APAC Construction Equipment Market

[edit] Introduction

The Asia Pacific construction equipment market is primed to consolidate as a lucrative investment 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 ageing population across a number of Asian nations, the construction industry is shifting more towards enhanced construction machinery that comes 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 in modern equipment, further propelling the expansion of the APAC construction equipment industry.

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 a rise in equipment and machinery production as well as consumption. In the years ahead, these companies are likely to increase their investments and enhance their product portfolios, further supporting the regional expansion.

[edit] Impact of India’s expanding construction industry

The growing efforts for the upgrading of infrastructure across India has had a dramatic impact on the nation’s construction industry in the last decade. The construction industry’s influence spans numerous sub-sectors of the country’s economy, thus becoming one of the primary drivers of its socioeconomic development. Today, the Indian sub-continent is one of the world’s six fastest growing economies, making it the largest hub for infrastructure and construction investments in Asia. In the years to come, the APAC construction equipment market is expected to genearte a large proportion of its revenue from India.

The Indian construction equipment industry is also expected to benefit from the nation’s ongoing efforts to construct a greener residential sector. According to the World Green Building Council, since the India Green Building Council rolled out the nation’s Green Homes Rating program in 2008, over 1.5 billion sq. feet of green building space has been sanctioned for development, 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 across 175 cities and towns in India.

The APAC construction equipment market is also expected to witness sizable growth in India due 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 economically weaker nations as well as low-income sections of society. The Government of India intends to tackle this issue by 2022 through its Housing for All initiative by constructing well-planned, low-cost and environmentally friendly housing projects for these sectors. This massive initiative will be a major driver for growth of the APAC construction equipment market.

[edit] Impact of Australia’s building & infrastructure upgradation activities

Australia’s independent infrastructure advisory body Infrastructure Australia, 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 surge in the years ahead. This will augment the regional construction industry, and propel the APAC construction equipment market.

In Australia’s 2018-19 budget, the government allocated over $75 billion for a 10-year-long national infrastructure upgrade 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.

To serve Australia’s rapidly rising population, the government is also planning a plethora of new infrastructure projects such as housing construction, railways, airports, etc. As a result, the nation is expected to see high demand for machinery, driving the regional construction equipment industry. APAC construction equipment market is anticipated to register a CAGR of 6% over 2019-2025, surpassing the $80 billion mark by 2025.

Source: https://www.fractovia.org/news/industry-research-report/apac-construction-equipment-market

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