Market Trends of Asia-Pacific Construction Equipment Industry
This section covers the major market trends shaping the APAC Construction Equipment Market according to our research experts:
Growing Demand for Excavators to Drive Demand in the Market
Excavators are predicted to dominate the Asia Pacific Construction Equipment Market during the forecast period due to the ongoing infrastructure megaprojects. Excavators are the most widely used equipment for excavation work because the excavation of the land is the first step when any construction project is commenced. Excavators are available in capacities from 5 to 40 tons and use crawlers as well as wheels for their mobility thus making them one of the most versatile construction equipment.
Excavators are also widely used in major construction projects like Belt and Road Initiative (BRI), Asian Highway Network (AHN), Kunming-Singapore Railway, Sagarmala, and Bharatmala in the region. Excavators are also the best-selling type of construction equipment in major markets like China, Japan, South Korea, and Indonesia. For instance, In 2021, 274357 excavators were sold in China. This is a Year on Year increase of 4.6%. According to China Construction Machinery Association, there are about 25 excavator manufacturers in the country, more than any other country in the world.
In some markets like India backhoe loaders dominate the construction equipment market . However excavators have become the fastest selling type of constrcution equipment due to undertaking of large scale of infrastructure projects in the country. For instance, In 2021 about 34000 excavators were sold in India posting a Year on Year increase of 54.5%. Based on all the above factors excavators are forecasted to be the most dominant segment by the machinery type during the forecast period.
China to Play Key Role in Development of Asia-Pacific Construction Equipment Market
China is likely to emerge as the largest market followed by India, Indonesia, Japan, and South Korea. Ongoing mega projects in China need a lot of machinery and materials to be displaced from one part of the country to the other. Projects like the Zhongwei Ji'an Natural Gas Pipeline project, Liuzhou-Wuzhou Railway Line, Belt, and Road Initiative, and Zhengshen Foshan Expressway are some of the many projects that will require the deployment of many construction equipments. China announced investments of USD 1.1 trillion in infrastructure projects in 2021. Chinese construction equipment sales reached around USD 58 billion and accounted for 20% of the global construction equipment market in 2021.
India and Indonesia are also witnessing a rapid rise in construction equipment sales. In India, construction equipment sales are rising due to the large-scale undertaking of construction road projects and logistical corridors while in Indonesia construction equipment sales are driven by the construction of manufacturing zones and growth in the mining industry. Thus, with companies coming up with new launches to increase their market share in this segment, the market for construction equipment is expected to grow over the forecast period for the excavator market. For instance,
- In May 2022, Komatsu India launched three new B-20 biodiesel compatible excavators (Komatsu PC205-10MO Hydraulic Excavator, Komatsu PC500LC-10R Hydraulic Excavator,and Komatsu PC210LC-10M0 Super Long Front) in India during Excon 2022.
- In July 2022, Volvo CE launched EC550E excavator in India. The excavator is specifically designed for heavy duty digging and mass excavation.
Therefore, the aforementioned factors and instances anticipated to contribute for growth of countries like China, India, etc. over the forecasted period.
