Japan Used Construction Equipment Market Report 2023: $700+ Economic Recovery Investments, Expo 2025, An Aging Infrastructure and Demand from Logistics All Point to Favorable Growth

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DUBLIN, January 25, 2023 /PRNewswire/ — The report “Japanese Used Construction Equipment Market – Strategic Assessment and Forecast 2023-2029” has been added to ResearchAndMarkets.coms to offer.

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Japan The used construction equipment market is expected to grow at a CAGR of 2.97% between 2022 and 2029.

The Earthmoving segment has the largest share of Japan market for used construction equipment. In the earthmoving segment, excavators had the largest share in 2022.

In 2021, the government of the country planned to invest $708 billion in economic recovery. The investment is aimed at developing public infrastructure and digital technology. Investments are also planned for Expo 2025 in the Osaka region of the country. The government is investing in sustainable energy projects to reduce CO2 emissions by 46% by 2030.

Japan faces the challenge of an aging infrastructure. More than 50% of the roads, bridges & tunnels will be older than 50 years in 2033. The government is therefore making extra efforts to repair and maintain roads, highways and bridges. The increase in repair and redevelopment is expected to boost used construction equipment sales Japan market for used construction equipment.

Growth in the logistics sector due to the growing demand for goods in the global and domestic markets is supporting the demand for used forklifts and telehandlers in Japan market for used construction equipment. The country’s exports experienced a sharp increase of 21.5% in 2021. In addition, the use of robotics and automation in the manufacturing industry is expected to temporarily solve the problem of labor shortage – and it is estimated that the industry will experience a production growth of experience 2.4% in 2022.

The country saw a surge in warehouse space across the country in 2021. The growth of the e-commerce and logistics sector in the country is driving the demand for large warehouse spaces in major cities. Growth in the logistics and e-commerce industry is expected to positively impact the demand for used forklifts and telehandlers in Japan market for used construction equipment.

The demand for new generation used excavators with ICT and remote monitoring technology is gaining market share Japan. A shortage of skilled labor and an increasing number of accidents on construction sites lead to the use of automated used construction equipment in Japan.

In 2021, the demand for used forklifts grew strongly Japan used construction equipment market due to the emergence of 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 disaster relief and recovery equipment in Japan.

MARKET TRENDS & DRIVERS

Renovation of old infrastructure Japan Supports the sale of used construction equipment

The country’s government is expected to pay more attention to renovating the 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 over 40% of tunnels will be over 50 years old by 2033.

The government planned to develop new buildings and infrastructure in the Tokyo, Kansaiand Kinki regions Western Japan. The upcoming Osaka Expo 2025 is expected to boost investment in real estate and infrastructure development projects. For example, the government invests 470 million dollars to renovate terminal 1 of Kansai International Airport, which is expected to be completed in 2026.

In addition, some of the important infrastructure renovation projects such as Enryakuji Temple (Kyoto), 5-storey pagoda (Nara), floating Tori gate from Itsukushima Shrine (Miyajima), Dogo Onsen Honkan (Matsuyama), Okayama Castle (Okayama) and Kumamoto Castle (Kumamoto) are in progress in 2022. Such renovations in the country will Japan market for used construction equipment.

Logistics industry growth Japan Stimulate the demand for used material handling equipment

Japan’s e-commerce industry experienced strong growth after the 2021 pandemic. The country’s logistics investment company GLP plans to invest $8.7 billion in facilities across the country by 2022. The company is investing ~ USD 6.7 billion to develop 50 large-scale logistics centers.

According to the Ministry of Economy, Trade & Industry, we expect average growth of 8% over the next five years. Japanese logistics companies are investing in the development of warehouse centers across the country.

For example, in 2022, Nippon Logistics Corporation completed the construction of its first refrigerated warehouse in Atsugishi Kanagawa Prefecture. ESR Kawanishi Distribution Center will develop 1.5 billion dollars multi-phase logistics park Osaka, Japanin 2022.

A labor shortage is driving the demand for used automated construction equipment

The labor shortage issues in the country lead to the demand for automated used construction equipment. from Japan The shortage of skilled labor has major consequences for the construction sector. That is why the Ministry of Land, Infrastructure, Transport and Tourism supports the i-Construction initiative.

This initiative aims to increase productivity and make construction sites more attractive using modern technology such as IoT and remote monitoring. In addition, used equipment equipped with ICT guarantees the safety of the operator of construction machines on construction sites.

The advancing technology will increase the growth of Japan market for used construction equipment. According to government data, the number of deaths from work-related accidents is about 1,000 per year, the highest number among other industries.

INDUSTRIAL RESTRICTIONS

An increase in the number of vacant houses is expected to affect sales of used construction equipment

Japan faces the challenges of a low birth rate and an aging population in 2022. The country has more than 20% of the population aged 70 and over. According to government statistics, the country’s population will decrease by 5% in 2022 compared to 2021. The constant decline in the country’s birth rate will affect the demand for housing in Japan.

The real estate sector in the country has been performing poorly for several years. By 2023, the country is likely to witness an oversupply of 10 million homes due to a shrinking population. This declining population percentage hinders the demand for housing units, which has a further impact Japan market for used construction equipment. 2018, from Japan Housing and Land Survey, which conducts the survey every five years, found a record 8.49 million vacant homes. Even in Tokyo10% of the houses were found abandoned.

A shortage of skilled labor due to the aging population can hamper the sale of used construction equipment

In 2022, the country faced a major challenge in terms of skilled labor. According to the Japan Federation of Construction Contractors, the number of skilled construction workers is in Japan is expected to fall by 1.28 million by 2025 due to the aging population. ~35% of the construction industry labor is over the age of 55 in the country, resulting in low productivity. Such factors are expected to hinder Japan growth of the market for used construction equipment.

Furthermore, the country has strict immigration standards that limit the migration of foreign workers. The government has identified 14 sectors where there will be labor shortages in the future, such as construction, agriculture and shipbuilding.

SELLER LANDSCAPE

Prominent sellers in Japan market for used construction equipment are Caterpillar, Volvo Construction Equipment, Liebherr, Komatsu, Hitachi Construction Machinery, Kubota, SANY, Hyundai Construction Machinery, Sumitomo & Kobelco. Other prominent suppliers in the industry include Yanmar, Toyota Material Handling, Tadano & Takeuchi.

Hitachi earthmoving equipment has a large share of hydraulic excavators Japan used construction equipment market, which is mainly used for disaster management projects. OEMs introduce automation technology to solve skills shortage problems. In 2021, Kobelco introduced ICT-supported construction equipment with a navigation system to meet the high demand from the construction industry.

Komatsu & Kubota have a significant market share in from Japan earthmoving segment of used construction equipment. Companies such as Hyundai Construction Machinery and Liebherr have been around for quite some time and have a diverse product range. For example, Liebherr has the customers of the Japan region for the past 38 years.

Market dynamics

  • Supply Chain Analysis of Equipment, Impact of Covid-19, Market Drivers, Constraints, Trends, Benefit Japan

  • Main Economic Regions, Used Equipment Advantage, Used Equipment Starts, Used Construction Prices

Market landscape

Japanese used construction equipment market by type (volume and value)

  • Earthmoving machines

  • Excavator

  • Backhoe loader

  • Motor Grader

Other earthmoving equipment (other loaders, bulldozers, trenchers, etc.)

Aerial work platform (articulated boom lifts, telescopic boom lifts, scissor lifts, etc.)

Japanese used construction equipment market by application (volume and value)

  • Build

  • Mining

  • production

  • Others (power generation, utilities, municipal companies, oil and gas, cargo handling, power plants, waste management, etc.)

Main suppliers

  • Caterpillar

  • Komatsu

  • Volvo construction equipment

  • Hitachi construction equipment

  • Kubota

  • Sumitomo Heavy Industries

  • Kobelco

  • SANY

  • Liebherr

  • Hyundai construction equipment

Other prominent suppliers

  • Yanmar

  • Takeuchi production

  • Tadano

  • Toyota material handling

Auctioneers profile

Distributor profiles

For more information on this report, please visit https://www.researchandmarkets.com/r/srg8cd

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