Market Trends of Australia Mobile Cranes Rental Industry
All-Terrain Cranes have significant demand in Construction industry
- All-terrain cranes are witnessing significant demand in the construction industry as such cranes allow easy movement on any surface, such as dirt, sand, gravel, and others. All-terrain allows full reachability during lifting jobs.
- All-terrain cranes have high lifting capacities ranging from more than 50 tones. Such cranes are used for remote construction sites with no road access, such as the oil and gas industry. The oil and gas industry contributes around 3% to Australia's Gross domestic product (GDP). Australia is investing in liquefied natural gas projects and becoming the largest exporter of liquified natural gas.
- All-terrain cranes provide several benefits for crane rentals, such as increased operability and flexibility in all terrains, which positively influence the industry value. Such cranes can operate in challenging locations, which further boosts the demand for such cranes. All-terrain cranes enhance operational functions and move materials around more efficiently than other cranes, which is likely to propel the demand for all-terrain cranes across the rental industry.
- The Australian government is planning to invest an amount of USD 600 billion in the next 10 years for development. The government has planned 103 initiatives in the upcoming 10 years. Population growth offers economic opportunities for the development of infrastructure. The Crane index of Australia is 735, a record high (Sydney 342, Melbourne 157, Brisbane 67, Perth 33, Gold Coast 23, Canberra 17, Adelaide 15). This will open opportunities for the rental construction equipment market as businesses prefer rental to owing equipment due to uncertainty of the growth of construction business and government investment.
Understand The Key Trends Shaping This Market
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Rising Infrastructure development and Construction Activities
- Infrastructure spending by the Australian Government and private players in the country has witnessed a notable rise over the past few years, thereby pushing the demand for machinery and equipment in the construction sector.
- The pipeline of projects funded by the public sector in Australia is robust. In major cities and along important freight and transportation routes in Northern Australia, the country has planned major road, rail, airport, energy, and social infrastructure construction projects.
- Major infrastructure projects will receive A$ 17.9 billion (USD 11.7 billion) over a ten-year period from the federal budget for 2022-23, including billions for national road and rail projects. Between 2021 and 2025, it is anticipated that major public infrastructure investments will total more than A$218 billion (USD 142.3 billion).
- The WestConnex 33-kilometer traffic motorway in NSW, which will cost A$16.8 billion (USD 10.97 billion) and be completed in 2023, and Sydney Metro, which will be the nation's first fully automated metro rail system and Australia's largest public transportation project, are two of Australia's largest infrastructure projects. Another major project in progress is the Melbourne Metro Tunnel, which will let half a million more people use the train system every week during peak times.
- Though there was a moderate slowdown in the construction sector owing to the pandemic, the development of infrastructure across the country is anticipated to offer tremendous opportunities to construction machinery manufacturers to increase their revenues, as equipment plays a vital role in these activities. Moreover, the country is witnessing significant foreign direct investment (FDI) in the construction sector.
- Growing government initiatives and its significant support for ongoing projects are expected to further propel the demand for construction machinery in Australia. For instance, In May 2021, the Australian Government announced an additional USD 11.3 billion for infrastructure projects in its Federal Budget. This includes new funding to progress 15 early-stage investment opportunities.
- In addition, an increase in the number of power projects, highways, and manufacturing will further widen the scope of the market in the country. For instance, Australia's 2021 infrastructure priority list identifies a record 163 major infrastructure proposals broken down into Priority Projects, High Priority Initiatives, and Priority Initiatives. This Infrastructure Priority List (IPL) is a prioritized list of nationally significant investments detailing major proposals to boost the Australian economy.
