Caterpillar (CAT) is an American Fortune 100 company that designs and manufactures mining and construction equipment, gas turbines, engines, and locomotives. CAT also offers financial services and insurance via dealers globally and licenses CAT-branded workwear and toughened mobile devices.
In 1925, C. L. Best Tractor Company merged with Holt Manufacturing Company to create Caterpillar Tractor Company. The company expanded rapidly in its initial years, fueled by acquisitions and military production contracts during WWII.
Today, CAT has around 102,000 employees and operates from Deerfield, Illinois. In 2021, CAT’s full-year revenue increased by 22% to $51.0 billion, from $41.7 billion in 2020. [1 ]
CAT is the leading manufacturer of construction and mining equipment globally.
The company operates worldwide via four segments: Construction, Resource, Energy and Transportation, and Financial Products.
For nearly 100 years, CAT delivered innovative products to its customers via a global dealer network. The company’s machinery and branded products are recognized globally by the “CAT” logo and “Caterpillar Yellow” color.
But factory shutdowns, supply chain issues, higher production costs, and labor shortages threaten CAT’s operating margins. CAT also faces stiff competition from heavy-equipment manufacturers, such as John Deere, Volvo, Komatsu, JCB, and SANY. [2 ]
Year founded: 1836 Headquarter: Moline, Illinois
John Deere is the second-largest heavy equipment manufacturer globally, behind Caterpillar. The company operates under Deere & Company and employs over 70,000 people worldwide. In 2021, John Deere’s revenue was $39.737 billion and a net income of $5.963 billion. [3 ]
John Deere produces machinery for agriculture, construction, and forestry. But CAT specializes in the construction and mining sectors. Both companies manufacture heavy equipment, diesel engines, and drivetrains.
In CES 2022, John Deere unveiled its first automated tractor that can work on the farm without a driver. The vehicle is loaded with cutting-edge tech, proclaiming John Deere’s innovative capabilities . John Deere is the top Caterpillar competitor and alternative for many reasons. [4 ]
Where dirt meets data meets the Mojave desert #CES2022 pic.twitter.com/UZpy4SHMGd
Year founded: 1832 Headquarter: Gothenburg, Sweden
Volvo CE is part of the Volvo Group and one of the leading manufacturers, specializing in agricultural haulers and wheel loaders globally. The company has over 14,000 employees in 145 countries. For full-year 2021, Volvo CE generated $9.3 billion in revenue.
Volvo CE helped pioneer compact machinery for construction, excavation, and road development. In 2021, the company delivered 321 compact electric machines, including the ECR25 excavator and the L25 wheel loader.
Volvo CE also made its first shipment of the EC230 Electric excavator in late 2021, setting another milestone. The company is perfectly positioned to exploit the ever-increasing demand for electric machinery globally. As a subsidiary of Volvo Group, Volvo CE has enough resources to challenge Caterpillar. [5 ]
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Year founded: 1921 Headquarter: Tokyo, Japan
Komatsu is the second-largest manufacturer of construction and mining equipment globally after Caterpillar. According to a 2021 report, the US construction equipment market is consolidated between Caterpillar, John Deere, and Komatsu. In 2021, Komatsu had 61,908 employees and generated $24.52 billion in revenue. [6 ]
Although Komatsu lags behind Caterpillar in the construction sector, it is making significant gains in the mining industry. In Oct 2021, Komatsu signed a collaboration deal with Proterra to electrify its next-gen underground mining machines.
The company also caters to the military, forestry, and industrial sectors. Komatsu is the best Caterpillar alternative for mining machinery. [7 ]
With My Komatsu, you can check machine telematics, access and order Smart Construction solutions, view support materials, order parts and more, from one centralized location. Learn more: https://t.co/oFBdoxBYca#komatsusmartconstruction #smartconstruction #mykomatsu pic.twitter.com/Zqy958Rjlo
Year founded: 1945 Headquarter: Rochester, UK
JCB is a UK-based off-highway vehicle manufacturer catering to agriculture, demolition, waste management, and construction. The company employs around 11,000 people and operates 22 factories globally.
In fiscal 2021, JCB’s revenue declined by over $1 billion to $3.5 billion. Its machine sales dropped from 92,216 vehicles in FY 2020 to 74,590 in FY 2020. Despite the decline, JCB posted substantial profits.
JCB manufactures over 300 types of heavy equipment and leads the way in zero emissions tech. The company developed the industry’s first combustion engine powered by hydrogen, already being tested in JCB machines.
This engine is designed for construction equipment, increasing JCB’s competitiveness over Caterpillar in the sector. JCB is a formidable Caterpillar competitor. [8 ]
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Year founded: 1986 Headquarter: Changsha, Hunan
SANY is a heavy-equipment manufacturer that produces cranes, wind turbines, and machinery for road construction, port, mining, and petroleum drilling. The company has over 18,000 employees and more than 100 offices in 150 countries. In 2021, SANY’s annual sales were $14.4 billion.
SANY entered the Forbes TOP500 Club for the first time in 2021. The company surged 235 places to 468th on the 19th Annual Forbes Global 2000 list, with a market value of $41.2 billion. Based on Forbes’ metrics, SANY is the leading heavy-equipment manufacturer in China and the second globally, after Caterpillar. [9 ]
Year founded: 1943 Headquarter: Xuzhou, China
XCMG is one of the largest manufacturers of construction machinery. In 2020, XCMG had over 14,000 employees and made $11.5 billion in revenue. The company posted $8.247 billion in the first half of 2021 ended in Aug, marking 51.8% growth year-on-year. So, it is on track to deliver record-breaking revenue for fiscal 2021.
Like Caterpillar, XCMG produces construction equipment, drilling and aerial working machines, and off-road trucks. According to KHL, XCMG is the third-largest construction machinery manufacturer globally. But the company faces stiff competition from SANY at home in China, undercutting its advantage over Caterpillar on the global stage. [10 ]
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Year founded: 1933 Headquarter: Westport, Connecticut
Terex is a global manufacturer of aerial work platforms and machinery for construction, energy, industrials, and mining. The company produces dump trucks, scrapers, crawlers, and front-end loaders. In 2021, Terex had around 8,000 employees and generated $3.9 billion, up 26% compared to 2020. [11 ]
Terex was the leading manufacturer of off-highway dump trucks in the US. But lost its market share to Caterpillar and other competitors.
The company is focused on reinventing its products to help customers reduce their environmental impact. Its product line includes electric and hybrid offerings that deliver emission-free performance. Terex is a worthy Caterpillar competitor.
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Year founded: 1949 Headquarter: Bulle, Switzerland
Liebherr Group is the leading crane manufacturer globally. The company also produces mining and construction equipment that competes with Caterpillar’s machines. In 2021, Liebherr Group had 47,925 employees with an annual turnover of $11.69 billion. [12 ]
Liebherr’s maritime harbor crane business posted record-breaking sales in 2021, including an order intake volume of over 80 new units.
The company also sold more secondhand cranes in 2021 to customers from 31 countries. Its LHM 550 is the most popular crane globally, followed by the LHM 420. Liebherr is the top Caterpillar competitor and alternative in the crane market. [13 ]
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Year founded: 1910 Headquarter: Tokyo, Japan
Hitachi Construction Machinery is a heavy-equipment division of Hitachi Group that manufactures excavators, loaders, road construction machinery, and dump trucks.
In 2021, Hitachi Group had more than 307,275 employees and made $85.4 billion in revenue. However, Hitachi Construction Machinery accounted for 8% of the company’s total revenue.
Hitachi Construction Machinery competes against Caterpillar’s Construction Industries segment. In 2020, Hitachi ZW180-6 wheel-loader won the Top 100 New Products Award by CEM. But Hitachi Group is interested in selling Hitachi Construction Machinery. Uncertainties about the future undercut Hitachi’s competitive advantage over Caterpillar. [14 ]
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Year founded: 2012 Headquarter: London, UK
CNH Industrial is a heavy-equipment manufacturer owned by Exor. The company employs around 63,500 people and manufactures agricultural equipment and commercial vehicles. In 2021, CNH’s revenues surged 28% to $33.4 billion, with a net income of $1.76 billion. [15 ]
In Jan 2022, CNH Industrial completed the demerger with its commercial vehicle business Iveco. CNH Industrial will now focus on equipment manufacturing for agriculture and construction. The demerger increases CNH’s competitive advantage over Caterpillar. [16 ]
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References & more information
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