Japan Used Construction Equipment Market Report 2023: $700+ Economic Recovery Investments, Expo 2025, An Aging...
DUBLIN, Jan. 25, 2023 /PRNewswire/ -- The "Japan Used Construction Equipment Market - Strategic Assessment & Forecast 2023-2029" report has been added to ResearchAndMarkets.com's offering.
Japan used construction equipment market is expected to grow at a CAGR of 2.97% from 2022 to 2029.
The Earthmoving segment has the largest share of Japan used construction equipment market. The excavators held the largest share in the earthmoving segment in 2022.
In 2021, the country's government planned to invest USD 708 billion in economic recovery. The investment is directed at the development of public infrastructure & digital technology. Investment is also planned for Expo 2025 in the Osaka region of the country. The government is investing in renewable energy projects to reduce carbon emissions by 46% by 2030.
Japan is facing the challenge of aging infrastructure. More than 50% of roads, bridges & tunnels will be older than 50 years by 2033. Therefore, the government increases its focus on repairing and maintaining roadways, highways & bridges. The rise in repair and redevelopment is expected to drive sales of used earthmoving equipment in Japan used construction equipment market.
Growth in the logistics industry due to the growing demand for goods in the global and domestics market supports the demand for used forklifts & telehandlers in Japan used construction equipment market. The country's export witnessed a sharp rise of 21.5% in 2021. Moreover, it is anticipated that using robotics & automation in the manufacturing industry will temporarily solve the labor shortage issue - and it is estimated that the industry will witness a 2.4% growth in output in 2022.
The country witnessed a surge in warehouse space across the country in 2021. The country's E-commerce and logistics industry growth triggers the demand for large warehouse spaces in major cities. Growth in the logistics & E-commerce industry is expected to positively impact the demand for used forklifts & telescopic handlers in Japan used construction equipment market.
The demand for new-generation used excavators with ICT and remote monitoring technology is gaining market share in Japan. Skilled labor shortage & rising accident cases at construction sites prompt the use of automated used construction equipment in Japan.
In 2021, demand for used forklifts witnessed high growth in Japan used construction equipment market due to the rise in the E-Commerce sector. Used hydraulic excavators are used for disaster management projects in the country. In 2022, Hitachi Construction Machinery Japan signed 83 disaster agreements with local municipalities to provide equipment for disaster response & recovery in Japan.
MARKET TRENDS & DRIVERS
Renovation of Old Infrastructure in Japan Supports the Sales of Used Construction Equipment
The country's government is expected to increase its focus on renovating its aging infrastructure in 2022. According to the Ministry of Land, Infrastructure, Transport & Tourism Japan, nearly 63% of roads & bridges, 62% of flood barriers & other river facilities, & nearly more than 40% of tunnels will be more than 50 years old by 2033.
The government planned to develop new buildings and infrastructure in the Tokyo, Kansai, and Kinki regions in Western Japan. The upcoming Osaka Expo 2025 is expected to prompt investment in real estate, & infrastructure development projects. For instance, the government is investing USD 470 million to renovate Kansai International airport terminal 1, which is expected to complete by 2026.
In addition to it, some of the significant infrastructure renovation projects such as Enryakuji Temple (Kyoto), 5- storied pagoda (Nara), floating Tori Gate of Itsukushima Shrine (Miyajima), Dogo Onsen Honkan (Matsuyama), Okayama castle (Okayama) & Kumamoto Castle ( Kumamoto) are under progress in 2022. Such renovations in the country will significantly support Japan used construction equipment market.
Logistics Industry Growth in Japan Driving Demand for Used Material Handling Equipment
Japanese E-commerce industry witnessed a sharp growth post-pandemic in 2021. The country's logistics investment company GLP plans to invest USD 8.7 billion in facilities across the country in 2022. The company is investing ~USD 6.7 billion to develop 50 large-scale logistics centers.
According to the ministry of economy, trade & industry expect to grow by an average of 8% for the next five years. Japanese logistics companies are investing in developing warehouse centers across the country.
For instance, in 2022, Nippon logistics corporation completed the construction of its first cold storage warehouse in Atsugi- shi Kanagawa Prefecture. ESR Kawanishi Distribution Centre will develop USD 1.5 billion multi-phase logistics park in Osaka, Japan, in 2022.
Labour Shortage Triggers the Demand for Used Automated Construction Equipment
The labor shortage issues in the country trigger the demand for automated used construction equipment. Japan's skilled labor force shortage majorly impacts the construction industry. Therefore, the Ministry of Land, Infrastructure, Transport, and Tourism supports the i-Construction initiative.
This initiative aims to boost productivity and make construction sites more appealing using contemporary technology such as IoT and remote monitoring. Additionally, used equipment equipped with ICT assures construction machinery operator safety at construction sites.
The advancement of technology will propel the growth of Japan used construction equipment market. According to government data, labor fatalities by work-related accidents is about 1,000 a year, the highest among other industries.
INDUSTRY RESTRAINTS
A Rise in Unoccupied Houses Is Expected to Impact Sales of Used Construction Equipment
Japan faces the challenges of a low birth rate and an aging population in 2022. The country has over 20% of its population aged 70 and older. According to government statistics, the country's population declined by 5% in 2022 compared to 2021. Constant decline in the country's birth rate impacts the housing demand in Japan.
The country's real estate industry has been performing poorly for several years. By 2023, the country will likely witness an excess supply of 10 million housing units due to a declining population rate. This declining rate of population hampers the demand for housing units, further impacting Japan used construction equipment market. In 2018, Japan's Housing and Land Survey, which conducts the survey every five years, found a record-high 8.49 million homes unoccupied. Even in Tokyo, 10% of houses were found abandoned.
Skilled Labour Shortage Due to Aging Population Can Hamper the Sales of Used Construction Equipment
In 2022, the country faced a significant challenge of skilled labor. According to the Japan Federation of Construction Contractors, the number of competent construction workers in Japan is predicted to fall by 1.28 million by 2025, owing to the aging population. ~35% of labor in the construction industry is older than 55 years in the country, resulting in low productivity. Such factors are anticipated to hamper Japan used construction equipment market growth.
Further, the country has strict immigration norms that restrict foreign laborers' migration. The government has identified 14 sectors where there will be a shortage of labor in the future, such as construction manufacturing, agriculture, and shipbuilding are some major ones.
VENDOR LANDSCAPE
Prominent vendors in Japan used construction equipment market are Caterpillar, Volvo Construction Equipment, Liebherr, Komatsu, Hitachi Construction Machinery, Kubota, SANY, Hyundai Construction Machinery, Sumitomo & Kobelco. Other prominent vendors in the industry are Yanmar, Toyota Material Handling, Tadano & Takeuchi.
Hitachi construction machinery has a strong share of hydraulic excavators in Japan used construction equipment market, which is majorly used for disaster management projects. OEMs are introducing automation technology to overcome issues of skilled labor shortage. In 2021, Kobelco introduced ICT-enabled construction machinery with a navigation system to cater to the high demand for the construction industry.
Komatsu & Kubota have a substantial market share in Japan's earthmoving segment of used construction equipment. Companies like Hyundai Construction Machinery and Liebherr have an established presence over a significant period and diverse product offerings. For instance, Liebherr has served the customers of the Japan region for the past 38 years.
Market Dynamics
- Equipment Supply Chain Analysis, Covid-19 Impact, Market Drivers, Restraints, Trends, Advantage Japan
- Key Economic Regions, Advantage of Used Equipment, Inception of Used Equipment, Pricing of Used Construction
Market Landscape
Japan Used Construction Equipment Market by Type (Volume & Value)
- Earth Moving Equipment
- Excavator
- Backhoe Loader
- Motor Grader
Other Earth Moving Equipment (Other Loaders, Bulldozer, Trencher, Etc.)
- Material Handling Equipment
- Crane
- Forklift and Telescopic Handler
Aerial Platform (Articulated Boom Lifts, Telescopic Boom Lifts, Scissor Lifts, Etc)
- Road Construction Equipment
- Road Roller
- Asphalt Paver
Japan Used Construction Equipment Market by Application (Volume & Value)
- Construction
- Mining
- Manufacturing
- Others (Power Generation, Utilities Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation Plants, Waste Management, Etc)
Key Vendors
- Caterpillar
- Komatsu
- Volvo Construction Equipment
- Hitachi Construction Machinery
- Kubota
- Sumitomo Heavy Industries
- Kobelco
- SANY
- Liebherr
- Hyundai Construction Machinery
Other Prominent Vendors
- Yanmar
- Takeuchi Manufacturing
- Tadano
- Toyota Material Handling
Auctioneers Profile
- Ritchie Bros. Auctioneers
- NORI Enterprise Co, Ltd
- Hitachi Construction Machinery
- TOZAI BOEKI CO. LTD
- YANAGAWA SHOJI Co LTD.
Distributors Profiles
- WWB KENKI
- Chukyo Juki Ltd
- Tokuworld Corporation Corp
For more information about this report visit https://www.researchandmarkets.com/r/srg8cd
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