PUBLISHER: Arizton Advisory & Intelligence | PRODUCT CODE: 1261064
PUBLISHER: Arizton Advisory & Intelligence | PRODUCT CODE: 1261064
The Indonesia construction equipment rental market is expected to grow at a CAGR of 5.33%. from 2022 to 2029
KEY HIGHLIGHTS
SEGMENTATION ANALYSIS
Segmentation by Type
MARKET TRENDS & DRIVER
Rise in Infrastructure Investment
In 2022, the government invested in 83 PPP (Public Private Partnership) projects for infrastructure developments, which include 50 projects in the transportation sector, including 13 ports and 15 railways projects. Asian Development Bank provided a loan of USD 100 million to the Indonesian government to support these projects. In 2023, the Indonesian government planned 49 projects, 33 PPP projects, and 16 non-PPP projects. The 33 PPP projects include 18 Road Sector Projects, 4 Telecommunication Sector Projects, 1 Electricity Sector Project, 6 Water Supply Sector Projects, 3 Transportation Sector Projects, and 1 Energy Conservation Sector Project. A total investment value of more than USD 38.0 billion is planned to direct these infrastructure projects.
Government Investment Under National Strategic Projects
In 2022, the government introduced National Strategic Projects in Indonesia. The projects focus on increasing Indonesia's economic growth, improving community welfare, and increasing regional development. There are over 200 projects in National Strategic Projects ranging from toll road development and new airport construction to broadband enhancement coverage, worth nearly USD 500 billion. In 2022, the government planned to invest in the construction of 200 projects and ten programs of National Strategic Projects with an investment value of USD 407 billion, targeted for completion in the third quarter of 2024.
Japanese Rental Companies Focus on Digital Transformation
The level of competition among manufacturers in the Indonesian market is increasing due to the surge in Chinese heavy equipment, which is cheaper and has easy financing facilities. Chinese companies such as SANY, XCMG & Zoomlion partner with local distributors to provide rental services in the Indonesia construction equipment rental market at a lower price. Japanese rental companies such as AKTIO, Nikken, Kanamoto, and Nishio Rent All strongly influence Indonesia's construction equipment rental market. These rental companies have established operations across the region. These companies offer a wide range of products, from standard construction equipment rental and aerial platform forklifts, cranes, and other rental equipment.
INDUSTRY RESTRAINTS
Rising Building Material Prices Can Hamper the Construction Industry
Indonesia faces the challenge of a shortage of skilled labor force in 2023. The country needs ~113 million skilled workers by 2030 to achieve manufacturing, infrastructure, and agribusiness economic growth. The country depends on foreign & cheap laborers from Bangladesh, Nepal & India. These cheap foreign laborers employed in the Indonesian construction industry are known for taking little care of construction equipment when using them. According to Caterpillar Indonesia, improper handling of construction machinery is one of the major challenges for the Indonesia construction equipment rental market.
VENDOR LANDSCAPE
Prominent Vendors
Other Prominent Vendors
Rental Companies Profile
KEY QUESTIONS ANSWERED: