The Asia Pacific construction equipment market is primed to consolidate itself as a lucrative investment ground on a global scale, fueled by numerous technological advancements such as automated machine function, intelligent machine parts integration and enhanced ropes. Owing to rising labor costs as well as the growing ageing population across a number of Asian nations, the construction industry is shifting more towards enhanced construction machinery that come with technologically-advanced features, enabling the market to register an enhanced growth rate. Moreover, attributing to several labor safety problems as well as accidents, construction companies have started to invest more into modern equipment, further propelling the expansion of the APAC construction equipment industry in the forthcoming years.
Japan earthmoving & road building equipment, by product, 2018 & 2025 (USD Million)
Owing to the presence of a plethora of key equipment manufacturers that are known for supplying products to construction industries across the world, countries such as Japan, China and South Korea are witnessing an accelerated rise in equipment & machinery production as well as consumption. In the years ahead, these companies are likely to increase their investments and enhance their product portfolios that would further support the regional industry expansion.
APAC Construction Equipment Market | Impact of India’s expanding construction industry
The growing development efforts for the upgradation of infrastructure across India has had a dramatic impact on the nation’s construction industry throughout the last decade. It is common knowledge that the construction industry’s influence spans numerous sub-sectors of the country’s economy, thus becoming the primary drivers of its socioeconomic development. Today, the Indian sub-continent is known to be one of the world’s six fastest growing economies, making it the largest hub for infrastructure & construction investments in Asia. In the years to come, the APAC construction equipment market is expected to garner a massive chunk of its revenue from India.
India construction equipment industry is also slated to benefit significantly from the nation’s ongoing efforts to construct a greener residential sector. According to the World Green Building Council, ever since the India Green Building Council rolled out the nation’s Green Homes Rating program back in 2008, over 1.5 billion sq. feet of green building space has been sanctioned for development under the rating, which is equivalent to approximately 1,800 projects or more than 1,300,000 dwelling units. Approximately 500 of the nation’s prominent real-estate developers have now adopted the Green Homes Rating with projects being developed across 175 cities & towns across India, paving the way for the APAC construction equipment industry to garner extensive profits from India.
The APAC construction equipment market is also expected to witness sizable growth in India owing to a number of government initiatives. India’s Ministry of Housing and Urban Poverty Alleviation (MoHUPA) recently estimated that there was a housing shortage of approximately 18.78 million in the country’s 12th FYP (Five Year Plan) period with 95% of the shortage coming from the nation’s economically weaker as well as low-income sections of the society. The Government of India intends to mend this issue by 2022 through its Housing for All initiative by constructing well-planned, low-cost & environmentally friendly housing projects for these sections. This massive initiative will thus prove to be a major driver propelling APAC construction equipment market to greater heights.
APAC Construction Equipment Market | Impact of Australia’s building & infrastructure upgradation activities
Australia’s independent infrastructure advisory body Infrastructure Australia, for the last decade, has released a report that identifies the nation’s top projects shaping the country’s growth, while also declaring which of those projects would be receiving its financial backing. With the country’s population expected to hit 12 million by 2050, the demand for housing is expected to majorly surge in the years ahead. This would majorly augment the regional construction industry, that would serve to propel the APAC construction equipment market from Australia.
In Australia’s 2018-19 budget, the government had allocated over $75 billion for a 10-year-long national infrastructure upgradation plan which aims to improve the country’s road safety, deliver essential rail links and tackle congestion. This move is also expected to ensure sizable growth for the region’s construction equipment market over the coming years.
Owing to Australia’s rapidly rising population, the government apparently, is also planning a plethora of new infrastructure projects such as housing construction, railways, airports, etc. Attributed to the same, the nation is projected to witness high demand for machinery, driving the regional construction equipment industry. Indeed, APAC construction equipment market is anticipated to register a CAGR of 6% over 2019-2025.
The regional trends mentioned above clearly indicate the numerous growth prospects for the APAC construction equipment market in the forthcoming years. In fact, according to Global Market Insights, Inc., the APAC construction equipment industry size is touted to surpass the $80 billion renumeration mark by 2025.