DUBLIN–(BUSINESS WIRE)–The “Thailand Construction Equipment Market – Strategic Assessment & Forecast 2023-2029” report has been added to ResearchAndMarkets.com’s offering.
The Thailand construction equipment market is expected to grow at a CAGR of 5.63% from 2022 to 2029.
SANY, Kobelco, Komatsu, Caterpillar, and Hitachi Construction Machinery are leaders in the Thailand construction equipment market. These companies have a strong industry share and offer diverse sets of equipment.
Earthmoving equipment accounted for the largest Thailand construction equipment market share in 2022. Excavators in the earthmoving segment accounted for the largest share in 2022. Rising investment in public infrastructure and transport facilities is expected to drive demand for excavators in the Thailand construction equipment market.
Market Overview
Government investments in road construction, infrastructure development, housing projects, smart cities, and the development of Eastern and Southern Corridors in Thailand are anticipated to have a positive impact on the demand for excavators in the country.
The growing demand for construction equipment can be attributed to increased investments in infrastructure, transport, and renewable energy projects. The Thai government’s focus on expanding the share of renewable energy in the power generation industry is expected to drive the construction equipment market.
To stay competitive, global players in the industry are incorporating technology upgrades such as automatic haulage systems and telematics. The integration of IoT with construction equipment enables the detection of unplanned maintenance and repairs, which is gaining popularity in the market.
Labor Shortage Triggering Demand for Mini Excavators in Thailand Construction Equipment Market
The demand for mini excavators is growing in the Thailand market. The unavailability of cheap labor and the requirement for inner-city construction projects have triggered the demand for mini excavators in Thailand. The shortage is expected to grow due to low wages & dependency on the foreign labor force. Such factors prompt the use of mini excavators for inner-city projects.
Power Generation Through Waste Management Triggers Use of Excavators & Loaders
Government focuses on eliminating the use of fossil fuels for power generation & waste management. This prompt uses power generation through waste products. With rising environmental safety concerns, the Thailand government focuses on electric generation through waste.
The country generates approximately 71,700 tons of solid waste per day. Furthermore, the government has planned two new waste-to-energy power plants in Bangkok. The plant expects to generate 35 megawatts of electricity using 1,000 tons of waste as fuel each day.
A Surge in Government in Various Infrastructure Projects
In 2023, there has been a rise in infrastructure development projects in Thailand, which is expected to positively impact the Thailand construction equipment market. The finance minister of Thailand expects the economy to expand by 3-4% in 2023 due to rising government investment in key infrastructure projects.
According to Fiscal Policy Office data, state agencies planned to invest USD 19.7 billion in 2023, which accounts for nearly 20.9% of total spending on infrastructure. Major projects are the Highways Department’s construction of new highways & Irrigation Department’s project to develop new water source areas. Investment is also directed toward the construction of embankments along the rivers in the country.
A Surge in Housing Prices Can Hamper Construction Equipment Sales
Thailand’s housing market faces the major challenges of higher inflation, labor shortage, and rising prices of fuel & building materials. These factors push up new house prices, resulting in declining buyers of these houses. Furthermore, construction companies are worried about rising inflation, labor, and material cost as it will impact their profit margin in the project.
Prices of several construction materials like cement & steel rose more than 50% in 2022. The surge in construction materials prices pushes up prices of housing units across the country which can hamper the construction projects of houses, restricting the Thailand construction equipment market growth.
Demand From Rental & Used Equipment Hampering the Sale of New Equipment
Rental construction equipment is in high demand in the Thailand construction equipment market. The rental industry in the country is dominated by four Japanese companies – Aktio, Kanamoto, Nishio Rent All, and Nikken. All these companies have a strong nationwide network to cater to the need of construction and agriculture industries customers.
Further, in 2020, there was a positive impact on the rental construction equipment demand from the construction industry. However, the need for more cashflows and project funding prompts the demand for rental and used equipment instead of new equipment.
KEY QUESTIONS ANSWERED:
VENDOR LANDSCAPE
Prominent Vendors
Other Prominent Vendors
Distributor Profiles
SEGMENTATION ANALYSIS
Segmentation by Type
Earthmoving Equipment
Road Construction Equipment
Material Handling Equipment
End Users
For more information about this report visit https://www.researchandmarkets.com/r/b4r87u
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