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Philippines Excavator Market Forecast to 2020 – Growing Construction Activities and Demand for Real Estate to Shape Future Potential: Ken Research

Posted on 11 August 2016 by KenResearch Manufacturing And Construction ,

How the Philippines Excavator Market Is Positioned?

The excavator market in Philippines has witnessed overall high growth from 2010 to 2015, however year 2014 witnessed the decline. Excavator use is observed to be low in the Philippines compared to many developing economies and market is undergoing development phase. Entire sales market was dominated by approximately ten players with major revenue share of ~% held by two players in 2015. Entire Philippines excavator market is valued at USD ~ million recording a CAGR of ~% in 2010-2015. Most players are offering nearly similar product but it is brand value, better service network, value added services and presence of exclusive dealers, which is driving the growth of excavator sale in Philippines.

Market size by volume for new excavator sales in the Philippines was nearly ~ units in 2015. Manila constituting nearly ~% of total excavator sales in 2015 lead the market in sales by region. Crawler types of excavators were in maximum demand accounting for ~% sale in 2015. Construction and mining sector are major consumers of excavators and any positive development in these sectors directly promotes the rental and sales of excavators. In recent decade, the government of the Philippines launched various projects to improve the neglected infrastructure sector and to ensure that its economy continues to grow.

Market size by volume for new excavator sales in the Philippines was nearly ~ units in 2015, accounting for sales revenue of approximately USD ~ million. Rental excavator market in the Philippines had witnessed presence of few large players and many small players.

The Philippines excavator market is also segmented based on engine rated power. Excavators with engine rated power in range of 75-300hp have been recorded to hold the highest market share of ~%, by value in 2015. The belonging of the Philippines’ bestselling 20 ton operating capacity model excavator to 75-300hp segment has helped the segment in gaining dominant position.

In 2015, Manila accounted for maximum of sales constituting nearly ~% of total excavator sales in the Philippines. Most of major companies who use excavators in their portfolio have their head offices in Manila. These companies place their order through exclusive dealer of Manila branches accounting for maximum of sales from Manila constituting nearly ~% of total excavator sales in the Philippines.

How Sales Markert of New Excavators are Performing?

Philippines excavator sales market is dominated by some of the leading global players like Hyundai, Volvo, Caterpillar and others. Total sales revenue generated from sale of excavators is USD ~ million in 2015 with ~% market share by revenue coming from leading player. Total sales volume in number of units is ~ in 2015. Sales revenue recorded positive growth at a CAGR of ~% from 2010 to 2015.  However, in 2014, excavator sales reported decline on account of reduced construction growth and falling mining commodity demand from China. Growth in sales is expected to be driven by increased investment in infrastructure and real estate. It is also expected that rental market will grow at much higher rate, thus creating additional sales demand. Sales market is expected to grow at CAGR of ~% in 2016-2020. Sale of Medium category excavator will continue its dominance but share of compact excavators is expected to rise. Sale of wheel type excavator is also expected to increase as urbanization increases.

What is Potential of Rental Market for Excavators in the Philippines?

Most of the exclusive dealers of major brands in excavator sales market in the Philippines are also in rental market business. Some of the giant players operating in the excavators market area also observed to hold a significant share in the excavator rental companies. These companies generally have a fleet size of more than 70 excavators. These companies offer wide variety of excavators as compared to independent rental companies, which help them in gaining dominant position. Many small rental companies are also operating in the Philippines rental excavator market with majority of them offering compact and low powered medium excavators. Excavator rental market generated revenue of USD ~ million in 2015 recording CAGR of  ~% in between 2010  2015. The market is expected to grow at a value of USD ~ million with its share in total revenue increasing from ~% in 2015 to ~% in 2020.

The Decision Making Process to Purchase or rent in the Philippines excavator market

Tenure of job is estimated as the most important deciding factor for purchasing excavators in the Philippines. Companies with sound financials prefer to buy rather than rent, if tenure of job is long enough. SME’s on other hand, prefer to rent.

Other factors influencing the purchasing decision are brand value and usage, operation and maintenance cost, availability of service staff, cost of machine, warranty and resale value. Decision to rent a machine is primarily driven by usage time period, availability of machine with desired operating characteristic and rental terms and conditions including rent. Mining companies generally buy their machines and go under exclusive tailor made maintenance programs to reduce downtime. They rent only for specific use or for short periods. Majority of rental comes from small contractors who hire from small rental companies.

Issues, challenges and growth drivers for the philippines excavator market

Major problem associated with excavator market in the Philippines is absence of any local player; no manufacturer has set up an excavator manufacturing unit in the Philippines owing to very low demand. Dependence on import exposes the industry to external factors which may affect availability and prices in case of external shock. Being an island nation is other problem associated with excavator sale and availability as shipping takes more time and it is tedious mode of transport. Availability of restricted number of models in ready stock further adds to the problems of consumers and suppliers in the Philippines excavators market.

Construction and mining sector are major consumers of excavators and any positive development in these sectors directly promotes the rental and sales of excavators.

New environmental regulation by the government and commitment to reduce GHG emission by 70.0% of current level is also expected to attract many other projects in energy and industry sector, boosting the use of excavators. Stable credit rating from credit rating agencies shows that government bonds will be stable which is symbol of good growth and development and political stability in country. This has positive impact on sale of excavators as it leads to increased investment in country.

How is the Competition Structured IN THE Philippines Excavator MARKET for sales?

Philippines excavator market is dominated by few large multinational players. These companies are offering wide variety of products and services to the customers.

Hyundai Heavy Machineries was a leading player in the Philippines excavators market with revenue share of ~% in 2015.Trust factor associated with the company is the major factor which has led to the growth of the market. The company has generated revenue of USD ~ Million in 2015 in overall Philippines excavator sales market

Volvo Construction Equipment is the second largest player in the Philippines with the revenue generation of USD ~ Million. The company has a strong brand name in the Philippines. Volvo is majorly focusing on innovation and research to introduce new innovative products as well as to offer rental services in the country.

What are the Future Prospects of the Philippines Excavtor market?

Philippines Excavator Market will increase from USD ~ Million in 2015 to USD ~ Million in 2020, growing at a CAGR of ~% during the period. The market will be driven by the increased investment in infrastructure development by government to sustain high GDP growth especially in land air transport. Growth in services and manufacturing sector has led to the rise of demand for office space and housing facilities with major demand coming in cities like Manila, Cebu, Cagayan de Oro, Surigao and others. New environment regulatory norms are expected to phase out old machine creating additional demand for replacement. Being island nation tourism is expected to grow creating demand for extra hotels rooms and related facilities which will increase demand for construction machinery including excavators.

In future, it has been anticipated that the excavator sales market in the Philippines will continue its dominance but share of rental will increase from ~%in 2015 to ~% in 2020. Overall market for excavator is expected to be USD ~ million in 2020.

Key Factors Considered in the Report

 

  1. Philippines Excavator Market  size by Revenue, and Sales Volume
  2. How the contract agreement works in Rental of Philippines Excavator Market and future outlook?
  3. Decision Making Process for Purchasing and Renting Excavator in the Philippines.
  4. Pricing Analysis for Rental and Sales of Excavators in Philippines
  5. Competitive Landscape of Major Players in the Philippines Excavators Market

 

To know more on coverage, click on the link below:

https://www.kenresearch.com/manufacturing-and-construction/machinery-and-parts/philippines-excavator-market-report/42050-97.html

 

Contact:

Ken Research

Ankur Gupta, Head Marketing & Communications

query@kenresearch.com

+91-124-4230204

 

...

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Hyundai, Volvo, Komatsu and Caterpillar are the leading Companies in Philippines Excavator Market

Posted on 01 August 2016 by KenResearch Manufacturing And Construction ,

The industry is considered as a major force driving the sale and rental activities in the Philippines excavator market. In the year 2015, Philippines managed to attract FDI worth USD 102.6 million in construction sector which is nearly 16 times increase compared to previous year. Growth in FDI is majorly boosted by passing PPP act attracting private investment in infrastructure and social sector.

With estimated 58.2% contribution to GDP coming from services sector, sale of real estate office space and infrastructure development is also expected to increase the demand for sale and rental of construction machinery including excavators, hence generating revenue for the market.

Backhoe technology is used in excavators specifically designed for digging and loading. In addition to this, the technology helps in maintaining the smaller size of machine, which helps in easy functioning. It gives better view of job executed by operator. These facts leads to construction workers buy the machine and generating revenue for market.

The excavators equipped with this technology in the Philippines excavator market are minimum in number as these excavators are used only for long distances either high up in the air for demolition and for pulling down the structures.

Absence of high rise buildings in the Philippines which needs to be demolished is the major factor which constrains the sale of long reach/long arm excavators.

Rental may only be used for ultra large machines like dragline excavators and power shovels as their use is restricted due to specific expertise and maintenance requirement.

Power shovel is sometimes preferred by people owing to its availability with back hoe and front shovel configuration. The equipments above 600 HP are considered as power shovel. Moreover, the features such as revolving device, crane with lifting arm and bucket, counterweight and controls further attracts the consumer towards these power shovel.

Development of new technologies, improved fuel economy and price competition will lower rental rates attracting more business as they will provide service through highly skilled personnel, low maintenance cost and much easier to operate and service.

Most major railway projects and expressway projects are concentrated in Manila region is another factor which has assisted growth in market share in excavator market sale

Hyundai heavy equipment is present in the Philippines in association with Good Morning International Corporation. The company dominated the Philippines excavators market

Philippines BPO industry is expected to grow at a rate between 15.0%-20.0% from 2016 to 2018. This will boost demand for houses, office space, and other infrastructure and consumption of goods ultimately leading to use of rental excavators as majority of players in these projects are SME’s.

Over the years, economy of Philippines is growing supported by positive growth in construction, which has also pushed the rental of excavators in the Philippines market. Excavators are number one construction equipment and will continue its prominence as they develop into multifunctional applications enhancing connectivity, monitoring and emission reduction.

For more information on the market research report please refer to the below mentioned link:


https://www.kenresearch.com/manufacturing-and-construction/machinery-and-parts/philippines-excavator-market-report/42050-97.html

Contact:

Ken Research
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204

...

Read more…

Philippines Excavators Market Forecast to 2020: Ken Research

Posted on 01 August 2016 by KenResearch Manufacturing And Construction ,

The report titled “Philippines Excavator Market Forecast to 2020 - Growing Construction Activities and Demand for Real Estate to Shape Future Potential” provides a comprehensive analysis of excavator market in the Philippines. The report covers various aspects such as value chain analysis, comparative analysis of the Philippines excavator sales market with China excavator sales market, overall size of excavator sales and rental market in the Philippines, segmentation on the basis of sales and rental revenues, demand from major cities, demand based on engine rated power and movement type. The report also covers snapshot of the Philippines rental excavator market covering landscape of rental excavator market, working of contract agreement, pricing analysis and future outlook and decision making process to buy or rent in the Philippines excavator market. Going further the report covers growth drivers, issues and challenges faced by excavator market in the Philippines, strengths and weaknesses of major players, their market share by revenue and their competitive landscape. The report concludes with future projections and analyst recommendations and highlights the macroeconomic factors affecting the excavator market in the Philippines. The report is useful for new players entering in the Philippines market, infrastructure and real estate firms who wish to rent or buy excavators and existing player who are in plans to expand or improve their services.

Philippines Excavator Market

The excavator market in Philippines has witnessed overall high growth from 2010 to 2015, however year 2014 witnessed the decline. Excavator use is observed to be low in the Philippines compared to many developing economies and market is undergoing development phase. Entire sales market was dominated by approximately ten players with major revenue share of ~% held by two players in 2015. Entire Philippines excavator market is valued at USD ~ million recording a CAGR of ~% in 2010-2015. Major problem associated with excavator market in the Philippines is absence of any local player or domestic manufacturing unit. Dependence on import exposes the industry to external factors which may affect availability and prices in case of external shock. Construction and mining sector are major consumers of excavators and any positive development in these sectors directly promotes the rental and sales of excavators. In recent decade, the government of the Philippines launched various projects to improve the neglected infrastructure sector and to ensure that its economy continues to grow. The initiative marked the importance as it was necessary to promote country’s growing services and manufacturing sector, which are major consumers of real estate and infrastructure facilities.

Market size by volume for new excavator sales in the Philippines was nearly ~ units in 2015, accounting for revenue of approximately USD ~ million. Rental excavator market in the Philippines had witnessed presence of few large players and many small players. Most of major companies who use excavators in their portfolio have their head offices in Manila. These companies place their order through exclusive dealer of Manila branches accounting for maximum of sales from Manila constituting nearly ~% of total excavator sales in the Philippines.

Decision to rent a machine is primarily driven by availability and rental terms and conditions including rent. On the basis of operating power, Excavators with engine rated power in range of 75-150 hp have been recorded to hold the highest market share of ~%, by value in 2015.

Small excavator was in less demand because of higher price compared to their lifting capacity. Among crawler type excavator and wheel-based excavator, crawler type excavators are mostly used in the Philippines market. The segment accounted for ~% of total sales in 2015, which was very higher when compared to global sale of excavator.

Future Outlook

With rising demand for better infrastructure facilities, increased urbanization, rise of middle class and growth in services and manufacturing creating demand for real estate are the major factors driving the sale and rental of construction machinery including excavator market. These factors are expected to have positive growth in future and it has been anticipated that the market will grow at a CAGR of ~% during 2016 to 2020 to reach at USD ~ million in 2020. Rental excavator market is expected to grow at much higher rate compared to growth in sales in 2016-2020. There will also be increase in share of rental revenue in overall revenue from excavator market.  

Key Topics Covered in the Report:

Philippines Excavator Market size by Revenue, and Sales Volume

Philippines Excavator Market Segmentation by Type of Excavator, Revenues from Rental and Sales, Major Provinces, and by Different hp

Introduction and Size for Rental Excavator Market in Philippines,

How the contract agreement works in Rental of Philippines Excavator Market and future outlook?

Pricing Analysis for Rental and Sales of Excavators in Philippines

Decision Making Process for Purchasing and Renting Excavator in the Philippines

Market Share of Major Players in the Philippines Excavators Market by Sales Revenue and Number of Units sold

Strengths and Weaknesses of Major Players in the Philippines Excavator Market

Growth Drivers and Trends in the Philippines Excavator Market

Issues and Challenges in the Philippines Excavator Market.

Competitive Landscape of Major Players in the Philippines Excavators Market

Analyst recommendation

Philippines Excavator Market Future Outlook and Projections, 2016-2020

Macroeconomic Factors affecting Philippines Excavator Market

For more information on the report scope, list of figures, tables and methodology, refer to below link:

https://www.kenresearch.com/manufacturing-and-construction/machinery-and-parts/philippines-excavator-market-report/42050-97.html

Contact:

Ken Research
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204

...

Read more…