Construction Equipment Rental Market in ASEAN Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

ASEAN Construction Equipment Rental Market Trends

Rising Focus on Infrastructure Activities to Drive Demand in the Market

The ASEAN region is experiencing an unprecedented surge in infrastructure development, supported by substantial government investments and international collaborations. In February 2024, Thailand unveiled a massive investment initiative totaling 652 billion baht (USD 17.75 billion) to be dispersed over the next two years for developing 150 infrastructure projects. A significant portion of this investment, approximately 300 billion baht (USD 8.17 billion), has been allocated for the Thai-Chinese mega high-speed railway infrastructure connecting Nakhon Ratchasima to Nong Khai. The Indonesian government has demonstrated a strong commitment to infrastructure development by allocating Rp422.7 trillion (USD 26.15 billion) from the 2024 state budget, representing the highest infrastructure budget over the last five years and a 5.8% increase from 2023.

Major infrastructure projects across the region are creating substantial opportunities for rental of construction equipment services. In November 2023, Sarawak Metro Sdn Bhd granted construction contracts valued at RM568.81 million (USD 121.15 million) for projects under the Kuching Urban Transportation System initiative in Malaysia. The Philippine government has initiated the construction of about 1.2 million housing units under the Pambansang Pabahay para sa Pilipino Housing Program, while in October 2023, over USD 4.26 billion worth of investment deals were signed between the Philippines and Saudi Arabia, creating thousands of jobs in the construction industry. Additionally, China Communications has offered to invest in several infrastructure projects in Vietnam, including the country's high-speed North-South Railway, which would run for more than 1,500 km between Hanoi and Ho Chi Minh City.

Expansion in Road and Highway Network to Fuel Construction Equipment Rental Demand

The extensive development of road and highway networks across ASEAN countries is creating substantial demand for rental of heavy equipment services. In Thailand, the government has approved significant projects, including the construction of the Rama III-Dao Khanong-Western Outer Ring Road, covering a distance of 18.7 km with a budget of 30 billion baht, expected to be operational by May 2025. The expansion of the Nakhon Nayok-Saraburi expressway, focusing on the Outer Ring Road section spanning 19.25 km with a budget of 24 billion baht, further demonstrates the scale of road infrastructure development in the region. These projects require a wide range of rental of construction machinery, from excavators and bulldozers to pavers and compactors.

The commitment to expanding transportation infrastructure is evident across other ASEAN nations as well. In Malaysia, collaborative efforts with neighboring countries focus on constructing new international road links to bolster regional transportation, while significant emphasis is placed on upgrading infrastructure in rural areas. In Indonesia, Rp213.7 trillion (USD 13.22 billion) has been allocated for distribution among ministries and institutions to construct regional roads, while an additional Rp20.27 trillion (USD 1.25 billion) will support infrastructure development in new autonomous regions. These extensive road and highway projects necessitate long-term rental of earthmoving equipment solutions, particularly for specialized machinery like asphalt pavers, motor graders, and heavy compactors that are essential for road construction and maintenance.

Segment Analysis: By Vehicle Type

Earthmoving Equipment Segment in ASEAN Construction Equipment Rental Market

The earthmoving equipment rental segment dominates the ASEAN construction equipment rental market, commanding approximately 69% of the total market share in 2024. This segment's prominence is driven by extensive infrastructure development projects across the ASEAN region, particularly in countries like Indonesia, Thailand, and Vietnam. The segment encompasses a wide range of equipment including backhoe loaders, wheel loaders, excavators, bulldozers, asphalt pavers, and motor graders, which are essential for various construction activities from site preparation to road construction. The segment is experiencing robust growth with a projected growth rate of nearly 7% from 2024 to 2029, supported by ongoing government initiatives in infrastructure development, expansion of road networks, and increasing urbanization across ASEAN countries. Major infrastructure projects such as the Thai-Chinese mega high-speed railway infrastructure and Indonesia's National Medium-term Development Plan are key drivers fueling the demand for earthmoving equipment rental in the region.

Material Handling Equipment Segment in ASEAN Construction Equipment Rental Market

The material handling equipment rental segment, which includes cranes, dump trucks, forklifts, telescopic handlers, and aerial platforms, represents a crucial component of the ASEAN construction equipment rental market. This segment serves diverse industries including construction, manufacturing, logistics, and warehousing sectors across the ASEAN region. The segment's growth is driven by increasing industrialization, expansion of manufacturing facilities, and the boom in e-commerce infrastructure development. The demand is particularly strong in countries like Singapore and Malaysia, where advanced logistics and material handling equipment rental solutions are required for various industrial and commercial projects. The segment benefits from technological advancements in equipment design, improved safety features, and the increasing adoption of automated material handling solutions, making it an essential part of modern construction and industrial operations in the ASEAN region.

Segment Analysis: By Propulsion

IC Engine Segment in ASEAN Construction Equipment Rental Market

The IC engine segment dominates the ASEAN construction equipment rental market, commanding approximately 99% of the total market share in 2024. This segment's dominance is attributed to the widespread use of IC engines across various construction equipment, including excavators, bulldozers, loaders, and compactors, providing the necessary propulsion and energy for efficient operations. The segment's strong position is reinforced by the booming construction industry across ASEAN countries, particularly in Thailand, Indonesia, Vietnam, and the Philippines, where major infrastructure development projects are driving demand. IC engines are particularly favored in the region due to their reliability, robustness, and ability to withstand demanding construction site conditions, making them the preferred choice for rental equipment providers and construction companies alike. The segment's strength is further supported by continuous investments in upgrading existing fleets and introducing more fuel-efficient models to meet evolving market demands and environmental regulations.

Electric Segment in ASEAN Construction Equipment Rental Market

The electric segment is emerging as the fastest-growing segment in the ASEAN construction equipment rental market, projected to grow at approximately 18% CAGR from 2024 to 2029. This remarkable growth is driven by increasing environmental awareness and stringent emission regulations across the region. The segment is witnessing significant technological advancements, particularly in battery technology and charging infrastructure development. Major equipment manufacturers are expanding their electric product portfolios, introducing innovative models with improved performance capabilities and extended operating ranges. The growth is further supported by various government initiatives and incentives aimed at promoting cleaner technologies in the construction sector. Notable developments include the introduction of electric excavators, loaders, and aerial work platforms by leading manufacturers, particularly in developed markets like Singapore and Thailand, where there is growing emphasis on sustainable construction practices.

ASEAN Construction Equipment Rental Market Geography Segment Analysis

ASEAN Construction Equipment Rental Market in Indonesia

Indonesia dominates the ASEAN construction equipment rental landscape, commanding approximately 40% of the regional market share in 2024. The country's market leadership is primarily driven by the government's strategic focus on enhancing connectivity across various regions through infrastructure development initiatives. The construction machinery rental sector has particularly benefited from the government's unprecedented infrastructure budget allocation of USD 26.15 billion in 2024, marking the highest infrastructure investment over the last five years. This substantial investment encompasses various development projects, including regional roads, the Nusantara Capital City (IKN) development, stadium renovations, and educational and health infrastructure improvements. The rental market has also seen significant evolution in Jakarta's metropolitan area, where industrial park growth and manufacturing investments have created sustained demand for heavy equipment rental. The market dynamics are further shaped by the increasing trend of companies forming strategic partnerships and joint ventures to address the growing demand for safe, high-quality equipment, particularly in construction and industrial sites.

ASEAN Construction Equipment Rental Market in Vietnam

Vietnam represents one of the most dynamic markets in the ASEAN region, with a projected growth rate of approximately 8% during 2024-2029. The country's construction equipment rental sector is experiencing robust expansion driven by the government's ambitious infrastructure development plans and increasing domestic and global investments in data center facilities. The market's growth is particularly evident in the implementation of green building initiatives, with the Ministry of Construction's guidelines promoting sustainable construction practices. The urban development trajectory is creating substantial opportunities for equipment leasing companies, as Vietnam's housing demand is expected to surge significantly. The construction sector's evolution is further supported by the government's focus on developing smart cities, improving transportation infrastructure, and expanding renewable energy projects. The market is witnessing increased participation from international rental companies, who are establishing a local presence to capitalize on the growing demand for construction tool rental, particularly in major urban centers and industrial zones.

ASEAN Construction Equipment Rental Market in Thailand

Thailand's construction equipment rental market demonstrates robust growth potential, supported by significant government infrastructure investments and development initiatives. The country's market is particularly energized by the implementation of 150 infrastructure projects, including major developments like the Thai-Chinese mega high-speed railway infrastructure and the Bangkok-Ubon Ratchathani high-speed railway project. The rental sector benefits from the increasing adoption of advanced construction technologies and equipment, as companies seek to optimize their operations without substantial capital investments. The market's dynamics are further enhanced by the government's comprehensive infrastructure investment plan, which encompasses intercity rail networks, highway enhancements, and public transportation improvements in Bangkok's metropolitan areas. The rental industry is also witnessing a transformation with the entry of international players and the establishment of strategic partnerships, bringing advanced equipment and innovative rental solutions to the market.

ASEAN Construction Equipment Rental Market in Malaysia

Malaysia's construction equipment rental market is experiencing significant momentum, driven by substantial investments in infrastructure development and the implementation of forward-looking industrial policies. The country's market is particularly bolstered by the government's commitment to strengthening the manufacturing sector through initiatives like the National Policy on Industry 4.0. The rental sector has benefited from the increasing focus on developing transport connections with neighboring countries Indonesia and Thailand, creating new opportunities for industrial equipment rental deployment. The market is characterized by a strong emphasis on upgrading rural infrastructure, including road maintenance and improvement initiatives. The construction machinery rental industry is also witnessing transformation through the integration of advanced technologies and sustainable practices, particularly in major urban development projects and transportation infrastructure initiatives.

ASEAN Construction Equipment Rental Market in Other Countries

The construction equipment rental market in other ASEAN countries, including Singapore, the Philippines, Brunei, Cambodia, and Laos, presents diverse growth opportunities shaped by their unique economic and infrastructure development needs. These markets are characterized by varying levels of technological adoption and infrastructure development priorities. Singapore stands out with its focus on high-rise construction and advanced infrastructure projects, while the Philippines demonstrates strong potential through its public and private sector investments in various infrastructure initiatives. The emerging markets of Brunei, Cambodia, and Laos are showing increasing demand for industrial equipment rental, driven by urbanization and infrastructure modernization efforts. These markets are witnessing a gradual shift towards more sophisticated equipment and rental solutions, supported by increasing foreign investment and government initiatives to improve infrastructure quality and coverage.