Currently, the global construction machinery industry is still in a period of adjustment. There is no unified consensus within the industry regarding the market trend in 2026, but developed markets have been consistently sending positive signals. Performance data from companies such as Caterpillar, Komatsu, and John Deere show signs of demand recovery in some developed markets.
Meanwhile, executives from international construction machinery giants such as Hitachi Construction Machinery, Divanlon, Case, and John Deere, when asked, "Which regions or industry sectors will bring the strongest demand for your company's equipment in the coming year?", frequently mentioned North America and Europe.
Of course, this does not represent a prospect of explosive growth across the board, but rather an expectation of structural recovery driven by core drivers such as infrastructure investment and energy projects.
Foreign companies' performance in developed markets turns positive
Recovery signals continue to emerge
The most crucial basis for judging market trends is always the company's actual performance and first-hand data.
Caterpillar's financial report shows that its construction machinery segment's revenue growth in Europe and North America turned positive in the second and third quarters of 2025, ending a prolonged period of continuous decline.
The improvement in demand is more evident. Komatsu's sales data for earthmoving machinery shows that year-on-year demand growth in North America, Europe, and Oceania turned positive in July, May, and June 2025, respectively.
John Deere, on the other hand, provided clear growth guidance for the global construction machinery market outlook in 2026: It expects overall and compact construction machinery sales in the US and Canadian markets to grow by 0-5% year-on-year, with revenue and profit growth in its construction machinery segment potentially reaching 10% and 8-10% year-on-year, respectively.
This expectation is based on companies' assessment of the resilience of domestic market demand and also conveys confidence in the recovery of developed market markets from a strategic perspective.
Executive Analysis:
Three Core Drivers, Anchoring the Main Battlefield of Recovery Expectations
In response to the question of "which regions or industries will bring the strongest demand in 2026," executives of international construction machinery companies focused their views highly, accurately pointing to the core driving forces behind the expected recovery in developed market markets.
The dual boost from infrastructure investment and mega-energy projects has become the core engine of expected demand in developed market markets. Morgan Stollings, Senior Director of Dealer Development and Marketing at DeVanlon, clearly pointed out that infrastructure projects are a core area of ??demand in 2026, especially given the resurgence of manufacturing in the US, making the demand for new factories and supporting infrastructure imminent. This demand not only covers traditional highway infrastructure but also extends to emerging fields such as energy sector expansion and AI data center infrastructure-the anticipated completion of these large-scale projects directly drives demand expectations for heavy construction machinery, and heavy equipment suppliers are considered to be direct beneficiaries at the forefront of the infrastructure cycle. Kyle Fugelston, Vice President of Hitachi Construction Machinery Americas, further added that the core driver of demand growth will come from regions with a concentration of large-scale infrastructure and energy "mega-projects," which will continue to generate stable demand for large construction machinery.
The rigid demand in the areas of people's livelihood and public services constitutes an important support for the recovery expectations. Brad Stamper, Head of Product Management for Case Construction Equipment Americas, stated that housing development and construction, landscaping and agriculture, and local government sectors in the North American market will continue to maintain strong demand, directly driving the growth of core product lines such as compact track loaders, wheel loaders, and excavators. It is worth noting that the skills gap and diversified functions faced by local government fleet management are driving demand for equipment that is easy to operate and highly safe. This specific demand is becoming a significant force driving sales of medium and light-duty equipment.
Regional markets, North America has become the core battleground for the expected recovery. Several executives confirmed that customer demand in the North American market is relatively stable, with the Sun Belt in the US continuing to contribute strong growth momentum. While the Canadian market has previously been weak, demand is expected to gradually improve in 2026, thanks to large-scale infrastructure projects such as the C$3.9 billion high-speed rail. Kyle Fugelston also specifically mentioned that in some parts of the US, market activity remains high due to population growth and accelerated commercial development. Meanwhile, Hitachi Construction Machinery is continuously expanding its dealer network in the US market, improving market coverage and service capabilities, and may even create new demand growth points in areas with previously low penetration rates.
It is important to clarify that the expected recovery of the construction machinery market in developed countries in 2026 is not a broad-based increase, but rather exhibits distinct structural characteristics. From the demand side, growth drivers are expected to be concentrated in specific areas such as infrastructure, mega-energy projects, the return of manufacturing, and public services. Executives from companies like Case, Divan, and Hitachi Construction Machinery focus their predictions on the "strongest sources of demand," rather than general optimism about the overall market. This also implies that regional and sectoral differentiation will continue to exist within the market. In terms of growth pace, as Brad Stamper stated, compared to past high-growth cycles, the growth rate in 2026 is expected to be more moderate, representing a "steady recovery."
Accompanying this recovery expectation is the market restructuring opportunity brought about by technological upgrades. Stricter environmental regulations are driving developed countries towards green transformation. Between 2025 and 2030, the valuation premium for clean energy equipment companies in North America and Europe is expected to be more than 30% higher than that of traditional companies, and the demand for electrified and hybrid equipment will continue to increase. At the same time, intelligent technology is becoming a core competitive advantage. The European market is experiencing a surge in import demand for fully automated and driverless equipment. Case's focus on equipment demanding "intuitive and easy operation, and high safety" is essentially a manifestation of intelligent technology's application in end-user scenarios.
For companies in the construction machinery industry, grasping the core expected theme of "infrastructure + energy mega-projects + manufacturing resurgence", focusing on key regions such as North America and Europe, and making efforts to upgrade to intelligent and green technologies, while learning from Hitachi Construction Machinery's channel expansion strategy to explore incremental space in low-penetration areas, will be key to responding to market changes and seizing potential opportunities.
