LONDON--(BUSINESS WIRE)--According to the latest research report released by Technavio, the global construction equipment market is expected to reach USD 189.1 billion in revenue by 2019.
This report titled ‘Construction Equipment Market in APAC 2015-2019‘, provides an in-depth analysis of the market in terms of revenue and emerging trends. This market study also presents up to date analysis and forecasts for various market segments and all leading countries.
Request sample report: http://bit.ly/1oDdYbL
“SMEs are increasingly using construction equipment on a rental basis to avoid high cost ownership. Customers who hire equipment on a rental basis are entitled to pay the rent on a monthly basis, and this helps them minimize the cost of construction projects to a considerable extent,” said Soumya Mutsuddi, one of Technavio’s lead industry analysts for construction research.
“To leverage the market, many construction equipment manufacturers such as Caterpillar and Volvo are providing equipment on a rental basis to construction companies. Equipment rental helps construction companies to utilize the most recent innovations in construction equipment without spending on equipment ownership. Technavio researchers predict the equipment rental segment will significantly drive the overall construction equipment market in APAC during the forecast period,” added Soumya.
Some of the other driving forces behind the growth of the construction equipment market in APAC are as follows:
- Increased investment in infrastructure development
- Rapid urbanization
- Increase in real estate development
Increased investment in infrastructure development
Increased investment in infrastructure development will propel market growth in APAC during the forecast period. It is expected that APAC infrastructure spending will reach around USD 5.4 trillion a year by 2025 and will represent over 60% of the world's total infrastructure spending. It has also been projected that APAC will require close to USD 15-20 trillion in terms of infrastructure investment by 2030. Public spending alone will not suffice and a number of public-private partnerships (PPP) projects in APAC are in the pipeline. India and China were the leading countries for these initiatives in the first half of 2014.
To boost investment opportunities and to improve infrastructure development, the government of India is taking various measures such as the development of 100 smart cities. This development is expected to surge the demand for construction equipment rentals in the region in the next four years.
Rapid urbanization
Urbanization is likely to reach 65% in Asia by 2050 and is anticipated to drive a significant change in lifestyles in the region. Increasing population has led to a rise in demand for new houses and infrastructure development such as roads, sewage facilities, and transit systems in the APAC region. Rapid urbanization will therefore lead to the development of mega cities and growing urbanization is predicted result in many mega cities merging to form mega urban areas in APAC.
This increase in development of cities and mega urban regions will therefore boost the demand for construction equipment. It is estimated that by 2020, two thirds of Asia’s urban population will live in mega urban regions. Technavio predicts the surge in residential and infrastructure development activities in urban areas will largely drive market growth during the forecast period.
Increase in real estate development
Real estate investment growth across APAC will boost the demand for construction equipment. Investments in real estate are also expected to grow due to low interest rates and a strong global economic environment. Huge demand for infrastructure and Asia’s steady economic growth will result in increased investments in real estate during the forecast period.
Top cities in APAC for real estate development and investment in 2015 were as follows:
- Tokyo
- Jakarta
- Osaka
- Sydney
- Melbourne
- Shanghai
- Beijing
- Mumbai
- Kuala Lumpur
Browse related reports:
- Construction Market in Brazil 2015-2019
- Construction Market in China: Size and growth forecast 2015-2019
- EPC Market in India 2015-2019
Purchase any three reports for the price of one by becoming a Technavio subscriber. Subscribing to Technavio’s reports allows you to download any three reports per month for the price of one. Contact enquiry@technavio.com with your requirements and a link to our subscription platform.
About Technavio
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
If you are interested in more information, please contact our media team at media@technavio.com.
