Report

The Thailand construction equipment market is expected to grow at a CAGR of 5.63% from 2022 to 2029.

KEY HIGHLIGHTS

- 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.
- Government investment in road construction, infrastructure development, housing projects, smart cities, and the development of Eastern and Southern Corridors of the country expect to positively impact demand for excavators compared to other earthmoving equipment in Thailand.
- The increasing demand for construction equipment can be attributed to increased investments in infrastructure, transport, and renewable energy projects. The government's focus on enhancing the share of renewable energy in Thailand expects to drive the Thailand construction equipment market in the power generation industry.
- With the presence of several global players, the need for product differentiation has led to technology upgrades such as automatic haulage systems (AHS), telematics, etc. Integrating IOT with construction equipment enables the detection of unplanned maintenance and repairs, gaining popularity in the market.

SEGMENTATION ANALYSIS

Segmentation by Type
- Earthmoving Equipment
o Excavator
o Backhoe Loaders
o Wheeled Loaders
o Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers)
- Road Construction Equipment
o Road Rollers
o Asphalt Pavers
- Material Handling Equipment
o Crane
o Forklift & Telescopic Handlers
o Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)
- Other Construction Equipment
o Dumper
o Tipper
o Concrete Mixture
o Concrete Pump Truck
- End Users
o Construction
o Mining
o Manufacturing
o Others (Power Generation, Utilities Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation Plants, Waste Management)

MARKET TRENDS & DRIVERS

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. Mini excavators provide low fuel consumption, ease of transportation, use in compact inner-city projects, and have low running and maintenance costs, making them a popular choice among other excavators in the segment. 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.

INDUSTRY RESTRAINTS

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.

VENDOR LANDSCAPE

- 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.
- Caterpillar and Komatsu have already introduced automation remote control technology in 2019 for their mining and construction equipment.

Prominent Vendors

- Caterpillar
- Komatsu
- Xuzhou Construction Machinery Group Co. Ltd. (XCMG)
- Liebherr
- Volvo Construction Equipment
- Hitachi Construction Machinery
- JCB
- SANY
- Kobelco
- Hyundai Construction Equipment
- Zoomlion Heavy Industry Science & Technology Co. Ltd

Other Prominent Vendors

- Yanmar
- Liu Gong
- Takeuchi
- Toyota Material Handling
- Manitou
- Kubota
- Sumitomo Corporation Group

Distributor Profiles

- Italthai Industrial Co., Ltd. (ITI)
- Leadway Heavy Machinery Co., Ltd.
- Ariya Equipment Co., Ltd.
- Paragon Machinery
- Metro CAT
- AVN Motor Work
- OEK Machinery Works
- Sahasin Equipment

KEY QUESTIONS ANSWERED:

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