Report

The Singapore compact construction equipment market is expected to grow at a CAGR of 5.45% from 2022 to 2029.

Rising Investment in Infrastructure and Warehouse Expansion Project

- In 2023, the construction industry of Singapore is expected to perform better than the previous year. The construction contracts awarded in 2023 have increased by nearly 8%. The high demand is generated from public sectors & residential sectors.
- In addition, several healthcare projects are in the pipeline, such as polyclinic in Khatib, Tampines North, Serangoon, Kaki Bukit, Tengah, and Yew Tee, to advance healthcare facilities in the country.
- Singapore's total manufacturing output decreased 13.0% y-o-y in May 2023, despite output growth in the transport engineering sector at 28.4% and a rebound from the biomedical manufacturing sector at 4.4%.
- With the rise in E-commerce activities post-pandemic. There is a surge in demand for warehouse expansion projects in the region in 2023. For instance, Maersk began the construction of a new distribution center of more than 100,000 square meters in the Jurong West region in 2023.

KEY HIGHLIGHTS

- Compact excavators accounted for the largest market share of the Singapore compact construction equipment market in 2022. Construction industry end-users accounted for Singapore's most significant share of compact construction equipment. The Sales of compact equipment grew sharply in 2021 post-pandemic, and the sales increased due to rising infrastructure investment & housing sector across the country.
- Investment in infrastructure development projects, including investment in housing schemes & transport facilities, supports the construction market's growth.
- Singapore's E-commerce market witnessed growth in 2020. The market continues to grow in 2023 due to the rise in changes in customer buying patterns after the pandemic. Good performance of the E-commerce industry supports the growth of the warehouse & logistics industry in the region.
- The use of automated forklifts grew in the region, propelling the Singapore compact construction equipment market growth. BALYO announces the successful installation of the world's tallest automatic forklift at Singapore Storage and Warehouse (SSW) in 2022. Singapore firm Goldbell's unit starts supplying autonomous forklifts to Katoen Natie in 2022. Further, BYD and ST Engineering jointly unveiled the Driverless Forklift in the region.

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)

MARKET TRENDS & DRIVERS

Surge in Infrastructure Projects in Public & Private Sectors in 2023

- According to the Building & Construction Authority (BCA), the total value of construction projects 2023 is between USD 19.8 and USD 23.5 billion.
- The public sector attracts the highest demand, contributing to nearly 60% of total construction demand in 2023. This is supported by pipeline public housing projects and the Housing Development Board's ramping up of Build-To-Order flats.
- Construction projects of Industrial and Institutional buildings are under progress, construction of water treatment plants, educational buildings, and community clubs. Civil engineering demand is expected to stay firm with ongoing MRT line construction & other infrastructure works.
- Private sector construction demand will be between USD 8.0 and USD 9.5 billion in 2023. The residential and commercial construction projects are expected to grow in 2023.

The Rise in Port Expansion Projects Drives the Singapore Compact Construction Equipment Market

The ports of Singapore provide free trade service, which attracts imports from other nationals. Singapore's port is strategically located at the crossroads of East-West trade channels and is connected to 600 ports in over 120 countries. Moreover, Singapore Port is one of the world's busiest ports, handling more than 625 million tons of cargo annually. In addition, the government is looking to expand this further when the Tuas Mega Port is completed in 2040. In 2022, the government planned to invest USD 14 billion to build the world's largest automated port by 2040, having double the existing space, features of drones, and driverless vehicles.

Surge in Demand for Automation in Construction Equipment

Singapore depends on foreign laborers for construction and manufacturing industries. The pandemic disrupted the labor supply, and the government minimum pay guideline is adding more problems due to the rise in the overall cost of construction projects. This situation triggers the demand for automation in construction jobs, reducing labor dependency and enhancing work safety and efficiency. Moreover, the need for self-driving construction machinery that can perform repetitive tasks such as welding, pouring concrete, and demolition has recently surged in the Singapore construction industry. Thereby, automated excavators are being used to carry out excavation and prep work with great precision in the Singapore market in 2023.

Rising Uses of Electric Compact Equipment in The Singapore Compact Construction Equipment Market

Singapore's government aims to achieve carbon neutrality by 2050, and the region has a rising concern for environmental safety. The government is investing in green warehouses and green building projects nationwide. Further, the government will focus on eliminating carbon emissions from various industries such as construction, mining, logistics, and manufacturing in 2023. Such factors have triggered the demand for electric-powered construction equipment in the Singapore compact construction equipment market. In 2023, Volvo Construction Equipment launched electric-powered compact equipment for Singapore.

INDUSTRY RESTRAINTS

A Surge in Building Material and Labor Costs Hampers Private Housing Sales

- According to The Building and Construction Authority, the Singapore Tender Price Index increased by 11.6% in 2022 compared to 2021.
- The country's construction industry was severely impacted by the COVID-19 pandemic over the last three years & is expected to witness the completion of most of the delayed projects in 2023.
- Disruption in the supply of raw materials & labor and rising inflation are the significant challenges in the Singapore construction industry in 2023.
- Tender prices for the projects are expected to grow in 2023 due to increased costs of contractors and suppliers. The average prices of concrete & steel have increased by 14% and 10.1% respectively in 2022.

High Dependency on Foreign Labor Can Hamper Industrial Growth

- Singapore heavily depends on foreign laborers in the manufacturing, construction, and shipbuilding sectors. With Foreign nationals comprising one-third of the total workforce in Singapore, the country depends upon low-cost laborers from India, Bangladesh, and Singapore.
- However, the Singapore government has tightened the foreign labor work permit rules. The government has increased the minimum salary pay scale for foreign laborers. This step increases the hiring cost of foreign laborers in various industries.
- A surge in accident incidents at construction and manufacturing sites also impacted the country's labor. The local workforce doesn't want to join the labor force due to increased workplace accidents.

VENDOR LANDSCAPE
- Caterpillar, SANY, Komatsu, Kobelco, & Volvo Construction Equipment are leaders in the Singapore compact construction equipment market. These companies have substantial market share and offer diverse sets of equipment.

Prominent Vendors

- Caterpillar
- Komatsu
- Volvo Construction Equipment
- Hitachi Construction Machinery
- Kubota
- SANY
- JCB
- Xuzhou Construction Machinery Group Co. Ltd. (XCMG)
- Kobelco
- Hyundai Construction Equipment

Other Prominent Vendors

- Sumitomo Construction Machinery
- LiuGong
- Yanmar
- Takeuchi
- Toyota Material Handling
- Manitou
- CNH Industrial

Distributor Profiles

- Sia & Yeo
- Tiong Lee Huat Machinery & Construction
- PLS Machinery PTE Ltd
- Ricon
- LAND EQUIPMENT PTE LTD
- JSB Equipment
- Aly Energy
- KML Enterprise Pte Ltd

KEY QUESTIONS ANSWERED:

1. How big is the Singapore compact construction equipment market?
2. What is the growth rate of the Singapore compact construction equipment market?
3. Who are the key players in the Singapore compact construction equipment market?
4. What are the trends in the Singapore compact construction equipment industry?
5. Which are the primary distributor companies in the Singapore compact construction equipment market?