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What's Driving the Autonomous Construction Equipment Market?

The autonomous construction equipment market is rapidly expanding, with advancements in AI and automation. Leading manufacturers like Caterpillar and Kubota are introducing innovative autonomous models, driving efficiency, safety and productivity on job sites. Concerns about job displacement are mitigated by the potential for higher-paying remote operator roles.

Thu May 29, 2025 - Northeast Edition #12
Lucy Perry – CEG CORRESPONDENT


In its Cat 775 off-highway truck, Caterpillar scaled its Cat MineStar Command autonomous hauling systems to meet the demands of quarry operations.   (Caterpillar photo) Kubota introduced its KATR four-wheeled all-terrain multifunctional robot at the Consumer Electronics Show in January. The machine, designed to maintains a level cargo deck, can work autonomously or remotely to tackle construction applications.   (Kubota North America photo) Case introduced a new electric wheel loader concept at bauma. Engineered for remote or autonomous operation, the cabin-less design enables operation in extreme environments and adverse weather.   (Case Construction Equipment photo)    (Adobe Stock photo)

The Autonomy of Things, coined by Patience Consulting, is the concept that automating tasks considered difficult, dangerous and sometimes unappealing.

That has come to include autonomous construction equipment, now revolutionizing the way tasks are performed, machines operated, job sites managed and projects completed.

This year, construction machine manufacturers have gone deeper, introducing newer and more sophisticated autonomous models.

At the Consumer Electronics Show (CES) held in January, more than one heavy machinery manufacturer introduced contractors to autonomous rigs.

Caterpillar has made a concerted effort to lead the move toward autonomy in machine operations at mining sites.

At this year's CES, it was clear the company's priority is battery technology and electrification. Anything that extends battery life is a key focus right now.

Autonomous operation ensures optimal cadence of material flow as well as longer times between battery recharging.

"Apart from optimal workflow in a mining location, autonomy has other significant advantages," wrote Sabbir Rangwala in a Forbes magazine article.

The technology addresses the acute shortage of skilled labor in remote locations, enhances safety and preventive maintenance procedures, he said.

It also "allows trained human labor to control multiple pieces of moving equipment from remote locations," wrote Rangwala.

Rob Hoenes, senior vice president of Caterpillar's Energy and Transportation segment, said mining customers have sustainability goals. They have a significant focus on reducing environmental and noise pollution, Rangwala wrote of Hoenes' comments.

Hoenes and Caterpillar believe the key to extending battery life is to optimize overall flow of operations in a mine. Every aspect of operations, from excavating to loading of trucks to transport and unloading are affected, wrote Rangwala.

"Our customers face incredible challenges that technology helps solve," Hoenes told Forbes magazine. "We will continue investing in electrification, alternative fuels, automation, connectivity and digital solutions" to power new ecosystems customers will use, he added.

Expanding Autonomous

Machine Market

Caterpillar isn't the only equipment manufacturer whose customers want streamlined sustainability in their construction businesses.

The autonomous construction equipment market sector is undergoing rapid expansion, according to market reports.

SNS Insider, tracking the demand for AI-powered innovations, efficiency and electric-powered machines, sees sector growth to $28 billion by 2032.

In fact, from 2024-2032 the compound annual growth rate is projected to be 8.99 percent.

SNS said the growth is down to rapid technological advancements in automation and AI, coupled with a global shortage of skilled construction labor.

"These factors are driving the adoption of autonomous machinery to enhance efficiency, safety and productivity," according to an SNS press release.

In addition to Caterpillar, "key players" include Bobcat, CNH Industrial America, Komatsu, AB Volvo, Hitachi, SANY, Royal Truck, Topcon and Deere.

SNS noted that the semi-autonomous equipment segment dominates the market, holding a more than 62 percent market share.

"This is largely due to the human supervision of critical tasks, but automation is becoming increasingly used in construction."

Excavators, loaders, dozers and other semi-autonomous machines all improve efficiency, safety and precision when their operators can intercede.

Labor shortages, increasing infrastructure projects and AI-based control systems are driving the demand for such equipment, continued the report.

"Semi-autonomous solutions provide a transition for contractors to build automation into their operations without completely supplanting human operators."

The report breaks the market sector down by types of equipment. The earth-moving segment had the biggest share in 2023, at more than 32 percent.

That equipment category includes dozers, excavators and loaders used for heavy-duty excavation, grading and site prep, according to SNS's records.

"Global demand for autonomous earth-moving machinery is an indirect consequence of the boom in real estate and infrastructure development worldwide."

Because of the demand for well-organized, accurate, automation-enabled construction, governments and private sectors are investing on a larger scale.

The road construction segment dominated the autonomous equipment market in 2023. SNS reported this segment held a more than 42 percent share.

"This dominance is reinforced by a growing international emphasis on infrastructure improvement, urbanization growth and smart city projects."

"Common" autonomous construction machinery, such as self-driving dozers, pavers and rollers, is "improving efficiency."

These machines are also "reducing reliance on labor and delivering accuracy in road construction," the firm said.

Global governments heavily investing in expanding highways and maintaining roadways are accelerating the demand.

Technology such as AI, GPS and IoT for safety and operational performance has made autonomous road equipment the preferred type.

In 2023, SNS found that North America dominated the autonomous construction equipment market. It had more than 38 percent of market share.

The United States leads this expansion, with advanced technology infrastructure and significant investment in construction automation.

SNS said this, in turn, allows the rapid adoption of autonomous machinery on a variety of projects.

"The factor that solidifies the U.S. regional market leadership is the early adoption of autonomous technologies."

That, combined with the availability of many manufacturers who are also key players in the region.

The rise of AI and robotics, coupled with a commitment to enhancing labor productivity, reducing costs and improving safety, drives that leadership.

Caterpillar has watched the progress of autonomous technology into the construction market. The equipment manufacturer said site communications is key.

"As remote controlled and autonomous construction equipment comes into wider use, construction site communications will play a vital role," said the company.

Vijay Ramamsamy, chief engineer of construction industries remote control and autonomy, believes automated systems are on the way to job sites.

"Semi-autonomous systems will take over key tasks from human operators. Fully autonomous machines will complete tasks all on their own."

The bottom line, he said, is all of these autonomous systems will run on the same thing: data. Specifically, connections both on and off the site.

That's because these equipment systems need to accomplish several things. First, they must feed video and machine data to remote operators.

They also must communicate locations and status between machines; share bandwidth with subcontractors; and provide production information to the GC.

And all this, according to Caterpillar, must be done reliably and largely instantaneously.

So, the question becomes a simple one: "How do you create a data and site communications network for your job site that can meet all those challenges — without breaking the bank?"

New Autonomous Model Launches

Caterpillar introduced the Cat 775 off-highway truck this year at bauma. It is the first next-generation off-highway truck design for the company. The company said in a press release that the 71-ton payload hauler is engineered to be fully autonomous in the future. It will be launched in 2025.

"The design of the Next Gen 775 represents a significant leap forward in off-highway truck technology," said Tony Fassino, group president of construction industries.

Its current autonomous hauling systems (AHS), Cat MineStar Command for hauling, is already at work at mine sites throughout the world.

Scaling the system to meet the specific needs for quarry operations, the company used lessons learned from working with a truck customer.

At CES, Kubota unveiled a range of customer solutions and presented its vision for the future across its entire equipment portfolio. It offers diverse powertrain options, seamless access to data and analytics, improved connectivity and advanced automation.

Equipment on display included KATR Kubota's four-wheeled all-terrain, multifunctional robot. Designed to maintains a level cargo deck when working on uneven terrain, it can work autonomously or remotely to tackle construction applications.

Electric vehicle news site Eletrek reported that Case brought a new electric wheel loader to bauma designed for remote or autonomous operation. In the product concept stage, the cabin-less design of the Impact electric wheel loader enables operation in extreme environments and adverse weather, reported Eletrek.

"It also means that jobsite, disaster recovery or even rescue operations can continue 24/7, with operators in different time zones logging in for their shifts."

Case believes the Impact concept marks a significant advancement in accessibility.

"Operators with motor impairments and other disabilities can now operate the machine without physical limitations," according to the new site.

Are Autonomous Equipment

Alarms Unfounded?

Driverless dozers, excavators, load carriers and haul trucks are performing a variety of jobs on construction sites.

Steel bridge manufacturer U.S. Bridge explained in a blog post that these machines are typically controlled by an operator via remote control.

"This innovation has allowed many construction projects to be completed with minimal safety issues and maximum efficiency."

The use of autonomous vehicles (AV) has increased over the past decade, noted the company, despite concerns about the negative impact on jobs.

"Fortunately, studies have shown that will not be the case." In fact, said U.S. Bridge, autonomous could end up creating higher-paying jobs over time.

While traditional operator roles will transition to remote operations, they'll be in high demand, and working conditions will be better, said the blog post.

The technology minimizes the risk of injury and provides operators with a clear view of the work happening, said the bridge manufacturer.

"We can expect to see autonomous construction equipment on job sites across the country in a matter of decades," predicted the company. "As such, learning the new skills of the trade will be essential to keeping up with the evolution of the industry." CEG


Lucy Perry

Lucy Perry has 30 years of experience covering the U.S. construction industry. She has served as Editor of paving and lifting magazines, and has created content for many national and international construction trade publications. A native of Baton Rouge, Louisiana, she has a Journalism degree from Louisiana State University, and is an avid fan of all LSU sports. She resides in Kansas City, Missouri, with her husband, who has turned her into a major fan of the NFL Kansas City Chiefs. When she's not chasing after Lucy, their dachshund, Lucy likes to create mixed-media art.


Read more from Lucy Perry here.





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