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The construction equipment market in APAC is estimated to grow at a CAGR of 5.09% between 2022 and 2027. The size of the market is forecast to increase by USD 19,239.15 million. The growth of the market depends on several factors, including the increased investment in infrastructure, the increase in the number of smart cities, and the increasing residential and commercial construction activities.
This report extensively covers market segmentation by product (earthmoving equipment, material handling equipment, concrete and road construction equipment, and other equipment) and application (commercial, residential, and infrastructure). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increased investment in infrastructure is notably driving the market growth, although factors such as the growing secondhand machine equipment may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Construction Equipment Market Driver in APAC
Increased investment in infrastructure is driving the growth of the APAC construction equipment market. The demand for construction equipment is growing in APAC owing to the increasing investment in infrastructure projects. For instance, in 2020, China invested around $13.1 billion in the development and construction of the Beijing International Airport, which is designed to handle about 72 million passengers by 2025. Governments across the region are investing significantly in the development of sports infrastructure and facilities.
For instance, in 2022, China invested USD 3.9 billion in Olympic infrastructure. Thus, the spending on capital-intensive projects and infrastructure development is expected to grow significantly in the next decade. Such actions taken by governments to improve the infrastructure are expected to drive the growth of the market in APAC during the forecast period.
Significant Construction Equipment Market Trend in APAC
The rising number of strategic partnerships and alliances is the primary trend in the APAC construction equipment market growth. The growth potential of the construction equipment market in APAC is encouraging vendors to enter into strategic partnerships and acquisitions to expand their customer base and footprint. Due to this, the vendors in the market are carrying out acquisition strategies. For instance, in January 2021, Sumitomo Corporation acquired 100% of the shares of Aver Asia Pte. The acquisition helped Sumitomo Corporation expand its business in Southeast Asia, which will witness growth in the construction equipment rental market.
Similarly, in September 2020, SANY partnered with Adelaide Heavy Machinery to expand its reach in South Australia. The increasing number of partnerships and acquisitions in the market in focus is expected to accelerate the growth of the market in APAC during the forecast period.
Major Construction Equipment Market Challenge in APAC
The growing number of secondhand machine equipment is a major challenge to the growth of the APAC construction equipment market. A major challenge faced by the market in APAC is the growing secondhand machine equipment sector. Since many manufacturing industries have moved to APAC, owing to the low-cost manufacturing facilities in the region, secondhand machines are being used, especially in emerging economies, such as China, India, and Pakistan. It has been observed that many Asian contractors and mining companies are eager to buy secondhand construction equipment, such as excavators, at low prices.
By using secondhand machines, contractors can control their capital investments as these machines are available at affordable prices. Small manufacturers find it challenging to buy new machines owing to their high costs. Once refurbished and reconditioned, these machines become as good as new ones. China has become a major market for secondhand machines among construction equipment vendors. Thus, the growing secondhand machine market will limit the demand for new construction equipment market in the APAC during the forecast period.
Key Construction Equipment Market in APAC Customer Landscape
The 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 growth strategies.
Global Construction Equipment Market in APAC Customer Landscape
Vendors 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.
cnhindustrial.com - The company offers construction equipment such as hydraulic excavators, track-type tractors, wheel loaders, and soil compactors.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The Asia Pacific construction equipment market is a part of the global construction machinery and heavy trucks market within the global capital goods market. The parent market covers a variety of product categories, including heavy-duty trucks, heavy earthmoving equipment, compact earthmoving equipment, road construction, and compaction equipment, crushing and screening equipment, concrete equipment, civil engineering equipment, lifting equipment, and other related equipment. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The market share growth by the earthmoving equipment segment will be significant during the forecast period. In this segment, the growth in the number of megacities reflects the growing migration of the population from rural areas to urban areas. The migration also signifies the growing disposable incomes of the population. As a result of the increased disposable incomes and the migration of the population to urban areas, cities are expanding to accommodate the growing population. Consequently, the construction of roads, railways, residential buildings, hospitals, and hotels is increasing. This development will lead to increased construction activities and growing infrastructure, which will result in the augmenting demand for earthmoving equipment during the forecast period. Countries such as India and China, which are witnessing a trend of urbanization, are expected to drive the demand for earthmoving equipment during the forecast period.
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The earthmoving equipment segment USD 33,655.04 million in 2017 and continue to grow by 2021. The earthmoving equipment segment comprises mobile and power-propelled vehicles designed to carry, dig, spread, or move earth or materials. These are usually used to excavate or move large amounts of earth, dig foundations, and landscape an area. The equipment under this segment includes excavators, loaders, dozers, and motor graders. The increasing investment in the infrastructure industry to improve facilities in the government and private sectors is expected to provide growth opportunities for the vendors in the earthmoving equipment segment of the Asia Pacific construction equipment market in focus during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Construction Equipment Market Scope in APAC |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.09% |
Market growth 2023-2027 |
USD 19,239.15 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.56 |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, Caterpillar Inc., CNH Industrial NV, Deere and Co., Doosan Corp., Epiroc AB, Guangxi LiuGong Machinery Co. Ltd., Hitachi Ltd., Hyundai Construction Equipment Co. Ltd., 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., XCMG Group, and Atlas Copco AB |
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 report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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