CAT 360.58 (+4.28%)
US1491231015Farm & Heavy Construction MachineryFarm & Heavy Construction Machinery

Last update on 2024-03-05

Caterpillar (CAT) Explained

An Overview of CAT: Its Business Strategy, Core Products, Major Competitors, and Essential Insights into its Role in the Farm & Heavy Construction Machinery Industry

Caterpillar is an iconic manufacturer of heavy equipment, power solutions, and locomotives. It is currently the worlds largest manufacturer of heavy equipment with over 13% market share in 2021. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Caterpillar Financial Services. Its products are available through a dealer network that covers the globe with about 2,700 branches maintained by 160 dealers. Caterpillar Financial Services provides retail financing for machinery and engines to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Caterpillar product sales.

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Current Business Strategy

Caterpillar’s current strategy focuses on operational excellence, profitable growth, and deploying services and solutions that are digitally enabled. This approach emphasizes expanding its offerings in the digital realm to increase efficiency and productivity for its customers, while also maintaining a commitment to sustainability and reducing its environmental footprint. The company aims to leverage technology and innovation to solidify its leadership in the construction, mining, and energy sectors.

Most known Products

Here is the list of the 5 most well-known products of Caterpillar (CAT):

  • Bulldozers: Caterpillar bulldozers are known for their reliability and durability. They are used in a variety of tasks such as clearing and grading land, road construction, and mining.
  • Excavators: These are hydraulic machines that Caterpillar manufactures for digging, material handling, and demolition. Excavators are indispensable on construction sites.
  • Motor Graders: Caterpillar motor graders are essential for the construction and maintenance of roads. They are used to create flat surfaces and precise gradations.
  • Backhoe Loaders: These versatile machines combine the functionalities of an excavator and a loader, making them useful for a wide range of tasks from digging to loading.
  • Gas Generators: Caterpillar's gas generators are used for power generation applications. They are known for their efficiency, reliability, and capability to use various types of gases as fuel.


Here is the list of the main 5 competitors of Caterpillar (CAT):

  • DE: Deere & Company, often known by its brand name John Deere, is a competitor to Caterpillar, primarily in the agricultural equipment sector, but also competes in construction and forestry equipment.
  • KMTUY: Komatsu Ltd. is a direct competitor to Caterpillar in the construction and mining equipment sector. Komatsu’s wide range of machinery is in direct competition with Caterpillar’s product lineup.
  • CNHI: CNH Industrial N.V. competes with Caterpillar in the construction equipment and agricultural machinery sectors, offering a diverse portfolio of products and services.
  • VOLV.B: Volvo Group, particularly through its construction equipment division, competes with Caterpillar in the heavy machinery and construction equipment market.
  • HITAF: Hitachi, Ltd., through its subsidiary Hitachi Construction Machinery, competes with Caterpillar in the global construction machinery sector, offering hydraulic excavators, wheel loaders, and mining equipment.

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