ASEAN Construction Machinery Market - Growth, Trends, and Forecasts (2020 - 2025)
発行: Mordor Intelligence LLP
ページ情報: 英文 70 Pages
The ASEAN construction machinery market is expected to register a CAGR of more than 7%, during the forecast period, (2020 - 2025).
The demand for construction machinery in the ASEAN region is driven by an increase in infrastructure spending. Additionally, with growth in the manufacturing industry in the region, manufacturers from all across the world are planning to shift their operations to the Southeast Asian nations, due to lower costs, increasing domestic consumption, and improving and expanding infrastructure, which, in turn, have resulted in higher demand for construction machinery.
The infrastructure investments in the region accounted for 12% of the total FDI received with the majority of investments into transportation and real estate sectors. It is expected that, over the next five years, the ASEAN region has an infrastructure project pipeline worth USD 250 billion. The rise in construction activities is expected to boost the demand for construction machinery over the forecast period.
Rising Road Construction Projects
Over the past few years, the road construction equipment market has witnessed significant growth, mainly due to increased road development programs initiated by the governments across the region.
Due to cheap labor costs and lower taxes, various multinational corporations are establishing their manufacturing units in the ASEAN region. However, lack of road infrastructure connecting major ports to manufacturing locations often restrains the economic growth of the region. Thus, to provide easy accessibility to ports and other areas, the governments across the ASEAN region are investing heavily in the construction of roads. For instance, the Philippines is planning to boost infrastructure development by investing USD 144 billion under a six-year plan which includes major road construction projects, airport construction projects, and railway projects amongst others. Thus, creating a demand for construction equipment in the future.
With the rise in road construction activities, the demand for construction machinery had been increasing, which is being supported by importing these machines. Exports of heavy machinery from Singapore to the rest of the ASEAN region has grown steadily over the years, which is supported by the key drivers, led by the increasing investment in construction projects in the ASEAN region. Two examples of high growth opportunities in ASEAN are the Philippines and Thailand, among others. Singapore exports of heavy machinery to Thailand has the second fastest growth in the region.
Thus, various initiatives taken by governments in ASEAN region to boost infrastructure projects and an increase in government involvement in planning, coordinating, and financing projects, is expected to drive the growth of the market during the forecast period.
Increasing Demand for Construction Machinery in Vietnam
In the last few years construction activities in Vietnam had seen a high growth rate. In 2007, the revenue from the construction sector in the country was USD 1.2 billion, and by 2019, the revenue increased up to 10.5 billion. Moreover, with an increase in the government's investment in both commercial and residential sectors, the construction sector saw huge growth.
The Vietnamese government under an eight Five year Socio-Economic Development plan (2016-2020) had also increased housing area per capita from 16.7 m2 in 2016 to 23.2 m2 by the end of 2019 and is further going increase by 25m2 by the end of 2020.
Ongoing and future construction projects in the country include Thu Thiem Smart City Metro lines development (USD 800 million), Long Thanh International Airport (USD 16 billion), and expansion at the Tan Son Nhat International Airport.
Considering all the ongoing and future construction activities in Vietnam, the crane market is expected to witness steady growth over the forecast period, in turn, propelling the construction machinery market in the country.
The ASEAN construction machinery market is characterized by the presence of numerous international and regional players, resulting in a highly competitive market environment. The big players have increased their R&D expenditure exponentially, in order to integrate innovation with excellence in performance. The demand for high performance, highly efficient, and safe handling equipment from the end market is expected to make the market more competitive over the forecast period.