APAC Construction Equipment Market Size 2024-2028
The construction equipment market in APAC size is forecast to increase by USD 21.41 billion billion at a CAGR of 5.4% between 2023 and 2028.
- The market is experiencing robust growth, driven by increased investment in infrastructure development and the growing trend of construction equipment rentals. This market is witnessing significant advancements, with a focus on integrating smart technologies such as the Internet of Things (IoT) into construction machinery and material handling equipment. Smart cities are a key driver, with a demand for efficient waste management solutions and the integration of industrial lighting and renewable energy in construction projects. Furthermore, the adoption of autonomous vehicles, such as construction dumpers and forklift trucks, is transforming the industry's productivity and safety. The Construction Equipment Market is expected to continue its upward trajectory, with the emergence of data centers and the need for heavy-duty trucks in various sectors fueling demand.
- Amidst these opportunities, challenges persist, including the impact of infectious diseases on construction sites and the need for stringent safety regulations. Explore deeper insights into the Construction Equipment Market's dynamics to stay ahead of the competition.
What will be the Size of the market During the Forecast Period?
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In the APAC construction equipment market, several key trends are shaping the industry's future. Standards organizations are driving the adoption of sustainable practices, such as the use of green materials and alternative fuels, in soil compaction equipment and hydraulic excavators. Virtual reality technology is revolutionizing operator training and project planning, while innovation hubs foster research and development in areas like hydrogen fuel cells and building information modeling. Sustainability continues to be a priority, with emission reduction initiatives and the use of recycled materials gaining traction. Construction management software and logistics management solutions are optimizing labor productivity and supply chain efficiency.
Heavy lift projects require mobile cranes and telescopic handlers, while concrete pumps and crawler dozers are essential for large-scale construction sites. Risk management is crucial in construction, with predictive maintenance and remote monitoring technologies helping to mitigate potential issues. Regional development projects are driving demand for drilling rigs and asphalt plants. Industry associations are promoting smart construction practices, such as the integration of augmented reality and predictive analytics, to enhance productivity and quality control. Venture capital investments in startups are fueling innovation in areas like autonomous machinery and modular construction. Public-private partnerships are also playing a significant role in financing infrastructure projects and promoting regional development.
Underground mining operations are adopting advanced technologies like remote monitoring and emission reduction systems to improve safety and efficiency.
How is this market segmented and which is the largest segment?
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.
- Application
- Commercial
- Residential
- Infrastructure
- Product
- Earthmoving equipment
- Material handling equipment
- Concrete and road construction equipment
- Other equipment
- Industry
- Public Works & Rail Road
- Mining
- Military
- Oil & Gas
- Forestry & Agriculture
- Manufacturing
- End-use
- Residential
- Commercial
- Industrial
- Geography
- APAC
- China
- India
- Japan
- South Korea
- APAC
By Application Insights
- The commercial segment is estimated to witness significant growth during the forecast period.
The market is experiencing significant activity and evolving trends in various sectors. Infrastructure development is a key driver, with governments and private entities investing heavily in construction projects. For instance, in emerging economies like China, India, and Indonesia, commercial construction is seeing substantial investment, with projects such as the Pomalaa plant and Tanjung Enim coal gasification plant underway, valued at USD 4.5 billion and over USD 2 billion, respectively. Moreover, the construction industry is embracing technology to address challenges such as labor shortages, skills gap, and maintenance costs. Automation and remote control are becoming increasingly popular, with the adoption of artificial intelligence, Internet of Things, and autonomous operation in material handling and heavy equipment.
Market consolidation is also occurring, with private investment and mergers shaping the competitive landscape. Regulatory compliance is another critical factor, with emission standards and safety regulations influencing the market. Sustainability is a growing concern, with a focus on energy efficiency, carbon footprint reduction, and green building. Industry standards are being set to ensure operator safety and economic growth, while rental services and after-sales support are gaining importance. In the context of global trade, supply chain disruptions and fuel efficiency are key considerations. Hybrid powertrains and electric vehicles are gaining traction to mitigate these challenges. Additionally, government policies and investment incentives are playing a significant role in market growth.
Despite these opportunities, challenges persist, including regulatory compliance, skills gap, and economic uncertainty. However, with advancements in technology, collaboration, and innovation, the Metal Additive Manufacturing Market is poised for continued growth and transformation.
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Market Dynamics
Our APAC Construction Equipment Market researchers analyzed the data with 2023 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.
What are the key market drivers leading to the rise in adoption of APAC Construction Equipment Market?
Increased investment in infrastructure is the key driver of the market.
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The market is experiencing significant growth due to the increasing investment in infrastructure development. Governments in the region are focusing on urban infrastructure projects, including the development of smart cities and sports facilities, which is leading to an increase in construction activities. For instance, China invested approximately USD16.02 billion in 2020 and 2022 towards the development and construction of Beijing International Airport and Olympic infrastructure, respectively. The demand for construction equipment is also driven by the adoption of technology such as construction automation, material handling, big data analytics, and autonomous operation. Additionally, there is a growing focus on fuel efficiency, emission standards, and environmental regulations, leading to the adoption of hybrid powertrains and electric vehicles.
However, challenges such as labor shortages, skills gap, supply chain disruptions, and maintenance costs persist. Industry standards, regulatory compliance, after-sales support, and rental services are essential considerations for market participants. The construction machinery market in APAC is expected to continue growing due to economic growth, sustainable construction, energy efficiency, and government policies promoting green building. The Internet of Things, artificial intelligence, and remote control are also transforming the construction industry. Global trade and infrastructure projects are further driving the demand for construction equipment in the region. Key market dynamics include market consolidation, investment incentives, and construction safety.
What are the market trends shaping the APAC Construction Equipment Market?
Growing trend of construction equipment rentals is the upcoming trend in the market.
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In the aftermath of the 2008 financial crisis, construction firms have prioritized efficiency and adaptability in response to the evolving global economic landscape. Given the substantial investment required for acquiring heavy construction equipment like tracked excavators, many firms opt for rental services for smaller-scale or short-term projects. This approach allows companies to minimize upfront costs and associated maintenance expenses. Construction automation, material handling, and infrastructure development are key market drivers, necessitating the use of advanced machinery. Market consolidation, fuel efficiency, and regulatory compliance are other significant factors influencing the industry. Big data analytics, artificial intelligence, remote control, and autonomous operation are transforming the sector through technology adoption.
Investment incentives, skills gap, labor shortage, and economic growth are critical challenges that the construction equipment market faces. Emission standards, environmental regulations, and the increasing popularity of electric vehicles and hybrid powertrains are essential considerations for companies in this sector. Government policies, green building initiatives, and the Internet of Things are shaping the future of the construction machinery industry. Infrastructure projects, road construction, drilling equipment, and building construction are major sectors benefiting from these advancements. After-sales support, rental services, and industry standards are crucial elements ensuring customer satisfaction and long-term success. Supply chain disruptions, regulatory compliance, and operator safety are ongoing concerns for construction firms.
Fuel efficiency, economic growth, and sustainable construction are essential for reducing carbon footprints and maintaining a competitive edge. The construction equipment market is continuously evolving, with a focus on energy efficiency, technology adoption, and industry innovation.
What challenges doesAPAC Construction Equipment Market face during the growth?
Growing secondhand machine equipment is a key challenge affecting the market growth.
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The market is witnessing significant dynamics, with material handling and infrastructure development being key drivers. Infrastructure projects, particularly in the sectors of road construction and building construction, are spurring demand for earthmoving equipment, concrete mixers, and drilling equipment. Market consolidation is also a notable trend, as larger players acquire smaller competitors to expand their market share. Moreover, investment incentives from the government and private entities are fueling the adoption of advanced technologies, such as construction automation, big data analytics, artificial intelligence, and remote control in construction machinery. These technologies are enhancing efficiency, reducing labor costs, and improving safety.
However, challenges such as supply chain disruptions, skills gap, and labor shortage are posing significant hurdles. To mitigate these challenges, industry players are focusing on after-sales support, rental services, and workforce development. Regulatory compliance, emission standards, and fuel efficiency are critical factors influencing the market. Electric vehicles, hybrid powertrains, and autonomous operation are gaining popularity due to their environmental benefits and cost savings. Government policies, such as green building initiatives and economic growth, are also driving the market. The Internet of Things and technology adoption are transforming the industry, enabling real-time monitoring and predictive maintenance. Despite these opportunities, challenges such as maintenance costs, operator safety, and economic uncertainty persist.
Market players must navigate these challenges while adhering to industry standards and regulatory requirements. In conclusion, the market is a dynamic and complex landscape, characterized by significant growth opportunities and challenges. Market players must stay abreast of the latest trends, technologies, and regulatory requirements to remain competitive and succeed in this market.
Exclusive Customer Landscape
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 market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Key Companies & Market Insights
Companies are implementing various strategies, such as strategic alliances, market forecast , partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- BEML Limited
- Caterpillar Inc.
- Doosan Infracore Co. Ltd.
- Hitachi Construction Machinery Co. Ltd.
- Hyundai Construction Equipment Co. Ltd.
- JCB India Ltd.
- Kobelco Construction Machinery Co. Ltd.
- Komatsu Ltd.
- Kubota Corporation
- Liebherr Group
- Liugong Machinery Co. Ltd.
- Lonking Holdings Limited
- SANY Group
- SDLG (Shandong Lingong Construction Machinery)
- Shantui Construction Machinery Co. Ltd.
- Sumitomo Heavy Industries Ltd.
- Tata Hitachi Construction Machinery
- Volvo Construction Equipment
- XCMG Group
- Zoomlion Heavy Industry Science & Technology Co. Ltd.
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.
Research Analyst Overview
The construction industry in the Asia Pacific (APAC) region is experiencing significant shifts as automation, material handling, and big data analytics increasingly influence market dynamics. Infrastructure development continues to be a major driver, leading to market consolidation and increased investment in construction equipment. Private investment is on the rise, with companies recognizing the need for advanced technology to improve efficiency and reduce costs. Fuel efficiency is a key consideration, with the adoption of hybrid powertrains and electric vehicles gaining traction. Regulatory compliance, particularly with regard to emission standards, is another major factor shaping the market. The skills gap and labor shortage are ongoing challenges for the construction industry in APAC.
Operator safety is a top priority, with a growing focus on technology adoption to enhance safety and productivity. Sustainable construction and energy efficiency are also becoming increasingly important, with industry standards evolving to reflect these trends. Supply chain disruptions have been a significant issue in recent years, with the COVID-19 pandemic highlighting the need for resilient supply chains. The use of artificial intelligence, remote control, and the Internet of Things (IoT) is helping to address these challenges, enabling real-time monitoring and predictive maintenance. Construction machinery, including concrete mixers and earthmoving equipment, is at the heart of these trends.
Autonomous operation and autonomous operation are becoming more common, with companies investing in after-sales support to ensure optimal performance and reduce downtime. Government policies and spending are also playing a key role in the market. Infrastructure projects, particularly in the areas of road construction and drilling, are receiving significant investment, driving demand for heavy equipment. Workforce development and training programs are also being prioritized to address the skills gap and labor shortage. The construction industry in APAC is undergoing a period of significant change, with technology, sustainability, and efficiency driving market trends. Companies that can adapt to these shifts and invest in advanced technology will be well-positioned to succeed in this dynamic market.
Market consolidation is also a significant trend, with larger players acquiring smaller companies to expand their offerings and gain market share. This is particularly evident in the areas of construction machinery and rental services. Economic growth in APAC is another major factor driving demand for construction equipment. With many countries in the region experiencing strong economic growth, there is a growing need for infrastructure development and construction projects to meet the demands of expanding populations and growing industries. Environmental regulations are also having a significant impact on the market. Companies are investing in technology to reduce their carbon footprint and improve energy efficiency, with many adopting green building practices and focusing on compliance with emission standards.
In conclusion, the market is experiencing significant change, with automation, material handling, and big data analytics driving market trends. Infrastructure development, private investment, and government policies are also major factors shaping the market. Companies that can adapt to these trends and invest in advanced technology will be well-positioned to succeed in this dynamic and evolving market.
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Market Scope |
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Report Coverage |
Details |
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Page number |
169 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.4% |
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Market growth 2024-2028 |
USD 21.41 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.8 |
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Key countries |
China, India, Japan, South Korea, and Rest of APAC |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
What are the Key Data Covered in this Market Research and Growth Report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
- Precise estimation of the size of the market and its contribution of the market in focus to the parent market
- Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
- Growth of the market across APAC
- Thorough analysis of the market's competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the growth of market companies
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