Europe Wheel Excavator Market Size - By Product, By Bucket Capacity, By Propulsion, By Application, Growth Forecast, 2025 – 2034

Europe Wheel Excavator Market Size

The Europe wheel excavator market size was valued at USD 350.9 million in 2024 and is projected to grow at a CAGR of 6.9% between 2025 and 2034. The growth of construction activities throughout Europe is increasing the need for wheel excavators, especially in cities where smaller, more mobile machines are necessary. According to Cartan Trade, an insurance company, the construction industry accounts for roughly 9-10% of the EU’s GDP and this sector employs millions of people in the region, thus creating a demand for sophisticated construction equipment.
 

Moreover, the construction industry in Europe is recovering and expanding. According to Eurostat, as of June 2024, construction output increased by 1.7% in the euro area and by 1.4% in the EU relative to May 2024. The civil engineering sector which encompasses a major segment of the market for wheel excavators also increased by 1.1%.
 

Focus on the reduction of emissions and innovation in battery technology has led to the increasing adoption of electric and hybrid wheel excavators due to their sustainable nature. A case in point is the development partnership signed in September 2024 by Hitachi Construction Machinery and Dimaag for the production of 1.7-ton zero-emission excavators, where electric technology was integrated into compact versions appropriate for both interior and exterior use.
 

Europe Wheel Excavator Market Trends

• The adoption of electric and hybrid wheel excavators is gaining traction due to sustainability policies and carbon reduction initiatives in Europe. Manufacturers are focusing on advanced battery technologies and alternative fuel innovations.
   
• To increase their market share, corporations are forming strategic mergers and partnerships. An example of this is in September 2024 when Hitachi Construction Machinery entered a partnership with Dimaag for the creation of 1.7-ton zero-emission excavators. This project implements Dimaag's "Electric No Compromise Off-Road Ecosystem" (ENCORE) into Hitachi's range of compact excavators to focus on urban construction and indoor demolition work.
   
• Smart technology like automated control systems and telematics are being added to wheeled excavators. This increase precision, fuel efficiency, productivity, and overall operational performance. Human error is being further mitigated through GPS-assisted digging, real-time performance monitoring, semi-autonomous operation, and optimized workflows which result in lower long-term costs, reduced operational costs. Furthermore, these advanced electric and hybrid wheeled excavators are lower carbon emissions and noise pollution in cities which is a step towards addressing environmental concerns.
   
• Despite these advantages, the primary hurdles remain the high upfront capital investment and persistent maintenance costs. Comparatively, wheeled excavators tend to incur a greater ownership cost due to their need for more frequent tire replacements and specialized servicing compared to their tracked counterparts. Upper-off road harsh construction environments as well as off-road operations are further hindered by instability restrictions on rough and uneven terrain. These problems will ultimately need enhanced tire durability, better weight distribution, and more affordable leasing options to overcome Europe’s expanding market limitations.
   

Europe Wheel Excavator Market Analysis

Based on the product, In 2024, the medium segment held a market revenue of over USD 140 million and is expected to cross USD 300 million by 2034, due to Europe's emission policies, companies are designing electric and hybrid variants. An example is Greenland Technologies that launched the electric lithium-ion excavator, named GEX-8000 in February 2023.
 

• European policies continue to strengthen in favor of environmental protection. Smaller construction machinery such as mini excavators are considered more environmentally friendly alternatives because they are smaller in size, fuel consumption, and emissions when compared to larger excavators. This is consistent with Europe's strong focus on construction sustainability.
   
• The automation frontier is spearheading the development of remote-controlled operation for large wheel excavators. This technology is particularly useful for dangerous or inaccessible sites like mining and demolition. With remote control of the excavator, the operator can work from a safer distance protecting them from the dangerous working environment.
   
• Remote operation and automation of heavy excavators is a specialty of Hitachi Construction Machinery. For example, in May 2024, they launched the RBT series of Hydraulic Excavators, which are remote operation and automation-ready and aim for expansion into fully autonomous operations down the line. The sense that these machines will be able to “Ready To Be Robot” means that no special modifications will be needed to transform them into robots; in fact, they can be converted quite readily, and RBT is an abbreviation of ‘robot’.
   

Based on the propulsion, the ICE segment held 85% share of the Europe wheel excavator market in 2024 and is expected to grow significantly over the forcast period.
 

• Fuel consumption is also improving for ICE-powered excavators through new advancements in hydraulic systems and efficiency in engine design. Using high-efficiency engines and variable speed hydraulics greatly reduces fuel consumption without sacrificing power for highly demanding tasks.
   
• In Europe, governments are providing grants and subsidies aimed at the purchase and adoption of electric construction vehicles and machinery. These subsidies come in the form of tax exemptions, grants, and reduced registration fees for electric construction equipment which in turn makes electric wheel excavators less expensive for contractors.
   
• Electric wheel excavators remove the need for expensive fuel which, in turn, lessens maintenance requirements compared to ICE counterparts. As electric wheel excavators do not have any fuel-related systems, there is no need to conduct engine oil changes, replace fuel filters, or maintain complex exhaust treatment systems. This, in turn, greatly reduces the cost associated with long-term operations.
   

Based on bucket capacity, the below 3 m3 segment dominated the Europe wheel excavator market and accounted for over USD 300 million in 2024.
 

• Excavators with buckets smaller than 3 m³ are prevalent in urban areas, as well as for utility work, infrastructure landscaping, and other smaller-scaled projects. Their smaller size allows them to maneuver easily in constricted and busy areas. They are also frequently utilized in urban regeneration projects, as these projects have very limited space to work in, and require excavation precision and accuracy.
   
• Excavators are now widely used in medium scale constructions alongside other machines because of their balance in power and maneuverability. Also with bucket size from 3 to 6 m³, a multitude of tasks such as highway construction, maintenance, clearning of drainage systems and other earth work services can be performed. Moreover, the easy interchangeability of different attachments such as grapples and breakers further increases the popularity of these machines in varied industries.
   
• Excavators with buckets larger than 6 m³ are being outfitted with new automation features alongside artificial intelligence technology that will help increase performance and reduce fuel costs. These features include: semi-autonomous control, automatic digging and bucket leveling, and collecting real-time data for remote fleet monitoring.
   

Based on application, the construction segment dominated the Europe wheel excavator market and accounted for over USD 250 million in 2024.
 

• The construction industry is becoming more proactive in looking for eco-friendly options. In line with government policies that aim at reducing emissions and enhancing sustainability in construction, more electric and hybrid wheel excavators are being manufactured. For instance, electric-powered wheel excavators are utilized for urban works where noise and air pollution must be reduced to the barest minimum.
   
• With the adoption of telemetry technologies, the operators together with the fleet managers can remotely monitor the working condition of the excavators, their performance metrics, fuel consumption, and the maintenance needs in real time. This helps improve productivity and efficiency, lower idle time, and productivity increase fleetwide.
   
• Operational efficiency is enhanced and overall productivity is increasing with the introduction of features such as automated digging cycles. A good example is Volvo Construction Equipment (Volvo CE), which in January 2024 launched the grid-connected EW240 Electric Material Handler, which is the newest member of its flagship family of zero exhaust emission machines, all striving to achieve a carbon neutral future. The machine comes fitted with a Stage V-compliant engine. Its high hydraulic power fulfills challenging mining tasks like material excavation, overburden removal, and handling.
   

Western Europe dominated the Europe wheel excavator market with a major share of over 40% in 2024 and Germany leads the market in Western division and it is expected that sales in terms of shipment will go above 1,100 Units by 2034.
 

• The increasing construction and infrastructure activity in Germany makes it one of the leading markets for wheeled excavators, especially considering the German Federal Government’s renewed focus towards constructing efficient and eco-friendly machinery. An example of such investment is the USD 49.73 billion infrastructure enhancement program from Deutsche Bahn (DB) focused on upgrading the railway network and stations launched in September 2023. 
   
• Stringent EU stage V emission requirements are new in Europe but are creating opportunities for the adoption of hybrid and electric wheeled excavators. It is also pushing manufacturers to step up their game in reducing emissions with improved hydraulic systems and alternative sourced motors. 
   
• The government’s USD 90 billion investment plan for railway infrastructure from 2020 to 2030, along with other comprehensive urban redevelopment projects are expansive in nature and are likely to require a large fleet of modern wheeled excavators.
   
• European countries, including Germany, are also adopting automation technology which helps in monitoring and scheduling maintenance checks to improve efficiency and reduce operational costs. Industry reports estimated that around 65% of new excavators sold in Germany in 2024 will have telematics features.
   
• Germany's focus on sustainable construction practices along with the incorporation of IT systems on heavy machinery is likely to drive the uptake of wheeled excavators even further in the next few years. Liebherr and Wacker Neuson, for instance, are spearheading the development of electric and hybrid excavators.
   

The UK wheel excavator market in Northern Europe is expected to experience significant and promising growth from 2025 to 2034.
 

• In the UK, spending on infrastructure projects such as roads and smart cities are on the rise, which has led to an increase in demand for wheeled excavators. The National Infrastructure and Construction Pipeline estimates that around USD 700 billion will be spent over the next ten years. 
   
• Having more energy-efficient options will allow companies greater freedom to fossil fuel alternatives, while legally mandated reductions of carbon emissions increases adoption of electric and hybrid wheeled excavators. 30% of the UK market for wheeled excavators is expected to be hybrid or fully electric by 2027. 
   
• Increases in the rental and leasing sector for wheeled excavators is making the equipment more accessible for small to mid-size contractors, granting them the ability to take on short-term projects with reduced capital outlay.
   
• The developing interest in self-operating construction equipment is increasing the adoption of GPS-enabled, remote-controlled AI excavators in the UK. Major industry players, including JCB and Caterpillar, are heavily focusing on automation for meeting the projected future requirements.
   

The Italy wheel excavator market in the Southern Europe is anticipated to witness lucrative growth between 2025 and 2034.
 

• Italy's construction sector has growing focus on urban renewal projects. Work of this nature requires compact and mid-sized wheeled excavators because they must operate in small spaces. The construction industry in Italy is expected to surpass USD million in 2023 due to increasing multidirectional vertical residential and commercial building activities.
   
• Government policies are encouraging the use of low emission construction equipment, specifically hybrid and fully electric wheeled excavators. In 2023, Italy issued tax breaks up to 40% of expenditure on heavy machinery classified as low impact during usage for hybrid and fully electric excavators. 
   
• The rest of the new public works highway and metro construction are also fueling the growth of high demand for wheeled excavators. With all these factors, the market is anticipated to thrive, especially with the Italian government spending USD 40 billion on transport infrastructure projects scheduled until 2030. 
   
• Italy's aftermarket division is driven by the demand for replacement parts for remanufactured components and performance enhancements. To broaden the utility range of wheeled excavators, many companies are now designing specialized adaptable attachments.
   
• With Italy as a key market for earthmoving equipment, domestic production is on the rise, increasing the supply of sophisticated advanced-model excavators specially designed for the country’s construction industry.
   
• As a result of Italy's infrastructure-focused construction projects, which are funded by the EU and valued at over USD 80 billion, Poland’s rapidly expanding construction sector is generating strong demand for wheeled excavators, especially for use in road and bridge construction.
   

The Poland wheel excavator market in Eastern Europe is expected to experience significant and promising growth from 2025 to 2034.
 

• In Poland, the construction of new transportation infrastructure is a high priority. The emplaced policies increase investments in excavators with high working efficiency and strict European emission regulations. Poland's plan for road network expansion aims to build over 2,000 km of new highways and expressways by 2030, resulting in greater demand for heavy construction equipment. 
   
• The need for compact and mid-sized excavators is growing because housing and commercial construction projects are gaining traction in Polish urban centers. In 2023 alone, the housing construction projects in Warsaw and Krakow grew by 18% and will require versatile wheeled excavators.
   
• With global manufacturers establishing local assembly plants to meet the increasing demand, Poland is emerging as a new focal point for the production of heavy machinery, particularly wheeled excavators. To satisfy the growing demand for these products, companies such as Hyundai Construction Equipment and Volvo CE have expanded their manufacturing bases in Poland.
   

Europe Wheel Excavator Market Share

• Top 7 companies of Europe wheel excavator industry are Caterpillar, Komatsu, Volvo Construction Equipment, Liebherr, Hitachi Construction Machinery, XCMG, and JCB, collectively hold around 65% of the market in 2024.
   
• Caterpillar is adding new products to its catalog by integrating advanced hydraulic technology and developing more fuel-efficient engines into its wheel excavators. An instance is the Cat M320 and M322 models, which the company advertised in January 2023. These models are equipped with smart feature that optimizes fuel consumption. Furthermore, the company enhanced a service and training center in Germany in 2023 for better servicing of the operators and productivity of the operators.
   
• Komatsu is placing emphasis on achieving better fuel economy with the hydraulic systems of its wheel excavators to achieve the higher goals of sustainable development in the European region. For example, the company’s Hybrid HB215LC-3 and HB365LC-3 models achieve a 30% reduction in fuel consumption compared to older machines. The company has also expanded its partnerships with rental service providers throughout Europe, improving the availability of the equipment for contractors and city projects. 
   
• Volvo Construction Equipment places more emphasis on electrification and automation with the addition of EWR150E and EW240E models to enhance urban and infrastructure project efficiency. The company has also added HVO100-compatible engines to its construction equipment, achieving a 90% reduction in carbon emissions compared to these diesel models. In addition, Volvo CE is introducing the Volvo ActiveCare Direct remote monitoring system for more reliable predictive maintenance and enhanced equipment performance, strengthening the machine’s digital connectivity.
   
• Liebherr has expanded construction infrastructure in Germany through the introduction of heavy lift wheel excavators for road work and rail construction. Its A 913 Compact Litronic and A 924 Litronic models have higher lifting capabilities as well as energy recuperation systems that make them more effective. The company is making aggressive moves towards building hydrogen-powered wheel excavators aimed at models with no emissions by 2030. 
   
• Hitachi Construction Machinery is strengthening its position in the European rental market by serving infrastructure projects with wheel excavators.
   
• XCMG is aggressively penetrating the European market with technologically advanced and low-cost wheel excavators. By 2025, the company intends to debut the XE series as the first fully electric wheel excavator in Europe. To aid its expansion, the company established a logistics center in Poland, allowing for faster shipment of equipment and spare parts to key areas in Europe.
   
• JCB leads the market in compact wheel excavators, meeting the rapidly increasing need for urban construction. Further, the company has increased the number of its dealers in Europe which enhances the aftermarket service and repair support for rental and construction companies.
   
• Leading companies are incorporating new technologies like electric propulsion, hybrid powertrains, and AI automation into their wheel excavator portfolios. This development caters to the increasing demand for economical, low-emission equipment while enhancing efficiency in construction and mining operations. Caterpillar and Volvo CE are currently working on electric wheel excavators to meet Europe's strict emission regulations, especially the Stage V and upcoming Euro 7 Standards.
   
• There are also a lot of opportunities arising from construction equipment manufacturers transitioning to hybrid and electric vehicles. Companies are working on the development of battery-electric and plug-in hybrid models that pair with renewable energy-powered charging systems. Moreover, Real-Time AI fleet management systems, alongside real-time machine diagnostics, allow for reduced downtimes, optimized fuel expenditure, and propel sustainable automation within the industry, steering away from traditional approaches.
   

Europe Wheel Excavator Market Companies

Major players operating in the Europe wheel excavator industry include:

• Bobcat Company
• Caterpillar
• Hitachi Construction Machinery
• JCB
• Komatsu
• Liebherr
• Sany
• Terex Corporation
• Volvo Construction Equipment
• XCMG
   

Europe Wheel Excavator Industry News

• In December 2024, Kubota's construction equipment introduced two new compact excavators, the U17-5 and KX040-5, in addition to a new compact track loader. The U17-5 is a 1.7 ton zero-tail swing excavator designed with improved operator comfort and maneuverability for tight job sites.
   
• In January 2024, Explore Plant and Transport Solutions acquired over 100 JCB machines for more than USD 6.5 million. This purchase is significant because it marks the first time the company incorporated JCB’s X Series excavators and midi models. The company also purchased Loadall telescopic handlers, site dumpers, generators, and 245XR reduced tailswing tracked excavators which have been put to use on several prominent projects in the UK. 
   
• In May 2023, HCEE added the HW100A model to its wheeled excavator range. The new machine is compact and versatile which is powered by a Hyundai D34 Stage V compliant engine with 75kW (100hp) and 460Nm of torque. This machine provides an unmatched operator environment, powerful driveline, and multiple steering modes in addition to several chassis configurations for varied job sites.
   
• In May 2023, Hyundai released the HW65A wheeled model, which updates their mid-weight compact excavators. This machine comes equipped with Hyundai’s Stage V compliant diesel engine, with power rated at 48.5kW and torque of 248Nm. It also features a new spacious cab and standard proportional joysticks. Hyundai made improvements to the new model’s serviceability and enhanced the HW65A’s operator comfort and productivity as well.
   

The Europe wheel excavator market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Mn/Bn) and shipment (Units) from 2021 to 2034, for the following segments:

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Market, By Product

• Mini/Compact
• Medium
• Large

Market, By Bucket Capacity

• Below 3 m3
• 3-6 m3
• Above 6 m3

Market, By Propulsion

• ICE
• Electric

Market, By Application

• Construction
• Mining

The above information is provided for the following regional divisions and countries:

• Western Europe
  • Germany
  • Austria
  • France
  • Switzerland
  • Belgium
  • Luxembourg
  • Netherlands
  • Portugal
• Eastern Europe
  • Poland
  • Romania
  • Czech Republic
  • Slovenia
  • Hungary
  • Bulgaria
• Northern Europe
  • UK
  • Denmark
  • Sweden
  • Finland
  • Norway
• Southern Europe
  • Italy
  • Spain
  • Greece