Asia Pacific is emerging as a major driver of growth in the construction equipment market, and the construction equipment market in this region is expected to continue to grow strongly over the next few years, driven primarily by large-scale infrastructure investments and economic development.
Demand driven by urbanisation
Rapid urbanisation in Asia Pacific is one of the major factors for the growth in demand for construction equipment. Countries represented by China and India are undertaking a large number of infrastructure projects, including roads, railways, airports and ports. These projects not only require a large number of earthmoving and handling equipment, but also drive technological advancements and innovations across the construction industry
For instance, China’s Regional Comprehensive Economic Partnership (RCEP) has boosted trade and investment with other countries in the Asia-Pacific region, which has further fuelled the demand for infrastructure development in the region. China’s construction equipment market is forecast to grow at a CAGR of 10.9% between 2024 and 2030
India is not far behind, with the country undertaking a series of infrastructure projects to improve its transport network and urban infrastructure. Massive government investments and private sector participation have made India an important market for construction equipment manufacturers.India accounted for 12.5% revenue share of the APAC market in 2023
Technological Innovation and Environmental Needs
With increasingly stringent environmental regulations and sustainable development goals, the Asia-Pacific construction equipment market is also actively adopting new technologies and environmental measures. The popularity of electric and hybrid equipment, as well as the use of automation and IoT technologies, are significantly improving the efficiency and environmental performance of equipment
For instance, the construction equipment market in Japan is witnessing an increase in the use of forklifts and telehandlers, thanks to technological advancements and electrification trends in these equipment. Government spending on infrastructure, especially projects related to disaster-resistant structures, is also contributing to the growth of the market
Trade Development and Regional Cooperation
Regional cooperation and trade agreements are also playing a key role in driving the growth of the construction equipment market in Asia Pacific.Trade agreements such as RCEP have facilitated economic cooperation and infrastructure investments among countries in the region. This not only boosts the demand for equipment, but also provides a wider market for manufacturers
Additionally, Australia’s investments in infrastructure development and natural resource exploration are driving the demand for construction equipment. The country expects the construction equipment market to grow at a CAGR of 6.1% from 2024 to 2030
