MARKET ANALYSIS AND FORECAST 2022 – 2030
GLOBAL INDUSTRIAL LIFTING EQUIPMENT MARKET OVERVIEW
Dian Afrianti SEMBIRING
Founder/CEO FDP Consulting, LLC
United States.
The Asia-Pacific region has become the world’s giant crane, lifting, and handling equipment market. Concerning Indonesia will increase being considered alongside the BRICs (Brazil, Russia, India, China) as an emerging market with the potential to be a significant global economic heavyweight in the coming decades. And Indonesia is one of the largest economies among South Asian Countries and is one of the emerging market economies. The most significant advantage of emerging market investment is the potential for high growth, and this is good because it can offer greater returns to investors due to rapid expansion. Today, Indonesia is the world’s fourth most populous nation. And as a developing country and member of the G20, Indonesia is categorized as a new industrial country. Therefore, it is not astonishing that Indonesia will play an essential role on the world stage.
Back to the fundamentals: what are Indonesia’s strengths that justify underlying macroeconomic growth? Major industrial sectors include agriculture, oil and natural gas, mining, manufacturing, renewable energy, fishery/seafood, real estate, and business. Other than that, large populations, political stability, the strategic location of the giant economies of China and India, low labor costs, and emerging markets need to be built/developed.
The lifting equipment market in Indonesia is growing due to the country’s rapidly expanding construction, manufacturing, and transportation industries. The primary rationale for using lifting equipment in production is health and safety. Everything must be as safe and well-managed as possible to protect the individuals who work there. Employers will be held accountable if they have not followed the proper procedures if there is an accident. As a result, it’s critical to use equipment to safeguard workers from physical lifting. Lifting equipment refers to machinery and devices used to move heavy loads in industrial and construction applications. Examples of lifting equipment include cranes, forklifts, hoists, and elevators. Despite the challenge of the COVID-19 pandemic, Indonesia aims to strengthen public-private partnerships to accelerate infrastructure development and economic recovery. There are four immediate sectors that the partnership scheme currently supports: water resources, roads, airports, bridges, housing, port, MRT, and settlement.
According to a market research report published by Mordor Intelligence, the lifting equipment market in Indonesia is expected to grow at a CAGR of around 7% from 2021 to 2026. The report attributes this growth to increasing investments in infrastructure development, rising industrialization, and growing urbanization.
Indonesia’s Government is also investing in power generation through renewable energy projects, Sukabumi wind farm project, to become carbon neutral by 2050. Other than that, the surge in commodities prices in the global market has positively impacted Indonesia. As a result, the demand for nickel, tin, and coal will rise in 2021, increasing mining projects in Indonesia.
In the Oil and Gas sector, The Upstream Oil and Gas Special Regulatory Task Forces (SKK Migas) expects 12 upstream oil and gas projects to come onstream this year in continued efforts to boost Indonesian production. Five upstream oil and gas projects were scheduled to go on stream in the second quarter of this year, including Petronas’s Bukit Tua Phase 2B project in Gresik, East Java, Medco E&P’s Hiu Phase 2 project in Natuna, Riau Island, and Pertamina’s Jumelai project in the offshore Mahakam Block.
Some key players in Indonesia’s lifting equipment market include Konecranes, Liebherr Group, Manitowoc, Terex Corporation, Tadano Ltd., and Mitsubishi Electric Corporation. These companies offer a range of products and services related to lifting equipment, including installation, maintenance, and repair. In addition, some Rigging key players are CROSBY, GREEN PIN, MISUMI, LOCAL COMPANY, and RHINO. Challenges must be addressed despite the growth in the lifting equipment market in Indonesia. For example, the high equipment cost and lack of skilled operators can be barriers to adoption, regulation, and culture. However, as infrastructure development and industrialization continue to drive economic growth in Indonesia, the demand for lifting equipment will likely remain strong.