According to Mordor Intelligence, the Australian construction machinery market’s value in 2020 was a staggering USD 2381.45 million. Experts predict it to reach USD 2981.24 million in 2026 with a CAGR of 3.35 percent during the forecast period of 2021-2026. COVID-19 has undoubtedly negatively influenced the market as the government enforced strict lockdown measures, effectively halting economic, construction, and transportation activities.
Luckily, once the government allowed some relaxation in lockdown regulations, activities resumed their momentum, with demand reinvigorating the market. The Australian construction machinery market has changed, with changes in oil prices, rising government investment in developing infrastructures, economic growth, grey markets, and more. Here are some of the key market trends the industry is expected to experience in 2022 and beyond:
Increasing Infrastructure Development
The Australian government and the private sector have vastly increased their infrastructure spending, resulting in a higher demand for machinery and equipment in the construction industry. The Australian Bureau of Statistics has also noted a consistent gradual increase in residential building construction activity in the country.
While the pandemic has caused a mild slowdown in the construction industry, the increased infrastructure development in the country is expected to provide abundant opportunities to manufacturers. Australia is also witnessing unprecedented levels of foreign direct investment in construction.
The government has fuelled more initiatives to accelerate infrastructure development, thereby vastly boosting the demand for construction machinery hire. In May 2021, the government added USD 11.3 billion for infrastructure projects in its Federal Budget, including more funding to facilitate 15 early-stage investment opportunities.
In fact, in December 2020, 100,865 new construction units were registered, showing a 19.4 percent year-on-year increase from 2019. With these statistics, it’s clear that the construction industry is expected to have excellent growth potential in the next few years.
Sharp Leap in Demand for Dump Truck Hire
During the forecast period, dump trucks are anticipated to possess the largest market share in the construction machinery market. One of the prevalent trends in the market is the automation of dump trucks, mainly as concerns over safety and operating efficiency are on the rise for the mining industry.
Nearly every construction site needs dump trucks. While they have limited functions, they perform the essential task of efficiently moving and dumping various materials the construction site needs. These trucks are available in multiple sizes, capacities, and load needs. Following the skyrocketing demand, many manufacturers have begun rolling out new products to take advantage of the market.
For instance, in March 2020, Komatsu rolled out the 230T capacity dump truck in Australia. This dump truck uses a Cummins QSK60 diesel engine with a horsepower of 2,500. Stricter emission standards have also led to the increase in demand for electric dump trucks. Many companies have pivoted to meet this demand by offering dump truck hire in Perth to make it easier for customers to get what they need for their construction projects. These services do away with the need to cover maintenance costs and the upfront investment previously required to use a dump truck, which means growth in rental firms will negatively affect this segment’s growth.
The Australian construction industry is booming on the heels of the pandemic, with much more optimistic prospects on the horizon for everyone involved. With these trends expected to occur in 2022 beyond, Australia will welcome a new age in infrastructure.
KEE Hire is the most trusted hire company by the most prominent civil, mining, and infrastructure project managers in Western Australia. We specialize in dump truck, roller, and machinery hire in Perth to meet all your equipment needs. Call our team today to find out what we can do for your project!
IMAGE © Katharyn Quinn 2021