Market Overview
The Australian construction machinery market was valued at USD 2381.45 million in 2020 and is expected to reach USD 2981.24 million in 2026 registering a CAGR of 3.35% during the forecast period (2021 – 2026).
The outbreak of pandemic COVID-19 has impacted the market negatively as the government in the country imposed strict lockdown measures, which resulted in pausing the economic and transportation activities in the country, which in turn affected construction activities. However, as soon as the government permitted some relaxations in lockdown norms ,the activities have started picking pace and demand is returning back to the market.
Key Market Trends
Rising Infrastructure Development and Construction Activities
Infrastructure spending by the Australian Government and private players in the country is witnessing a notable rise over the past few years, thereby pushing the demand for machinery and equipment in the construction sector. According to the Australian Bureau of Statistics, there has been a constant gradual increase in residential building construction activity in Australia.
Though there was a moderate slowdown in the construction sector owing to pandemics, the development of infrastructure across the country is anticipated to offer tremendous opportunities to construction machinery manufacturers to increase their revenues as equipment plays a vital role in these activities. Moreover, the country is witnessing significant foreign direct investment (FDI) in the construction sector. For instance, In 2020, foreign direct investment in The Australian construction sector was around A$2.2 billion, with the highest FDI in the construction sector in 2019 at over $4.2 billion. Growing government initiatives to further accelerate infrastructure development in-country, in turn, boosts demand for construction machinery in the region. For instance, In May 2021, the Australian Government announced an additional USD 11.3 billion for infrastructure projects in its Federal Budget. This includes new funding to progress 15 early-stage investment opportunities.
A total of 100,865 new construction units, including dwelling units, private sector houses, and other residential buildings, were registered in just December 2020, with a 19.4% Y-o-Y increase from 2019. This shows that the construction industry is set to have great growth potential for the coming years.
