The demand for construction equipment in the APAC region has experienced significant growth. The increasing adoption of construction equipment is primarily driven by investment in the renewable energy sector, technological solutions, and electric construction equipment. China, Thailand, and Australia are seeing a surge in machinery production and consumption, driven by key manufacturers supplying products globally. Key companies invest in product development and expand internationally, fueling market growth.

Among the major Asia-Pacific construction equipment markets, Singapore has seen the fastest growth with a CAGR of 5.84%, but by far, China's construction equipment market holds a strong market presence and is still growing.

Australia & China's Focus on Public Infrastructure Projects is Driving Leadership in the Sector

The government of China is continuously investing in redevelopment infrastructure projects, including ports, railway lines, roadways, and highways across the country. China's 14th Five-Year Plan aims to enhance transport infrastructure across the region. This development is crucial for achieving long-term goals, including building an advanced, globally competitive transport system by 2035 and a highly competitive international system by 2050. All these major projects are helping China’s construction equipment market size reach 835,431 units by 2029.

China's Infrastructure Investment

China is committed to enhancing its urban metro networks by expanding Chengdu's metro system. The fifth phase of construction is presently in progress, aiming to introduce ten new lines covering a total distance of 199.8 kilometers. Upon its scheduled completion by the end of 2024, the Chengdu metro network will exceed 700 kilometers in length. Moreover, the project emphasizes technological innovation, intending to implement AI for efficient operation and maintenance by 2025.

The South-North Water Diversion Project seeks to channel water from the water-abundant southern regions of China to the dry northern areas. It is one of the world's most extensive water redistribution initiatives, with an anticipated completion date of around 2050. Once finished, it will annually transfer 44.8 billion cubic meters of water. This project will increase the demand for wheeled loaders and excavators in the China construction equipment market.

Know more: China Construction Equipment Market

The Australian construction equipment market is expected to reach 33,077 units by 2029. The government invests in infrastructure projects nationwide. In its 2022 budget, the Australian government allocated USD 9.6 billion for key infrastructure development. In its Infrastructure Investment Program, the Australian government committed to invest in major land transport infrastructure across Australia. The government has invested in improving key freight routes in regions, reducing city traffic congestion, developing high-speed rail, and improving road safety.

Australian Infrastructure Investment

The government in Queensland laid out USD 75 million in its 2022-2023 budget for the construction of common user infrastructure to encourage the development, extraction, and production of critical minerals. The 2023-24 budget has promised to deliver USD 240 million to support development at Macquarie Point in Hobart.

Northern Australia has planned to construct major road, rail, airport, energy, and social infrastructure projects in major cities and across key freight and transport routes in Northern Australia. The total public infrastructure is expected to exceed USD 144.6 billion between 2021 and 2025.

Know more: Australia Construction Equipment Market

Rise in Port Expansion Projects and Investment in Hydrogen Fuel Drives the Singapore & Thailand Construction Equipment Market

The Singapore construction equipment market is expected to grow at a CAGR of 5.84% due to increased investment in infrastructure development projects and investment in hydrogen fuel to promote the nation's target to achieve net zero emissions. Singapore has detailed its National Hydrogen Strategy, prioritizing hydrogen in Phase 2 of the LCER program, with plans for R&D and infrastructure to support hydrogen import, storage, and power conversion. The URA may also adjust land use regulations.

For more info: Singapore Construction Equipment Market

Thailand is exploring gas turbines that can operate on a mix of natural gas and green hydrogen or entirely on hydrogen. The government is also considering battery storage for solar energy to capitalize on the country's abundant sunlight and plans to integrate fuel cell power plants into its energy strategy. As of March 2024, Mitsubishi Heavy Industries Asia Pacific (MHI-AP) and Thailand's state-owned PTT are conducting a joint pre-feasibility study on using 100% ammonia in gas turbine power generation.

The government plans to build two new waste-to-energy power plants in Bangkok, generating 35 megawatts of electricity by using 1,000 tons of waste daily. Additionally, Absolute Clean Energy Power Co. Ltd. has launched the 'ALPC6' Waste to Energy project in Krabi province, which will use 144,000 tons of solid waste per year to produce 6MW of electricity.

For more info: Thailand Construction Equipment Market

Future Scope

The APAC construction equipment market is poised for significant growth, though it may encounter a few obstacles. The overall trajectory remains optimistic as key industries continue to expand and innovate. China's real estate market is hurting its economy and the global landscape, with major developers facing losses and heavy debts. The end of a long construction boom threatens household savings, prompting authorities to implement measures to stimulate activity, which has led to market downturns and currency devaluation. But China's bet on renewable energy has made it a global leader by surpassing its targets and doubling its solar capacity in recent years. Singapore, Thailand, and Australia are experiencing market growth driven by government investment in public infrastructure, focusing on advanced technologies and emphasizing port expansion projects. These initiatives boost economic development, attract investments, and enhance global competitiveness.

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