
ASEAN Construction Equipment Rental Market Analysis
The ASEAN Construction Equipment Rental Market is expected to register a CAGR of greater than 7% during the forecast period.
The ASEAN construction equipment rental market is experiencing a fundamental shift in how construction companies approach equipment acquisition and management. This transformation is driven by the increasing preference for renting over purchasing heavy machinery, offering companies significant cost benefits through reduced maintenance expenses and administrative overhead. The trend is particularly evident in Thailand, where the government recently announced a massive infrastructure investment of 652 billion baht (USD 17.75 billion) over the next two years for 150 infrastructure projects, creating substantial opportunities for construction machinery rental providers. This shift is reshaping the industry landscape as construction companies increasingly recognize the flexibility and financial advantages of leasing construction equipment over ownership.
Technological advancement is revolutionizing the construction equipment rental sector, with innovations ranging from multifunctional machinery to sophisticated monitoring applications. Equipment manufacturers and rental providers are incorporating telematics systems, IoT sensors, and remote monitoring capabilities to enhance equipment utilization, maintenance scheduling, and operational efficiency. In Indonesia, where the government has allocated an infrastructure budget of Rp422.7 trillion (USD 26.15 billion) for 2024, representing a 5.8% increase from 2023, these technological innovations are proving crucial in managing and optimizing large-scale construction projects efficiently.
The market is witnessing a notable transition towards sustainable and environmentally friendly equipment options. Electric construction equipment is gaining significant traction, with manufacturers like Volvo Construction Equipment introducing their first fully electric construction machines in Singapore during 2023. This shift is particularly significant as rental companies invest in expanding their electric equipment fleet to meet growing customer demand for sustainable solutions. The adoption of electric construction equipment is further accelerated by various government incentives and subsidies aimed at promoting cleaner technologies.
The industry is experiencing robust growth driven by extensive infrastructure development initiatives across the ASEAN region. Vietnam's construction sector reported an impressive 8.5% real-terms growth in 2022, with similar positive trends observed across other ASEAN nations. Singapore's construction demand is projected to remain strong, ranging between USD 25-32 billion annually from 2024 to 2027, primarily driven by public sector projects including MRT developments and public housing initiatives. This sustained infrastructure development is creating consistent demand for heavy equipment rental, particularly for specialized and high-value machinery that many contractors prefer to rent rather than purchase.
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.
ASEAN Construction Equipment Rental Industry Overview
Top Companies in ASEAN Construction Equipment Rental Market
The ASEAN construction equipment rental market is led by established players like Aktio Co. Ltd, Kanamoto, Sin Heng Heavy Machinery, and Asia Machinery Solutions Vietnam Co. Ltd. These companies are driving market evolution through continuous fleet modernization and the integration of advanced technologies like telematics and IoT-enabled equipment monitoring systems. The industry is witnessing a significant shift towards environmentally sustainable practices, with companies increasingly investing in electric and low-emission machinery options. Market leaders are strengthening their competitive positions through strategic partnerships with equipment manufacturers, expanding their geographical presence across multiple ASEAN countries, and developing comprehensive maintenance and support networks. Companies are also focusing on diversifying their equipment portfolios to cater to various construction segments, from infrastructure development to commercial construction equipment rental, while simultaneously enhancing their digital capabilities to improve operational efficiency and customer service.
Fragmented Market with Strong Local Presence
The ASEAN construction equipment rental market exhibits a highly fragmented structure, characterized by a mix of international conglomerates and strong local players with deep regional expertise. The market's competitive dynamics are shaped by the presence of both specialized rental companies focusing exclusively on specific equipment categories like cranes or earthmoving machinery, and diversified players offering comprehensive rental solutions across multiple equipment segments. Local players maintain significant market share through their understanding of regional requirements, established customer relationships, and ability to provide customized solutions for specific market needs, while global players leverage their technological capabilities and extensive resources to compete effectively.
The industry is experiencing gradual consolidation through strategic acquisitions and partnerships, particularly as larger players seek to expand their regional footprint and enhance their service capabilities. Companies are increasingly focusing on vertical integration strategies, with many equipment manufacturers entering the rental space to capture additional value chain opportunities. The competitive landscape is further influenced by the emergence of new business models, including digital rental platforms and innovative financing solutions, which are reshaping traditional market dynamics and creating new opportunities for market participants.
Innovation and Service Excellence Drive Growth
Success in the ASEAN construction equipment rental service market increasingly depends on companies' ability to balance technological innovation with operational efficiency and customer service excellence. Market leaders are focusing on developing comprehensive digital platforms that streamline the rental process, provide real-time equipment monitoring, and offer predictive maintenance capabilities. Companies are also investing in training programs and technical support services to help customers maximize equipment utilization and productivity, while simultaneously building strong relationships with equipment manufacturers to ensure access to the latest machinery and technologies.
The market's future competitive dynamics will be shaped by companies' ability to adapt to changing customer preferences and regulatory requirements, particularly regarding environmental sustainability and safety standards. Successful players will need to maintain flexible business models that can accommodate varying project sizes and durations while managing operational costs effectively. The ability to provide value-added services, such as operator training and technical consulting, will become increasingly important as customers seek comprehensive solutions rather than simple equipment leasing arrangements. Additionally, companies must develop robust risk management strategies to address challenges related to equipment maintenance, market cyclicality, and regional economic fluctuations.
ASEAN Construction Equipment Rental Market Leaders
-
Kanamoto Co. Ltd
-
Aktio Co. Ltd
-
Sin Heng Heavy Machinery Limited
-
Rent (Thailand) Co. Ltd
-
Shanghai Pangyuan Machinery Rental Co. Ltd
- *Disclaimer: Major Players sorted in no particular order

ASEAN Construction Equipment Rental Market News
September 2020: Kanamoto Company Limited h announced the acquisition of Porter Plant Group in a strategic move, to strengthen the company's overseas expansion and optimization of internal operational processes, as part of the company's medium-term corporate management plan.
ASEAN Construction Equipment Rental Industry Segmentation
Construction equipment refers to heavy-duty vehicles specially designed for executing construction tasks, most frequently involving earthwork operations.
The ASEAN construction equipment rental market is segmented by vehicle type (earth moving equipment, material handling), by propulsion type (ic engine, hybrid drive), and by geography (Indonesia, Thailand, Vietnam, Singapore, Malaysia, Philippines, and the Rest of the ASEAN).
The report offers market size and forecasts for the ASEAN Construction equipment rental in terms of value (USD Billion) for all the above segments.
By Vehicle Type | Earth Moving Equipment |
Material Handling | |
By Propulsion | IC Engine |
Hybrid Drive | |
By Country | Indonesia |
Thailand | |
Vietnam | |
Singapore | |
Malaysia | |
Philippines | |
Rest of the ASEAN |
Earth Moving Equipment |
Material Handling |
IC Engine |
Hybrid Drive |
Indonesia |
Thailand |
Vietnam |
Singapore |
Malaysia |
Philippines |
Rest of the ASEAN |
ASEAN Construction Equipment Rental Market Research FAQs
What is the current ASEAN Construction Equipment Rental Market size?
The ASEAN Construction Equipment Rental Market is projected to register a CAGR of greater than 7% during the forecast period (2025-2030)
Who are the key players in ASEAN Construction Equipment Rental Market?
Kanamoto Co. Ltd, Aktio Co. Ltd, Sin Heng Heavy Machinery Limited, Rent (Thailand) Co. Ltd and Shanghai Pangyuan Machinery Rental Co. Ltd are the major companies operating in the ASEAN Construction Equipment Rental Market.
What years does this ASEAN Construction Equipment Rental Market cover?
The report covers the ASEAN Construction Equipment Rental Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the ASEAN Construction Equipment Rental Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.