PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1687298
PUBLISHER: Mordor Intelligence | PRODUCT CODE: 1687298
The ASEAN Construction Machinery Market size is estimated at USD 8.13 billion in 2025, and is expected to reach USD 11.19 billion by 2030, at a CAGR of 6.59% during the forecast period (2025-2030).
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.
Vietnam's rising construction and infrastructure development projects are mostly to credit for the country's recent growth in the market for construction equipment.
Vietnam's machinery and equipment industry has grown significantly over the past ten years. This is demonstrated by the fact that between 2010 and 2019, the net revenue reported by businesses in this industry grew by 14.3% annually. Until 2020, Vietnam had over 2,200 businesses that produced machinery and equipment, bringing in a combined USD 4.6 billion.
Under the Public-Private Partnership model, a number of public infrastructure projects are undertaken, such as the expansion of Vietnam's airport. The Vietnamese government intends to invest USD11 billion in airport development over the following five years, with the project scheduled to begin in 2022.
By 2030, the government intends to spend 65 billion on road improvements. By 2030, the building of a road network is anticipated to account for around 48% of all investments made in the transportation sector. The Long Thanh Airport (USD16 billion), the Ho Chi Minh City Metro (USD6.2 billion), the North-South Express (USD18.5 billion), the Hanoi Ring Road (USD368 million), the Hai Van Tunnel 2 (USD312 million), and the Lien Chieu Port in Da Nang (USD147 million) are all significant road construction projects that will be completed in 2022.
Considering all the ongoing and future construction activities in Vietnam, the crane market is expected to witness steady growth over the forecast period, propelling the country's construction machinery market.
The ASEAN construction machinery market is characterized by numerous international and regional players, resulting in a highly competitive market environment. The big players have increased their R&D expenditure exponentially to integrate innovation with excellence in performance. The demand for high-performance, highly efficient, and safe handling equipment from the end market is expected to make the market more competitive over the forecast period.
In March 2022, Iridium Communications Inc. announced that it had jointly developed a Link-Belt excavator with Sumitomo Construction Machinery Co., Ltd. Through this partnership, SCM initially integrated Iridium's Short Burst Data Service into its Remote CARE service platform.