Japan Crawler Excavator Market Assessment & Forecasts 2024-2029 with Komatsu, Hitachi Construction Machinery, Kubota, Caterpillar, Kobelco, and Yanmar Dominating - ResearchAndMarkets.com

The "Japan Crawler Excavator Market - Strategic Assessment & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering.

The Japan Crawler Excavator Market consisted of 57,500 units in 2023, and is expected to reach 69,146 units by 2029, rising at a CAGR of 3.12%.

Mini-size excavators hold the largest share in the Japan crawler excavator market due to their versatile uses in the construction industry. The rise in public infrastructure and renewable energy projects is expected to drive crawler excavator sales in Japan during the forecast period. In 2023, the construction industry, particularly end-users, accounted for the largest share of the crawler excavator market in Japan.

Japanese OEMs offer diverse product ranges and have started focusing on electric and hydrogen-powered construction equipment. In September 2023, Kobelco launched new Short Radius excavators, the SK230SRLC-7 and SK270SR(N)LC-7, designed for utility and road maintenance needs, ideal for urban and residential job sites. In May 2023, Komatsu introduced a concept for a medium-sized hydraulic excavator powered by a hydrogen fuel cell to achieve carbon neutrality in construction equipment workplaces. Kubota expanded its range of innovative construction equipment by introducing an 8.5-ton mini-excavator with a two-piece boom, enhancing efficiency and operation in tight spaces.

Construction equipment companies in Japan are increasingly focusing on adapting technological solutions. In October 2023, Kyushu Electric Power and Hitachi Construction Machinery signed a memorandum of understanding to cooperate on power supply solutions, promoting zero emissions on construction sites.

Yanmar revealed a prototype of a cutting-edge electric excavator with advanced force control at the Construction DX Challenge 2023 event organized by the Japanese Ministry in November 2023. Leading manufacturers like Caterpillar, Komatsu, Kobelco, and Hitachi are investing significantly in remote control technology and integrating 5G technology into their equipment. In October 2023, Komatsu launched a 3-ton-class electric mini excavator equipped with lithium-ion batteries in the Japanese market, further highlighting the industry's shift towards sustainable and advanced technological solutions.

Komatsu, Hitachi Construction Machinery, Kubota, Caterpillar, Kobelco, and Yanmar are leaders in the Japan crawler excavator market. These companies have strong market share and offer diverse equipment.

Develon, Sumitomo Construction Machinery, & Takeuchi are niche players in the Japan crawler excavator market. These companies offer low product diversification and have a strong presence in the local market in Japan.

Volvo CE, Hyundai Construction Equipment & SANY are emerging in the Japan crawler excavator market. These companies are introducing new technologically advanced products to challenge the market share of market leaders in the country's market.

MARKET TRENDS & DRIVER

Government Regulations to Reduce Carbon Emissions from Buildings Are Expected to Support Demand for Electric Excavators in the Japan Crawler Excavator Market

• In 2023, the Japanese government introduced new building regulations to reduce carbon emissions from buildings and homes to achieve zero carbon emissions by 2050.
• Under new regulations, CO2 emissions from newly built homes must be around 30% lower than current standards, and emissions from other buildings, including offices and shops, should be reduced by 27%.
• The government focuses on installing low-carbon technology, such as solar panels and heat pumps, to reduce carbon emissions from buildings.
• In 2021, the government invested USD 6.6 billion in installing low-carbon technology under the Social Housing Decarbonization Fund. The government also plans to upgrade existing buildings to reduce carbon emissions.

Integration of Technological Solutions in Crawler Excavator

• Japan's market share for advanced excavators equipped with ICT and remote monitoring capabilities is rising. The shortage of skilled labor and the increasing number of accidents at construction sites drive the country's adoption of automated rental construction equipment.
• Projections indicate that Japan's construction industry may lose approximately 1.2 million workers by 2030. In response to this challenge, Japan's primary objective is to boost the productivity and efficiency of its workforce. Smart construction has emerged as a central solution to elevating productivity levels.
• Manitou's Ecostop function automatically turns off the engine and all hour meters based on a set timer (1 to 30 minutes). Moreover, the Auto Power function of the JSM joystick automatically adjusts the engine speed according to the operator's request for hydraulic power from the JSM (Joystick Switch & Move).

Country's Aging Infrastructure and the Upcoming Expo 2025 Will Propel the Demand for Crawler Excavators in the Japan Crawler Excavator Market

• In 2023, the Japanese government invested in renovating aged infrastructure nationwide. Investments are also directed for disaster prevention & mitigation, national resilience, and other public work. The growth in the investment for various projects is projected to support the Japan crawler excavator market.
• The nation currently has approximately 720,000 road bridges. By 2024, this number is anticipated to decrease to approximately 290,000 bridges. By 2033, the count is projected to rise to 450,000 bridges, all of which have stood for over half a century since their construction. Therefore, Japan has intended huge investments in renovating and repairing old infrastructure.

High Investments Toward Decarbonizing the Country Are Supporting the Renewable Energy Sector

• In Sapporo, a collaborative partnership involving industry, government, and academia has been announced to support investments in Hokkaido to transition towards a decarbonized society. The objective is to attract investments totaling approximately USD 2 billion in the renewable energy sector over the next decade.
• Tokyo Electric Power Co. Holdings plans to invest USD 7 billion in renewable energy projects by fiscal 2030 to construct 6 to 7 gigawatts of additional capacity.

INDUSTRY RESTRAINTS

Rapid Aging Population and Labor Scarcity Will Hamper Construction Activities

• According to a study conducted in 2023, Japan could confront a deficit of over 11 million workers by 2040, highlighting the country's rapidly aging population's economic difficulties.
• The worker population is anticipated to experience a sharp decline starting in 2027. By 2040, the labor supply is projected to contract by approximately 12% compared to 2022, while the demand for labor remains constant.
• Moreover, in response to the acute shortage, in 2021, YKK Group, the largest zipper manufacturer globally, eliminated the retirement age restriction for its employees. Electronic retail chain Nojima also adopted a similar policy in 2020, allowing workers to continue their employment until they reach the age of 80.

Government Norms to Control Carbon Emission Is Expected to Hamper Sales of Large Excavators in the Japan Crawler Excavator Market

• The Japanese government is concerned about air pollution and taking necessary steps to control it. The government proposed tough emission standards for non-road mobile machinery, such as construction equipment and off-road vehicles.
• Stage V emission standards could replace existing Stage IV emission rules. These standards focus on reducing the emission of nitrogen dioxide & particulate matter.
• In 2021, the government set a high emission control standard by not allowing diesel-operated heavy construction machinery that did not follow Stage V emission standards.

KEY QUESTIONS ANSWERED

• How big is the Japan crawler excavator market?
• What are the trends in the Japan crawler excavator industry?
• Who are the key players in the Japan crawler excavator market?
• Which are the major distributor companies in the Japan crawler excavator market?
• What is the growth rate of the Japan crawler excavator market?

Key Attributes:

Market Landscape

• PESTLE Analysis
• Economic Scenario
• Market Dynamic
• Key Economic Regions
• Import & Export Analysis
• Supply Chain Analysis

VENDOR LANDSCAPE

Prominent Vendors

• Caterpillar
• Hitachi Construction Machinery
• Komatsu
• Volvo Construction Equipment
• Kobelco
• Kubota
• SANY
• Hyundai Construction Equipment
• Yanmar
• Takeuchi Manufacturing

Other Prominent Vendors

• SUMITOMO CONSTRUCTION MACHINERY CO., LTD.
• AIRMAN
• KATO WORKS CO., LTD.
• Develon
• Hydrema

Distributor Profiles

• Nippon Cat
• AKIYAMA Machinery Co., Ltd.
• Daiichi Toyo Co., Ltd
• Yamazaki Machinery
• WWB KENKI

Segmentation by Crawler Excavator

Size

• Mini Excavator
• Small Excavator
• Medium Excavator
• Large Excavator

Gross Power

• Less Than 60 HP
• 60 HP -100 HP
• 101 HP-200 HP
• Above 200 HP

Segmentation by End Users

• Construction
• Mining
• Agriculture
• Forestry
• Others (Power Generation, Utilities Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation Plants, Waste Management)

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