Japan’s excavator market will get a boost from upcoming projects in the capital and surrounding area. The excavator market is expected to grow at a CAGR (compound annual growth rate) of approximately 18 percent from 2017-2021, according to a report from Technavio.
The large-scale infrastructure base development in Japan, implemented for the upcoming Tokyo Olympics 2020, is one of the major factors contributing to the growth of the market. Moreover, the government of Japan has also implemented a long-term infrastructure development program called Tokyo Vision 2020, which calls for upgrading the country’s roads, ports and airport networks during the forecast period.
There are four emerging trends driving the excavator market in Japan. They are:
- High demand for remote-monitoring systems in excavators
- Growth of the excavator rental business
- Demand for energy-efficient excavators
- Provision of attractive offers and financing
Excavators are being equipped with GPS (global positioning systems) and other satellite remote-monitoring systems to monitor the performance and efficiency of equipment from outside the construction site. Owners and equipment managers can track multiple machines from any location. This helps them monitor the machine location, machine history, current machine hours, idle time, maintenance information and alarm fault history.
Owning excavators involves substantial investment, which is leading vendors to offer rental and lease services of excavators. The lease period is often less than the average life-time of the excavator. This allows construction companies to use excavators without major investment costs and further contributes to the growth of excavator manufacturing.
Japan is pushing green building and sustainable development. This means emissions regulations are becoming stringent and pollution levels are being monitored on the jobsite. The development of energy-efficient and low-emission excavators has led to market growth.
These trends will propel the excavator market upwards and boost Japan’s construction market during the next several years.