Malaysia Construction Equipment Market Research Report 2025-2030

KEY HIGHLIGHTS

• Earthmoving equipment accounted for the largest market share in the Malaysia construction equipment market in 2024. Excavators in the earthmoving segment accounted for the largest share in 2024. The country’s investment in developing its public infrastructure drives the growth of the Malaysian earthmoving market.
• On the other hand, demand for material handling equipment is also growing due to the booming manufacturing sector, particularly the electrical & electronics sector, driving the development of warehouses and logistics parks across the country.
• In 2024, the Malaysian government formulated short and long-term strategies to strengthen the competitiveness of the country's main ports, namely Port Klang and Port of Tanjung Pelepas. The strategy covers aspects of increasing capacity, increasing efficiency and productivity, as well as transforming towards a low-carbon green port.
• In July 2025, construction company PTT Synergy Group Bhd proposed to acquire 4.56 hectares of freehold land in Rawang, Selangor, for USD 8.3 million to build a commercial warehouse.
• In 2024, the earthmoving segment accounted for a significant share of Malaysia’s construction equipment market; the segment is estimated to reach 5.6 thousand units by 2030.
• The road construction equipment segment is estimated to surpass USD 30 million by value by 2030.
• The road roller sales are high in Malaysia in response to the rising renovation and expansion of transport networks. In early 2024, the government approved an additional USD 13.9 million for the maintenance of federal roads in Peninsular Malaysia, demonstrating its continued commitment to infrastructure improvements.
• Construction equipment utilization in the construction industry by end-user (volume) has the largest market share in 2024.
• The construction sector’s contribution to Malaysia’s GDP has been steadily increasing since 2022, reaching a year-on-year growth of 17% in Q2 2024. This upward trajectory is attributed to the ongoing demand for data centres, new manufacturing facilities, and anticipated infrastructure projects. This growth is projected to impact the Malaysia construction equipment market positively during the forecast period.
• In July 2025, Catet (crane manufacturing company) recently successfully shipped a batch of single-beam bridge cranes to a customer's factory in Malaysia. These cranes will be used for material handling in the customer's new production line, improving the efficiency of the customer's workshop production.
• Private investment is also becoming stable in 2025, particularly in residential and high-rise mixed-use developments in Kuala Lumpur, Johor Bahru, and Penang.

MALAYSIA CONSTRUCTION EQUIPMENT MARKET TRENDS & DRIVERS

Rising Demand for Electric Construction Equipment

• Construction equipment manufacturers are making continuous investments in launching battery-powered construction equipment in Southeast Asia, including Malaysia. In line with initiatives such as the “Push for Net Zero mission”, construction contractors are actively seeking alternatives to conventional diesel-powered machinery.
• In 2021, Mach 1 Construction Equipment Sdn Bhd (forklift dealer in Malaysia) introduced JCB’s E-Tech 19C-1E to the country, the first fully electric mini excavator with zero emissions. This electric excavator is presently in use in Malaysia.

Integration of Environment-Friendly Fuel in Construction Equipment

• Malaysia aims for carbon Neutrality by 2050, which requires a change in the energy system. Hydrogen energy is therefore an important alternative, both for generating electricity, enhancing the energy system, and supporting future industries.
• Consequently, construction equipment manufacturers are also focusing on alternative fuels such as hydrogen, electricity, or hybrid solutions. For instance, in 2025, HD Hyundai Construction Equipment launched its HW155H hydrogen fuel cell-powered wheeled excavator concept.

Revival of the Construction Industry to Propel the Malaysia Construction Equipment Market

• Malaysia's construction industry entered 2025 with strong momentum, highlighting its resilience and importance to the nation's development. Following a significant post-pandemic recovery, the sector is expected to grow by 6.1% in 2025.
• Public infrastructure remains a key driver. The MRT3 roundabout, Pan Borneo Highway, and flood mitigation projects are attracting a significant number of investments into the economy while addressing mobility needs and climate adaptation needs.
• The projected stability of the construction sector with a rising number of public infrastructure projects in the country is expected to propel the Malaysia construction equipment market over the forecast period.

Rising Development of Data Centers Across Malaysia

• Malaysia is quickly becoming a regional hub for data centres. The nation has more than 600 megawatts of capacity as of May 2025, and by the early 2030s, it is expected to have more than 2,000 megawatts.
• New data center developments are on the way, driven by increased foreign direct investments in the market. In May 2025, Microsoft announced it to open its first cloud region in Malaysia, marking a major step in the country’s digital development. Therefore, Malaysia’s increasing investments in the construction of data centers throughout the nation are anticipated to increase sales of construction equipment in the Malaysia construction equipment market during the forecast period.

INDUSTRY RESTRAINTS

Skilled Labor Shortage

• In September 2024, the shortage of skilled labor in the solar-power generation sector came to light, especially in the installation works. This problem has caused industry players in the renewable energy sector to face difficulty in finding qualified workers to fill vacancies in the sector.
• According to the Statistics Department (DOSM), on current labor demand, the job vacancies rose 1.2% year-on-year to 194,100 in Q1 2025, up from 191,900 in the same quarter last year. The manufacturing sector remained the main contributor to job vacancies, making up 57.3% of total vacancies.

Malaysian Economic Slowdown Due to the Global Trade Tensions

• The imposition of tariffs and the ongoing U.S.-China conflict are shaping global trade relations, and these are of particular significance for Malaysia's economy in the year 2025.
• Malaysia is deeply integrated into global supply chains. Trade tensions are expected to disrupt these chains, affecting the country’s manufacturing industry, as the country is an exporter of several intermediate goods (E&E, machinery, optical and medical instruments, and rubber products). Such factors are projected to impact the Malaysia construction equipment market growth.

VENDOR LANDSCAPE

• Caterpillar, Komatsu, Volvo CE, Hitachi Construction Machinery, and SANY are the front-runners in the Malaysia construction equipment market. These companies have a strong market share and offer a diverse set of equipment in the Malaysian market.
• Tadano, Terex, XCMG, Kubota, Zoomlion, Kobelco, Bomag, Kato Works, and Toyota Material Handling are niche players in the Malaysia construction equipment market. These companies offer low product diversification and have a strong presence in the country’s market.
• HD Hyundai Construction Equipment, Manitou, Liebherr, JCB, CNH Industrial N.V., Sumitomo, DEVELON, Bobcat, and LiuGong are emerging in the Malaysia construction equipment market. These companies are introducing new technologically advanced products to challenge the market share of market leaders in the country’s market.
• Takeuchi, Airman, Sakai, JLG, and Shantui have low product diversification in the Malaysia construction equipment market; these companies are lagging in adopting new technologies used in construction equipment.
• In 2021, Volvo CE launched a Fuel Challenge program in Singapore, Malaysia, and Indonesia. The initiative incentivizes customers of Volvo EC200D and EC210D excavators to reduce fuel consumption by rewarding them with aftermarket credit if they consume less fuel than a stipulated target set for each country.
• In 2024, Komatsu Ltd. announced that Komatsu Ltd. will acquire all of the shares held by UMW Corporation Sdn. Bhd. in UMW Komatsu Heavy Equipment Sdn. Bhd., making UKHE a wholly-owned subsidiary of Komatsu.

Prominent Vendors

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

Other Prominent Vendors

• HD Hyundai Construction Equipment Co.,Ltd.
• Liugong Machinery Co., Ltd.
• CNH Industrial N.V.
• Toyota Material Handling International
• SUMITOMO CONSTRUCTION MACHINERY CO., LTD.
• Shantui Construction Machinery Co., Ltd.
• DEVELON
• Tadano Ltd.
• Terex Corporation
• Manitou
• BOMAG GmbH
• KATO WORKS CO., LTD.
• SAKAI HEAVY INDUSTRIES, LTD.
• Takeuchi Manufacturing Co., Ltd.
• AIRMAN CORPORATION
• Bobcat
• KUBOTA Corporation
• JLG

Distributor Profiles

• Sunway Marketing Sdn. Bhd.
• FHM Equipment Sdn Bhd
• UMW Equipment Sdn. Bhd
• TCIM SDN BHD
• UM Construction Equipment Sdn Bhd
• WDG Resources Sdn Bhd.
• Multico (M) Sdn Bhd

Segmentation by Type

• Earthmoving Equipment
• Excavator
• Backhoe Loaders
• Wheeled Loaders
• Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers, Motor Graders)
• Road Construction Equipment
• Road Rollers
• Asphalt Pavers
• Material Handling Equipment
• Crane
• Forklift & Telescopic Handlers
• Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)
• Other Construction Equipment
• Dumper
• Tipper
• Concrete Mixer
• Concrete Pump Truck

Segmentation by End Users

• Construction
• Mining
• Manufacturing
• Others (Power Generation, Utilities, Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation Plants, Waste Management)

KEY QUESTIONS ANSWERED: