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Home Oil & Gas Electricity Metals Treasuries Stocks My Portfolios Forex
News - Full Story Thailand Construction Equipment Rental Market Assessment 2023-2029 Featuring Prominent Vendors - Caterpillar, Komatsu, JCB, Volvo, Hitachi, Kubota, SANY, XCMG, Liebherr, Kobelco, Zoomlion and SUMITOMO

DUBLIN, March 29, 2024 /PRNewswire/ -- The "Thailand Construction Equipment Rental Market - Strategic Assessment & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering.

Research and Markets Logo

The Thailand construction equipment rental market is expected to reach a value of $428.7 million by 2028 from $296.3 million in 2023, growing at a CAGR of 6.35%

Rental earthmoving equipment accounted for the largest market share of the Thailand construction equipment rental market in 2023. Rental excavators in the earthmoving segment accounted for the largest share in 2023. Rising investment in housing, port expansion, and public infrastructure projects is expected to drive the Thailand construction equipment rental market.

The K LINE has opted to construct new warehouses in Thailand to meet the growing demand for distribution and cater to the varied requirements of customers. The new warehouse is situated approximately 30 kilometers away from the center of Bangkok, which is the largest consumption area in Thailand.

In February 2024, Banyan Group, a company based in Singapore, revealed its intentions to develop the most significant luxury residential project in Phuket, Thailand, in response to the robust rebound in real estate demand following the COVID-19 pandemic. The project is set to feature 6,000 units upon its completion, accounting for an average price of USD 325,000. It will open in stages over the next five to ten years. Banyan Group has already sold approximately 20% of the initial 300 units, including condominiums and villas.

New Energy Capital Asia, one of the leading corporate and industrial solar energy solutions providers, signed an agreement with UMC Metals Ltd. This partnership signifies a significant advancement in Thailand's renewable energy sector, with New Energy Capital Asia securing a Power Purchase Agreement (PPA) for an innovative 1.6 MWp solar project. The project will feature both floating and ground-mounted solar installations and support the growth of the Thailand construction equipment rental market.

In June 2023, the Pattaya City Administration approved the plans to construct four new monorail lines in Thailand. The project includes the Green, Yellow, Purple, and Red Lines, with the Green and Yellow Lines slated for completion in the first phase (2021-2026).

MARKET TRENDS & DRIVERS

Increased Focus on Lithium Mining

Establishing lithium mines in Thailand will position the country uniquely among the major lithium producers, which is crucial for EV batteries. This move is significant as Thailand is developing an EV production industry, with substantial investment commitments totaling USD 1.44 billion from Chinese carmakers.

The Department of Primary Industries and Mines (DPIM) in Thailand predicts that the Reung Kiet site has the potential to produce approximately 164,500 metric tons of lithium carbonate.

Power Generation Through Waste Management Triggers the Use of Rental Excavators & Loaders

The government has planned two new waste-to-energy power plants in Bangkok. The plant is expected to generate 35 megawatts of electricity using 1,000 tons of waste as fuel each day. Absolute Clean Energy Power Co. Ltd. has started working on the 'ALPC6' Waste to Energy project in the Krabi province of southern Thailand; this project will consume 144,000 tons of solid waste per year and generate 6MW of electricity.

The Nut Waste to Energy Project in Bangkok is a 35MW biopower initiative currently in the permitting stage. The single-phase development is anticipated to be completed and commissioned in 2024. The projects will support the growth of the Thailand construction equipment rental market during the forecast period.

Increased Investments in the Eastern Economic Corridor Initiative to Boost the Thailand Construction Equipment Rental Market

The total investment value amounted to USD 23.62 billion, depicting a significant 43% increase compared to the previous year. This marks the highest investment value in five years, indicating a positive trend in investment activity in infrastructure. In March 2023, the Thai government started promoting several large-scale water transport projects, including an industrial port development project in the Eastern Economic Corridor (EEC) district.

Rising Investments in Transit Projects Across Thailand to Support Rental Road Construction Equipment

Additionally, 13 new projects with a combined investment of approximately USD 7.15 billion are set to begin construction in 2024. Some of these projects include Motorway No. 9, which serves as the Western Ring Road of Bangkok, an extension of Motorway No. 7 that connects to U-Tapao Airport, and the expansion of Motorway No. 5, which leads to Bang Pa-in. These projects will significantly support the growth of Thailand's construction equipment rental market.

In January 2024, the Ministry of Transport set aside USD 10.8 billion to finance transportation projects as a component of the government's strategy to establish an integrated transportation network in Thailand. According to the Transport Ministry, the 2024 transportation projects will encompass 64 initiatives, which are scheduled to become operational, and 31 new projects, poised to commence construction. The Ministry highlighted 57 new investment projects slated for 2025, with a cumulative investment value of USD 7.3 billion.

Increased Focus on Boosting Green Energy Resources Across the Country

The Thailand government has introduced several plans, such as the Energy Efficiency Plan (EEP), the Alternative Energy Development Plan (AEDP), and the Power Development Plan (PDP), to increase its renewable energy share. According to the IRENA report, Thailand's share of renewable energy is expected to reach 37% by 2036 from 12% in 2019.

The Royal Thai Government is developing the Thailand National Energy Plan (NEP), a strategic roadmap outlining the future of Thailand's energy systems up to the 2040s.

INDUSTRY RESTRAINTS

Rising Land and Housing Prices to Restrict Residential Demand Across the Country

According to the Bank of Thailand, Thai house prices are experiencing modest growth, with single-detached houses demonstrating a 3.6% year-on-year increase in Q3 2023. This follows a growth trend in the previous quarters, indicating increased property demand. House prices rose slightly by 0.3% (0.2% inflation-adjusted) in Q3 2023. Further, in Bangkok and nearby areas, condominium prices increased by 4.8% (4.5% in real terms) in Q3 2023 compared to the previous year, contrasting with the 2% year-on-year decline in Q3 2022.

Economic and Political Uncertainties in Thailand to Hamper Construction Activity

According to the NESDC, the slower economic growth of Thailand in Q3 can be attributed to the contractions in government spending, exports, and imports, impacting both the agricultural and non-agricultural sectors.

The industrial sector declined by 2.8% over two consecutive quarters. Despite a strong 8.1% expansion in private consumption, economic challenges persisted due to a 3.1% drop in exports. However, the services sector experienced a substantial growth of 23.1% due to increased foreign tourist activities.

Skilled Labor Shortage and Aging Population in Thailand

Thailand's labor market is undergoing structural challenges, intensified by the digital revolution, leading to the demand for swift adjustments from workers, businesses, and the government for global competitiveness. Despite rapidly recovering from the COVID-19 crisis, persistent issues include workforce distribution shifts and declining productivity.

Also, the Thai economy heavily depends on foreign workers, with around 2.7 million employed in October 2022, primarily non-skilled. The Ministry of Labor states the presence of approximately 2.4 million general workers, and the private sector data suggests a continued need for additional workers, ranging from 400,000 to 500,000 people, from neighboring countries.

KEY QUESTIONS ANSWERED

  • How big is the Thailand construction equipment rental market?
  • What is the growth rate of the Thailand construction equipment rental market?
  • Who are the key players in the Thailand construction equipment rental market?
  • What are the trends in the Thailand construction equipment rental market?
  • Which are the primary distributor companies in the Thailand construction equipment rental market?

VENDOR LANDSCAPE

Prominent Vendors

  • Caterpillar
  • Komatsu
  • JCB
  • Volvo Construction Equipment
  • Hitachi Construction Machinery
  • Kubota
  • SANY
  • Xuzhou Construction Machinery Group Co. Ltd. (XCMG)
  • Liebherr
  • Kobelco
  • Zoomlion Heavy Industry Science & Technology Co., Ltd.
  • SUMITOMO CONSTRUCTION MACHINERY CO., LTD.

Other Prominent Vendors

  • Hyundai Construction Equipment
  • Hidromek
  • LiuGong
  • Yanmar
  • Tadano
  • Takeuchi Manufacturing Co., Ltd.
  • Manitou
  • KATO WORKS CO., LTD.
  • GEHL
  • MERLO S.p.A.
  • Bobcat
  • Terex Corporation
  • CNH Industrial
  • AIRMAN
  • Euromach
  • Shandong Lingong Construction Machinery
  • Ammann
  • Haulotte
  • Toyota Material Handling
  • SAKAI HEAVY INDUSTRIES, LTD.
  • Xiamen XGMA Machinery Company Limited

Rental Companies

  • Aktio Corporation
  • SIAM KANAMOTO CO., LTD.
  • Rent (Thailand) Co. Ltd.
  • Nishio Rent All (Thailand) Co., Ltd.
  • Nikken Corporation
  • Promech Heavy Equipment
  • Saha Crane Corporation PCL
  • MTS Machinery Company Limited
  • Sahasin Equipment Co., Ltd.
  • LH Machinery Sales & Rental Thailand Co., Ltd.
  • Mark Engineering & Development Co., Ltd.
  • Than Khun Makro (Thankun Backhoe)
  • Chulee Engineering-Civil Company Limited
  • Setcon (2524) Company Limited
  • KGK Crane and Service Company Limited
  • Rangsit Crane Company Limited
  • Work Crane
  • Siam Sun Auto Sales Company Limited
  • Ek Crane
  • Rayong Rattana Service & Hydraulic Co., Ltd.

For more information about this report visit https://www.researchandmarkets.com/r/4843re

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