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Released September 16, 2024 | NEW DELHI
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Researched by Industrial Info Resources (Sugar Land, Texas)--With rapid economic development and rising infrastructure projects in Asia, the region has established itself as a global hub for construction activities. As a result, there is an increased demand for construction equipment such as excavators, loaders, cranes, and other earthmoving equipment, which are extensively used in several construction projects spanning from roads and bridges to commercial buildings and large industrial projects.
Industrial Info is tracking about 117 active capital spending projects with spending worth US$6.85 billion for the manufacturing of construction equipment in Asia. The majority of this spending is directed at grassroot projects, accounting for 62%, and plant expansions, accounting for 36%.
China, South Korea and Japan are the top regions driving significant spending in the manufacturing of construction machinery.
China holds the largest share for construction equipment manufacturing in Asia and is responsible for more than 80% (US$6 billion) of the total investments in the region. These investments are largely driven by the country's infrastructure projects, such as the Belt and Road Initiative (BRI) and increased focus on the renewable energy sector. Increasing investments in solar and wind is expected to boost demand for construction equipment such as earth moving machines like excavators and cranes.
However, the market in China is facing notable headwinds owing to the ongoing real estate crisis there. According to the International Monetary Fund (IMF) the demand for new housing in China over the next decade is projected to drop by as much as 50%, primarily attributed to a decline in new urban households and a large inventory of unsold or unfinished properties.
Despite the declining demand from the real estate sector, the demand from China's renewable energy sector and initiatives like the BRI are anticipated to remain robust.
South Korea, Japan, Indonesia and India are also expanding their markets with a cumulative spending of up to approximately US$700 billion to meet the rising demand for construction markets.
With a rising interest in environmentally friendly construction, countries like Japan and South Korea are investing in equipment that uses less energy and produces fewer emissions. In a joint venture worth US$103.5 million, Hyundai Mobis (Seoul, South Korea) (a hydrogen fuel cell supplier) and Hyundai Construction Equipment (Seoul) are developing a hydrogen-fueled excavator, building upon their success with a hydrogen forklift. The companies are expanding a heavy equipment-manufacturing plant to meet the growing demand for eco-friendly construction machinery. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can learn more by viewing the project report.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Industrial Info is tracking about 117 active capital spending projects with spending worth US$6.85 billion for the manufacturing of construction equipment in Asia. The majority of this spending is directed at grassroot projects, accounting for 62%, and plant expansions, accounting for 36%.
China, South Korea and Japan are the top regions driving significant spending in the manufacturing of construction machinery.
China holds the largest share for construction equipment manufacturing in Asia and is responsible for more than 80% (US$6 billion) of the total investments in the region. These investments are largely driven by the country's infrastructure projects, such as the Belt and Road Initiative (BRI) and increased focus on the renewable energy sector. Increasing investments in solar and wind is expected to boost demand for construction equipment such as earth moving machines like excavators and cranes.
However, the market in China is facing notable headwinds owing to the ongoing real estate crisis there. According to the International Monetary Fund (IMF) the demand for new housing in China over the next decade is projected to drop by as much as 50%, primarily attributed to a decline in new urban households and a large inventory of unsold or unfinished properties.
Despite the declining demand from the real estate sector, the demand from China's renewable energy sector and initiatives like the BRI are anticipated to remain robust.
South Korea, Japan, Indonesia and India are also expanding their markets with a cumulative spending of up to approximately US$700 billion to meet the rising demand for construction markets.
With a rising interest in environmentally friendly construction, countries like Japan and South Korea are investing in equipment that uses less energy and produces fewer emissions. In a joint venture worth US$103.5 million, Hyundai Mobis (Seoul, South Korea) (a hydrogen fuel cell supplier) and Hyundai Construction Equipment (Seoul) are developing a hydrogen-fueled excavator, building upon their success with a hydrogen forklift. The companies are expanding a heavy equipment-manufacturing plant to meet the growing demand for eco-friendly construction machinery. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can learn more by viewing the project report.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
