Construction equipment makers enter expansion mode

HD Hyundai Construction Equipment's 40-ton excavator, left, and HD Hyundai Infracore's 24-ton excavator are on display at HD Hyundai XiteSolution's exhibition booth for the 2025 Seoul Mobility Show at KINTEX in Goyang, Gyeonggi Province, April 3. Courtesy of HD Hyundai XiteSolution

Korea’s leading construction equipment manufacturers have resumed efforts to expand their global presence ahead of a widely anticipated market recovery next year.

HD Hyundai is preparing to launch HD Construction Equipment on Jan. 1, following shareholder approval in September for merging its two heavy machinery units, HD Hyundai Construction Equipment and HD Hyundai Infracore.

The new entity aims to generate $10 billion in annual sales by 2030 and join the ranks of the world’s top 10 construction machinery makers.

"With optimized product lineups and production system customized for each region, HD Construction Equipment will achieve economies of scale and build a full lineup of construction machinery ranging from compact to ultra-large models," an HD Hyundai official said.

"The company will also diversify the sources of income, leveraging integrated R&D capabilities to secure future growth engines such as electrification, smart equipment and total solutions."

Doosan Bobcat's T7X all-electric compact track loader / Courtesy of Doosan Bobcat

Doosan, which has focused mainly on the North American equipment market, has begun targeting Europe through Doosan Bobcat’s bid to acquire Germany’s Wacker Neuson.

The German construction equipment maker said Doosan Bobcat is considering acquiring a 63 percent stake from major shareholders and then launching a public tender offer for the remaining shares held by minority shareholders.

"Doosan Bobcat has a strong market share in North America, while it is relatively weak in Europe," said Douglas Kim, an analyst at SmartKarma, a Singapore-based investment research firm.

"Wacker Neusen, on the other hand, has a significant presence in Germany, Austria and Northern Europe, making it a strong fit for Doosan Bobcat's European expansion strategy."

With the takeover bid, Doosan Bobcat is also seeking to further increase its North American market share. Earlier this month, the company filed patent infringement suits in the United States and Europe against Caterpillar, the Texas-headquartered heavy machinery giant.

"The 14 patents at issue cover technologies that support key performance attributes, including maneuverability, power, efficiency and overall machine performance," a Doosan Bobcat official said. "We took the legal actions to protect our patented technologies, defend fair competition and safeguard innovation and craftsmanship."

According to U.K.-based construction equipment market tracker Off-Highway Research, the global construction equipment market bottomed out this year and is expected to post its first growth in five years in 2026.

The upbeat outlook is attributed to rising mining activity and an imminent U.S. interest rate cut, which is likely to spur new construction projects.

"HD Hyundai will narrow the gap with the world's top-tier players as the planned merger will diversify product portfolio," LS Securities analyst Choi Jeong-hwan said. "As the dominant player in the North American compact construction equipment market, Doosan Bobcat is expected to benefit from the U.S. housing market recovery."