Australia Compact Construction Equipment Market Assessment Report 2023-2029: Caterpillar, Komatsu, Kubota, Hitachi Construction Machinery, and Volvo Lead the Industry
DUBLIN, Jan. 9, 2024 /PRNewswire/ -- The "Australia Compact Construction Equipment Market - Strategic Assessment & Forecast 2023-2029" report has been added to ResearchAndMarkets.com's offering.
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The Australia compact construction equipment market is expected to grow at a CAGR of approximately 5.09% from 2022 to 2029.
Compact excavators accounted for the largest market share of the Australia compact construction equipment market in 2022. Construction industry end-users accounted for Australia's most significant share of compact construction equipment; compact equipment sales grew sharply in 2021 post-pandemic. The sales increased due to rising infrastructure investment & housing sector across the country.
Compact excavators and forklifts have the most substantial market share in Australia compact construction equipment market. Investment in infrastructure development projects, including investment in housing schemes & transport facilities, supports the growth of the construction industry. Some major challenges include the growing risk of economic recession, supply chain pressures, and over-dependency on foreign labor forces.
Compact construction equipment has nearly 50% of overall construction equipment sales in the Australia compact construction equipment market. The most popular compact excavator is a 1.5-ton mini excavator. The highest-selling model is 18Z-1 (1.8 ton) in Australia. Western Australia is an epicenter and an essential player in the global mining industry. The region is a significant iron ore supplier with several projects, for instance, in the Pilbara region.
Caterpillar, Komatsu, Kubota, Hitachi Construction Machinery, and Volvo Construction Equipment are leaders in the Australia compact construction equipment market. These companies have substantial market share and offer diverse sets of equipment.
MARKET TRENDS & DRIVERS
Government's Infrastructure Investment Supports Compact Equipment Demand
-- The government planned USD 120 billion for infrastructure projects in
the pipeline over ten years. The investment focuses on projects that
improve long-term productivity, supply chains, and economic growth in
various cities and regions.
-- Additionally, the government promised the investments to exceed USD 146
billion between 2021-2025. Private sector construction demand is
projected to be between USD 8.0 and USD 9.5 billion 2023. The
residential and commercial construction projects are expected to grow in
2023.
-- In 2023-24, the government will provide funding of USD 15.5 billion to
support state infrastructure projects. The government includes road and
rail infrastructure funding through the Infrastructure Investment
Program under the National Partnership Agreement on Land Transport
Infrastructure Projects. It supports the Australian compact construction
equipment market growth.
Growth in the E-commerce Industry Prompts Investment in Warehouses Expansion Projects
-- Australia is one of the world's largest e-commerce markets; e-commerce
spending reached USD 50.2 billion in 2022, a 13% increase compared to
2020. Further, NewCold logistics company, in Dec 2022, announced to
invest USD 160.3 million to build its first warehouse in Sydney's west.
Construction is designed to take place in two phases; the 1st phase will
include a frozen pallet warehouse with 80,000 pallets.
-- The growing number of warehouse construction is projected to impact the
Australia compact construction equipment market positively. Also,
Woolworth (supermarket chain) announced its plans to construct two new
automated warehouses at Moorebank Logistics Park in Western Sydney. The
warehouses are anticipated to be operational by 2024.
Rise in Sales of Hybrid and Electric Compact Equipment in the Australia Compact Construction Equipment Market
-- Australia's Long-Term Emissions Reduction Plan aims to achieve net zero
emissions by 2050. Construction equipment manufacturers and companies
increasingly know the government's environmental regulations. Further,
Volvo CE launched its new Volvo CE EC300E Hybrid Excavator in Feb 2023,
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.
Incorporation of Telematics System in Compact Equipment for Optimum Performance
-- Telematics is remote communications and informatics that are majorly
used for fleet tracking or managing a group of vehicles and other
assets. Off-road telematics can track the performance and location of
both plant and equipment in real time.
-- On-road telematics provides operators with reporting data updated with
information related to human resources. Such benefits will lead to the
adoption of telematics.
-- In 2023, Volvo CE launched and integrated its new telematics system-
CareTrack, in its articulated haulers (A25-A60), wheeled loaders
(L60-L350), and excavators (EC140-EC950).
INDUSTRY RESTRAINTS
Shortage of Labor Force Hampering Construction Projects
-- In 2023, Australia continues to see a shortage of skilled labor.
Affecting all industries and depleting labor resources, it shows no
signs of diminishing.
-- National Skill Week's chairman reported a critical skilled labor
shortage in the construction sector hampering the project delivery
timelines in 2022. It was predicted that the deficit would reach 100,000
vacancies by 2023.
-- A labor shortage can lead to avoidable issues for the construction
industry, such as increased workplace injury, extensive project delays,
less quality control, and higher construction project costs.
-- According to Arcadis Construction Costs Index Report 2023, there will be
more than 100,000 unfilled roles in the Australian construction
industry.
Surge in Housing Construction Cost Negatively Impacts Housing Projects
-- Rising construction costs impact the Australian housing industry. The
contractor is holding off building tens of thousands of homes across the
region despite already gaining planning approval, mainly because of
surging construction costs, with apartments and townhouses the majority
of those shelved in Victoria region.
-- 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.
-- According to the Australian Bureau of Statistics, in 2022, prices of
commodities such as steel products witnessed a 42.1% increase.
VENDOR LANDSCAPE
Prominent Vendors
-- Caterpillar
-- Komatsu
-- Xuzhou Construction Machinery Group Co. Ltd. (XCMG)
-- Volvo Construction Equipment
-- Hitachi Construction Machinery
-- JCB
-- SANY
-- Kobelco
-- Hyundai Construction Equipment
-- Kubota
-- Bobcat
Other Prominent Vendors
-- John Deere
-- Yanmar
-- LiuGong
-- Takeuchi
-- Toyota Material Handling
-- Manitou
-- CNH Industrial
-- Mecalac
-- Kanga Loaders
-- HYSOON AUSTRALIA PTY LTD.
-- Yuchai
-- Task Forklift
-- Hangcha
-- Maximal
-- Ditch Witch
-- Haulotte Group
-- Faresin
Distributor Profiles
-- CJD Equipment
-- Semco Group
-- Tutt Bryant
-- Capital Construction Equipment
-- BPF Equipment
-- CEA
-- Forklifts Australia
-- Hitachi Construction Machinery Pty Ltd
SEGMENTATION ANALYSIS
Segmentation by Type
-- Excavators
-- Backhoe Loaders
-- Wheeled Loaders
-- Track Loaders
-- Skid Steer Loaders
-- Telehandlers
-- Forklifts
-- Aerial Platforms
-- Others (Articulated Loaders, Truck Carriers)
Segmentation by Application
-- Material Handling
-- Maintenance & Utility Works
-- Waste Management
-- Other Applications
Segmentation by End Users
-- Construction
-- Mining
-- Warehouse & Logistics
-- Other (Maintenance & Utility Works, Landscaping, Power Generation)
For more information about this report visit https://www.researchandmarkets.com/r/19hy5l
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