Chicago, June 21, 2022 (GLOBE NEWSWIRE) — According to Arizton’s latest research report, the South Korean construction equipment market is expected to grow at a CAGR of 4.13% over the period 2022-2027. South Korea aims to achieve net zero emissions by 2050, which is why industrial companies have started investing in green hydrogen projects. Green hydrogen-based construction equipment is being developed by construction equipment manufacturers such as Hyundai, Liebherr and Caterpillar. In January 2022, Hyosung Group announced about 835 million investment in green hydrogen projects and Caterpillar announced to offer 100% green hydrogen construction equipment.
Scope of the South Korea Construction Equipment Market Report
|MARKET SIZE (2028)||$2.5 billion|
|MARKET SIZE (2021)||$1.9 billion|
|MARKET SIZE (VOLUME)||51435 unit sales|
|YEAR OF REFERENCE||2021|
|TYPE||Earthmoving equipment, material handling equipment and road construction equipment|
|END USERS||Construction, manufacturing, mining and others|
|KEY SUPPLIERS||Hyundai Construction Equipment, Komatsu, Caterpillar, Hitachi, Volvo Construction Equipment, XCMG, SANY, John Deere and Kubota|
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- Material handling equipment was the largest segment among others in 2021. Increase in manufacturing sites, investment in logistics industry such as the expansion of distribution centers, the opening of new logistics centers, etc. and port development projects drive demand for material handling equipment. The material handling equipment segment in South Korea is estimated at growing up at CAGR of 4.39% by 2028.
- The Ninth Basic Plan for Electricity Supply and Demand in South Korea should develop renewable energies proportion of installed capacity to 40% by 2034, compared to 15.1% in 2020. To build the necessary infrastructure for power market reform in South Korea, strong demand for construction equipment is expected during the forecast period. Infrastructure projects such as power plants and greenhouses will drive the demand for material handling equipment as well as the overall construction equipment market in South Korea.
- Moreover, the the government’s efforts to promote investment will increase the demand for construction equipment during the forecast period. To promote public investment, the government is focusing to improve transport and logistics systems and build smart buildings, zero energy buildings, smart cities, etc. for which the government announced a Budget of $20 billion in 2021. The government is also encouraging private investment, for which the government has announced a $31.2 billion budget for 2021. The South Korean government is strengthening key manufacturing industries (such as machinery and equipment, mobile phones, cars, machinery including computers, home electronics, machine tools, etc.) and services in digital construction and modernization of smart factories. This will boost the demand for construction equipment across all major industries (construction, manufacturing, mining, etc.) in South Korea.
- South Korea is experiencing severe labor shortages in sectors such as construction, manufacturing, mining, etc. Due to a labor crisis, new technologies in construction equipment are in high demand improve worker efficiency and reduce labor dependency. Hitachi, for example, has introduced wheel loaders and excavators with automation, smart operating technology and Consists Complete management of Hitachi machines support system. Other major construction equipment manufacturers, such as Hyundais and Volvos, follow similar patterns and the introduction of new technologies such as 5G, AI, advanced analytics (IoT), etc. in their equipment to address labor shortages in the construction, manufacturing and mining sectors.
- Hyundai CE leads the construction equipment market, followed by Hyundai Doosan Infracore, Komatsu Group, Caterpillar, Hitachi CM and Volvo Construction Equipment. By 2021, these companies will control around 60% of the entire construction equipment market in South Korea.
- XCMG, SANY, John Deere, Kubota, Liebherr, Kobelco, Yanmar, zoom lion, and JCB are the other leading suppliers in the South Korean construction equipment market.
Market Segmentation Analysis
- Backhoe loaders
- Other Earthmoving Equipment (Other Loaders, Bulldozers, Trenchers)
road construction equipment
- Asphalt pavers
- Forklifts and telehandlers
- Aerial platforms (articulated platforms, telescopic platforms, scissor lifts)
- Reforming South Korea’s electricity market to net zero will drive demand for construction equipment.
- The demand for forklifts and telehandlers will increase as the e-commerce industry grows.
- Government efforts to promote investment will boost demand for construction equipment.
- Hyundai construction equipment
- Volvo construction equipment
- John Deere
Other Important Suppliers
- Kobelco construction machinery
- zoom lion
- SOOSAN MSC
- HAEIN Corporation
- Daijeon machinery
Explore our industrial machinery profile to learn more about the industry.
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