Southeast Asia Construction Equipment Market Research Report 2025-2030

List of Tables

The Southeast Asia construction equipment market is expected to grow at a CAGR of 4.58% from 2024 to 2030.

KEY HIGHLIGHTS

Earthmoving equipment accounted for the largest market share of the Southeast Asia construction equipment market in 2024. Excavators in the earthmoving segment accounted for the largest share in 2024. The country's investment in developing its public infrastructure and increased utilization of excavators in the mining sector drive the Southeast Asian earthmoving market.
On the other hand, demand for material handling equipment is also growing due to the booming manufacturing sector, driving the development of warehouses and logistics parks across the region.
The forklifts and telescopic handler segment holds the largest share among material handling equipment in Southeast Asia, driven by ongoing and upcoming warehouse developments. Malaysia is positioning itself as a regional logistics powerhouse with significant warehouse developments across key industrial zones. The Klang Valley dominates Malaysia's logistics landscape, with over 45 million square feet of high-quality logistics space already built and an additional 25 million square feet expected by 2027.
Hangcha Group broke ground on a new $20 million manufacturing base in Chonburi, Thailand, in 2025, focusing on forklifts, aerial work platforms, and lithium battery assembly with an annual production capacity of 10,000 units.
Mitsui E&S secured Vietnam's largest crane procurement contract, delivering 22 container cranes (11 ship-to-shore gantry cranes and 11 electric rubber-tyred gantry cranes) to Phuoc and Port in Dong Nai Province. Vietnam's broader port system upgrade includes a $13.76 billion investment program through 2030, driving consistent demand for port handling equipment.
The road construction equipment segment is estimated to reach around $112 million by value by 2030, growing at a CAGR of 3.73%.
Road roller sales are high in Southeast Asia in response to the rising renovation and expansion of transport networks. The India-Myanmar-Thailand Trilateral Highway represents another significant cross-border infrastructure project in Southeast Asia in 2025. This 1,360-kilometer route connecting Moreh, India, with Mae Sot, Thailand via Myanmar is expected to be completed by 2026 or early 2027.
Malaysia has allocated $83.0 million for 563 federal road maintenance projects in 2025, with $65.2 million dedicated to periodic pavement maintenance. Major new construction includes the Juru-Sungai Dua Elevated Highway, a $676 million, 15-km elevated highway starting construction in 2025.
Construction equipment utilization in the construction industry by end-user (volume) has the largest market share in 2024.
Major ongoing projects across Southeast Asia in 2025, such as Jakarta-Bandung High-Speed Railway (Whoosh) in Indonesia, East Coast Rail Link (ECRL) in Malaysia, Tuas Mega Port Expansion in Singapore, Nusantara New Capital Development in Indonesia, and Ho Chi Minh City Metro Line 1 in Vietnam, are boosting the demand for construction equipment.
The construction equipment used in the mining industry is undergoing significant expansion, primarily due to the growing mining and mineral extraction activities of the region. Key construction equipment used in the mining sector, such as hydraulic excavators, wheeled loaders, dump trucks, bulldozers, and motor graders, is expected to witness significant sales with rising mining activity in the region.

SOUTHEAST ASIA CONSTRUCTION EQUIPMENT MARKET TRENDS & DRIVERS

Rising Demand for Electric Construction Equipment

Singapore has become a frontrunner in adopting electric construction equipment. Launched in February 2025, the Singapore Green Building Masterplan established rigorous sustainability requirements across the entire construction value chain through mandatory eco-friendly practices.

In January 2025, Volvo CE introduced its New Generation Excavators across Southeast Asia, showcasing its flagship 20-tonne EC210 alongside the L120 electric wheel loader at a Singapore launch event attended by more than 100 industry executives.

Additionally, in 2021, Mach 1 Construction Equipment Sdn Bhd (forklift dealer in Malaysia) introduced JCB's E-Tech 19C-1E to the country, the first fully electric mini excavator with zero emissions. This electric excavator is presently in use in Malaysia.

Rising Modular Construction in Southeast Asia Drives Crane Demand

In 2025, Southeast Asia's rising awareness of modular construction methods is driving an increased need for mobile and tower cranes, as project schedules demand more frequent, heavy lifts to assemble factory-built components on-site.

In Malaysia, the Construction Industry Development Board highlighted that Gamuda's Shah Alam Digital Industrialised Building System factory is supplying volumetric modules for several Kuala Lumpur residential high-rises in 2025.

Meanwhile, in Thailand, the Eastern Economic Corridor Phase II project is similarly leveraging modular precast road-bridge segments-each 12 m long and weighing 25 tonnes-manufactured off-site and then lifted into place for the Bang Pakong-Laem Chabang expansion.

Rising Infrastructure Investments in the Southeast Asian Market

In Vietnam, the Long Thanh International Airport-the region's most ambitious aviation endeavour with a $19.8 billion budget-remains in active phases of runway construction, terminal development and ancillary infrastructure.
Indonesia's Nusantara Capital City project, now in its second development phase, has secured approximately $2.8 billion for 2025-2029. Construction of legislative and judicial complexes, residential districts and comprehensive road and utility networks across multiple zones requires a full range of heavy equipment operating simultaneously.
Another significant undertaking, Thailand's high-speed rail second phase-from Nakhon Ratchasima to Nong Khai-secured cabinet approval in 2025. Although full construction begins in 2026, preparatory earthworks, land acquisition and early infrastructure works are already boosting demand for construction machinery across regional sites.

Growing Utilization of Construction Equipment in the Mining & Energy Sector

Indonesia is one of the leading exporters of coal, nickel and other minerals. These mining activities rely on construction equipment for various processes, such as excavation, loading, and transportation.
In 2025, the Electricity Generating Authority of Thailand partnered with MMD Mining Machinery to deploy two advanced semi-mobile coal sizing stations, enhancing throughput, reducing downtime, and minimizing environmental impact through precision coal processing.
In addition to mining, renewable energy projects such as solar power and hydropower also provide new opportunities for the construction equipment demand in the region. The construction of solar farms, turbine installations, and dams requires high-tech construction equipment that can operate in complex terrain.

INDUSTRY RESTRAINTS

Rising Building Material Prices and Construction Costs

In 2025, Indonesia's construction sector will be particularly affected by escalating material costs and continued supply chain instability. Prices of key inputs such as aluminum door/window frames, cement, wooden beams, and hollow cement bricks (concrete bricks) have risen sharply, contributing to increased overall project expenditures.

As of the first quarter of 2025, Singapore recorded the highest construction costs in Southeast Asia, starting at approximately $3,104 per square meter-surpassing Malaysia, the region's second-highest market. Construction cost inflation in Singapore is anticipated to climb between 3% and 5% in 2025 and 2026.

The sustained increase has tempered developer interest in new land sales, given tighter profit margins, elevated project expenses, and an oversupply of private housing units.

Skilled Labor Shortage Across the Region

In Indonesia, despite a workforce of approximately 153 million in 2025, around 30% of businesses report difficulty in finding adequately skilled employees. The education gap is a critical barrier, with only about 12.66% of the labor force holding university degrees and over a third educated only up to the elementary level.

The shortage of qualified engineers, site supervisors, and technicians across construction, manufacturing, ICT, and renewable energy sectors limits productivity, discouraging new capital investment in heavy equipment.

In the Philippines, the construction industry faces an urgent requirement for about 2 million skilled workers by the end of 2025. The renewable energy sector faces similar constraints, with the current workforce of 120,000 expected to require an additional 350,000 skilled workers by 2030 in the Philippines.

VENDOR LANDSCAPE

Caterpillar, Komatsu, Volvo CE, Hitachi Construction Machinery, and SANY are the front-runners in the region's construction equipment market. These companies have strong market share and offer a diverse sets of equipment in the Southeast Asian market.
Tadano, XCMG, Bobcat, Kubota, Zoomlion, Kobelco, Bomag, Kato Works, and Toyota Material Handling are niche market players in the market. These companies offer low product diversification and have a strong presence in the Southeast Asian market.
Yanmar, Manitou, Liebherr, JCB, Sumitomo, CNH Industrial N.V., LiuGong, HD Hyundai and DEVELON are emerging in the market. These companies are introducing new technologically advanced products to challenge the market share of market leaders in the Southeast Asian market.
Terex, Sakai, and Ammann have low product diversification; these companies are lagging in adopting new technologies used in construction equipment.
In 2025, United Tractors mechanic from Indonesia claimed first place at the Advanced Technique Contest (ATC) 2025 held in Bangkok from July 1-3, 2025. The competition, organised by Komatsu's Asia Training and Demonstration Center (ATDC), brought together top mechanics from eight Southeast Asian countries including Vietnam, Philippines, Malaysia, Myanmar, and Thailand.
In 2025, Volvo CE introduced the New Generation EC210 excavator into the Thai market through its authorised dealer CHAIRATCHAKARN (Bangkok) Co. Ltd (CHAB).
In 2025, PT Bahtera Bahari Shipyard (PT BBS) in Batam became the first Southeast Asian customer to receive Liebherr's all-electric CBG 500 E crane in October 2025.
In 2025, XCMG's Malaysia subsidiary, Viva Complete Sdn Bhd, announced in May 2025 the delivery of ten XM2005K cold milling machines and two XP263 tandem rollers to the Sarawak State Public Works Department, supporting major highway refurbishment projects under Malaysia's national recovery plan.

Key Vendors

Caterpillar
Komatsu
Volvo Construction Equipment
Hitachi Construction Machinery
Liebherr
SANY
Xuzhou Construction Machinery Group (XCMG)
JCB
Kobelco
Zoomlion

Other Prominent Vendors

Hd Hyundai Construction Equipment Co. Ltd.
LiuGong Machinery Co., Ltd.
CNH Industrial N.V.
Toyota Material Handling International (TMHI)
Sumitomo Construction Machinery Co., Ltd.
Yanmar Holdings Co., Ltd.
DEVELON
Tadano
Terex Corporation
Manitou Group
BOMAG GmbH
KATO WORKS CO., LTD.
SAKAI Heavy Industries, Ltd
Bobcat
Kubota
Ammann

Distributor Profiles

PT Indotruck Utama
United Tractors
Multicrane Perkasa
PT Airindo Sakti
Leadway Heavy Machinery Co., Ltd.
Ariya Group
AVN Motorworks
Promech Resources Co. Ltd.
Maxima Machineries Incorporated
Brighton Machinery Philippines
Topspot Heavy Equipment Inc.
Inframachineries
Sunway Marketing Sdn Bhd
FHM Equipment Sdn Bhd
UMW Equipment Sdn Bhd
TCIM Sdn Bhd
Sia & Yeo Heavy Equipment Pte Ltd
Tiong Lee Huat Machinery & Construction Pte Ltd.
Ricon Private Limited, Land Equipment Pte Ltd.
Tin Quang Equipment (TQEq)
VITRAC
Multico Equipment Vietnam Co. Ltd
UMAC Vietnam

Segmentation by Type

Earthmoving Equipment

Excavator
Backhoe Loaders
Wheeled Loaders
Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers, Motor Graders)

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
Concrete Mixer
Concrete Pump Truck

Segmentation by End Users

Construction
Mining
Manufacturing
Others (Power Generation, Utilities, Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation Plants, Waste Management)

Segmentation by Region

Indonesia
Thailand
Philippines
Malaysia
Singapore
Rest of Southeast Asia

KEY QUESTIONS ANSWERED:

1. What are the trends in the Southeast Asia construction equipment market?

2. How big is the Southeast Asia construction equipment market?

3. Who are the key players in the Southeast Asia construction equipment market?

4. Which are the major distributor companies in the Southeast Asia construction equipment market?

5. What is the growth rate of the Southeast Asia construction equipment market?

Product Code: ARZCE251101

1. RESEARCH METHODOLOGY

2. RESEARCH OBJECTIVES

3. RESEARCH PROCESS

4. INTRODUCTION

4.1 Market Coverage
4.2 Report Scope

5. MARKET AT A GLANCE

6 EXECUTIVE SUMMARY

7 MARKET LANDSCAPE

7.1 PESTEL Analysis
7.2 Economic Scenario
7.3 Tariff Impact
7.4 Key Projects
7.5 Market Dynamics
7.6 Import & Export Trend Analysis
7.7 Supply Chain Analysis

8 SEGMENTATION

8.1 By Equipment Type
- 8.1.1 Equipment Definition (Earthmoving)
  - 8.1.1.1 Earthmoving Equipment (Volume & Value)
  - 8.1.1.2 Excavators
  - 8.1.1.3 Backhoe Loaders
  - 8.1.1.4 Wheeled Loaders
  - 8.1.1.5 Other Earthmoving Equipment

(Skid-steer Loaders, Track Loaders, Bulldozers, & Trenchers)

8.1.2 Equipment Definition (Road Construction)
- 8.1.2.1 Road Construction (Volume & Value)
- 8.1.2.2 Road Rollers
- 8.1.2.3 Asphalt Pavers
8.1.3 Equipment Definition (Material Handling)
- 8.1.3.1 Material Handling (Volume & Value)
- 8.1.3.2 Cranes
- 8.1.3.3 Forklifts & Telehandlers
- 8.1.3.4 Aerial Platforms
8.1.4 Equipment Definition (Other Equipment)
- 8.1.4.1 Other Equipment (Volume & Value)
- 8.1.4.2 Dumpers
- 8.1.4.3 Concrete Mixers
- 8.1.4.4 Concrete Pump Trucks

8.2 End-users
- 8.2.1 End-user Definition
- 8.2.2 Construction
- 8.2.3 Manufacturing
- 8.2.4 Mining
- 8.2.5 Others (Waste Management, Agriculture, Oil & Gas Extraction, Utilities & Energy, Power Generation, Disaster Management and Water Management)

9 GEOGRAPHIC ANALYSIS

9.1 Indonesia
9.2 Thailand
9.3 Philippines
9.4 Malaysia
9.5 Singapore
9.6 Rest of Southeast Asia

10 TECHNOLOGY DEVELOPMENT

11 COMPETITIVE LANDSCAPE

11.1 Competitive Landscape Overview
11.2 Prominent Vendors
11.3 Other Prominent Vendors
11.4 Distributor Profiles

12 REPORT SUMMARY

12.1 Key Insights
12.2 Abbreviations
12.3 Exhibits
12.4 Related Reports
12.5 Database
12.6 Global Reach
12.7 Offerings