ASEAN Construction Machinery Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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.

Market Snapshot

ASEAN Construction Machinery Market Bar Graph
Study Period: 2018-2027
Base Year: 2021
CAGR: >7 %

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Market Overview

The ASEAN construction machinery market is expected to register a CAGR of more than 7% during the forecast period (2021 - 2026). With the gradual increase in the need for environmentally harmless construction material usage and sustainable buildings construction, the need for material transport and heavy-duty lifting springs up. This is bound to improve the market conditions and generate revenue for the market.

The demand for construction machinery in the ASEAN region is driven by an increase in 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.

The infrastructure investments in the region accounted for 12% of the total FDI received, with the majority of investments into transportation and real estate sectors. It is expected that, over the next five years, the ASEAN region has an infrastructure project pipeline worth USD 250 billion. The rise in construction activities is expected to boost the demand for construction machinery over the forecast period.

Scope of the Report

The ASEAN construction machinery market report covers the increasing demand for construction equipment across the region, the impact of stringent emission norms, the impact of rental services, the latest developments, and market shares of players operating in the market. The ASEAN construction machinery market has been segmented by machine type, application, and geography.

Machinery Type
Motor Graders
Other Machinery Types
Concrete and Road Construction
Earth Moving
Material Handling
Rest of ASEAN

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Key Market Trends

Rising Road Construction Projects

Over the previous year, COVID-19 has affected the industry severely. With stringent lockdown and social distancing norms, the construction works of different scales and revenues were forced to a stop. This resulted in not using the workforce or the machinery commonly used for construction purposes. This severely affected the revenues of companies that sell, rent, or lease out the machinery for a fixed time period. With the total standstill of the construction sector, the need for heavy-duty machinery was completely lost. With China being completely shut for trade relations, the raw material transport also halted, resulting in not using the equipment.

Over the past few years, the road construction equipment market has witnessed significant growth, mainly due to increased road development programs initiated by the governments across the region.

Due to cheap labor costs and lower taxes, various multinational corporations are establishing their manufacturing units in the ASEAN region. However, the lack of road infrastructure connecting major ports to manufacturing locations often restrains the region's economic growth. Thus, to provide easy accessibility to ports and other areas, the governments across the ASEAN region are investing heavily in the construction of roads. For instance, the Philippines is planning to boost infrastructure development by investing USD 144 billion under a six-year plan, including major road construction projects, airport construction projects, and railway projects. Thus, this is creating a demand for construction equipment in the future.

With the rise in road construction activities, the demand for construction machinery had been increasing, which is being supported by importing these machines. Exports of heavy machinery from Singapore to the rest of the ASEAN region have grown steadily over the years, supported by the key drivers, led by the increasing investment in construction projects in the ASEAN region. Two examples of high growth opportunities in ASEAN are the Philippines and Thailand, among others. Singapore's exports of heavy machinery to Thailand have the second-fastest growth in the region.

Thus, various initiatives taken by governments in the ASEAN region to boost infrastructure projects and an increase in government involvement in planning, coordinating, and financing projects are expected to drive the growth of the market during the forecast period.

ASEAN Construction Machinery Market Latest Trends

Increasing Demand for Construction Machinery in Vietnam

In the last few years, construction activities in Vietnam had seen a high growth rate. In 2007, the revenue from the construction sector in the country was USD 1.2 billion, and by 2019, the revenue increased up to 10.5 billion. Moreover, with an increase in the government’s investment in both commercial and residential sectors, the construction sector saw huge growth.

The Vietnamese government, under an eight Five Year Socio-Economic Development Plan (2016-2020) had also increased housing area per capita from 16.7 m2 in 2016 to 23.2 m2 by the end of 2019, and this is further going increase by 25 m2 by the end of 2020.

Ongoing and future construction projects in the country include Thu Thiem Smart City Metro lines development (USD 800 million), Long Thanh International Airport (USD 16 billion), and expansion at the Tan Son Nhat International Airport.

  • Manitowoc and Liebherr cranes are the most commonly used cranes in the construction sector.
  • In July 2018, Manitowoc cranes were used in the construction of Vietnam’s tallest building, the Landmark 81, due to their speed and efficiency. The cranes supplied by Manitowoc were two MR 418 luffing jib cranes and two MCT 205 topless cranes.
  • In addition to this, Manitowoc also supplied tower cranes for the leading construction company in the country. Coteccons, a construction firm, also added 20 new MCT 205 cranes and three MCR 160 luffing jib cranes to its lineup to meet the construction demand.

Considering all the ongoing and future construction activities in Vietnam, the crane market is expected to witness steady growth over the forecast period, propelling the country's construction machinery market.

ASEAN Construction Machinery Market Share

Competitive Landscape

The ASEAN construction machinery market is characterized by the presence of numerous international and regional players, resulting in a highly competitive market environment. The big players have increased their R&D expenditure exponentially in order to integrate innovation with excellence in performance. The demand for high performance, highly efficient, and safe handling equipment from the end market is expected to make the market more competitive over the forecast period.

  • In October 2019, Sumitomo Construction Machinery Co. Ltd announced plans to invest USD 33 million to increase the capacity of the company’s plant in Indonesia by constructing a new plant for manufacturing. According to the company, the new plant will be operational by January 2021.
  • Tadano, one of the leading crane manufacturers, entered into a joint venture with Italthai Industrial Co. Ltd to strengthen sales across Thailand. Italthai is the largest distributor of heavy construction machinery in Thailand.
  • Tadano and Italthai together sold about 300 cranes in 2017, and they are planning to increase the sales to 500 units by 2023.

Recent Developments

With simulations and model-based estimations, the market is looking to improve the choice of machinery for a given task related to the market. With standardized protocols and digital booking platforms, the market is looking to streamline the industry and stabilize the economy. New trade relations with key players in construction like L&T Komatsu are bound to bridge the gap between the builder and machinery contractor, thereby reducing the inefficiency in meeting the demand for certain construction tasks.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 Machinery Type

      1. 5.1.1 Cranes

      2. 5.1.2 Excavators

      3. 5.1.3 Loaders

      4. 5.1.4 Backhoe

      5. 5.1.5 Motor Graders

      6. 5.1.6 Other Machinery Types

    2. 5.2 Application

      1. 5.2.1 Concrete and Road Construction

      2. 5.2.2 Earth Moving

      3. 5.2.3 Material Handling

    3. 5.3 Country

      1. 5.3.1 Indonesia

      2. 5.3.2 Thailand

      3. 5.3.3 Vietnam

      4. 5.3.4 Singapore

      5. 5.3.5 Malaysia

      6. 5.3.6 Philippines

      7. 5.3.7 Rest of ASEAN


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Kobelco Construction Machinery Co. Ltd

      2. 6.2.2 Hitachi Construction Machinery Co.

      3. 6.2.3 Sumitomo Construction Machinery

      4. 6.2.4 CNH Industrial

      5. 6.2.5 Caterpillar Inc.

      6. 6.2.6 Liebherr Group

      7. 6.2.7 Mitsubishi Corporation

      8. 6.2.8 JCB


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Frequently Asked Questions

The ASEAN Construction Machinery Market market is studied from 2018 - 2026.

The ASEAN Construction Machinery Market is growing at a CAGR of >7% over the next 5 years.

The ASEAN Construction Machinery Market is valued at 13 Billion USD in 2018.

The ASEAN Construction Machinery Market is valued at 20 Billion USD in 2026.

Caterpillar Inc., Kobelco Construction Machinery Co., Ltd., Hitachi Construction Machinery Co, Sumitomo Construction Machinery, CNH Industrial are the major companies operating in ASEAN Construction Machinery Market.

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