Market Trends of Thailand Construction Equipment Industry
Growing Infrastructure Activities To Drive Demand In The Market
- Thailand is witnessing an infrastructure boom, with major projects approved by the government likely to witness major growth. 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 further add to the demand for construction equipment in the country 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.
- Thailand has been one of the attractive countries for investment in the construction sector. The government of Thailand, under the infrastructure investment plan 2015-2022, 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.
- The rise of industrial construction in Thailand is expected to be around the corner soon. Construction in the industrial sector will be the backbone of Thailand's future economic dominance in the region.
- 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 above-mentioned development across the country is likely to witness major growth for the market during the forecast period.
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Growing Demand for Construction Equipment Across the Country
- A road map (Remap 2036) has been developed by the government 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 the construction of 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 as a result of the government's increased investment in renewable energy plans. This is because they are necessary for the development of solar, wind, and hydroelectric power facilities.
- Mini excavators are becoming more and more popular in Thailand. The dearth of inexpensive labor and the requirement for inner-city development projects have increased the demand for small excavators in the construction equipment sector.
- Keeping in mind the rising demand for earthmoving machinery, manufacturers are planning to launch an affordable range of excavators in the country. For instance, in April 2021, Komatsu announced that it will introduce more economical excavators in Southeast Asia. Thailand will sell the 20-ton medium-sized excavator designed for building roads and residential land developments.
- The above-mentioned instances across the country are likely to enhance the demand for construction equipment during the forecast period.
