The European construction equipment market continued its recovery during the first half of 2026, with the UK recording one of the strongest performances among Europe’s major markets.
Figures presented during the latest CECE Market Update webinar show that the European market grew by 8% during the first six months of the year, with almost identical growth rates recorded in the first and second quarters.
CECE Economic Affairs Manager Sebastian Pop said the recovery had strengthened compared with 2025, although performance continued to vary considerably between individual markets.
The UK delivered a particularly strong second quarter, taking year-to-date market growth to 20%. Both earthmoving equipment and road machinery drove the improvement, particularly compaction equipment. The UK now accounts for around 14% of the European market.
Southern Europe also performed strongly. Spain recorded year-to-date growth of more than 25%, while Italy improved in the second quarter. Germany, Europe’s largest construction equipment market, remained more subdued, with growth at low single-digit levels following a dip in the second quarter.
Performance also varied between equipment sectors.
Machinery serving building construction has seen some of the strongest growth following the severe downturn experienced in 2024. Concrete machinery increased by around one third compared with the first half of 2025, while the tower crane market continued its gradual recovery.
Pop cautioned that the figures should largely be viewed as a recovery from weak market conditions rather than evidence of a major expansion in building construction. Earthmoving and road equipment have seen more moderate development, although heavier road machinery performed well during the second quarter.
Looking ahead, CECE expects the European recovery to continue. Pop said sales growth of between 5% and 10% for the full year 2026 represented a realistic scenario based on the current rate of growth.
The wider global picture remains less certain. CECE expects world construction equipment sales to increase by a single-digit percentage in 2026, probably by no more than around 5%, with India, Latin America and parts of Southeast Asia among the stronger markets.
CECE President Phil Layton also highlighted a shift in the underlying construction market, with infrastructure becoming an increasingly important driver of equipment demand. Investment in energy, transport, industrial projects and digital infrastructure is supporting activity across Europe, while structural issues including digitalisation, automation, sustainability, skills and productivity continue to shape the sector.
Competitiveness was another major theme during the update.
CECE highlighted the continued growth in construction equipment imports from China, with Pop describing the rate of increase as “remarkable if not alarming”. He also questioned whether European manufacturers were always competing on a level playing field and stressed the importance of effective market surveillance to ensure machinery entering Europe complies with safety and environmental requirements.
During the Q&A, Pop said he did not see a lack of demand as the principal challenge facing European manufacturers, arguing that competition and competitiveness had become the bigger issue.
William Connell Garcia, Deputy Chief Economist at the European Commission’s DG GROW, addressed the wider construction outlook.
He said construction had remained resilient despite wider economic uncertainty, but continued to face low productivity, labour shortages, higher energy costs and a need for greater digitalisation.
Housing demand also remains a significant long-term driver. European Commission figures presented during the session indicate that the EU needs around 650,000 additional homes each year, on top of approximately 1.6 million currently being built, requiring around €150 billion in additional annual investment. The 650,000 figure is confirmed in the accompanying presentation slides, while the video transcript itself drops the word “thousand” in its automated transcription.
The update also examined the adoption of electric construction equipment. CECE has begun tracking electric excavator and wheel loader sales and reported that penetration remains at very low single-digit levels, with no clear indication yet of a significant increase in adoption.
Many of the issues raised during the Market Update will be explored further at the CECE Congress in London from 27 to 29 October, where market trends, competitiveness, geopolitical developments, technology and skills will form part of the programme.
Register now https://www.cece.eu/congress/registration
