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Global Off-Highway Equipment Industry Outlook 2025
Shifting Customer Behaviors Spurred by Economic Uncertainties Will Drive Collaboration Among Stakeholders
02-Sep-2025
Global
Market Research
KB4F-01-00-00-00
AU_2025_33766
Economic uncertainties caused by the Russo-Ukraine conflict and trade wars have significantly affected OEM operations, supplier confidence, and consumer purchase decisions in the off-highway equipment industry. While these challenges are expected to delay economic recovery, government investment programs, subsidies, and bilateral trade agreements are expected to initiate a gradual market recovery.
The global scenario is anticipated to push price-sensitive customers to resort to alternative equipment utilization, such as rentals. OEMs that announced plans to launch manufacturing plants in the United States are expanding capacities to sustain growth and trade relations. However, the positive impact on sales is projected in the medium to long term.
Bilateral trade agreements and the strengthening of trade between countries such as Brazil-Mexico, Canada-Europe, and India-Europe are likely to drive expansion and collaboration among stakeholders. Globally, low to moderate growth is expected in the off-highway equipment market as several marketplace trends push the industry in a positive direction.
The evolution of digital solutions, machine control technologies, and real-time access to key machine information across the construction value chain will improve purchasing confidence among contractors. A digitally connected marketplace in the construction and mining industries will be a key driver for construction and mining equipment sales worldwide.
The study period is 2024–2025, with 2024 as the base year and 2025 as the forecast period. The practice areas are construction, mining, and agricultural equipment. The six regions covered are the United States, Latin America, Europe, Asia (India and China), Australia, and the Rest of the World.
Author: Krishna Achuthan
The Impact of the Top 3 Strategic Imperatives on the Off-Highway Equipment Industry
Geopolitical Chaos
- Why
- Economic uncertainties caused by the Russo-Ukraine conflict and trade wars have significantly affected OEM operations, supplier confidence, and consumer purchase decisions.
- While these challenges are expected to delay economic recovery, government investment programs, subsidies, and bilateral trade agreements are likely to initiate a gradual market recovery.
- Frost Perspective
- OEMs that announced plans to launch manufacturing plants in the United States are expanding capacities to sustain growth and trade relations. However, the positive impact on sales is expected in the medium to longer term.
- Bilateral trade agreements and the strengthening of trade between countries, such as Brazil-Mexico, Canada-Europe, and India-Europe, are anticipated to drive expansion and collaboration among stakeholders.
Industry Convergence
- Why
- Off-highway industry stakeholders will likely adopt measures to counter short-term challenges.
- Cost-conscious buyers and a double-digit decline in unit sales in key markets will push stakeholders to bundle services and form partnerships with cross-industry participants.
- Frost Perspective
- Partnerships between OEMs, suppliers, start-ups, financial institutions, and rental companies will support further expansion and sustain growth.
- Vertical integration will broaden the product portfolio and enable one-stop solutions for end customers.
Competitive Intensity
- Why
- New technologies are continuously impacting the industry in fields such as electrification and automation.
- Decarbonization, connectivity, and an omnichannel approach have brought in a wave of both new and cross-industry participants that are disrupting the off-highway ecosystem.
- Frost Perspective
- Strategic synergies are expected to offer low-cost solutions to alleviate customer hesitance.
- Acquisitions and joint ventures between OEMs and solution providers, as well as OEMs and contractors, respectively, will surge in the short term to secure growth in specific applications.
Segmentation
Off-Highway Equipment
| Agricultural Equipment | Construction Equipment | Mining Equipment |
|---|---|---|
| Agricultural tractors Combines Others Balers AG mowers Sprayers and spreaders Shredders Windrowers | Compactors Cranes Dozers Dump trucks Excavators Loaders Graders Mixer trucks Pavers Rollers Scrapers Telehandlers Trenchers Compact and mini excavators Compact and mini loaders Newly added scope compared to the previous outlook | Compactors Cranes Dozers Dump trucks Excavators Loaders Graders Pavers Rollers Scrapers Trenchers |
Off-highway equipment unit sales
Off-highway equipment in operation EIO
Original equipment manufacturer OEM revenue by region
Demand metrics for top trend areas in focus
Compact equipment demand
Proliferation of connected solutions
Rental equipment demand
Pursue business expansion through rental channels
Explore compact equipment demand
Implement decarbonization initiatives in mining
Focus on alternate powertrains
Retrofitting autonomous and electric
Study period
Practice Areas
Geographic Scope
Base year
Forecast period
Equipment versatility, total cost of ownership, and easier transportation
Proliferation of connectivity across the value chain
Decarbonization in construction and mining
Synergies across multiple verticals
Rental equipment utilization
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8
The Impact of the Top 3 Strategic Imperatives on the Off-Highway Equipment Industry
Growth Opportunities Fuel the Growth Pipeline Engine
Segmentation
Growth Environment
Revenue Growth by Region
Overview of Global Trends
Top 10 Growth Opportunities
Top 10 Trends for 2025
Global GDP Growth Snapshot
Trend 1: Global GDP Growth
Growth Opportunity 1: Global GDP Growth
Trend 2: Inflation and Interest Rates
Growth Opportunity 2: Inflation and Interest Rates
Trend 3: Oil Markets
Growth Opportunity 3: Oil Markets
Trend 4: Labor Market
Growth Opportunity 4: Labor Market
Trend 5: US Dollar and Gold
Growth Opportunity 5: US Dollar and Gold
Trend 6: North America
Growth Opportunity 6: North America
Trend 7: Latin America
Growth Opportunity 7: Latin America
Trend 8: Western Europe
Growth Opportunity 8: Western Europe
Trend 9: Middle East
Growth Opportunity 9: Middle East
Trend 10: Asia
Growth Opportunity 10: Asia
List of Countries by Region, 2025
Trend 1: Compact Equipment Demand
Trend 2: Proliferation of Connected Solutions
Trend 3: Rental Equipment Demand
Trend 4: Focus on Alternate Powertrains
Trend 5: Retrofitting Autonomous and Electric
Impact of Trends by Region
Unit Sales by Region
Revenue Forecast by Segment
Equipment in Operation by Region
The United States
Vendor Analysis
Latin America
Vendor Analysis
Europe
Vendor Analysis
China
India
Agricultural Tractor Vendor Analysis: India
Australia
Vendor Analysis: Asia-Pacific and the Rest of the World
Growth Opportunity 1: Pursue Business Expansion Through Rental Channels
Growth Opportunity 2: Explore Compact Equipment Demand
Growth Opportunity 3: Implement Decarbonization Initiatives in Mining
Benefits and Impacts of Growth Opportunities
Next Steps
List of Exhibits
Legal Disclaimer
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The global scenario is anticipated to push price-sensitive customers to resort to alternative equipment utilization, such as rentals. OEMs that announced plans to launch manufacturing plants in the United States are expanding capacities to sustain growth and trade relations. However, the positive impact on sales is projected in the medium to long term.
Bilateral trade agreements and the strengthening of trade between countries such as Brazil-Mexico, Canada-Europe, and India-Europe are likely to drive expansion and collaboration among stakeholders. Globally, low to moderate growth is expected in the off-highway equipment market as several marketplace trends push the industry in a positive direction.
The evolution of digital solutions, machine control technologies, and real-time access to key machine information across the construction value chain will improve purchasing confidence among contractors. A digitally connected marketplace in the construction and mining industries will be a key driver for construction and mining equipment sales worldwide.
The study period is 2024–2025, with 2024 as the base year and 2025 as the forecast period. The practice areas are construction, mining, and agricultural equipment. The six regions covered are the United States, Latin America, Europe, Asia (India and China), Australia, and the Rest of the World.
Author: Krishna Achuthan
| Deliverable Type | Market Research |
|---|---|
| Industries | Automotive |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | off-highway equipment market report |
| Keyword 2 | heavy equipment industry outlook |
| Keyword 3 | off-highway market forecast 2025 |
| Podcast | No |
| Predecessor | KA32-01-00-00-00 |
| WIP Number | KB4F-01-00-00-00 |