The construction equipment industry comprises a wide range of heavy machines which perform specific tasks. Construction equipment can be classified according to the size and capability of the construction machinery, however, there have also been a few changes in their classification based on design specifications and cost effectiveness. Compact construction equipment is an emerging term used in the construction equipment industry, which refers to small units are designed to work on small commercial and residential sites. The major utility factor of compact construction equipment is their versatility and ability to perform tasks that were previously undertaken by heavy machinery. The main advantages of compact construction equipment are that they are low cost, light weight,and easy to transport and operate. However, there is no industry standard to specify any requirements to be met for equipment to be categorised as compact construction equipment.Categorisation is more dependent on the type of application performed in a particular sector. Generally, track loaders, excavators, backhoe loaders, skid steers and telehandlers are classified under compact construction equipment.