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ASEAN Construction Equipment Rental Market Size (2024 - 2029)

The ASEAN construction equipment rental market is experiencing growth, driven by increasing construction activities and government spending on infrastructure projects in the region. Despite the initial negative impact of the Covid-19 pandemic, the market is expected to recover, supported by the cost advantages and improved services offered by rental providers. The trend of leasing equipment is gaining traction due to its financial benefits, such as reduced maintenance costs and administrative overhead, which are appealing to companies across various industries. Additionally, technological advancements in machinery and monitoring applications are further contributing to the expansion of the market size.

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Market Size of ASEAN Construction Equipment Rental Industry

ASEAN Construction Equipment Rental Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR > 7.00 %
Market Concentration Medium

Major Players

ASEAN Construction Equipment Rental Market Major Players

*Disclaimer: Major Players sorted in no particular order

ASEAN Construction Equipment Rental Market Analysis

The ASEAN construction equipment rental market was valued at USD 1.4 billion and is expected to reach USD 2.97 billion over the next five years, registering a CAGR of more than 7% during the forecast period.

  • The Covid-19 pandemic had a negative impact on the ASEAN Construction Equipment Rental market. With worldwide lockdown and social distancing norms implemented everywhere, all non-emergency activities were halted. The construction industry took a significant economic blow owing to the low business due to the pandemic. However, with the cost constraints of the construction companies and better services provided by the equipment rental providers, the ASEAN Construction equipment rental market is expected to revive gradually.
  • Construction activities in South Asian countries have increased significantly over the last couple of years owing to the rising government spending for upgrading existing infrastructure combined with new projects, especially in countries such as Indonesia and Malaysia, and budding utility projects (Hydropower & Thermal Power) in Laos, Cambodia, and Thailand have resulted into the growing demand for construction equipment in South-East Asia region.
  • The growing construction industry, especially in developing economies, along with the numerous cost benefits, such as reduced maintenance cost of the construction equipment, is driving the demand for rental construction equipment.
  • The trend of leasing instead of purchasing heavy machinery has proven beneficial for companies of all sizes across numerous industries, with less administrative overhead and reduced expense and maintenance anticipated to drive the construction equipment rental market. Other trends positively impacting revenue include growing technological advancements ranging from multifunctional machinery to apps for monitoring fuel consumption.

ASEAN Construction Equipment Rental Industry Segmentation

Construction equipment refers to heavy-duty vehicles specially designed for executing construction tasks, most frequently involving earthwork operations.

The ASEAN construction equipment rental market is segmented by vehicle type (earth moving equipment, material handling), by propulsion type (ic engine, hybrid drive), and by geography (Indonesia, Thailand, Vietnam, Singapore, Malaysia, Philippines, and the Rest of the ASEAN). 

The report offers market size and forecasts for the ASEAN Construction equipment rental in terms of value (USD Billion) for all the above segments.

By Vehicle Type
Earth Moving Equipment
Material Handling
By Propulsion
IC Engine
Hybrid Drive
By Country
Indonesia
Thailand
Vietnam
Singapore
Malaysia
Philippines
Rest of the ASEAN
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ASEAN Construction Equipment Rental Market Size Summary

The ASEAN construction equipment rental market is poised for significant growth, driven by increased infrastructure spending and the rising demand for construction activities in the region. The market, which experienced a downturn due to the Covid-19 pandemic, is expected to recover as construction companies turn to equipment rental providers to manage costs effectively. The trend of leasing heavy machinery instead of purchasing it outright is gaining traction, offering companies reduced maintenance costs and administrative overhead. This shift is particularly beneficial in developing economies where the construction industry is expanding rapidly. Technological advancements, such as multifunctional machinery and apps for monitoring fuel consumption, are further enhancing the appeal of rental equipment, contributing to the market's positive outlook.

Countries like Indonesia, Malaysia, Laos, Cambodia, and Thailand are witnessing a surge in construction activities, fueled by government initiatives to upgrade infrastructure and launch new projects. Major infrastructure projects, including rail and road developments, are being supported by loans and assistance from countries like India, Japan, and China. Thailand's ambitious infrastructure investment plan, along with its focus on renewable energy, is expected to drive demand for construction equipment, particularly off-road vehicles and mini excavators. The market is also seeing increased interest from companies like Sin Heng Heavy Machinery Limited, Aktio Co., and Kanamoto Co. Ltd, which are expanding their presence in Southeast Asia through joint ventures and acquisitions. These developments indicate a robust growth trajectory for the ASEAN construction equipment rental market over the forecast period.

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ASEAN Construction Equipment Rental Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Vehicle Type

      1. 2.1.1 Earth Moving Equipment

      2. 2.1.2 Material Handling

    2. 2.2 By Propulsion

      1. 2.2.1 IC Engine

      2. 2.2.2 Hybrid Drive

    3. 2.3 By Country

      1. 2.3.1 Indonesia

      2. 2.3.2 Thailand

      3. 2.3.3 Vietnam

      4. 2.3.4 Singapore

      5. 2.3.5 Malaysia

      6. 2.3.6 Philippines

      7. 2.3.7 Rest of the ASEAN

ASEAN Construction Equipment Rental Market Size FAQs

The ASEAN Construction Equipment Rental Market is projected to register a CAGR of greater than 7% during the forecast period (2024-2029)

Kanamoto Co. Ltd, Aktio Co. Ltd, Sin Heng Heavy Machinery Limited, Rent (Thailand) Co. Ltd and Shanghai Pangyuan Machinery Rental Co. Ltd are the major companies operating in the ASEAN Construction Equipment Rental Market.

Construction Equipment Rental Market in ASEAN Report Snapshots

Construction Equipment Rental Market in ASEAN Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)