Trucks/Construction/Farm Machinery

The Trucks/Construction/Farm Machinery industry involves the manufacturing, distribution, and servicing of heavy equipment used across various sectors. It includes commercial trucks, construction machinery, and farm machinery, facilitating large-scale undertakings from urban development to food production.

The Trucks/Construction/Farm Machinery industry's performance is driven by economic indicators, technological advancements, and regulatory shifts. Economic growth and government infrastructure investments boost equipment demand. Technological developments like automation, AI, IoT, electrification, and precision farming are reshaping the industry, enhancing efficiency and sustainability.

The construction equipment segment is dominated by companies like Caterpillar Inc., Komatsu Ltd., and Volvo Construction Equipment, while Chinese manufacturers like XCMG and SANY are gaining market share. Leading farm machinery companies include John Deere, CNH Industrial, and AGCO Corporation. Key players in the trucking sector are Daimler Truck AG, Volvo AB, and PACCAR Inc., with competition driven by electric powertrains and autonomous technology.

The trucking industry experienced subdued freight volumes in early 2025, with weakened Class 8 truck demand and a slight decrease expected in year-on-year deliveries. The global construction equipment market saw a decline in sales in 2024, with growth projected to return from 2026 onwards, driven by emerging markets and infrastructure investments. The farm equipment market has seen a decline in growth, expected to continue until 2026-2027, due to declining farm income and commodity prices, but is projected to grow significantly in the future.

The Trucks/Construction/Farm Machinery industry faces risks including sensitivity to economic cycles, regulatory exposure, and geopolitical factors. Skilled labor shortages, high equipment costs, and supply chain disruptions also pose challenges. Declining farm income can impact agricultural machinery sales.