ASEAN Construction Machinery Market Size (2024 - 2029)

The ASEAN construction machinery market is poised for significant growth, driven by increased infrastructure spending and a resurgence in construction activities following the disruptions caused by the COVID-19 pandemic. The market's expansion is supported by government initiatives that encourage infrastructure development and the rising adoption of advanced machinery, including electrified and autonomous options. As manufacturers shift operations to Southeast Asia due to lower costs and improving infrastructure, the demand for construction machinery is expected to rise. Additionally, rapid urbanization, industrialization, and the growth of the real estate sector further contribute to the market's expansion, offering new opportunities for industry players.

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Market Size of ASEAN Construction Machinery Industry

ASEAN Construction Machinery Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 7.63 Billion
Market Size (2029) USD 10.5 Billion
CAGR (2024 - 2029) 6.59 %
Market Concentration Medium

Major Players

ASEAN Construction Machinery Market Major Players

*Disclaimer: Major Players sorted in no particular order

ASEAN Construction Machinery Market Analysis

The ASEAN Construction Machinery Market size is estimated at USD 7.63 billion in 2024, and is expected to reach USD 10.5 billion by 2029, growing at a CAGR of 6.59% during the forecast period (2024-2029).

The COVID-19 pandemic had a negative impact on the market studied, primarily attributed to halted construction and manufacturing activities. In addition, governments across the ASEAN countries paused the pipeline projects and reduced the workforce over the sites. This has led to a reduction in construction output. However, the market is anticipated to witness significant growth during the forecast period due to the increase in construction activities, which is likely to be primarily attributed to increasing government support and restoration of construction activities worldwide.

Over the medium term, demand for construction machinery in the ASEAN region is driven by increased 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, resulted in higher demand for construction machinery.

Moreover, the government initiatives encouraging infrastructure activities and the rising adoption of technologically advanced machinery, both electrified and autonomous, tend to offer new opportunities for players operating in the market. The construction industry is getting smarter. Digitalization, connectivity, and automation are driving the development forward, substantially impacting construction projects. Moreover, renting companies are geared to invest in new technologies to cope with the growing demand for advanced construction machinery and replace the older ones with new or upgraded machinery fleet.

Factors such as rapid urbanization, industrialization, followed by rising government investments in the development of infrastructure, and expansion and growth activities of the real estate and construction companies across the region are expected to enhance demand in the market.

ASEAN Construction Machinery Industry Segmentation

Construction machinery includes any machinery involved in construction tasks such as soil excavation, material transportation, loading and unloading, and waste management.

The ASEAN construction machinery market is segmented by machine type (cranes, excavators, loaders, backhoe, motor graders, and other machine types), application (concrete and road construction, earth moving, and material handling), and country (Indonesia, Thailand, Vietnam, Singapore, Malaysia, Philippines, rest of ASEAN).

The report offers market size and forecasts in value USD for all the segments.

Machinery Type
Cranes
Excavators
Loaders
Backhoe
Motor Graders
Other Machinery Types
Application
Concrete and Road Construction
Earth Moving
Material Handling
Geography
Indonesia
Thailand
Vietnam
Singapore
Malaysia
Philippines
Rest of ASEAN
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ASEAN Construction Machinery Market Size Summary

The ASEAN construction machinery industry is poised for substantial growth over the forecast period, driven by increased infrastructure spending and the resurgence of construction activities following the disruptions caused by the COVID-19 pandemic. The market is expected to expand significantly as governments in the region ramp up investments in infrastructure projects, supported by the recovery of global construction activities. The shift of manufacturing operations to Southeast Asia, due to cost advantages and improving infrastructure, further fuels the demand for construction machinery. The adoption of advanced technologies, including electrified and autonomous machinery, is creating new opportunities for market players, enhancing the efficiency and smart capabilities of construction projects.

The competitive landscape of the ASEAN construction machinery market is characterized by the presence of numerous international and regional players, all vying to capture market share through innovation and performance excellence. The demand for high-performance and safe handling equipment is expected to intensify, prompting significant investments in research and development. Countries like Vietnam are witnessing robust growth in construction equipment demand, driven by extensive infrastructure projects and government investments. The market's expansion is further supported by the increasing importation of heavy machinery and the steady growth of Singapore's exports to other ASEAN nations. As the region continues to develop, the construction machinery market is set to benefit from ongoing and future infrastructure initiatives, making it a dynamic and competitive industry.

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ASEAN Construction Machinery Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Increasing Construction Activity May Drive the Market

    2. 1.2 Market Restraints

      1. 1.2.1 High Equipment Cost may Hamper the Market

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Market Size in Value USD Million)

    1. 2.1 Machinery Type

      1. 2.1.1 Cranes

      2. 2.1.2 Excavators

      3. 2.1.3 Loaders

      4. 2.1.4 Backhoe

      5. 2.1.5 Motor Graders

      6. 2.1.6 Other Machinery Types

    2. 2.2 Application

      1. 2.2.1 Concrete and Road Construction

      2. 2.2.2 Earth Moving

      3. 2.2.3 Material Handling

    3. 2.3 Geography

      1. 2.3.1 Indonesia

      2. 2.3.2 Thailand

      3. 2.3.3 Vietnam

      4. 2.3.4 Singapore

      5. 2.3.5 Malaysia

      6. 2.3.6 Philippines

      7. 2.3.7 Rest of ASEAN

ASEAN Construction Machinery Market Size FAQs

The ASEAN Construction Machinery Market size is expected to reach USD 7.63 billion in 2024 and grow at a CAGR of 6.59% to reach USD 10.5 billion by 2029.

In 2024, the ASEAN Construction Machinery Market size is expected to reach USD 7.63 billion.

ASEAN Construction Machinery Market Report Snapshots

ASEAN Construction Machinery Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)