Manufacturers and suppliers are eyeing a positive future in the key quarrying and aggregates market of Southeast Asia.
There has been some interest in how the Southeast Asia market will continue to grow in the coming years.
Market research firm Arizton has tipped the construction equipment market to grow by more than four per cent in compound annual growth rate.
The latest analysis from the advisory and market intelligence specialist comes from its strategic assessment and forecast of market trends from 2024 to 2029. The report estimates the Southeast Asia construction equipment market’s revenue to be US$ 9.1 billion by 2029, with the market volume increasing from 74,025 units in 2023 to 97,452 by 2029. Any notable rise in construction equipment sales usually goes hand-in-hand with a noteworthy increase in aggregates and linked building materials demand.
Arizton pointed to a series of regional government initiatives that would support the growing demand for construction equipment.
“The government across the Southeast Asian region is investing in redeveloping infrastructure projects, including expanding ports, railway lines, roadways and highways. The surge in infrastructure development projects is expected to drive the Southeast Asia construction equipment market during the forecast period,” Arizton wrote.
“Furthermore, Southeast Asia, with four countries in the top 10 for construction machinery exports [Indonesia, India, Vietnam, Thailand], is seeing significant growth fuelled by initiatives like the ‘Belt and Road Initiative’ and the ‘Regional Comprehensive Economic Partnership [RCEP] Agreement.”
The data indicates that earthmoving equipment underpins much of the construction equipment market in the region. Excavators had the largest share. Similar to other global markets, another emerging trend is a rise in interest in compact and electric construction equipment.
“The electric equipment market in the Southeast Asia construction equipment market is anticipated to be driven by factors like government initiatives, growing demand for eco-friendly construction projects, and the trend toward industrialisation,” Arizton wrote.
“However, a significant challenge is the substantial cost of electric construction machinery, which might impede industry growth. However, to align with the global net-zero emission target, the companies are focusing on capitalising on lithium-ion battery technology in electric excavators and other products to reduce their carbon footprint.”
Volvo’s next generation
Volvo Construction Equipment (CE) believes there is a strong future in Southeast Asia, and is “optimistic” about trends in the region.
“Volvo CE continues to engage closely with customers across Southeast Asia and sees a mixed but cautiously optimistic sentiment across the region,” Volvo CE head of productivity and retail development for the region Ramarajan Rangarajan said.
“In the construction sector, there is continued hopefulness driven by government-led urbanisation and infrastructure initiatives. Countries across the region, including Indonesia, Vietnam, the Philippines and Thailand, are advancing large-scale projects in transport, energy, and housing, which continue to stimulate equipment demand.
“Looking ahead, the strong momentum observed in Q1 2025 is expected to level out over the year, resulting in overall demand comparable to 2024, demonstrating both stability and resilience in the face of global headwinds.”
The company marked a major milestone earlier this year as it launched its next-generation products, including excavators, wheeled loaders, articulated haulers and compactors. Volvo CE also expanded its connected services portfolio, which includes Volvo ActiveCare, Co-Pilot, and Proactive Monitoring Systems.
“Excavators remain the primary demand driver in the region, serving a broad spectrum of applications from urban construction to rural development,” Rangarajan said.
“Volvo CE’s machines are particularly well-suited to meet the unique challenges of the region’s diverse terrain and applications. Moreover, sustainability is gaining traction in customer purchasing criteria.
“Customers are increasingly evaluating both product efficiency and the sustainability of site operations. Volvo CE’s offerings, with their lower emissions, fuel-saving technologies and lifecycle support, are well-positioned to meet this shift in expectations.”
Rangarajan cited strategic investment in key industrial sectors and infrastructure projects as strong reasons for optimism in the region.
“Southeast Asia is an important growth engine for Volvo CE, and its relevance will only increase in the years ahead. Rapid urbanisation, sustained population growth, and strategic government investment in infrastructure and mining are creating fertile ground for construction equipment demand,” he said.
“With regional economies showing strong fundamentals and an appetite for technological modernisation, Volvo CE sees a significant opportunity to expand its footprint.
“The company is committed to being a trusted partner in Southeast Asia’s development journey, offering innovative products, smart services and a brand experience rooted in reliability, performance, and sustainability.”
Expansion in Vietnam
EvoQuip has confirmed Nguyen Vinh Holding as its new authorised distributor in Vietnam.
Nguyen Vinh Holding has maintained a long-standing presence in the Vietnamese construction and quarrying sectors. The company possesses industry expertise, a strong network, and a customer-centric approach that underpins its business.
EvoQuip business development manager Paul O’Hagan said the partnership will enhance the company’s presence in Southeast Asia.
“Vietnam is a key growth market for us, and working with an experienced and reputable company like Nguyen Vinh will enable us to serve local customers and deliver tailored solutions for their crushing and screening needs,” he said.
Under the agreement, Nguyen Vinh Holding will provide Vietnamese customers with sales, service and spare parts for the EvoQuip range of compact crushing and screening equipment. This will support EvoQuip’s ambitions to grow in the Vietnamese construction, demolition and recycling industries.
“We are proud to represent EvoQuip in Vietnam. EvoQuip is one of the leaders in the compact crushing and screening industry, and backed by their global reputation for quality and support, we will have the opportunity to offer this to the Vietnamese market,” Nguyen Vinh Holding sales executive Xuan Hoang said.
“We look forward to working together to deliver exceptional solutions to our customers.”
New name and vision
Cemex Philippines is no more after the company’s new ownership gained approval for a new name, Concreat Holdings.
Cemex announced last year its decision to divest its operations in the Philippines as part of its “portfolio rebalancing strategy”. Cemex completed the agreement with DACON Corporation, DMCI Holdings Inc. and Semirara Mining & Power Corporation.
“Proceeds from this divestment are expected to be used to fund the company’s bolt-on investment growth strategy in its key markets, reduce debt, and for other corporate purposes,” Cemex said in a statement about the agreement.
Fast forward to this year, and a new era is apparent as DMCI Holdings discussed its plans for the newly minted Concreat Holdings. Concreat president and chief executive officer Herbert M. Consunji provided an update in the president’s report for the annual general meeting in May.
“It brings together two strong foundations: CHP’s national footprint in cement, and DMCI’s broad capabilities across construction, real estate, energy, mining, water services and logistics,” he told shareholders. “Together, we form a powerful combination – aligned not just in operations but in vision, values, and long-term goals. And while the short term may be challenging, we remain focused – and cautiously optimistic about the future.”
Consunji pointed to the Government’s commitment to investment in the Philippines, with a current commitment of at least five per cent of GDP towards infrastructure spending. He also indicated that the estimated housing backlog, expected to reach 10 million units by 2028, presented an opportunity.
“We recognise that 2025 will bring continued pressures to the industry. The cement business is highly competitive, and global challenges – from trade tensions to recession risks and geopolitical uncertainty – can weigh down costs, pricing, and demand,” he said. “But these headwinds are not new to DMCI. We have a long and proven history of navigating complex market cycles with fiscal discipline, determination and a strong work ethic.
“And, if there is one thing our experience has taught us, it is this: what matters most is not the difficulty of the environment but how we respond to it.”
The new leadership has already instituted change within the organisation. The first step included expanding its solid cement plant with a new 1.5 million-tonne line, which became operational in April.
Ordinary Portland cement has also been reintroduced into Concreat’s product line to support large-scale construction projects. The company has also increased its alternative fuel consumption to bolster its sustainability and cost-efficiency across its operations.
“We recognise that these steps, while timely and impactful, will not change the fortunes of CHP overnight. Turning around a company takes time, discipline, and consistency,” Consunji said.
“But we are confident that the steps we are taking today are steering CHP toward strength, efficiency and long-term competitiveness.”
