South Korea Aerial Work Platform Rental Market size was valued at approximately USD 300 million in 2018 and will grow at a CAGR of 3% from 2019 to 2025.
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Rapid expansion of the construction sector and several ongoing & upcoming infrastructure projects in the country are boosting the South Korea aerial work platform rental market. These sectors are increasingly utilizing access platforms to gain operational efficiency and speed over the conventional scaffolds and ladders. Some of the major infrastructure projects in the country are Lotte Tower, Seoul - Pyongyang Rail Project, port development projects, etc. In the South Korean industry, AWPs were firstly introduced by rental providers and own about 90% of the total fleet available in the country. Moreover, high penetration of various leading manufacturers including Samsung, Hyundai, LG, etc., and the growing demand for maintenance activities at these sites act as major drivers for industry growth. These companies along with construction companies and contractors serve as major customers for the South Korea AWP rental market.
|Market Size in 2018:||300 Million (USD)|
|Forecast Period:||2019 to 2025|
|Forecast Period 2019 to 2025 CAGR:||3%|
|2025 Value Projection:||350 Million (USD)|
|Historical Data for:||2014 to 2018|
|No. of Pages:||94|
|Tables, Charts & Figures:||79|
|Segments covered:||Product, Application, Application Potential, Price Trend, and Region|
|Pitfalls & Challenges:|
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Factors hindering the South Korea aerial work platform rental market growth are the lack of awareness of advanced lifting technologies and unavailability of skilled operators for operating these machines. Increasing use of new advanced machinery across all industries in South Korea over manual labor is anticipated to promote the implementation of these machines. Moreover, rental companies need to provide appropriate training courses to the operators to avoid future injuries and workplace accidents.
South Korea Aerial Work Platform Rental Market, By Product
In the South Korea AWP rental market, scissor lifts accounted for a major revenue of over USD 260 million in 2018 due to the high utilization in construction, telecommunication, and general maintenance industries. Rental companies own over 80% of scissor lifts in their rental fleet owing to the high demand and benefits such as operational efficiency, flexibility, etc. End users in the country rent scissor lifts over self-owned options to eliminate maintenance & servicing costs associated with these machines. Rental operators in the South Korea aerial work platform rental market focus on operator training to ensure workplace safety and efficiency, further attributing to industry growth. Easy transportation options, varied power options, compact design, and the ability to reach heights are some features adding up to the demand for scissor lifts.
South Korea Aerial Work Platform Rental Market, By Application
Transport & logistics applications are expected to grow at a CAGR of over 2% from 2019 to 2025. These applications are gaining traction due to the increasing manufacturing, warehousing, logistics, and transportation activities in the country, further driving the South Korea AWP rental market growth. The presence of several electronics & heavy manufacturing companies will require highly efficient access platforms and operators for general maintenance operations. Leading AWP users in South Korea, such as LG and Samsung, have set their own MEWP standards related to usage, height limitations, etc. Rental companies that provide equipment on rent follow these standards due to the absence of any central access platform regulations, allowing companies to provide highly customized services. Moreover, the use of mechanized products and various material handling machines to offer worker safety and achieve warehouse efficiency will support the utilization of various AWPs and contribute to the South Korea AWP rental market expansion.
Vertical mast lifts and personal portable lifts account for high utilization rates in the South Korea aerial work platform rental market as rental companies purchase these machines according to the order quantities gained from customers. Rental providers do not maintain a huge fleet of this equipment as compared to scissor & boom lifts, leading to high utilization rates. Scissor & boom lifts have a comparatively low utilization rate due to a huge rental fleet comprising over 90% for the equipment.
Competitive Market Share
Prominent players in the South Korea aerial work platform rental market include Korea Rental Corporation, AJ Networks, YK Construction Equipment, Prince Lift, etc. These companies own a fleet of more than 1,000 units and provide machines at various locations. The players are investing in regional expansion strategies to offer the rental services in the other locations in South Korea and Asian countries including Thailand, Indonesia, etc. The companies are also purchasing several new machines owing to the increasing demand from application industries. For instance, in February 2019, Korea Rental Corporation announced an annual investment of USD 20 million in MEWPs over the next five years. This investment will increase the company’s fleet to 13,000 units and aid in gaining a major share in the industry.
South Korea AWP Rental Industry Background
The South Korea AWP rental market is slightly consolidated with the presence of several players that operate at local levels and offer equipment depending on the consumer demand. The industry is matured and dominated by a few companies that have a huge fleet and provide machines at more than two to three locations. The rental providers in the South Korea AWP rental market are gaining huge demand due to high popularity and efficiency of the lifting equipment over the manual & conventional options.
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