Market Trends of Asia Pacific Non Passenger Vehicle Industry
This section covers the major market trends shaping the APAC Non Passenger Vehicle Market according to our research experts:
Rising Focus On Infrastructure Activities To Drive Demand In The Market
Over the past few years, there has been a significant increase in infrastructure spending across the Asia-Pacific region. However, due to the slowdown in an economic slowdown, the construction industry has witnessed a decline. This decline continued during 2020 due to the outbreak of coronavirus. However, post-pandemic, the demand for Construction machinery started gaining momentum owing to rising infrastructure activities across the region.
ASEAN countries are witnessing an infrastructure boom, with major projects approved in Vietnam, Thailand, the Philippines, Malaysia, and Indonesia. In several cases, these have been facilitated through loans and other assistance provided by Other major economies like India, Japan, and China. Several rail and road projects to further add to the demand for machinery in the ASEAN countries over the forecasted period. For instance,
Thai Government announced that it is set to sign three contracts in connection with the Thai-Sino high-speed train project between Bangkok and Nakhon Ratchasima. Additional three contracts, including civil works for the Ban Pho-Phra Kaew section, civil engineering works along the Bang Sue-Don Muang section, and works between Don Muang and Nava Nakhon, will also be signed after the preparation of the documents.
Additionally, investments in infrastructure, both public and private, like the Indonesian National Medium-term Development Plan (USD 460 billion), Vietnam Socio-Economic Development Plan (USD 61.5 billion), and the Philippine Development Plan "Build, Build, and Build" (USD 71.8 billion), are expected to offer opportunities for sales for commercial vehicles.
Thailand has been one of the attractive countries for investment in construction sector. The government of Thailand under infrastructure investment plan planned to develop intercity rail network, highway enhancement, the public transportation in Bangkok metropolitans and capacity expansion of maritime and air transport to link the key areas across the country and neighboring countries.
- June, 2022: Offshore wind company Corio Generation has signed a joint development agreement with Vietnamese construction firm FECON for a 500MW offshore wind project in Vietnam's Ba Ria-Vung Tau province. Located around 23-35km from the coast, the proposed fixed-bottom facility would be among the country's first large-scale offshore wind projects.
Growth in the Indian Agricultural Sector Expected to Drive the 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 equipment. 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,
- 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.
- 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.
