Dublin, Sept. 01, 2023 (GLOBE NEWSWIRE) -- The "Indonesia Construction Equipment Market - Strategic Assessment & Forecast 2023-2029" report has been added to ResearchAndMarkets.com's offering.
The Indonesia construction equipment market is expected to reach 40,137 units by 2029
Indonesia stands at the crossroads of strategic economic initiatives, exemplified by a USD 47.8 billion relief package devised to counteract the COVID-19 pandemic's economic impact. In alignment with the National Medium-Term Development Plan (2020-2024 RPJMN), the nation sets forth ambitious intentions to funnel USD 412 billion into the expansion of transportation, industrial, energy, and housing infrastructure by 2024.
Concurrently, the global commodities market's surge in prices sparks newfound vitality within Indonesia's mining sector. The resounding clamor for nickel, tin, and coal in 2021 reverberates in escalated mining pursuits, propelling a concomitant surge in construction equipment demand.
Against this backdrop of infrastructural aspirations and burgeoning mining ventures, Indonesia's construction equipment market gears up for a compelling growth trajectory in the forecast period. At the vanguard of this transformation are earthmoving devices, particularly excavators, poised to spearhead Indonesia's construction landscape.
With a landscape marked by resolute investment in public infrastructure and transportation grids, the Indonesian market anticipates a surging demand for these versatile workhorses. The nation's vigor for progress extends further as it marshals USD 407 billion toward a sweeping array of infrastructural projects, spanning airports, railways, roadways, highways, and bridges under the aegis of the Nation Strategic Plan.
This dynamic commitment earmarks funds for 200 diverse public-private partnership ventures, accentuating the dawn of an era defined by transformative growth. In parallel, the demand landscape echoes this momentum, underscored by a surge in public infrastructure endeavors - be it the extension of railway networks, the expansion of airports, or the revitalization of bridges and highways.
As such, Indonesia's market reverberates with promise, poised to embrace an evolution in construction and infrastructure arenas throughout the upcoming year.
MARKET TRENDS & DRIVERS
Government Investment in Public Infrastructure Projects Through PPP Model
The Indonesian government aims to invest USD 430 billion in infrastructure development projects from 2021 to 2024. There was a 20% rise in infrastructure investments from the last investment plan in 2015-2020.
The country's infrastructure development projects are mostly in the transport sector. Investment projects are divided into three sectors - road, rail, and port development, accounting for 29%, 22%, and 23%, respectively.
The Trans-Sumatra toll road project is one of the largest projects worth USD 33.7 billion and is in progress. China supports a key project - Jakarta-Bandung high-speed railways.
Growth in Metal Ore Will Drive Equipment Market
The mining industry will be one of the major contributors to Indonesian GDP in 2022. The industry accounted for nearly 5% in 2022. According to a report from the Central Statistics Agency (BPS), the mining industry witnessed a sharp growth in 2022; the industry's mineral export value reached USD 5.93 billion, a growth of 103% compared to 2021.
The iron ore industry recorded the largest growth among the mining and quarrying sub-sector, 25.78%, in 2022. Then the other mining sub-sector grew by 4.79%, and the lignite coal sub-sector grew by 3.64%.
Companies Focus on Digital Transformation to Tackle Chinese Competition
The level of competition among manufacturers in the Indonesia construction equipment market has grown due to a surge in demand for Chinese OEMs, which are available at lower prices & easy financing facilities.
Further, other OEMs in the country, such as Kobelco, Komatsu, Caterpillars, Hitachi, and Hyundai construction machinery, focus on continuous improvement in aftersales services, supported by digital technology.
Hitachi Construction Machinery launched the digital application of equipment performance monitoring and technical support system. The company also launches the spare parts e-commerce platform to enhance the customer experience.
Adoption of Electric & Hydrogen Fuel Technologies
There is a rise in environmental concern in the Indonesian market in 2022. Indonesian government aimed to achieve the goal of carbon neutrality by 2050. This triggered the need for electric construction machinery in the market in 2022. Increasing government focus on carbon emission reduction in 2021 supported the demand for electric construction equipment.
Major construction equipment manufacturers such as Volvo Construction Equipment, SDLG, and XCMG launched electric and compact mini excavators in the Indonesia construction equipment market to tackle the growing demand in the market.
INDUSTRY RESTRAINTS
A Surge in Fuel Prices Impacts Building Material Prices and Hampers the Construction Projects
In 2022, the Indonesian government increased the fuel and oil prices in the market. The increase in fuel prices is expected to affect other commodities, including housing and property sectors. A rise in fuel prices will affect building materials such as iron, cement, sand, steel & bricks.
According to Central Statistics Agency (BPS), diesel prices increased by 37.8%, cement rose by 8.5%, asphalt increased by 15.3%, & steel roof prices fell by 3.85% in 2022.
The cost of construction projects of buildings for roads, bridges, & ports increased by 9.6%, followed by the cost of electricity, gas, water & communication center installations rose by 5.6%. The construction cost of residential building projects also witnessed growth of 4.2% in 2022.
VENDOR LANDSCAPE
SANY, Kobelco, Komatsu, Caterpillar, & Hitachi Construction Machinery are leaders in the Indonesia construction equipment market. These companies have a strong market share and offer diverse sets of equipment.
Manitou, Kubota, Toyota Material Handling & Kubota are niche market players. These companies offer low product diversification and have a strong presence in Indonesia's local market.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 187 |
| Forecast Period | 2022 - 2029 |
| Estimated Market Value (Units) in 2022 | Units24014 Units |
| Forecasted Market Value (Units) by 2029 | Units40137 Units |
| Compound Annual Growth Rate | 7.6% |
| Regions Covered | Indonesia |
VENDOR LANDSCAPE
Prominent Vendors
- Caterpillar
- Komatsu
- Volvo Construction Equipment
- Hitachi Construction Machinery
- Kubota
- SANY
- JCB
- Xuzhou Construction Machinery Group Co. Ltd. (XCMG)
- Kobelco
- Zoomlion Heavy Industry Science & Technology Co. Ltd
- Hyundai Construction Equipment
Distributor Profiles
- PT Indotruck Utama
- United Tractors
- Multicrane Perkasa
- PT. Airindo Sakti
- PT. Sumitomo Construction Machinery
- PT. Badak Prima Lestari
- PT. United Equipment Indonesia
- ALTRAK 1978
Other Prominent Vendors
- Liebherr
- Liu Gong
- Yanmar
- Sumitomo Construction Machinery
- Takeuchi
- Toyota Material Handling
- Manitou
- SAKAI
SEGMENTATION ANALYSIS
Segmentation by Type
Earthmoving Equipment
- Excavator
- Backhoe Loaders
- Wheeled Loaders
- 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
- Mining
- Manufacturing
- Others (Power Generation, Utilities Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation Plants, Waste Management)
For more information about this report visit https://www.researchandmarkets.com/r/3d4apy
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