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The APAC Construction Equipment Market size is forecast to increase by USD 21.41 billion, at a CAGR of 5.4% between 2023 and 2028. The market is experiencing significant growth due to several key trends and factors. One of the primary drivers is the increased investment in infrastructure development, particularly in emerging economies, which is leading to a rise in demand for construction equipment. Another trend is the growing preference for construction equipment rentals, which offers cost savings and flexibility to construction companies. Additionally, the market is witnessing a rise in the popularity of secondhand machine equipment, which is more affordable for small and medium-sized enterprises. These trends are expected to continue shaping the market in the coming years.
The market is witnessing significant growth due to the increasing infrastructure investments in various sectors such as construction and mining, agriculture, forestry, material handling, waste management, municipal services, and infrastructure development. The efficiency of construction activities is a key factor driving the demand for advanced construction equipment. Automated equipment, including forklifts, pavers, and dozers, is increasingly being adopted to enhance productivity and reduce labor costs. However, the equipment rental industry has been a saving grace, providing flexibility to customers during uncertain times. Original equipment manufacturers (OEMs) are focusing on developing battery-powered equipment to reduce greenhouse gas emissions and meet sustainability requirements. Infrastructure projects, such as national highway projects, are driving the demand for construction equipment. The national infrastructure pipeline, funded by special-purpose bonds, is expected to provide significant opportunities for market growth. Autonomous machinery is gaining popularity in the construction equipment market due to its ability to increase efficiency and reduce labor costs. The adoption of autonomous and construction machinery is expected to increase significantly in the coming years, especially in the mining and transportation sectors. Road infrastructure is a major focus area for infrastructure development, and the construction equipment market is expected to grow in tandem with these investments.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market share growth by the commercial segment will be significant during the forecast period. Construction activities in various sectors, including mining, agriculture, forestry, and municipal services, require the utilization of efficient and technologically advanced equipment for optimal performance. Equipment efficiency is crucial in ensuring the timely completion of projects and reducing operational costs. Original Equipment Manufacturers (OEMs) are focusing on producing fuel-efficient and automated equipment, such as cranes, earthmoving equipment, concrete equipment, and road building equipment, to cater to the increasing demand.
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The commercial segment was the largest and was valued at USD 25.51 billion in 2018. The rental services sector is also gaining traction due to the high initial investment required for purchasing heavy construction machinery. Infrastructure investments in smart city development, transportation, and national highway projects are expected to boost market growth. However, the environmental imbalance caused by ozone emissions from heavy construction equipment is a concern. To mitigate this, there is a growing trend toward the adoption of battery-powered equipment and the integration of the Internet of Things (IoT) and Information and Communications Technology (ICT) in construction machinery for improved productivity and reduced environmental impact. The mining, agriculture, forestry, material handling, waste management, and municipal services sectors are significant consumers of construction equipment. The equipment rental industry is expected to grow in parallel with the increasing number of infrastructure projects.
Increased investment in infrastructure is notably driving market growth. The construction equipment market in APAC is experiencing significant growth due to escalating infrastructure investments and increasing construction activities. Urbanization in countries such as China, India, and Southeast Asian nations is driving the demand for construction equipment, with governments investing heavily in smart city development and urban infrastructure to accommodate growing populations. The focus on automation and technologically upgraded equipment, including fuel-efficient cranes, earthmoving equipment, concrete equipment, road building equipment, and civil engineering equipment, is also contributing to the market growth. Rental services for material handling equipment, such as forklifts, pavers, dozers, and other heavy construction machinery, are increasingly popular in the region.
Original Equipment Manufacturers (OEMs) are responding to the demand for eco-friendly equipment by producing battery-powered and fuel-efficient alternatives. The integration of ICT, Internet of Things (IoT), and Construction machinery is revolutionizing the industry, enhancing equipment efficiency and reducing environmental imbalance, including ozone emissions. National highway projects and transportation infrastructure are also significant contributors to the market growth. Thus, such factors are driving the growth of the market during the forecast period.
The growing trend of construction equipment rentals is the key trend in the market. Amidst the economic downturn following the 2008 financial crisis, construction companies have had to prioritize efficiency in their operations to remain competitive. The high initial investment required for acquiring expensive construction equipment, such as cranes, bulldozers, and concrete mixers, makes it challenging for companies to purchase machinery for smaller-scale projects or those of short duration. To ensure flexibility and adaptability to the economic climate, construction firms increasingly opt for renting equipment from the equipment rental industry. This arrangement not only saves capital expenditure but also eliminates the burden of maintenance costs.
Moreover, the growing emphasis on infrastructure investments for smart city development, national highway projects, and municipal services in sectors like mining, agriculture, forestry, waste management, and civil engineering, necessitates the use of advanced, technologically upgraded equipment. This includes automated machinery, fuel-efficient equipment, and ICT-enabled solutions such as the Internet of Things (IoT) and Construction machinery. Original Equipment Manufacturers (OEMs) are responding to this demand by producing a diverse range of heavy construction equipment, material handling equipment, and road building equipment. The shift towards battery-powered equipment, like forklifts and pavers, further underscores the industry's commitment to reducing environmental imbalance and ozone emissions. Thus, such trends will shape the growth of the market during the forecast period.
Growing secondhand machine equipment is the major challenge that affects the growth of the market. The market faces a significant challenge with the increasing prevalence of secondhand machinery in construction activities. This trend is particularly prominent in emerging economies such as China, India, and Pakistan, where many manufacturing industries have established operations due to the region's low-cost manufacturing facilities. Asian contractors and mining companies are keen on procuring secondhand construction equipment, including excavators, at affordable prices, allowing them to manage their capital investments effectively. Small manufacturers find it challenging to acquire new machinery due to their high costs. However, the construction equipment market is witnessing several trends that are expected to offset the impact of secondhand machinery.
Infrastructure investments, smart city development, and environmental concerns are driving the demand for technologically upgraded equipment, such as automated cranes, earthmoving equipment, concrete equipment, and road building equipment. Original Equipment Manufacturers (OEMs) are responding to this trend by producing fuel-efficient equipment, incorporating Internet of Things (IoT) and ICT technologies, and offering rental services for heavy construction machinery. Furthermore, the growing emphasis on reducing environmental imbalance and ozone emissions is leading to the adoption of battery-powered equipment, such as forklifts, pavers, and dozers, in material handling and waste management, as well as municipal services. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AB Volvo - The company offers construction equipment such as excavators, wheel loaders, and off road dump trucks.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing demand for infrastructure development and smart city projects worldwide. Construction activities in sectors such as mining, agriculture, forestry, and municipal services require efficient and technologically upgraded equipment for optimal performance. Heavy construction equipment, including cranes, earthmoving equipment, concrete equipment, and road building equipment, are in high demand for infrastructure projects. The equipment rental industry plays a crucial role in providing flexible rental services for various types of construction machinery, including forklifts, pavers, dozers, and more.
Original equipment manufacturers (OEMs) are focusing on producing fuel-efficient equipment and automated machinery to reduce environmental imbalance and comply with regulations on ozone emissions. The integration of ICT, IoT, and other advanced technologies in construction machinery is revolutionizing the industry, enabling real-time monitoring, improved productivity, and enhanced safety. Infrastructure investments in national highway projects and transportation systems are expected to boost the demand for construction equipment in the coming years. Despite the challenges posed by construction activities closure due to the pandemic, the market is expected to recover and grow steadily.
Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.4% |
Market growth 2024-2028 |
USD 21.41 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.8 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, Atlas Copco AB, Caterpillar Inc., CNH Industrial NV, Deere and Co., Doosan Corp., Epiroc AB, Guangxi Liugong Machinery Co. Ltd., Hitachi Ltd., Hyundai Motor Co., J C Bamford Excavators Ltd., Komatsu Ltd., Kubota Corp., Larsen and Toubro Ltd., Liebherr International AG, Mahindra and Mahindra Ltd., Sany Group, Sumitomo Heavy Industries Ltd., Tadano Ltd., and Xuzhou Construction Machinery Group Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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