Because China, Indonesia, India, and Malaysia are emerging markets, the Asia Pacific (APAC) construction market is growing strong and is expected to continue to do so over the next six years. This construction industry expansion translates into an increase in demand of heavy-lifting equipment. Today, the Asia Pacific construction market (excluding India) is worth $4.95 trillion USD and is projected to reach $5.45 trillion USD by 2021. Economists also expect tower crane revenues to increase to $5.5 billion USD by 2025 and global crane shipments to grow 9%, thus forecasting plenty of room for industry growth.
An Overview of the Market
Given that APAC is a combination of both emerging markets and developed economies, the growth potential is unlike anything seen before. Emerging countries are looking for highly productive, efficient, and eco-friendly lifting technologies. Since many of these countries have extremely dense urban areas, cranes with vertical lift features and small working radii become additional necessities.
With APAC’s economic growth come construction growth possibilities. By 2020, one-half of global construction spending is expected to come from APAC countries, with China, Indonesia, Japan, South Korea, and Malaysia exhibiting the greatest growth potential. Among these nations, the most relevant examples are:
• China’s construction industry is expected to grow 4.5% through 2021, with large-scale growth in infrastructure projects by the government.
• Indonesia has the highest construction growth potential right after China. Growing at 8 to 9% annually, both residential and non-residential construction are contributing to Indonesia’s potential.
• Japan’s residential and infrastructure construction account for 28 to 33 percent of construction activities. Although growth is expected to slow down over the next year, natural calamities and infrastructure upgrades for the upcoming Olympics are making it a solid market.
• India is expected to grow at twice the rate of China over the next eleven years, especially in the infrastructure sector where the government is expected to invest $376.5 billion USD over the next three years.
Singapore, a Market All On Its Own
Singapore is in a class all on its own in the construction industry, having grown steadily over the past few years. 2019 promises to be even better with spending projections between $19.8 billion to $23.4 billion USD, 60% of which will be in the public sector for infrastructure and industrial building projects. Construction spending is expected to increase from $20.5 billion to $25.6 billion USD by 2023.
ENG Cranes Filling the Gap
Due to Singapore’s high density, traditional cranes don’t work well in its tight quarters. One construction company approached ENG Cranes requesting a Derrick Luffer that could disassemble cranes at great heights and work within a small rotation radius. ENG Cranes rose to the challenge and developed a patented Derrick Luffer. In a market with growing and changing needs, ENG Cranes believes in being a part of the solution to future and current construction challenges.
Sources https://www.globenewswire.com/news-release/2019/03/11/1750934/0/en/Global-Tower-Crane-Market-share-to-cross-5-5bn-by-2025-Global-Market-Insights-Inc.html https://www.beroeinc.com/category-intelligence/construction-industry-asia-pacific-market/ https://www.bca.gov.sg/newsroom/others/MR_Prospects2019.pdf https://www.khl.com/international-construction/chinas-construction-growth-to-slow/137183.article https://www.asmag.com/asia/index.aspx?id=275