Dublin, July 31, 2023 (GLOBE NEWSWIRE) -- The "New Zealand Construction Equipment Market - Strategic Assessment & Forecast 2023-2029" report has been added to ResearchAndMarkets.com's offering.
The New Zealand construction equipment market is poised for steady growth, with a projected CAGR of 4.53% from 2022 to 2029. Among the various equipment segments, earthmoving equipment emerged as the dominant player in 2022, with excavators leading the way.
The escalating investments in housing and infrastructure projects are expected to drive the demand for excavators in the industry. The market also benefits from infrastructure upgrade initiatives, including the renovation of commercial buildings, railway stations, airports, and the extension of roadways and bridges throughout the country.
Moreover, the government's commitment to improving education facilities has led to significant investments in school infrastructure, with USD 777 million earmarked for nationwide development. However, the industry faces challenges in the form of rising building material costs, which have impacted the real estate market, resulting in a sharp rise in house prices in 2023.
Additionally, a shortage of skilled labor force poses another major challenge to the New Zealand construction equipment market.
Leading the market are prominent players like Caterpillar, Volvo Construction Equipment, and Komatsu, which offer diverse sets of equipment. Notably, Volvo Construction Equipment made a significant impact in 2021 with the launch of its first all-electric Volvo ECR25 compact excavator. As the market continues to evolve, these key players play a crucial role in shaping the industry's trajectory.
MARKET TRENDS & DRIVERS
Rise in Infrastructure Investment in New Zealand
The New Zealand government will increase the infrastructure investment from USD 57.3 billion to USD 61.9 billion in 2022. The investments were majorly directed at healthcare, education & development of public infrastructure across the country in 2022.
The government allocated USD 2.9 billion to Climate Emergency Response Fund for the next four years after 2022, aiming to reduce carbon emissions. An additional USD 375 million fund was allocated to increase public transport capacity and shift to low-emission vehicles.
Further, the government also planned to invest USD 349 million in a freight network to replace Kiwi Rail's aging infrastructure with modern energy-efficient units. The USD 37 million fund invested under Construction Sector Accord transformation plan to increase the production capability and resilience of the construction sector.
Investment in Education & Transport Sectors
The government announced improving education facilities nationwide by investing USD 777 million in school infrastructure. This funding includes USD 219 million provided directly to schools over the next nine years to replace furniture and equipment. In budget 2022, the government allocated an additional USD 88 million to Christchurch School, programmed to restore and improve school properties nationwide.
The government planned similar investments in the development of the transport sector in the country in 2022, projected to support the New Zealand construction equipment market. The government planned to invest in restoring the national rail networks to support freight rails and metropolitan rails in 2022.
Investment in the Manufacturing Sector Prompts the Use of Automated & Electric Construction Equipment
The New Zealand government is increasing investment in advanced technology and attracting high-skill labor to tackle low productivity in New Zealand's manufacturing sector. The government has planned to invest USD 30 million in the manufacturing sector, with USD 3.7 million for adopting new technologies, USD 4 million to upskill workers, & additional USD 2.9 million to lower carbon emissions from Industries. The government investment in advanced technology and low carbon emission is expected to drive demand for automated and electric construction equipment in the New Zealand construction equipment market.
Surge in the Use of Wheeled Loaders
In December 2022, the government announced the Building Act, which includes a waste minimization plan generated from construction & demolition activities.
The surge in construction & demolition waste management activities prompts wheeled loaders, which are majorly used for removing construction debris as it is quick in operation & high lifting capacity. Moreover, there has been a surge in demolition projects in New Zealand in 2023. The government investment in renovating old infrastructure prompts the demolition of aging infrastructure across the country.
INDUSTRY RESTRAINTS
Rising Building Material Prices
The building material cost witnessed a growth of 32% in 2022, and the building material suppliers expect further growth of nearly 9% in 2023. New Zealand's building material industry heavily depends on international supply; 90% of building materials, such as iron, steel, aluminum, & cement, are imported from other countries.
Rising freight costs put inflationary pressure on material suppliers, pushing New Zealand's building prices. In addition, global supply chain disruptions are another major factor for the high prices of building materials, further hampering the New Zealand construction equipment market growth.
Shortage of Skilled Labor Force
New Zealand is facing the challenge of a shortage of skilled laborers in 2023. According to Infrastructure Commission, the country needs more workers and higher productivity to deliver the major infrastructure projects planned in 2023; around 200,000 laborers in the construction and infrastructure sector need to grow by 50,000 over the next few years. The country is also dependent on immigrant laborers for construction projects. The government is not providing them with many health and safety facilities, which demotivates them to continue working in this sector.
However, many of New Zealand's construction workers are moving overseas for work, particularly to Australia, where wages are higher than in New Zealand. And Australian government is investing heavily in the housing sector, which is a tremendous opportunity for construction laborers.
VENDOR LANDSCAPE
Prominent Vendors
- Caterpillar
- Komatsu
- Xuzhou Construction Machinery Group Co. Ltd. (XCMG)
- Liebherr
- Volvo Construction Equipment
- Hitachi Construction Machinery
- JCB
- SANY
- Kobelco
- Hyundai Construction Equipment
Other Prominent Vendors
- Yanmar
- Sumitomo Construction Machinery
- Takeuchi
- Toyota Material Handling
- Manitou
- SAKAI HEAVY INDUSTRIES, LTD.
- Kubota
- Bobcat
- AIRMAN
Distributor Profiles
- AdvanceQuip
- Clark Equipment
- CablePrice
- LiftX
- NZAM
- MIMICO
- Vertu Equipment
- Landex
- TDX
SEGMENTATION ANALYSIS
Segmentation by Type
Earthmoving Equipment
- Excavator
- Backhoe Loaders
- Motor Grader
- Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers)
Road Construction Equipment
- Road Rollers
- Asphalt Pavers
Material Handling Equipment
- Crane
- Forklift & Telescopic Handlers
- Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)
- Other Construction Equipment
- Dumper
- Tipper
- Concrete Mixture
- Concrete Pump Truck
End Users
- Construction
- Manufacturing
- Mining
- Others (Power Generation, Utilities Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation
For more information about this report visit https://www.researchandmarkets.com/r/x2wojh
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