Transportation And Construction In Indonesia And Thailand To Catalyse Press Brakes Takeup
Press brakes are widely used for the precision bending of sheet metals, which are subsequently treated and used across several industries. Indonesia’s and Thailand’s transportation and construction will contribute to press brakes’ demand; majorly supplemented by government support.
A report by Persistence Market Research revealed the global press-brake market size reached US$ 569.1 million at the end of 2021. Sales of press brakes are projected to increase at a CAGR of 6.1% across the 2022-2032 assessment period to reach a market value of US$1.03 billion by the end of 2032.
The report said, “Together, hydraulic press brakes and pneumatic press brakes account for more than 74% share of the global market. Demand for press brake machines is being driven by the rising consumption of sheet metal from various end-use industries such as automobiles; transportation; construction and metal fabrication. Furthermore, increased consumer spending power and rising government spending on infrastructure development will drive the demand for sheet-metal processing equipment.”
“The press-brake machine market is projected to grow in several countries around the world as a result of rapid urbanisation and rising consumer expenditure. In terms of volume, the automotive and electronics sectors are anticipated to lead the demand growth of press brakes over the forecast period,” it added.
Powered By Urbanisation
Hydraulic press brakes are estimated to account for around 52% volume share of the global market. However, demand for servo-electric press brakes is projected to rise at a CAGR of 5.4% to reach a market valuation of US$ 134.2 million by 2032. They come with digital controls along with increased production capacity and reduced energy consumption.
By volume, demand for press brakes is projected to increase at 4.8% CAGR in the first half of the forecast period and 5.3% in the second half. This is because of rising manufacturing and construction activities in several industries such as automotive; metal fabrication; transportation; construction and electronics.
“Sales of hydraulic press brake machines are projected to increase at 6.1% CAGR by volume. These machines employ hydraulic fluids in one or more cylinders to drive the press brake’s ram down onto the component being shaped. Hydraulic press brake controls are more precise than mechanical press brake controls, and can be adjusted to accommodate different bend depths,” the report added.
Notably, the report outlined that the ease of operation, modern design and digital controls, automatic press brake machines accounted for a higher market share of around 43.1% in 2021. However, demand for semi-automatic press brake machines is projected to expand at a volume CAGR of 5.5% through to 2032.
“The South Asia-Pacific press-brake machine market is projected to expand at a volume CAGR of 6.1%, while the East Asia press brake machine market is projected to grow at a value CAGR of 6.0% over the forecast period. The rising volume of air, rail and maritime traffic in the Asia-Pacific region is spurring sufficient investments in transportation infrastructure (such as automobile, aircraft and railway manufacturing) which is expected to further boost the transportation industry,” added the report.
Growth Hotspot 1 — Indonesia
The ASEAN Briefing quoted the Investment Coordinating Board (Indonesian: Badan Koordinasi Penanaman Modal, BKPM) that transportation, and telecommunications received US$4.1 billion in foreign investment in 2022. BKPM is Indonesia’s Non-Ministerial Government Body for formulation of government policies in the field of investment, both domestically and abroad.
Transportation development in Indonesia has been nothing short of bumpy given its weak connectivity between islands — translating to high logistics costs. There are many regions, particularly in the east of the country, where development has lagged and requires investment in public transport and infrastructure.
From 2019 up to 2024, the government is seeking to invest US$430 billion in infrastructure programs with the majority taking place in the transportation sector. The largest project is the Trans-Sumatra highway project, which is expected to span 2,900 km and cost US$33.7 billion. More than 1,000km has already been completed.
For construction — commercial, industrial, infrastructure, and energy sectors are key in Indonesia. Findings from Global Data revealed industrial construction (manufacturing facilities, metal and material production and processing plants) is expected to expand in 2023, before registering an annual average growth of more than 4% from 2024 to 2027, supported by an increase in manufacturing production, coupled with investment in the mining and automotive manufacturing sectors.
Energy construction includes electricity and power, oil and gas, telecommunications, sewage infrastructure, and water infrastructure. The energy and utilities sector is expected to grow in 2023 and record an annual average growth of more than 5% from 2024 to 2027, supported by investment in power, oil and gas, and telecommunication projects. Most of these initiatives would receive support from the government.
Growth Hotspot 2 — Thailand
Thailand’s construction market size was US$24.2 billion in 2022. The market is projected to achieve an AAGR of more than 4% during 2024-2027. Growth in the sector will be aided by public and private investments in the development of industrial and infrastructure projects.
Reports from Bangkok Post noted the government aims to accelerate state investment in 2023 to provide a tailwind to propel economic growth momentum. Finance Minister Arkhom Termpittayapaisith expects the economy to expand 3-4% in 2023, with growth driven by the government’s plan to speed up state investment in key infrastructure projects.
According to Fiscal Policy Office (FPO) Director-General Pornchai Thiraveja, state agencies set a combined investment budget of THB664 billion in fiscal 2023, accounting for 20.9% of total state spending. Among the most crucial projects are the Highways Department’s construction of new highways and the Royal Irrigation Department’s development of new water source areas. Projects also include those for the Department of Public Works and Town & Country Planning, such as the construction of embankments along the country’s rivers.
The ministry set a target for state agency budget disbursement in fiscal 2023 of 93% of the total budget, with a minimum of 75% set as the target for disbursement of the investment budget. The country’s 43 state enterprises are projected to invest a total of THB282 billion in their projects in fiscal 2023. According to the ministry’s target, the agencies should disburse at least 95% of the budget.
The State Railway of Thailand set an investment budget of THB49.2 billion this year, while the Electricity Generating Authority of Thailand targets investment of THB31.5 billion. The Mass Rapid Transit Authority of Thailand plans to invest THB14.2 billion, while Airports of Thailand submitted an investment budget of THB12 billion.
The Expressway Authority of Thailand plans to invest THB11.2 billion in the fiscal year. The ministry is working on accelerating the investment of state agencies and state enterprises, said Mr Pornchai. The FPO estimates public investment in 2023 will expand 2.5% year-on-year, in a range of 1.5-3.5%.
He said state investment would stimulate demand for products and services in several related sectors, generating new jobs. State investment in transport systems can save on the cost and time involved in travel, while also creating new linkages between the country’s regions that better distribute economic activities. State investment in key transport infrastructure and financial systems will also help bolster the country’s competitiveness and save on costs for businesses in the long run, he said.
South Asia-Pacific and East Asia Main Drivers
While the spotlight is on Indonesia and Thailand, Persistence Market Research noted, “The South Asia-Pacific press-brake machine market is projected to expand at a volume CAGR of 6.1%, while the East Asia press brake machine market is projected to grow at a value CAGR of 6.0% over the forecast period. The rising volume of air, rail and maritime traffic in the Asia-Pacific region is spurring sufficient investments in transportation infrastructure (such as automobile, aircraft and railway manufacturing) which is expected to further boost the transportation industry.”
“The United States is the largest contributor to the press-brake machines market and carries steady growth opportunities for sheet-metal processing equipment. China is one of the major contributors to the East Asian market and is projected to expand at a volume CAGR of 5.9% during the forecast period. During the projected period, the Japanese press brake machine market is estimated to account for more than 32% of the East Asian market share,” it concluded.
Lastly, sales of 150 to 300-tonne press brakes are estimated to increase at 6.4% to reach a market valuation of around US$311.6 million by 2032. They are anticipated to augment their market share as they have wider applications in the transportation and electronics sectors.
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