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

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Philippines Excavator Market Forecast to 2020
Growing Construction Activities and Demand for
Real Estate to Shape Future Potential Ken
Research
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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.
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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.
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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.
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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. SMEs on other
hand, prefer to rent.
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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.
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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.
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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.
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• Key Factors Considered in the Report
• Philippines Excavator Market size by Revenue,
  and Sales Volume
• How the contract agreement works in Rental of
  Philippines Excavator Market and future outlook?
• Decision Making Process for Purchasing and
  Renting Excavator in the Philippines.
• Pricing Analysis for Rental and Sales of
  Excavators in Philippines
• 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-cons
  truction/machinery-and-parts/philippines-excavator
  -market-report/42050-97.html
• Contact
• Ken Research
• Ankur Gupta, Head Marketing Communications
• query_at_kenresearch.com
• 91-124-4230204

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