AUSTRALIA CONSTRUCTION MACHINERY MARKET – GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2021 – 2026)
The Australian construction machinery market was valued at USD 6.023 billion in 2019 and is expected to project a CAGR of 3.80% during the forecast period, 2019-2024.
- Increasing infrastructure development across residential and commercial sectors is expected to drive the growth of the market over the forecast period. According to the Australian Industry Group/Housing Industry Association, the Australian performance of construction index (Australian PCI) increased by 4.3 points to 57.5 (readings above 50 indicate expansion in activity, with the distance from 50 indicating the strength of the increase) in December 2017.
- Factors impacting the Australian construction machinery market include increasing government investment in infrastructure development, stringent emission norms, grey markets (illegal imports of construction machinery), economic growth, changes in oil prices, etc.
- The construction industry is getting smarter. Digitalization, connectivity, and automation are driving the developments forward, leaving a substantial impact on construction projects. Autonomous technology for construction promises safer working conditions, as well as improved cost containment from optimized fuel consumption and operations.
Scope of the Report
The Australian construction machinery market has been segmented by machinery type.
Key Market Trends
Australia’s Construction Activities are Declining at a Fast Pace
The construction activities in the country are rapidly declining. According to the Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI), the sharp fall in residential building activity along with the drop in commercial construction and a slight dip in engineering construction saw construction sector performance in December 2018 record its steep monthly contraction since mid-2013. According to the Ai Group, the PCI dropped 1.9 points to 42.6 in December 2018, indicating a fourth consecutive month of decline and the sharpest rate of contraction in last five and a half years.
The Australian construction industry accounts for approximately 10% of the country’s’ both GDP and employment, and the downturn in this sector is impacting the overall economy.
All four construction sectors in the Australian PCI contracted in January 2019, with a further weakening in the house-building (down 1.9 points to 34.4) and apartment-building sectors (down 1.6 points to 24.9). Commercial construction was again subdued (down 0.5 points to 44.9) while engineering construction declined for a second month (down 3.2 points to 43.3).
As all the industries which drive the construction machinery market are encountering a decline, the demand for construction machinery is expected to witness slow growth rate in the coming years.
Source by website