The material handling machinery segment will have the highest growth at the CAGR rate during the forecast period. The increased construction projects in Brazil are bringing growth. The GDP of the construction industry is projected to grow by 3.5% in 2025, as stated by the Brazilian Chamber of Construction Industry (CBIC). The increased growth will create opportunities for material-handling machinery used in construction and industrial purposes. Brazil is, according to a report carried by Societe Generale, a leading global equipment finance house, embarking on modernization schemes covering about 380 maritime ports, 100 airports, and several motorways.
Report Coverage & Deliverables
- Competitive benchmarking
- Historical data & forecasts
- Company revenue shares
- Regional opportunities
- Latest trends & dynamics
Equipment Insights
The heavy construction equipment market segment accounted for the highest market share in 2024. Infrastructure spending by the government is a key driver of Brazil's market. Efforts by the country to revamp transport systems, add urban infrastructure, and enhance energy facilities have boosted demand for excavators, loaders, and cranes. Heavy projects like road widening, bridge construction, and port and airport development necessitate state-of-the-art machinery to guarantee efficiency and timely completion. Furthermore, government-sponsored smart city and housing development programs drive demand for heavy equipment with increasing urbanization and housing and commercial space requirements.
Compact construction equipment is anticipated to achieve the highest CAGR throughout the forecast period. Compact construction equipment demand in Brazil is stimulated by increasing investments in mining projects and strategic joint ventures to intensify equipment sales and service networks. Higher levels of mining operations require cost-effective and adaptable machinery, driving compact equipment adoption in excavation, material handling, and preparation work. Besides that, partnerships between international and domestic industry players reinforce distribution networks, maximize after-sales support, and enhance availability, further driving market growth. All these factors combined propel increasing demand for compact construction equipment across Brazil's mining and infrastructure industries.
Propulsion Insights
The Internal Combustion Engine (ICE) category accounted for the greatest market share in 2024. Dual-fuel technology is fueling the ICE category by making cleaner substitute fuels such as natural gas or biodiesel in addition to diesel available, cutting down on carbon emissions, and enhancing sustainability. This will align with Brazil's environmental policies and goals to cut down on carbon emissions, as well as motivate construction companies to implement more sustainable technologies. Moreover, government subsidies and the prevalence of biofuels in Brazil also speed up implementation of this technology, making ICE-driven machinery a greener alternative in the changing market.
The electric segment is anticipated to exhibit a strong CAGR over the forecast period. Rising investments in decarbonization and green mining operations are fueling growth for electric propulsion. Businesses are moving towards greener machines to minimize carbon emissions and keep up with stronger environmental controls. Additionally, technological improvements in batteries and government stimulus further encourage this shift. Therefore, electric equipment for construction is picking up pace, as it improves efficiency while reducing environmental footprint.
Power Output Insights
The <100 HP segment led the market in 2024 by revenue share. Building equipment with <100 HP power rating, including mini excavators and skid steer loaders, is small and agile and serves as a perfect substitute for urban construction jobs and landscaping. They are less expensive to buy and run, use less fuel, and are multi-purpose. They are less expensive to train and maintain and have fewer regulatory challenges, which improves their suitability for construction projects that require flexibility and efficiency within confined areas.
The 101-200 HP segment is expected to expand at a huge CAGR between 2025 and 2030. Construction equipment in the 101-200 HP range is specifically designed for heavy-duty applications, which means it is unavoidable in medium- to large-sized construction projects. Heavy machinery like excavators, bulldozers, and loaders are capable of lifting heavier loads and executing heavy tasks efficiently. They can be applied in diverse applications such as excavation, grading, lifting, and material handling, which makes the construction companies optimize fleet management with fewer machines serving several purposes.
Engine Capacity Insights
The up to 250 HP market led the market in 2024. Construction machinery with power ratings of up to 250 HP, such as mid-range excavators and backhoe loaders, is versatile. It allows contractors to accomplish a variety of tasks like digging, lifting, and grading efficiently. This versatility allows fewer machines to be used for several applications, which makes it especially suitable for medium-sized construction jobs where space is not always available. This range of power balances power and maneuverability and makes these machines well-suited to urban construction projects. Further, they also generally have improved fuel efficiency compared with larger equipment, reducing operating costs and appealing to contractors who want to maximize profit.
The 250 - 500 HP market is estimated to register a high CAGR throughout the forecast period. Construction machinery ranging from 250-500 HP, such as large excavators, bulldozers, and articulated dump trucks, is tailored for heavy-duty applications that demand high power, which makes them most suitable for large earthmoving, mining, and large-scale infrastructure developments. They provide greater load-carrying capacity than lesser-powered equipment, which is critical for transporting substantial amounts of material efficiently.
Key Brazil Construction Equipment Company Insights
Some of the prominent companies in the Brazil construction equipment market are AB Volvo, Caterpillar, Liebherr-International Deutschland GmbH, Hitachi Construction Machinery Co., Ltd., and more. Companies are investing in new product launches and growing their geographical reach to achieve a competitive advantage in the market. Hence, the prominent companies are adopting various strategic efforts, including mergers and acquisitions, and collaborations with other top players.
Caterpillar Inc. is a global leader in the manufacture of premium machines, engines, components, and services for various industries across the globe. Its renowned Cat brand is synonymous with quality and reliability, and it boasts one of the largest product lines in the sector, ranging from skid steers to the 1,000-tonne Cat 6090 mining excavator. The company serves construction, mining, power generation, and agriculture industries and has operations through 156 independent Cat dealers in close to 190 countries.
The Liebherr Group is a world leading manufacturer of construction equipment, cranes, and advanced technologies. The firm has operations in 13 divisions, such as earthmoving, material handling, and maritime cranes. The firm is renowned for groundbreaking products, like Europe's first hydraulic excavator, the L 300. Being a family-owned enterprise, Liebherr focuses on quality engineering and a broad portfolio that is active across various industries, such as aerospace technologies and refrigeration.
Key Brazil Construction Equipment Companies
- AB Volvo
- Caterpillar
- Deere & Company
- Hitachi Construction Machinery Co., Ltd.
- J C Bamford Excavators Ltd.
- Liebherr-International Deutschland GmbH
- MANITOU Group
- SANY Group
- Terex Corporation
- XCMG Group
- LBX Company
- Komatsu
Recent Developments
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In January 2025, Volvo Construction Equipment unveiled the release of its new line of articulated haulers, representing a complete redesign of its current offerings. Its innovative lineup, made for the international markets, was spearheaded by the A50 model, focusing on fuel efficiency, operator comfort, sustainability, and the latest technology.
In January 2025, Hitachi Construction Machinery announced that it would open its Latin American regional headquarters in Santiago, Chile, in April 2025, to increase support for dealers and customers in the region.
Brazil Construction Equipment Market Report Scope
|
Report Attribute |
Details |
|
Market size value in 2025 |
USD 6.96 billion |
|
Revenue forecast in 2030 |
USD 9.19 billion |
|
Growth rate |
CAGR of 5.7% from 2025 to 2030 |
|
Base year for estimation |
2024 |
|
Historical data |
2018 - 2023 |
|
Forecast period |
2025 - 2030 |
|
Quantitative units |
Revenue in USD million/billion, and CAGR from 2025 to 2030 |
|
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
|
Segments covered |
Product, propulsion, equipment, power output, engine capacity, region |
|
Key companies profiled |
AB Volvo; Caterpillar; Deere & Company; Hitachi Construction Machinery Co., Ltd.; J C Bamford Excavators Ltd.; Liebherr-International Deutschland GmbH; MANITOU Group; SANY Group; Terex Corporation; XCMG Group; LBX Company; Komatsu |
|
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
|
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
Brazil Construction Equipment Market Report Segmentation
Product Outlook (Revenue, USD Million, 2018 - 2030)
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Earth Moving Machinery
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Excavators
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Wheel
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Crawler
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Loaders
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Backhoe Loaders
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Skid Steer Loaders
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Crawler/Track Loaders
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Wheeled Loaders
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Dump Trucks
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Moto Graders
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Dozers
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Wheel
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Crawler
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Material Handling Machinery
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Crawler Cranes
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Trailer Mounted Cranes
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Truck Mounted Cranes
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Forklift
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Concrete and Road Construction Machinery
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Concrete Mixer & Pavers
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Construction Pumps
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Others
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Equipment Outlook (Revenue, USD Million, 2018 - 2030)
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Heavy Construction Equipment
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Compact Construction Equipment
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Propulsion Outlook (Revenue, USD Million, 2018 - 2030)
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ICE
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Electric
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CNG/LNG
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Power Output Outlook (Revenue, USD Million, 2018 - 2030)
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<100 HP
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101 - 200 HP
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201 - 400 HP
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>401 HP
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Engine Capacity Outlook (Revenue, USD Million, 2018 - 2030)
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Up to 250 HP
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250 - 500 HP
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More than 500 HP
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