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Most companies offering goods and services rely on raw materials and capital goods obtained elsewhere. Multiple major conglomerates are creating these capital goods that facilitate manufacturing businesses that cannot develop them themselves.

Here, we take a peek at these wizards behind the curtain who help all kinds of companies produce anything from medical devices and medicine to cars and planes.

So read on to learn how the modern industry sector works.

What Are Capital Goods?

Put simply, capital goods are physical products used to create other goods—for example, tools, vehicles, machinery, chemicals, and even various spaces and buildings.

The capital goods industry plays a crucial role in driving economic growth and product innovation and development. After all, without them, we wouldn’t have the variety of consumer goods available today to make our lives better and easier.

The 10 Best Capital Goods Companies

So let’s delve into the top 10 companies in the capital goods field, exploring their market value, growth trajectory, and key details about their operations.

1. General Electric (GE)

• Market Value: $121 billion 
• Employees: Over 172,000

General Electric, commonly known as GE, is a multinational conglomerate based in Boston and New York. With a rich history spanning more than a century, GE has established itself as a leader in various industries, including aviation, healthcare, and power.

Businesses of all sorts use GE’s engines, software solutions, wind turbines, and even weapons on a steady basis. To stay on top of the game, GE invests a huge chunk of its yearly revenue into R&D of new competitive technologies to stay ahead of its rivals.

2. Siemens AG

• Market Value: $134 billion 
• Employees: Approximately 311,000

Headquartered in Germany, Siemens AG is a global powerhouse in the capital goods sector, as it successfully provides automation and digitalization products and services for several sectors, including construction, energy, healthcare, and transportation.

Specifically, the company is a well-known pioneer of several innovative technologies, such as medical imaging equipment and various industrial automation solutions. Lately, they’ve also been making significant progress in AI and machine learning.

3. Honeywell

• Market Value: $138 billion 
• Employees: Over 103,000

With experience dating back to the early 1900s, Honeywell was built into a technology and manufacturing giant producing cutting-edge capital goods for a while now.

While operating in the aerospace, building, and safety sectors, Honeywell offers a rich portfolio of everything from avionics systems and navigation technology to heating & ventilation products, various performance chemicals and materials, and protective gear.

4. Caterpillar Inc.

• Market Value: $134 billion
• Employees: Over 109,000

Also known as CAT, this construction equipment manufacturer became a global behemoth over the last decades and is now offering all sorts of mining and construction equipment, vehicles, and materials, as well as engines, power systems, and financial services.

A slew of industries across the globe are relying on Caterpillar’s premium products, including the mining and construction sector, agriculture, transportation, forestry, energy production, and many more. Without infrastructure, there’s no development, and without Caterpillar, building a country’s industrial infrastructure is rather difficult.

5. 3M

• Market Value: $58 billion
• Employees: Over 92,000

Originally known as Minnesota Mining and Manufacturing, 3M has evolved into one of the world’s leading capital goods manufacturers, producing everything from adhesives and laminates to medical and car products and software solutions.

Nowadays, 3M is focused on expanding its global presence across several industries (healthcare, electronics, construction, and automotive) and investing heavily in its R&D department to create breakthrough technologies.

6. Raytheon Technologies (RTX)

• Market Value: $142 billion 
• Employees: Over 190,000

Formed after the merger of Raytheon and United Technologies, Raytheon Technologies (RTX) has an expansive area of influence in the aerospace and defense sectors. On top of that, the company is operating in the space exploration and cybersecurity spheres.

So can encounter the brand’s stamp on anything from military equipment (missiles, radars, weapons, etc.) to cutting-edge cybersecurity software, aircraft, and aerospace products, such as avionics systems, flight control systems, landing gear, and more.

7. ABB Group

• Market Value: $75 billion
• Employees: Over 105,000

This Swedish-Swiss conglomerate has been one of the leaders in the capital goods sector for decades, thanks to its state-of-the-art robotics, automation, and electrical equipment.

You’ll find it offers anything from various robotic assistants to power generators, electrical components, and software platforms for automation purposes. For that reason, you’ll find its products in industries such as transportation, manufacturing, and utilities.

8. John Deere

• Market Value: $132 billion 
• Employees: Around 70,000

Deere & Company, commonly known as John Deere, is a renowned American manufacturer of construction, agricultural, and forestry machinery. Its commitment to quality, durability, and innovative solutions has contributed to its excellent growth and market value. 

With a strong customer base and a global presence, Deere & Company continues to expand its product portfolio to cater to the evolving needs of the agriculture and construction sectors, which products like top-notch tractors, harvesters, excavators, and more.

9. Hitachi

• Market Value: $59 billion 
• Employees: Approximately 300,000

This diversified Japanese conglomerate has operations in various sectors, including construction machinery, power systems, and information technology. Regardless of the sector in which it operates, Hitachi delivers innovative and unique products.

Thus, its portfolio includes all sorts of products, ranging from data storage and server solutions to power generators, industrial pumps, railway systems, medical imaging technology, mining equipment, and engine electronics for motor vehicles.

10. Emerson Electric

• Market Value: $53 billion 
• Employees: Over 85,000

Based in the United States, Emerson Electric is another company older than a century that has grown into a key player in the capital goods industry with a portfolio covering the manufacturing, energy, healthcare, electronics, and telecommunications sectors.

The company’s product line includes everything from automation solutions and commercial and residential systems to climate technologies, home tools and products, and networking solutions. On top of that, this giant is shaping technological advancements daily.

Conclusion

All of the companies listed above are powerhouses that drive innovation, growth, and technological advancements. After all, they supply essential machinery, equipment, and services to various other manufacturers. On top of that, they are also major employers with vast workforces and employment opportunities. 

Furthermore, sustainability is a key focus for these companies, as they keep on implementing environmentally friendly practices, investing in clean technologies, and promoting energy-efficient solutions. So as we move forward, these behemoths will keep on shaping the industrial landscape, the global economy, and our lives at large.