By Kirby Chien

BEIJING (Reuters) - Caterpillar Inc (CAT.N: Quote, Profile, Research), the largest maker of construction and mining equipment, said it expected investment in fast-growing emerging markets to accelerate rapidly, especially in China where it should triple in the next three years.

Caterpillar's sales in China will jump by about a third this year to around $2 billion, helping make the Asia Pacific region the fastest growing market for the company, Jim Owens, chief executive and chairman, told reporters in the Chinese capital on Monday.

While the United States is still the company's single largest market and will account for a big part of this year's $2.3 billion in capital expenditure, it is a market facing recession that will likely be the firm's slowest-growing market in 2008.

"We think to win long term, strategically, we need to manufacture close to our customers," said Owens.

China will take up the lion's share of $1 billion earmarked for emerging market capital expenditure over the next three years, said Owens.

"It is a huge commitment to China," he said. "That will accelerate in the next few years," he said.

However, the company is still only planning capital expenditures of about $175 million in emerging markets such as India, Russia and China this year, still only a small proportion of its global budget.

But with Caterpillar's sales outside of its home North American market climbing to 62 percent last year and still growing, the company needs to make a bigger commitment to manufacturing outside of its home base.