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South Korea Construction Equipment Market- Strategic Assessment and Forecast 2022-2028

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SOUTH KOREA CONSTRUCTION EQUIPMENT MARKET WAS VALUED AT USD 1.9 BILLION IN 2021 AND IS EXPECTED TO REACH USD 2.5 BILLION BY 2028, GROWING AT A CAGR OF 4.13%.

South Korea Construction Equipment Market Research Report includes segments by

  • Type:
    • Earth Moving Equipment: Excavator, Backhoe Loader, Motor Grader, and Other Earth Moving Equipment
    • Material Handling Equipment: Crane, Forklift & Telescopic Handler, Arial Platforms (Articulated Boom Lifts, Telescopic Boom Lifts, Scissor Lifts, etc.)
    • Road Construction Equipment: Road Roller and Asphalt Paver
  • End-users
    • Construction
    • Manufacturing
    • Mining
    • Others

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Most Exhaustive Report

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111 Pages

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15 Tables

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68 Charts

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1 Regions

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1 Countries

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14 Companies

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2 Market Segment

SOUTH KOREA CONSTRUCTION EQUIPMENT MARKET REPORT SCOPE

Report Attribute Details
Market Size (2028) USD 2.5 Billion
MARKET SIZE (2021) USD 1.9 Billion
CAGR (2022-2028) 4.13%
MARKET SIZE (VOLUME) 51435 Units Sales
HISTORIC YEAR 2019-2020
Base Year 2021
FORECAST YEAR 2022-2028
TYPE Earth Moving Equipment, Material Handling Equipment, and Road Construction Equipment
END-USERS Construction, Manufacturing, Mining, and Others
KEY VENDORS Hyundai Construction Equipment, Komatsu, Caterpillar, Hitachi, Volvo Construction Equipment, XCMG, SANY, John Deere, and Kubota

MARKET INSIGHTS

South Korea construction equipment market was valued at USD 1.9 billion in 2021 and is expected to reach USD 2.5 billion by 2028, growing at a CAGR of 4.13%. South Korea construction equipment market sales are expected to reach 51,435 units by 2028. The market for construction equipment in South Korea is expected to grow during the forecast period due to South Korea's electricity market reforming to net-zero and factors such as growth in the e-commerce sector and government efforts to promote public and private investments in the country.

KEY INSIGHTS INTO THE SOUTH KOREAN CONSTRUCTION EQUIPMENT MARKET

  • In 2021, the material handling equipment segment was the largest in the South Korean construction equipment market, followed by earthmoving and road construction equipment. The forklift was the largest segment by type. The investment in the logistics industry, such as the expansion of fulfillment centers, the opening of new logistics centers, etc., has boosted the demand for forklifts in South Korea.
  • In terms of end-users, the construction industry is expected to generate the highest demand for construction equipment and is anticipated to dominate the market during the forecast period further.
  • The increasing demand for construction equipment is attributed to investments by favorable government policies. Foreign multinationals invest in South Korea, upcoming industrial developments in the construction industries, and government initiatives.
  • By switching to intelligent systems driven by IoT and data analysis for service, networking, and sustainability, the construction equipment market is transitioning to a more innovative industry.

Solid exports back South Korea's economy

COVID-19's outbreak triggered a global health and economic crisis in 2020, like many other countries worldwide. South Korea was adversely affected by the pandemic. However, due to the government's economic policies and fiscal support, COVID-19 had little impact on the country's GDP. According to the IMF, South Korea's GDP declined by 0.8% in 2020.

According to the IMF, South Korea's GDP increased by 9.8% in 2021 due to solid consumer spending and rising exports. In 2021, merchandise exports hit a new high of $645 billion, up 25.8% Y-o-Y. Strong export growth, increased business investment, and governmental support is projected to carry South Korea's economy forward. According to the latest IMF statistics, South Korea's GDP is expected to grow by 0.3% in 2022, 6.4% in 2023, and 5% in 2024.

Construction equipment demand in South Korea is expected to increase owing to planned investments in the construction and manufacturing sectors and ongoing infrastructure projects.

Reforming South Korea's electricity market to net-zero will spur the demand for construction equipment.

The 9th Basic Plan for power supply and demand in South Korea plans to expand renewable energy's proportion of installed capacity to 40% by 2034, up from 15.1% in 2020. According to the plan, all coal-based power facilities with 30-year operational life cycles will be shut down by 2034.

From 2020 through 2034, the plan includes 15-year electricity supply and demand predictions and electricity facility plans. Evaluation of the previous program; Long-term supply and demand prediction; Demand management target; Power generation and transmission/substation facility plan; Expansion of distributed power supply; Greenhouse gas and acceptable dust reduction plan are among the primary objects of the project.

Over the forecast period, there will be considerable demand for construction equipment to build the infrastructure needed to reform the South Korean power system. Infrastructure, such as power plants and greenhouses, will drive demand for material handling and the total construction equipment industry in South Korea.

Demand for forklifts and telescopic handlers will increase as the e-commerce sector grows.

South Korea has many internet users (96.5% of the population in 2020) and increased by 1.1% in 2021, owing to the deployment of modern technology (such as the 5G Network), which has fuelled the country's e-commerce sector growth.

Some e-commerce firms are also expanding their business in the country. For instance, Una Brands has partnered with KlickBrands to access the South Korean e-commerce sector. Furthermore, companies in South Korea are expanding their logistics centers, such as Hines, which announced the development of Iljuk Logistics Centre to expand its logistical capacity. CJ Logistics announced that the construction of fulfillment centers worth $621 million would increase demand for forklifts.

As a result, the expansion of South Korea's e-commerce sector is benefitting the region's forklift market. The surge in trade at the region's seaports also supports the demand for forklifts and telescopic handles (South Korea has an export-dependent economy with ~52% exports of overall business). Forklifts and telescopic handlers are used for loading and unloading and material handling at seaports. The need for forklifts has increased due to increased freight flow at ports.

Government's efforts to promote investment fuels growth in construction equipment

To promote public investment, the government focuses on improving transportation and logistics systems and building intelligent buildings, zero energy buildings, smart cities, etc. The government has announced a $20 billion budget for 2021.

Additionally, the government is also promoting private investment, for which the government has announced a $31.2 billion worth of budget for 2021. These efforts to encourage investments mainly reduce the unemployment rate, as unemployment is one of the significant challenges South Korea faces after the COVID-19 pandemic. To overcome the same, the government invested ~$17 billion (which includes start-up support programs, programs for middle-aged workers, etc.) in 2021 to create 360,000 jobs.

To reduce unemployment, the government also focuses on strengthening major manufacturing industries (such as machinery and equipment, mobile phones, automobiles, machinery including computers, household electronics, machine tools, and so on) and services by constructing digital clusters and upgrading intelligent factories, among other things. This will enhance the demand for construction equipment in all the major industries (Construction, Manufacturing, Mining, etc.) in South Korea.

High labor costs and increases in construction material prices reduce profit margins for OEMs  

Due to the high standard of labor rights in South Korea, the construction industry is having difficulty hiring experienced workers. Workers in South Korea can operate technologically advanced machinery.

On the other hand, construction companies must pay high wages to workers to accomplish the work on time and efficiently. Furthermore, construction materials are expensive in South Korea. Prices of raw materials such as iron ore, steel, copper, etc., have risen sharply since the COVID-19 outbreak. For instance, in January 2022 average price of scrap iron increased ~113% (almost double) compared to the price in 2020.

In 2021, the average profit margins of construction industry companies had shrunk by ~40% compared to 2020 due to these added costs. As a result, most construction companies prefer to rent equipment rather than buy new equipment. Such trends are having a negative influence on construction equipment sales.

Unsold housing units and a population decline are expected to affect the demand adversely.

In 2020, there were more deaths than births (275,800 babies were born and 307,764 people died) in South Korea. Additionally, according to CIA World Factbook, South Korea is one of the top three countries in the world with the lowest birth rate (6.89) in 2021. In 2021, South Korea's total population also declined by 57,300 from 2020.

These factors and high prices resulted in ~17,000 unsold housing units in South Korea for 2021.

With the declining population and rising unsold housing units, the construction of new housing units is expected to be adversely affected, restricting the demand for construction equipment in South Korea over the forecast period.

Due to labor shortage, construction equipment with automation and intelligent operation technology is highly demanded.

Following the COVID-19 epidemic, South Korea is experiencing severe labor shortages in the construction, manufacturing, and mining industries. Due to a labor crisis, new technologies in construction equipment are in high demand to improve worker efficiency and reduce labor dependency.

Hitachi, for instance, has introduced wheel loaders and excavators with automation, intelligent operating technology, and the Concise Hitachi Comprehensive Machine Management support system. Other major construction equipment manufacturers, such as Hyundai and Volvo, follow similar patterns and introduce new technologies such as 5G, AI, advanced analytics (IoT), etc., into their equipment to address labor shortages in construction and mining industries, respectively.

VENDOR LANDSCAPE

  • The construction equipment market is captured by Hyundai CE being the leader, followed by Hyundai Doosan Infracore, Komatsu Group, Caterpillar, Hitachi CM, and Volvo Construction Equipment. In 2021, these companies will have nearly ~60% share of the total South Korean construction equipment market.
  • Yanmar has served the customers of the South Korea region for more than 70 years. However, it lags behind Liebherr in innovations, though Liebherr has less than 25 years of experience. In 2022, Liebherr introduced Hydrotreated Vegetable Oils (HVO) as an alternative fuel for construction machines.
  • In March 2022, Hyundai Construction Equipment introduced its new excavator model, "HX320A," with high fuel efficiency and eco-friendly engines.

Frequently Asked Questions

WHAT IS THE GROWTH RATE OF THE CONSTRUCTION EQUIPMENT MARKET IN SOUTH KOREA?

The South Korean construction equipment market is expected to grow at a CAGR of 4.13% during 2022-2028.

WHO ARE THE KEY PLAYERS IN THE SOUTH KOREA CONSTRUCTION MACHINERY MARKET?

Hyundai Construction Equipment, Komatsu, Caterpillar, Hitachi, Volvo Construction Equipment, XCMG, SANY, John Deere, and Kubota

WHAT ARE THE MARKET OPPORTUNITIES FOR PLAYERS IN THE SOUTH KOREA CONSTRUCTION EQUIPMENT INDUSTRY?

Companies in South Korea are expanding their logistics centers, such as Hines, which announced the development of Iljuk Logistics Center to expand its logistical capacity. CJ Logistics announced the construction of fulfillment centers worth $621 million, etc, which will increase demand for forklifts. As a result, the expansion of South Korea's e-commerce sector is benefitting the region's forklift market.

WHAT ARE THE LATEST TRENDS IMPACTING THE GROWTH OF THE SOUTH KOREA CONSTRUCTION EQUIPMENT MARKET?

Adoption of construction equipment with automation and intelligent operation technology and the shift toward green hydrogen fuel-based construction equipment is the latest trend positively impacting the growth of the South Korean construction equipment market.

HOW WILL EARTHMOVING EQUIPMENT CONTRIBUTE TO THE GROWTH IN THE SOUTH KOREAN CONSTRUCTION EQUIPMENT INDUSTRY?

The earthmoving segment is estimated to grow at a CAGR of 4.37% to reach USD 212.2 million by 2028.

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South Korea's construction equipment market was valued at USD 1.9 billion units in 2021 and is expected to reach USD 2.5 billion by 2028, growing at a CAGR of 4.13%.

The demand for technologically advanced construction equipment that supports safer operations is rapidly expanding in South Korea's mining industry due to the arrival of ergonomic controls, which reduce operator fatigue and the risk of injury. The construction equipment utilization in the mining industry by value is estimated to reach $157.6 million, with a CAGR of 1.4% by 2028.

Base Year: 2021

Forecast Year: 2022-2027

Scope: The report considers the present scenario of the South Korean construction equipment market and market dynamics for the forecast period 2022−2028. It covers a detailed overview of several growth enablers, restraints, and trends in the market. The study includes volume and value sales with a South Korean construction equipment market segment analysis.

Key Vendors

  • Hyundai Construction Equipment
  • Komatsu
  • Caterpillar
  • Hitachi
  • Volvo Construction Equipment
  • XCMG
  • SANY
  • John Deere
  • Kubota

Other Prominent Vendors

  • Liebherr
  • Kobelco Construction Machinery
  • Yanmar
  • Zoomlion
  • JCB

Distributors Profile

  • SOOSAN CSM
  • HAEIN Corporation
  • Daijeon Machinery

Earthmoving Equipment:

  • Excavator
  • Backhoe Loaders
  • Motor Graders
  • Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers)

Road Construction Equipment

  • Road Rollers
  • Asphalt Pavers

Material Handling Equipment

  • Crane
  • Forklift & Telescopic Handlers
  • Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)

End Users

  • Construction
  • Manufacturing
  • Mining
  • Others

Section 1 – Introduction
• Market Snapshot
• Executive Summary

Section 2 – Market Overview

Economic Scenario, Foreign Direct Investment

Section 3 – Market Landscape

South Korea Construction Equipment (Type & Application)

3.1 South Korea Construction Equipment Market by Type (Volume & Value)

3.1.1 Material Handling Equipment

  1. Forklift and Telescopic Handler
  2. Aerial Platform (Articulated Boom lifts, Telescopic Boom lifts, Scissor Lifts, etc)
  3. Crane

3.1.2 Earth Moving Equipment

  1. Excavator
  2. Backhoe Loader
  3. Motor Grader
  4. Other Earth Moving Equipment (Other Loaders, Bulldozer, Trencher, etc.)

3.1.3 Road Construction Equipment

  1. Road Roller
  2. Asphalt Paver

  3.2 South Korea Construction Equipment Market by Application (Volume & Value)

  1. Construction
  2. Manufacturing
  3. Mining
  4. Others (Power Generation, Utilities Municipal Corporation, Oil & Gas, Cargo Handling, Power Generation Plants, Waste Management, etc.)

Section 4: Market Dynamics

Market Drivers, Restraints, Trends, Advantage South Korea, Key Economic Regions, Import/Export Trend Analysis, Supply chain Analysis, COVID-19 Impact

Section 5: Technology Development

 Advent of New Technology

Section 6 – Competitive Landscape

  1. Competitive Landscape Overview
  2. Major Vendors (Hyundai Construction Equipment | Hyundai Doosan Infracore | Komatsu Group | Caterpillar | Hitachi Construction Machinery | Volvo Construction Equipment | XCMG Group | SANY Group | John Deere | Kubota | Liebherr Group | Kobelco | Yanmar | Zoomlion | JCB)
  3. Other Prominent Vendors
  4. Distributor Profiles

Section 7-Quantitative Summary

Section 8 – Report Summary
1. Key Insights

  1. Abbreviations
  2. List of Graphs
  3. List of Tables

Section 9 – Report Scope & Definition
1. Research Methodology
2.   Market Definition, Inclusion & Exclusion

LIST OF EXHIBITS

Graph-1 South Korea Construction Equipment Market by Volume 2019-2028 (Unit Sales)

Graph-2 Construction Equipment Market in South Korea by Type, 2021 (% Volume Share)

Graph-3 South Korea Construction Equipment Market by Volume, 2019-2028 (Unit Sales)

Graph-4 South Korea Construction Equipment Market by Value, 2019-2028 ($ MN)

Graph-5 South Korea Construction Equipment Market by End User, 2021 (%)

Graph-6 South Korea Construction Equipment Market by Type, 2019-2028 (Unit Sales)

Graph-7 South Korea GDP, 2016-2021 ($ BN)

Graph-8 Exports Breakdown by Sector In 2020

Graph-9 Foreign Direct Investment, Net Inflow, 2016-2020 ($ BN)

Graph-10 South Korea Construction Equipment Market by Type, 2019-2028 (Unit Sales)

Graph-11 South Korea Construction Equipment Market by Type 2021 (% Volume Share)

Graph-12 South Korea Construction Equipment Market by End User, 2019- 2028 (Unit Sales)

Graph-13 South Korea Material Handling Equipment Market, 2019–2028 (Unit Sales)

Graph-14 South Korea Material Handling Equipment Market, 2019–2028 ($ MN)

Graph-15 South Korea Forklift and Telescopic Handler Market, 2019–2028 (Unit Sales)

Graph-16 South Korea Forklift and Telescopic Handler Market, 2019–2028 ($ MN)

Graph-17 South Korea Crane Market, 2019–2028 (Unit Sales)

Graph-18 South Korea Crane Market, 2019–2028 ($ MN)

Graph-19 South Korea Aerial Platforms Market, 2019–2028 (Unit Sales)

Graph-20 South Korea Aerial Platforms Market, 2019–2028 ($ MN)

Graph-21 South Korea Earthmoving Equipment Market, 2019–2028 (Unit Sales)

Graph-22 South Korea Earthmoving Equipment Market, 2019–2028 ($ MN)

Graph-23 South Korea Excavator Market, 2019–2028 (Unit Sales)

Graph-24 South Korea Excavator Equipment Market, 2019–2028 ($ MN)

Graph-25 South Korea Backhoe Loader Market, 2019–2028 (Unit Sales)

Graph-26 South Korea Backhoe Loader Equipment Market, 2019–2028 ($ MN)

Graph-27 South Korea Motor Grader Market, 2019–2028 (Unit Sales)

Graph-28 South Korea Motor Grader Market, 2019–2028 ($ MN)

Graph-29 South Korea Other Earthmoving Equipment Market, 2019–2028 (Unit Sales)

Graph-30 South Korea Other Earthmoving Equipment Market, 2019–2028 ($ MN)

Graph-31 South Korea Road Construction Equipment Market, 2019–2028 (Unit Sales)

Graph-32 South Korea Road Construction Equipment Market, 2019–2028 ($ MN)

Graph-33 South Korea Road Roller Market, 2019–2028 (Unit Sales)

Graph-34 South Korea Road Roller Market, 2019–2028 ($ MN)

Graph-35 South Korea Asphalt Paver Market, 2019–2028 (Unit Sales)

Graph-36 South Korea Asphalt Paver Market, 2019–2028 ($ MN)

Graph-37 South Korea Construction Equipment Market by Construction, 2019–2028 (Unit                    Sales)

Graph-38 South Korea Construction Equipment Market by Construction, 2019–2028 ($ MN)

Graph-39 South Korea Construction Equipment Market by Manufacturing, 2019–2028 (Unit Sales)

Graph-40 South Korea Construction Equipment Market by Manufacturing, 2019–2028 ($ MN)

Graph-41 South Korea Construction Equipment Market by Mining, 2019–2028 (Unit Sales)

Graph-42 South Korea Construction Equipment Market by Mining, 2019–2028 ($ MN)

Graph-43 South Korea Construction Equipment Market by Others, 2019–2028 (Unit Sales)

Graph-44 South Korea Construction Equipment Market by Others, 2019–2028 ($ MN)

Graph-45 Import Value of Construction Equipment from Major Countries, 2021 ($ MN)

Graph-46 Export Value of Construction Equipment to Major Countries, 2021 ($ MN)

Graph-47 Market Share Leaders & Other Vendors, 2021 (%)

Graph-48 Hyundai: Revenue (2018–2020) ($BN)

Graph-49 Komatsu: Consolidated Net Sales, 2018-2020 ($ BN)

Graph-50 Komatsu: Construction, Mining and Utility Equipment Business,
Sales by Region, 2020 (% Share)

Graph-51 Komatsu: Breakdown of Net Sales by Segment, 2020 (% Share)

Graph-52 Caterpillar: Total Revenue, 2018-2021 ($ BN)

Graph-53 Caterpillar: Sales by Region, 2020 (% Share)

Graph-54 Caterpillar: Total Revenue by Segment, 2020 (% Share)

Graph-55 Hitachi: Revenue 2019–2021 ($ BN)

Graph-56 Volvo: Construction Equipment Net Sales, 2016-2021 ($ BN)

Graph-57 Volvo: Share of Net Sales by Market, 2021 (% Share)

Graph-58 Volvo: Share of Net Sales by Segment, 2021 (% Share)

Graph-59 John Deere: Revenue 2018–2021 ($ MN)

Graph-60 John Deere: Shareholder Value ($ MN)

Graph-61 John Deere: Net Income ($ MN)

Graph-62 Kubota: Revenue 2016–2021 ($ BN)

Graph-63 Kubota: Revenue by Segment 2021 (% Share)

Graph-64 Kubota: Revenue by Region 2021 (% Share)

Graph-65 Liebherr: Total Revenue, 2018-2020 (% Share)

Graph-66 Liebherr: Revenue by Region (% Share)

Graph-67 Liebherr: Total Revenue by Product Segment, 2020 (% Share)

Graph-68 Zoomlion: Revenue 2017-2020 ($ BN)

LIST OF TABLES:

Table-1 FDI Flows, 2020 ($ MN)

Table-2 Major Invested Sectors, 2019 (%)

Table-3 Investments in South Korea, 2018–2020

Table-4 South Korea Construction Equipment Market by Volume 2019-2028 (Volume, Units)

Table-5 South Korea Construction Equipment by Type 2019-2018 (Volume, Units)

Table-6 South Korea Material Handling Equipment Market Size & Forecast, By Type

 (Volume, Units)

Table-7 South Korea Earth Moving Equipment Market Size & Forecast, By Type

 (Volume, Units)

Table-8 South Korea Road Construction Equipment Market Size & Forecast, By Type

 (Volume, Units)

Table-9 South Korea Construction Equipment Market Size & Forecast, By End User

 (Units)

Table-10 South Korea Construction Equipment Market by Value 2019-2028 (Value, $ MN)

Table-11 South Korea Construction Equipment by Type 2019-2018 (Value, $ MN)

Table-12 South Korea Material Handling Equipment Market Size & Forecast, By Type

 (Value, $ MN)

Table-13 South Korea Earth Moving Equipment Market Size & Forecast, By Type

 (Value, $ MN)

Table-14 South Korea Road Construction Equipment Market Size & Forecast, By Type

 (Value, $ MN)

Table-15 South Korea Construction Equipment Market Size & Forecast, By End User

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