DUBLIN–(BUSINESS WIRE)–The “Australia Construction Equipment Market – Strategic Assessment & Forecast 2024-2029” report has been added to ResearchAndMarkets.com’s offering.
The Australia construction equipment market is expected to reach 33,077 units by 2029, growing at a CAGR of 4.62% during the forecast period.
Earthmoving equipment accounted for the largest market share of the Australia construction equipment market. Excavators in the earthmoving segment accounted for the largest share in 2023. Rising investment in housing, warehouse expansion, and public infrastructure projects is expected to drive the demand for excavators in the Australian construction equipment market.
Caterpillar, Volvo CE, Komatsu, Liebherr, Hitachi Construction Equipment, and XCMG are the Australian construction equipment market leaders. These companies have substantial market share and offer diverse sets of equipment. In 2022, Komatsu & Caterpillar accounted for a significant share of the overall construction equipment market in the Australia construction equipment market. Moreover, both companies have a strong distribution network and over 30 years of regional experience. They provide a wide range of products.
Task Forklift, Bobcat, Hangcha, John Deere, Manitou Group, Terex, Hysoon Machinery, Takeuchi, Yuchai, Kanga Loaders, and Toyota Material Handling are niche Australia construction equipment market players. These companies offer low product diversification and have a strong presence in the Australian local market.
Construction of the Nowra Bridge Project, costing USD 242 million, is expected to reach completion by 2024. The project involves a new four-lane bridge across the Shoalhaven River. Between Bolong Road and Moss Street, a 1.6 km long roadway will be renovated into three northbound and southbound lanes. The construction of this project is estimated to generate 300 jobs.
The construction plan of the Swam River Crossing Project was approved in 2022. It involves removing the signalized intersection at Canning Highway and Queen Victoria Street, realigning the Canning Highway, and constructing a 4-meter-wide standard pedestrian and cyclist path. The project is estimated at USD 280 million and is jointly funded by the Australian and Western Australian Governments, each contributing USD 140 million.
In 2022, Australia’s government announced the funding of USD 16.7 billion to clean energy, promoting the net zero commitment by 2050. The Powering Australia plan focuses on developing projects that reduce emissions by boosting renewable energy.
MARKET TRENDS & DRIVERS
Construction Equipment Manufacturers Launching Smart Construction Solutions for Optimised Performance
The company also launched a Smart Construction Drone to collect visual topography on the job site. This drone technology captures quantities for production tracking and billing, eliminating the manual survey. This drone solution can take photos up to 400 feet above the ground level and be used to pre-verify the job site. Develon has designed its products with a regenerative transmission system (eDrive), an advanced swing system (eSwing), and eWorking systems, which will ensure maximum efficiency with zero emissions.
Increase in Sales of Hybrid and Electric Construction Equipment to Reduce Carbon Emissions in the Country
Volvo CE launched its new Volvo CE EC300E Hybrid Excavator in Feb 2023 in the Australia construction equipment market, an environmentally friendly option offering improved fuel efficiency. The machine consumes less than 15% fuel and generates 15% less carbon emissions.
In March 2023, Hitachi Construction Machinery announced it would launch new wheel loaders and excavators from Australia’s popular ZW-7 and ZX-7 series. These machines are equipped with Stage V-compliant fuel-efficient engines. The excavator engines are made up of a Selective Catalytic Reduction (SCR) system, Diesel Oxidation Catalyst (DOC), and Catalyzed Soot Filter (CSF).
Government’s Infrastructure Investment Program to Propel Sales of Construction Equipment
The country has a robust pipeline of public sector-funded projects. The 2022-2023 budget announced an investment of USD 12.0 billion over ten years to infrastructure projects across the country, such as road and rail. In addition, the government promised investments to exceed USD 146 billion between 2021 and 2025, which are projected to support the Australian construction equipment market.
In Nov 2023, the Northern Australia Infrastructure Facility (NAIF) approved an investment worth USD 4 billion in loans spanning various sectors, including critical minerals, energy, universities, and airports. This initiative expects the development of new infrastructure projects in the northern region.
The country’s most significant infrastructure projects include WestConnex worth USD 11.3 billion, Sydney Metro (USD 12 billion), and Melbourne Metro Tunnel (USD 11 billion). Moreover, South Australia’s government is committed to investing USD 18.6 billion in building new and upgrading infrastructure.
Increased Investments in Renewable Energy Projects to Boost the Demand for Material-Handling Equipment
The country’s Powering Australia plan focuses on projects that reduce emissions by boosting renewable energy. Moreover, the Community Solar Banks program is expected to provide approximately USD 68.9 million, which will help Australian households access cheap solar-powered energy.
The government invested over USD 4.1 billion in renewable energy generation & energy storage. South Australia attracted approximately USD 4 billion in foreign investment for power generation projects, such as wind, solar PV, solar thermal, batteries, pumped hydro, compressed air, and thermal storage.
Investment in Transport Infrastructure Development to Propel the Demand for Road Construction Equipment in the Australia Construction Equipment Market
Key road projects planned include the M12 Motorway for USD 1.02 billion, USD 373.2 million for the Bruce Highway, and USD 191 million for road investments in and around the new Western Sydney Airport development in New South Wales.
Other investments include USD 586.4 million for a major upgrade of the Bruce Highway to widen a 13 km stretch through Brisbane’s outer northern suburbs and USD 540 million to upgrade Tasmania’s important road corridors, including the Bass Highway, the Tasman Highway, and the East and West Tamar Highways. The government allocated USD 230 million over five years, 2023-24, to deliver two major construction projects in Cairns. This includes a major expansion to the Cairns Marine Precinct and the construction of a new Central Queensland University campus in the Cairns CBD.
INDUSTRY RESTRAINTS
Skilled Labor Shortage in the Country to Hamper the Australia Construction Equipment Market
Home Builders Institute (HBI) announced that the construction industry must generate 740,000 new jobs annually to align with the industry’s skilled labor demand. Further, the country’s aging population is adding further pressure. It has been projected that by 2066, older people in Australia will account for 21% to 23% of the total population. The skilled labor shortage in Australia is one of the key challenges for the sector, leading to soaring labor costs, which puts pressure on margins. The unemployment rate in Australia surged to 3.7% in January 2023 from 3.5% in 2022 as the number of unemployed Australians grew by 22,000.
Rising Interest Rates May Restrict Demand for Housing Units
The rise in construction costs impacts the Australian housing industry. The contractors are holding off constructing tens of thousands of homes across Australia despite already gaining planning approval, mainly because of surging construction costs, with apartments and townhouses being the majority of those shelved in the Victoria region. Also, the Housing Association Industry mentioned the continuous rise of construction costs because of high energy prices and inflation. The cost of energy-intensive resources such as cement, glass & aluminum has increased tremendously.
The Scarcity of Industrial Space May Hamper the Pace of Warehouse Development Projects
According to the government’s recent report, at around 0.6% vacancy rate, Australia’s industrial and logistics market is one of the tightest in the world. This is further impacting the industrial rents. For instance, the rental growth of Brisbane in the 1st quarter of 2023 was the highest, rising by 8.6%. Sydney followed them at 8.2%. Adelaide and Perth recorded 2.5% and 2% rental growth over the same period.
VENDOR LANDSCAPE
Key Vendors
Other Prominent Vendors
Distributor Profiles
SEGMENTATION ANALYSIS
Segmentation by Type
Earthmoving Equipment
Road Construction Equipment
Material Handling Equipment
Other Construction Equipment
End Users
For more information about this report visit https://www.researchandmarkets.com/r/ev2p62
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world’s leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Contacts
ResearchAndMarkets.com
Laura Wood, Senior Press Manager
press@researchandmarkets.com
For E.S.T. Office Hours Call 1-917-300-0470
For U.S./ CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
HOHHOT, CHINA - Media OutReach Newswire - 23 December 2024 - China's National Forestry and…
HONG KONG SAR - EQS Newswire - 23 December 2024 - Novautek Autonomous Driving Limited…
JAKARTA, INDONESIA - Media OutReach Newswire - 23 December 2024 - V-GREEN and PT Xanh…
Increase in opportunities predicted for high-speed optical transceivers and miniaturized connectivity solutions to address data-intensive…
HONG KONG SAR - Media OutReach Newswire - 23 December 2024 - DYXnet, a wholly-owned…
CAIRO, EGYPT - Media OutReach Newswire - 23 December 2024 - Eand, Novo Nordisk, BSH,…
