Increased demand for real estate supported with investment in infrastructure development to support economy growth will create additional demand for excavators.
Philippines excavator market is expected to grow at a CAGR of 8% to 2020 on the back of increasing demand for houses by growing middle class, office space by rising service industry especially BPO sector and investment from government in developing infrastructure.
In 2015, majority of market share is captured by five major manufacturers of excavators. They have their exclusive distributors at all the three major islands of the Philippines including Luzon (Manila), Visayas (Cebu city), and Mindanao (Davao city), which provide them accessibility to major customers in the market. Most of these distributors are in sale of new excavator and also offers rental services. Rental market is majorly driven by small rental companies who are spread across all major islands in the Philippines serving the needs of small contractors and Small and Medium Enterprises (SME). There is need for increased activity by construction and rental association to get more number of contractors and rental companies under its umbrella to increase networking and create new business opportunities for use of excavators.
Increased demand by small contractors and SME’s involved in developing real estate sector for rising middle class and Overseas Filipino Worker (OFW) is also expected to fuel the demand for excavators during the forecast period. Demand for office space by Business Process Outsourcing (BPO) sector and houses by emerging middle class are other prominent reason which is expected to increase the use of excavator in the country. Increased investment in infrastructure development will also augment excavator market.
Increased current and expected future demand for housing and infrastructure will boost excavator market in future attracting major players to increase their geographic presence and entry of new players. Cheap labor and manufacturing benefits from government may attract setting up of manufacturing unit by some manufacturers. Increased competition to gain market dominance will make excavators more price competitive benefiting end users in both sales and rental market. Government commitment to reduce GHG emission will lead to stricter emission norms and demand for fuel efficient and hydraulically more advanced excavator will sale of new excavators.
The report titled “Philippines Excavator Market Forecast to 2020 – Growing Construction Activities and Demand for Real Estate to Shape Future Potential” provides detailed overview on the Philippines Excavator Market and helps readers to identify the ongoing trends in the market and anticipated growth in future depending upon changing market dynamics in coming years. The report will help existing distributors, manufacturers and rental companies along with end users in construction, mining and real estate sector to align their market centric strategies according to ongoing and expected trends in the future.
For more information on the report scope, list of figures, tables and methodology, refer to below link:
Ankur Gupta, Head Marketing & Communications