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Australia Construction Machinery Market - Growth, Trends, and Forecast (2019 - 2024)

  • ID: 4773611
  • Report
  • April 2019
  • Region: Australia
  • 106 pages
  • Mordor Intelligence
until Mar 31st 2020
1 of 4


  • Atlas Copco
  • CNH Australia
  • John Deere & Co.
  • Liebherr
  • Sany
  • Terex Corporation
  • MORE
Market Overview

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.

Dump Trucks are Leading the Australian Construction Machinery Market

Dump trucks lead the market in terms of revenue, followed by crawler trucks. Construction equipment is extensively used in capital-intensive projects, at both construction and mining sites, to reduce labor cost and time. Australia’s geography and population distribution require more usage of construction equipment, especially in remote locations. Automation of dump trucks is the ongoing trend in the Australian market, as concerns over safety and operating efficiency take center stage, particularly for the mining industry. Major companies, such as Komatsu, Hitachi, and Caterpillar have already deployed their automated trucks for mining activities, the large scale adoption of this technology is also expected from the construction sector.
  • With the growing mining industry in the country, especially in Western Australia, the demand for dump trucks has been consistently increasing.
  • For instance, NPE delivered 12 new Komatsu 830E dump trucks for Anglo American’s Capcoal operation and an additional four machines down the line for 16 trucks in total.
In the past couple of years, the country has witnessed several product launches from major construction equipment companies, which reflect the ongoing trends in the Australian wheel loader market. JCB emerged as the leader in the Australian wheel loader market and holds a major share in the market, the sales were largely driven by government purchases and was attributed to the fuel efficiency offered by the machine.

The Australian market is adopting new technologies to increase productivity, reduce operating costs, and ensure low emissions. For instance, Komatsu introduced its PC210LC-11 a hydraulic excavator with intelligent machine control to increase productivity while cutting costs associated with over-excavating and by minimizing the need for grade checkers and grading dozers. Caterpillar, the American-based construction machinery giant has launched three next-generation 20-metric ton size class excavators, the 320 GC, 320, and 323 with high operating efficiency, high fuel efficiency, low maintenance costs, and improved operator comfort, as compared to previous models.

Competitive Landscape

The Australian construction machinery market is dominated by companies, such as Komatsu, JCB, CAT, Volvo, Sany, and SLDG. In 2017, CAT was the market leader followed by Komatsu and JCB. CAT dominates the wheel loaders, crawler trucks, dump trucks, and motor graders segments, whereas Komatsu is the leader of the excavator's segment.

In 2017, Toyota Motor Corporation and Hitachi Ltd decided to embark on a collaborative creation to build a high-efficiency production model using an IoT platform. These two companies are expected to conduct verification at Toyota's model plants, and through this verification, they intend to establish a platform using Hitachi's IoT platform ‘Lumada’, which utilizes the latest digital technologies, such as AI and Big Data analysis.
Note: Product cover images may vary from those shown
2 of 4


  • Atlas Copco
  • CNH Australia
  • John Deere & Co.
  • Liebherr
  • Sany
  • Terex Corporation
  • MORE
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study



4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry

5.1 Machinery Type
5.1.1 Hydraulic Excavators
5.1.2 Wheel Loaders
5.1.3 Crawler Trucks
5.1.4 Dump Trucks
5.1.5 Motor Graders

6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Atlas Copco
6.2.2 Caterpillar
6.2.3 CNH Australia
6.2.4 Doosan Infracore Ltd
6.2.5 Hitachi Construction Machinery Co. Ltd
6.2.6 JCB Construction Equipment Australia
6.2.7 John Deere & Co.
6.2.8 Kobelco Construction Machinery Co. Ltd
6.2.9 Komatsu Ltd
6.2.10 Liebherr
6.2.11 Manitou
6.2.12 Volvo Construction Equipment
6.2.13 Terex Corporation
6.2.14 Sumitomo Heavy Industries Ltd
6.2.15 XCMG
6.2.16 Sany
6.2.17 Tadano


Note: Product cover images may vary from those shown
3 of 4


4 of 4
  • Atlas Copco
  • Caterpillar
  • CNH Australia
  • Doosan Infracore Ltd
  • Hitachi Construction Machinery Co. Ltd
  • JCB Construction Equipment Australia
  • John Deere & Co.
  • Kobelco Construction Machinery Co. Ltd
  • Komatsu Ltd
  • Liebherr
  • Manitou
  • Volvo Construction Equipment
  • Terex Corporation
  • Sumitomo Heavy Industries Ltd
  • XCMG
  • Sany
  • Tadano
Note: Product cover images may vary from those shown