Market Size of ASEAN Construction Machinery Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 7.63 Billion |
| Market Size (2029) | USD 10.5 Billion |
| CAGR (2024 - 2029) | 6.59 % |
| Market Concentration | Medium |
Major Players.webp)
*Disclaimer: Major Players sorted in no particular order |
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ASEAN Construction Machinery Market Analysis
The ASEAN Construction Machinery Market size is estimated at USD 7.63 billion in 2024, and is expected to reach USD 10.5 billion by 2029, growing at a CAGR of 6.59% during the forecast period (2024-2029).
The COVID-19 pandemic had a negative impact on the market studied, primarily attributed to halted construction and manufacturing activities. In addition, governments across the ASEAN countries paused the pipeline projects and reduced the workforce over the sites. This has led to a reduction in construction output. However, the market is anticipated to witness significant growth during the forecast period due to the increase in construction activities, which is likely to be primarily attributed to increasing government support and restoration of construction activities worldwide.
Over the medium term, demand for construction machinery in the ASEAN region is driven by increased 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.
Moreover, the government initiatives encouraging infrastructure activities and the rising adoption of technologically advanced machinery, both electrified and autonomous, tend to offer new opportunities for players operating in the market. The construction industry is getting smarter. Digitalization, connectivity, and automation are driving the development forward, substantially impacting construction projects. Moreover, renting companies are geared to invest in new technologies to cope with the growing demand for advanced construction machinery and replace the older ones with new or upgraded machinery fleet.
Factors such as rapid urbanization, industrialization, followed by rising government investments in the development of infrastructure, and expansion and growth activities of the real estate and construction companies across the region are expected to enhance demand in the market.
