Market Trends of ASEAN Construction Equipment Rental Industry
Increasing Investments Towards Construction Industry
- Over the past few years, there has been a significant increase in infrastructure spending across the globe. However, by the end of 2019, due to the slowdown in economy slowdown, the global construction industry witnessed a decline. This decline continued during 2020 due to the outbreak of the coronavirus. However, post-2020, the demand for Construction machinery started gaining momentum owing to rising infrastructure activities across the ASEAN region.
- ASEAN is witnessing an infrastructure boom, with major projects approved in Vietnam, Thailand, the Philippines, Malaysia, and Indonesia. In several cases, these have been facilitated through loans and other assistance provided by Other major economies like India, Japan, and China. Several rail and road projects to further add up to the demand for machinery in the ASEAN countries over the forecasted period.For instance,
- In March 2021, the Thai Government announced that it is set to sign three contracts in connection with the Thai-Sino high-speed train project between Bangkok and Nakhon Ratchasima. Additional three contracts, including civil works for the Ban Pho-Phra Kaew section, civil engineering works along the Bang Sue-Don Muang section and works between Don Muang and Nava Nakhon, will also be signed after the preparation of the documents.
- Additionally, investments in infrastructure, both public and private, like the Indonesian National Medium-term Development Plan (USD 460 billion), Vietnam Socio-Economic Development Plan (USD 61.5 billion), and the Philippine Development Plan "Build, Build, and Build" (USD 71.8 billion), are expected to offer opportunities for sales for commercial vehicles.
- Thailand has been one of the attractive countries for investment in the construction sector. Under the infrastructure investment plan 2015-2022, the government of Thailand planned to develop an intercity rail network, highway enhancement, public transportation in Bangkok metropolitans, and capacity expansion of maritime and air transport to link the key areas across the country and neighboring countries.
- In June 2022, Offshore wind company Corio Generation signed a joint development agreement with Vietnamese construction firm FECON for a 500MW offshore wind project in Vietnam's Ba Ria-Vung Tau province. Located around 23-35km from the coast, the proposed fixed-bottom facility would be among the country's first large-scale offshore wind projects.
- Owing to the above-mentioned instances and developments in the infrastructure sector, the market is expected to witness optimistic growth over the forecast period.
Understand The Key Trends Shaping This Market
Download Sample
Thailand Is Expected To Lead The ASEAN Construction Equipment Rental Market
- Thailand's construction expenditure has evolved along with the country's economy. Following the acceleration of massive infrastructure spending over the past three years, public investment has helped Thailand's construction industry expand.
- The substantial infrastructural investment made by the Thai government is expected to increase the demand for off-road vehicles across the country. The EEC is a USD49.9 billion project that will be a part of Thailand's 4.0 initiative, which aims to make the nation a high-value-added economic and logistics powerhouse. The EEC, which encompasses the three provinces of Chachoengsao, Chonburi, and Rayong in southeast Thailand, aims to transform this area into a significant economic hub and draw international investment, which will increase demand for construction equipment.
- The government has developed a road map (Remap 2036) to encourage the expansion of renewable energy. Under Remap, solar power is anticipated to reach 17GW in 2036, thanks to reduced solar panel prices in Thailand. Thailand's government investment in the renewable energy sector supports demand in the country's construction equipment market.
- Given the increasing government spending on constructing roads, motorways, metros, and airports, the need for crawler excavators in Thailand is anticipated to rise.
- Since it is generally safer to operate machinery from a distance, remote operation of construction equipment is predicted to increase demand for construction equipment used in mining. All-terrain cranes and excavators will likely become more popular due to the government's increased investment in renewable energy plans. This is because they are necessary for developing solar, wind, and hydroelectric power facilities. Mini excavators are becoming more and more popular in Thailand. The shortage of inexpensive labor and the requirement for inner-city development projects have increased the demand for small excavators in the construction equipment sector.
Get Analysis on Important Geographic Markets
Download Sample
