Indonesia Construction Equipment Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 4.24 Billion |
| Market Size (2030) | USD 6.04 Billion |
| CAGR (2025 - 2030) | 7.32 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Indonesia Construction Equipment Market Analysis
The Indonesia Construction Equipment Market size is estimated at USD 4.24 billion in 2025, and is expected to reach USD 6.04 billion by 2030, at a CAGR of 7.32% during the forecast period (2025-2030).
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In Indonesia, government spending on construction and infrastructure, rising foreign direct investments, and a focus on road and rail developments are driving the construction market's growth. This surge, fueled by urbanization and a growing population, simultaneously boosts the demand for construction equipment nationwide.
- Indonesia's urbanization rate hit 58.57% in 2023 compared to 57.93% in 2022, marking a significant growth in recent years. As more Indonesians turn to public and private transportation, cities face heightened congestion. In response, the Indonesian government is prioritizing road infrastructure development. Expanding road networks aims to alleviate traffic congestion and improve connectivity, critical for supporting the country's economic growth and urban expansion.
Additionally, the government is enhancing rail and port networks to boost cross-border trade, further driving investments in construction. These initiatives are part of a broader strategy to position Indonesia as a regional trade hub, which requires robust infrastructure to support increased trade volumes. Thus, as Indonesia intensifies its focus on road, rail, and port infrastructure, the demand for construction equipment is set to soar.
- With the Indonesian government's proactive approach to infrastructure development, the demand for construction equipment will rise in the coming years. For example, the government has earmarked USD 2.7 billion for constructing a new capital city by 2024.
As investments pour in to bolster Indonesia's infrastructure, the appetite for construction equipment will undoubtedly grow during the forecast period, driven by the increasing investment in infrastructural, residential, and public transportation projects.
Indonesia Construction Equipment Market Trends
Earthmoving Equipment Segment is Anticipated to Gain Traction during the Forecast Period
In Indonesia, surging investments in sectors like real estate, commerce, and construction drive the booming demand for earthmoving equipment. The government is prioritizing infrastructure enhancements to boost mobility and connectivity. This focus is vital for elevating the competitiveness of Indonesian products, especially given the nation's unique challenges as an archipelagic state with limited interconnectivity.
- Indonesia's State Revenue and Expenditure Budget for 2024 has earmarked USD 27.1 billion for infrastructure, reflecting a 5.8% uptick from the prior year. This influx is fueling numerous projects, expanding the construction market, and, in turn, positively impacting the demand for earthmoving equipment.
Moreover, as investments pour into refining the nation's transportation infrastructure, the construction equipment market in Indonesia is poised for further growth. Notably, collaborations like PT Kerata Cepat Indonesia China (PT KCIC)—a partnership of four state-owned Indonesian firms with China Railway International Co. Ltd—are pivotal in bolstering the nation's transportation network, aligning with the government's infrastructure ambitions.
- Highlighting these efforts, in October 2023, the Indonesian government unveiled the "Whoosh" high-speed railway project, a cornerstone of China's Belt and Road Initiative. Backed by PT Kerata Cepat Indonesia China and China Railway International Co. Ltd, this USD 7.3 billion endeavor aims to slash travel time between Jakarta and Bandung.
Given the government's unwavering commitment to public transport enhancements and the alignment of private construction firms with these objectives, the demand for earthmoving equipment is set for substantial growth in the coming years.
Electric and Hybrid Drive Segment of the Market to Contribute Substantial Share during the Forecast Period
Indonesia's government is aggressively pushing for a carbon-neutral economy, leading to swift changes across sectors as they embrace a new energy ecosystem. This drive towards reducing carbon emissions is spurring heightened demand for advanced products across various sectors aimed at curbing environmental carbon levels.
- For example, the Indonesian government set ambitious carbon emission targets: 31.89% cut independently or 43.2% with international backing by 2030. As part of this strategy, the government highlighted introducing a carbon trading scheme as a pivotal measure.
- Amidst this governmental push, investments in Indonesia's renewable energy sector have surged. According to the Ministry of Energy and Mineral Resources (Indonesia), the value of renewable energy assets in Indonesia reached USD 1.48 billion in 2023, which stood at USD 1.55 billion in 2022.
As the nation pivots towards a new energy ecosystem, companies across industries champion products and equipment to reduce air pollution. Construction equipment firms are pouring resources into developing electric-driven products, anticipating robust growth. For instance,
- In April 2023, XCMG, a construction equipment giant from China, rolled out three new mining machinery products, prominently featuring the XDR80TE-AT autonomous electric dump truck. Set to debut in Indonesia by the close of 2023, these machines aim to bolster eco-friendly practices in mining and infrastructure projects.
International manufacturers ensure their electric construction equipment reaches Indonesian shores through a robust dealership network. As decarbonization takes center stage, the demand for electric-driven equipment is poised to rise, with construction and rental companies increasingly integrating these products into their fleets. This trend will bolster the electric drive segment's growth during the forecast period.
With the government amplifying efforts to bolster public transport infrastructure and private construction firms rallying behind these initiatives, the construction equipment market is primed for substantial growth in the coming years.
Indonesia Construction Equipment Industry Overview
The construction equipment market in Indonesia showcases moderate fragmentation and competitiveness, boasting a blend of international and Chinese manufacturing giants. Key players like Caterpillar, Komatsu, Hitachi Construction Machinery, Kobelco, SANY, XCMG, JCB, Zoomlion, Yanmar, Hyundai Construction Equipment, Takeuchi, and Kubota dominate the landscape. Their competition revolves around pricing, equipment quality, dealership networks, geographical reach, after-sales services, product diversity, and innovative offerings such as equipment-as-a-service (EaaS).
This vibrant ecosystem witnesses substantial investments by various stakeholders to expand their construction equipment portfolios to meet escalating consumer demands and bolster brand recognition.
- In May 2023, Zoomlion, a leading equipment manufacturer from China, showcased over 500 advanced products and key components at a technology exhibition in its own Zoomlion Smart Industry City. The event primarily aimed to spotlight Zoomlion's state-of-the-art equipment to a global audience, focusing on attracting clients from Indonesia.
- In February 2023, Hyundai Construction Equipment (Hyundai CE) announced its intent to strengthen its construction operations in Indonesia. Through its intermediary, Hyundai Genuine, Hyundai CE is positioning itself to expand its footprint in Asia, with Indonesia serving as a pivotal regional hub. Further cementing its commitment, Hyundai inaugurated a parts distribution center (PDC) in Jakarta, slashing procurement time from five days down to just two.
The future holds promise for the construction equipment sector in Indonesia, which is poised for the introduction of advanced products by key players. This trend underscores the industry's pursuit of a competitive edge through diversification and innovation within their product portfolios.
Indonesia Construction Equipment Market Leaders
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Caterpillar Inc.
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Komatsu Ltd.
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Hitachi Construction Machinery Co., Ltd.
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Kobelco Construction Machinery
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SANY Heavy Industry Co., Ltd.
*Disclaimer: Major Players sorted in no particular order
Indonesia Construction Equipment Market News
- September 2024: Volvo Construction Equipment (Volvo CE) unveiled its third electric offering, the L120 Electric wheel loader, at the Mining Indonesia event, marking its debut in the Indonesian market. Set to hit the market in early 2025; this launch follows Volvo's 2023 introductions: the ECR25 Electric compact excavator and the L25 Electric compact wheel loader.
- September 2024: Hitachi Construction Machinery Co., Ltd. revealed plans to start mass production of the EX1200 ultra-large hydraulic excavator (weighing around 120 tons) at its Indonesian facility, P.T. Hitachi Construction Machinery Indonesia, in November 2024. This move aims to cater to Indonesia's growing demand for ultra-large hydraulic excavators.
- August 2023: At the Construction Indonesia event in Jakarta, SANY Group plans to unveil around 21 eco-friendly machines. These machines, which include concrete and road machinery as well as the newest electric models, will be prominently displayed at a 3,003 square meter booth in Hall E, booth 20.
Indonesia Construction Equipment Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Increasing Government Spending on Construction and Infrastructure Development Fosters the Growth of the Market
4.2 Market Restraints
4.2.1 High Cost of Replacement and Maintenance Hinders the Market Growth
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD and Volume - Units)
5.1 By Equipment Type
5.1.1 Earthmoving Equipment
5.1.1.1 Excavators
5.1.1.2 Backhoe Loaders
5.1.1.3 Motor Graders
5.1.1.4 Others (Bull Dozers, etc.)
5.1.2 Road Construction Equipment
5.1.2.1 Road Rollers
5.1.2.2 Asphalt Pavers
5.1.3 Material Handling Equipment
5.1.3.1 Cranes
5.1.3.2 Forklifts & Telescopic Handlers
5.1.3.3 Others (Articulated Boom Lifts, etc.)
5.1.4 Other Construction Equipment (Concrete Pump Trucks, Dumpers, Tippers, etc. )
5.2 By Drive Type
5.2.1 Hydraulic
5.2.2 Electric/Hybrid
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Caterpillar Inc.
6.2.2 Komatsu Ltd.
6.2.3 Zoomlion Heavy Industry Science & Technology Co., Ltd.
6.2.4 Yanmar Co., Ltd.
6.2.5 Hitachi Construction Machinery Co., Ltd.
6.2.6 J.C. Bamford Excavators Limited (JCB)
6.2.7 Kobelco Construction Machinery
6.2.8 HD Hyundai Construction Equipment
6.2.9 SANY Heavy Industry Co., Ltd.
6.2.10 Kubota Corporation
6.2.11 Takeuchi Mfg. Co., Ltd.
6.2.12 Manitou Group
6.2.13 Xuzhou Construction Machinery Group Co., Ltd. (XCMG)
6.2.14 Toyota Material Handling
6.2.15 Liebherr Group
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Adoption of Electric/Hybrid Machinery Compared to Traditional Hydraulic Machinery to Fuel Market Demand
Indonesia Construction Equipment Industry Segmentation
Construction equipment refers to machines designed and used for construction and allied activities. The construction equipment market consists of a wide range of companies involved in the designing, manufacturing, and selling construction equipment, such as excavators, backhoe loaders, and cranes, among others, to its end users.
The Indonesian construction equipment market is segmented by equipment type and drive type. By equipment type, By equipment type, the market is segmented into earthmoving equipment (excavators, backhoe loaders, motor graders, and other earthmoving equipment (bulldozers, etc.)), road construction equipment (road rollers and asphalt pavers), material handling equipment (cranes, forklifts, and telescopic handlers, and other material handling equipment (articulated boom lifts, etc.), and other construction equipment (concrete pump trucks, dumpers, tippers, etc.)). By drive type, the market is segmented into hydraulic and electric/hybrid.
The report offers market size and forecasts for construction equipment in value (USD) and volume (units) for all the above segments.
| By Equipment Type | ||||||
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| Other Construction Equipment (Concrete Pump Trucks, Dumpers, Tippers, etc. ) |
| By Drive Type | |
| Hydraulic | |
| Electric/Hybrid |
Indonesia Construction Equipment Market Research FAQs
How big is the Indonesia Construction Equipment Market?
The Indonesia Construction Equipment Market size is expected to reach USD 4.24 billion in 2025 and grow at a CAGR of 7.32% to reach USD 6.04 billion by 2030.
What is the current Indonesia Construction Equipment Market size?
In 2025, the Indonesia Construction Equipment Market size is expected to reach USD 4.24 billion.
Who are the key players in Indonesia Construction Equipment Market?
Caterpillar Inc., Komatsu Ltd., Hitachi Construction Machinery Co., Ltd., Kobelco Construction Machinery and SANY Heavy Industry Co., Ltd. are the major companies operating in the Indonesia Construction Equipment Market.
What years does this Indonesia Construction Equipment Market cover, and what was the market size in 2024?
In 2024, the Indonesia Construction Equipment Market size was estimated at USD 3.93 billion. The report covers the Indonesia Construction Equipment Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Indonesia Construction Equipment Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Indonesia Construction Equipment Industry Report
Statistics for the 2025 Indonesia Construction Equipment market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Indonesia Construction Equipment analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
