Asia Pacific Construction Equipment Market growth was USD 60 billion in 2019 and is expected to grow at a CAGR of 4.5% from 2020 to 2026.
 

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The Asia Pacific construction market will witness a high growth over the coming years owing to continuous upgrades and growth in telecommunication infrastructure development activities in the region. Factors, such as the growing penetration of smartphones and rapid adoption of other technologically advanced smart devices, are creating a robust demand for telecommunication networks in the region. Increasing government investments to expand telecom networks will drive the demand for construction equipment during the forecast timeframe.

The Asia Pacific construction industry is experiencing high growth due to rapid industrialization and improving economic conditions in countries including China, South Korea, and Japan. The governments’ push toward the expansion of large industries in these countries will encourage the development of manufacturing plants, factories, and offices. The presence of major equipment manufacturers, such as Hitachi Construction Machinery, Komatsu Ltd., & Sumitomo Mitsui Construction Co., Ltd., and their widespread customer base are driving the construction equipment market in Asia Pacific.

The rapid spread of the COVID-19 pandemic, since its origin in China, has largely impacted the regional construction equipment industry. The pandemic has resulted in a huge loss of life and a major economic setback for Asia Pacific countries. Disruptions in the manufacturing sector have caused a sharp decline in the GDP, resulting in a loss of several job opportunities. The ongoing coronavirus (COVID-19) pandemic will boost the e-learning industry in Asia Pacific. Governments in the region are primarily focusing on adopting strategies to contain the virus spread. These factors have led to a decline in the growth rate of the construction equipment market in the region during 2020.

The concrete equipment segment is anticipated to witness high demand due to increasing road building and public unfractured development activities in Asia Pacific. Increasing investments by government authorities to improve the road transportation network and connect remote areas are positively influencing the regional market growth. For instance, in March 2019, the Indian government announced its plans to invest approximately USD 15.9 billion on new National Highway projects. Technological advancements in mixers, pavers, and other concrete equipment are driving their adoption in the Asia Pacific construction equipment market.

The key players operating in the market include Komatsu Ltd., XCMG Corporation, Zoomlion, Sumitomo Heavy Industries Ltd., Tadano Ltd., Metso Corporation, Kobelco Construction Machinery Co., Ltd., and Hitachi Construction Machinery. These companies are emphasizing on the expansion of their business operations to improve their market share and meet customer demands. For instance, in July 2020, Komatsu announced its plans to expand the manufacturing facility of its Himi Plant 2 to enhance production capabilities.