Demand for construction machienery in the Asia/Pacific region is projected to increase by 4.9% per year to reach US$123bn in 2023, according to new research.
Other factors behind the predicted growth include the widespread availability of affordable models (many of which are locally produced), increasing use of more sophisticated and better performing machinery in mature markets, above average growth in both regional construction and mining activity, and expanding investment in regional infrastructure (such as via China’s Belt & Road Initiative).
Freedonia Group says that trends in China – the world’s largest national producer and purchaser of construction machinery – will particularly underlie regional market gains. For example, after a relatively poor sales performance in recent years, replacement product demand in China is expected to rebound. Continued swift economic growth, inflows of foreign investment, and impressive fixed investment spending gains (among other factors) in the country will also bolster sales.
The loader, crane and dragline, and excavator segments combined will account for two-thirds of sales gains in China, driven by increases in construction activity and rising mining output.
Freedonia Group says that loaders will continue to be used widely in China because of their low price, versatility, and compatibility with numerous attachments. It adds that, as Chinese cities continue to expand, high-rise building construction will increase, generating demand for a wide range of cranes. In addition, the excavator segment will benefit from a rebound in surface mining activity to a greater extent than other product types.
