Technavio Releases New Report on the Mobile Crane Market in APAC 2016-2020
By Business Wire News
By Business Wire News
In this report, Technavio’s heavy industry research experts announce their key market highlights for the mobile crane market in APAC. Their findings include:
Increasing infrastructure investments driving market growth
Rapid development of emerging economies in the region such as China, India, Indonesia, and Singapore has led to an increase in construction investment in APAC, impelling growth in the mobile crane market in APAC. China is the world’s largest construction market and constituted close to 47.57% of the overall construction market in APAC as of 2014. To compete with the growing and emerging economies in the world, China is extensively focusing on the development of high-quality infrastructure in the country. Apart from this, the rapidly growing urban population of the country has led to a rise in demand for both public infrastructure and housing units. This rapid urbanization is further driving growth of the construction market in China.
India constitutes close to 7% of the construction market in APAC. Changes in government policies have resulted in an imminent rise in investment in the construction in the country. The construction market in India is the second largest construction market in APAC and is expected to become the fastest growing market in the region by 2025. The Indian government has brought several changes to the scenario of the construction market in the country. Some of the major changes are the increase of FDI in infrastructure projects to 100% and the introduction of the Delhi Mumbai infrastructure corridor (DMIC) project. The government has also increased the share of infrastructure investment in the construction market to 50% of the total investment. These developments spell a positive growth phase for the mobile crane market in APAC over the next four years.
Government funding and upcoming Olympics driving the demand for mobile cranes in Japan
In 2014, the Liberal Democratic Party, reserved close to USD 43 billion for the reconstruction of roads, tunnels, highways, and bridges. In the same year, the government also approved an economic stimulus package of over USD 29 billion for reconstruction and disaster prevention. The mobile crane market in Japan is expected to grow at a CAGR of 17.03% until 2020 due to these projects.
The upcoming 2020 Summer Olympic Games is also fueling the demand for construction in Japan. The Japanese government is focusing on improving transport efficiency by the construction of new roads in Japan to reduce the travel time for tourists and athletes. Hotels and apartments are also being developed. Total investments are expected to reach close to USD 22 billion for such infrastructure development activity by 2020. Mobile cranes are one of the most popular construction equipment vehicles that are used for material handling prior to, and after the construction. Looking at the growth prospects of the construction market in Japan, the demand for mobile cranes is estimated to rise accordingly.
Many international vendors currently operating in the mobile crane market in APAC
Competition in the mobile crane market has become intense. Major vendors such as Liebherr, Sany, XCMG, and Zoomlion are investing heavily in R&D for the development of new mobile cranes. For example, in 2015, Liebherr launched a new LTM 1250-5.1 mobile crane with a powerful five-axle mechanism. Sany, on the other hand, is expanding its building by identifying countries with investment opportunities. For example, in 2013, they invested approximately USD 60 million in its Chakan plant in Pune, India.
Yet, equipment manufacturers are working hard to get new products to the market. High investments revolving around the manufacturing of the equipment is posing a serious challenge. In addition, the increase in raw material prices such as iron ore, which was about USD 62 per ton in 2014 is expected to rise further to over USD 80 per ton in the next two years. This trend is discouraging manufacturers from producing high-end equipment.
Browse related reports:
- Construction Market in APAC 2015-2019
- Crane Market in China 2015-2019
- Crane Market in Japan 2015-2019
- Global Crane Market 2015-2019
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