PUBLISHER: Arizton Advisory & Intelligence | PRODUCT CODE: 1453575
PUBLISHER: Arizton Advisory & Intelligence | PRODUCT CODE: 1453575
The Philippines construction equipment market by volume is expected to grow at a CAGR of 4.16% from 2023-2029.
Increased Investment in Infrastructure Projects
KEY HIGHLIGHTS
SEGMENTATION BY TYPE
MARKET TRENDS & DRIVERS
The Philippines' Investment in Hydrogen Fuel to Promote the Nation's Target to Achieve Net Zero Emissions
Paris-based company HDF Energy has inked two Memoranda of Understanding at the 10th Philippines-France Joint Economic Committee meeting to expedite the advancement of its hydrogen power plants. The focus is on improving a reliable power source in off-grid regions of the Philippines. Moreover, HDF Energy has already established a Memorandum of Understanding (MoU) with the Mindanao Development Authority and the Department of Energy to encourage and streamline investments in hydrogen initiatives across the Mindanao region.
Various Initiatives Taken by the Government to Boost the Flood Resilience
In 2023, the Philippines witnessed several instances of flooding, each differing in severity and consequences. In Jan 2023, flooding, landslides, and powerful winds impacted numerous regions, affecting thousands of individuals due to the confluence of low-pressure areas. Other instances include the Shear Line calamity, which came with heavy rainfall and affected at least 100,000 individuals. Further, the Asian Development Bank (ADB) has approved a USD 303 million loan to mitigate flood and climate risks in the Philippines, as the nation is highly susceptible to climate change and natural disasters.
Surge in Infrastructure Projects in the Country to Boost the Philippines Construction Equipment Market
Increasing Number of Transport Projects in the Country to Propel the Demand for Road Construction Machinery
The 2024 Budget, with a total projected value of USD 3.8 billion, will support the Build Better More Program. Out of this budget, USD 3.1 billion will be allocated to the Department of Transportation's (DOT) Public Sector Infrastructure budget. This will support the flagship public transport projects sanctioned by the National Economic Development Authority (NEDA) Board, such as the North-South Commuter Railway System and Metro Manila Subway Project Phase I within the Rail Transport Program, Land Public Transportation Program, and Aviation and Maritime Infrastructure Programs of the DOTr. These projects are projected to support the growth of the Philippine construction equipment market. Meanwhile, the Aviation Program is dedicated to modernizing and enhancing airports nationwide, with a budget allocation of USD 0.1 billion.
Prominent Mining Sector in the Country Supports the Demand for Heavy Construction Equipment in the Philippines Construction Equipment Market
INDUSTRY RESTRAINTS
Increasing Interest Rates May Restrict the Demand for Housing Units in the Country
Heightened domestic fuel costs, raises in minimum wages, and persistent supply chain challenges within the agricultural sector exacerbated inflationary pressures within the country. In September 2023, the Bangko Sentral ng Pilipinas (Central Bank) increased the policy rate to 4.15% for the fifth time in the year. This followed the latest 50-basis-point hike, amounting to 225 basis points since May 2022, to control the rise in inflation.
Land Scarcity in the Country Will Hamper the Development of Infrastructure Across the Regions
Past disparities and ineffective land reform initiatives have led to a situation where a considerable segment of the population, especially marginalized communities and indigenous groups, faces restricted access to land ownership and secure land rights. This discrepancy fuels social tensions and impedes rural development. Further, deforestation, soil erosion, and natural calamities such as typhoons diminish available land. These elements deteriorate fertile soil, rendering it unsuitable for agriculture and exacerbating the shortage of usable land.
High Demand for Rental Construction Equipment to Hinder the Philippines Construction Equipment Market Growth
The global pandemic and geopolitical crises have resulted in supply chain disruptions for manufacturing construction equipment, ultimately driving prices upwards. For example, the semiconductor chips required for equipment engines have recently risen manifold times. Other raw materials, such as steel prices, have also been magnified. The cost of iron ore and choking coal, key inputs in steel production, has also risen. Moreover, renting construction equipment offers various advantages, such as access to a wider range of equipment, reduced maintenance costs, and flexibility to change the equipment according to the required size.
VENDOR LANDSCAPE
Key Vendors
Other Prominent Vendors
Distributor Profiles
KEY QUESTIONS ANSWERED:
Graph 1 CONSTRUCTION EQUIPMENT MARKET VOLUME (UNITS)
Graph 2 CONSTRUCTION EQUIPMENT MARKET 2023 (%)
Graph 3 INCREMENTAL GROWTH BY EQUIPMENT TYPE 2023-2029 (VOLUME)
Graph 4 CONSTRUCTION EQUIPMENT MARKET BY END-USER INDUSTRIES. 2023 (% SHARE)
Graph 5 PHILIPPINES CONSTRUCTION EQUIPMENT MARKET, VOLUME2023-2029 (UNITS)
Graph 6 PERCENTAGE OF INFLATION RATE (2020-2024)
Graph 7 PHILIPPINES EARTHMOVING CONSTRUCTION EQUIPMENT MARKET 2020-2029 (UNITS SALES)
Graph 8 PHILIPPINES EARTHMOVING CONSTRUCTION EQUIPMENT MARKET 2020-2029 ($MN)
Graph 9 PHILIPPINES EXCAVATOR CONSTRUCTION EQUIPMENT MARKET 2020-2029 (UNITS SALES)
Graph 10 PHILIPPINES EXCAVATOR CONSTRUCTION EQUIPMENT MARKET 2020-2029 ($MN)
Graph 11 PHILIPPINES BACKHOE LOADERS MARKET 2020-2029 (UNITS SALES)
Graph 12 PHILIPPINES BACKHOE LOADERS MARKET 2020-2029 ($MN)
Graph 13 PHILIPPINES WHEELED LOADERS MARKET 2020-2029 (UNITS SALES)
Graph 14 PHILIPPINES WHEELED LOADERS MARKET 2020-2029 ($MN)
Graph 15 PHILIPPINES OTHER EARTHMOVING EQUIPMENT MARKET, 2020-2029 (UNIT SALES)
Graph 16 PHILIPPINES OTHER EARTHMOVING EQUIPMENT MARKET 2020-2029 ($MN)
Graph 17 PHILIPPINES ROAD CONSTRUCTION EQUIPMENT MARKET 2020-2029 (UNIT SALES)
Graph 18 PHILIPPINES ROAD CONSTRUCTION EQUIPMENT MARKET 2020-2029 ($ MN)
Graph 19 PHILIPPINES ROAD ROLLERS MARKET, 2020-2029 (UNIT SALES)
Graph 20 PHILIPPINES ROAD ROLLERS MARKET, 2020-2029 ($ MN)
Graph 21 PHILIPPINES ASPHALT PAVERS MARKET 2020-2029 (UNIT SALES)
Graph 22 PHILIPPINES ASPHALT PAVERS MARKET 2020-2029 ($ MN)
Graph 23 PHILIPPINES MATERIAL HANDLING EQUIPMENT MARKET 2020-2029 (UNIT SALES)
Graph 24 PHILIPPINES MATERIAL HANDLING EQUIPMENT MARKET 2020-2029 ($ MN)
Graph 25 PHILIPPINES CRANES MARKET, 2020-2029 (UNIT SALES)
Graph 26 PHILIPPINES CRANES MARKET 2020-2029 ($ MN)
Graph 27 PHILIPPINES FORKLIFTS AND TELESCOPIC HANDLERS MARKET 2020-2029 (UNIT SALES)
Graph 28 PHILIPPINES FORKLIFTS AND TELESCOPIC HANDLERS MARKET 2020-2029 ($ MN)
Graph 29 PHILIPPINES AERIAL PLATFORMS MARKET 2020-2029 (UNIT SALES)
Graph 30 PHILIPPINES AERIAL PLATFORMS MARKET 2020-2029 ($ MN)
Graph 31 PHILIPPINES OTHERS CONSTRUCTION EQUIPMENT MARKET 2020-2029 (UNIT SALES)
Graph 32 PHILIPPINES OTHER CONSTRUCTION EQUIPMENT MARKET 2020-2029 ($MN)
Graph 33 PHILIPPINES DUMPERS MARKET 2020-2029 (UNIT SALES)
Graph 34 PHILIPPINES DUMPERS MARKET 2020-2029 ($MN)
Graph 35 PHILIPPINES TIPPERS MARKET 2020-2029 (UNIT SALES)
Graph 36 PHILIPPINES TIPPERS MARKET 2020-2029 ($MN)
Graph 37 PHILIPPINES CONCRETE MIXERS MARKET 2020-2029 (UNIT SALES)
Graph 38 PHILIPPINES CONCRETE MIXERS MARKET 2020-2029 ($MN)
Graph 39 PHILIPPINES CONCRETE PUMP TRUCKS 2020-2029 (UNIT SALES)
Graph 40 PHILIPPINES CONCRETE PUMP TRUCKS 2020-2029 ($MN)
Graph 41 PHILIPPINES CONSTRUCTION EQUIPMENT MARKET 2020-2029 (UNIT SALES)
Graph 42 PHILIPPINES CONSTRUCTION EQUIPMENT MARKET 2020-2029 ($ MN)
Graph 43 PHILIPPINES MANUFACTURING CONSTRUCTION EQUIPMENT MARKET IN 2020-2029 (UNIT SALES)
Graph 44 PHILIPPINES MANUFACTURING CONSTRUCTION EQUIPMENT MARKET 2020-2029 ($ MN)
Graph 45 PHILIPPINES MINING CONSTRUCTION EQUIPMENT MARKET, 2020-2029 (UNIT SALES)
Graph 46 PHILIPPINES MINING CONSTRUCTION EQUIPMENT MARKET 2020-2029 ($ MN)
Graph 47 PHILIPPINES OTHERS CONSTRUCTION EQUIPMENT MARKET 2020-2029 (UNIT SALES)
Graph 48 PHILIPPINES OTHERS CONSTRUCTION EQUIPMENT MARKET IN OTHERS 2020-2029 ($ MN)
Graph 49 MARKET SHARE OF LEADING VENDORS VS OTHERS (2022)
Graph 50 CATERPILLAR: SALES BY REGION 2022 (%)
Graph 51 CATERPILLAR: SALES BY BUSINESS SEGMENT 2022 (%)
Graph 52 HITACHI: SALES BY REGION 2022 (% SHARE)
Graph 53 HITACHI: SALES BY SEGMENT 2022 (% SHARE)
Graph 54 KOMATSU: SALES BY REGION IN 2022 (% SHARE)
Graph 55 KOMATSU: BREAKDOWN OF NET SALES BY BUSINESS SEGMENT 2022 (% SHARE)
Graph 56 LIEBHERR: SALES BY REGION 2022 (% SHARE)
Graph 57 LIEBHERR: SALES BY PRODUCT SEGMENT 2022 (% SHARE)
Graph 58 VOLVO: NET SALES BY REGION 2022 (% SHARE)
Graph 59 VOLVO: NET SALES BY SEGMENT 2022 (% SHARE)
LIST OF TABLES:
Table 1 KEY INFRASTRUCTURE PROJECTS
Table 2 NUMBER OF INFRASTRUCTURE FLAGSHIP PROJECTS (IFPs) BY TYPE
Table 3 IMPORT DATA
Table 4 EXPORT DATA
Table 5 TOTAL INCREMENTAL OPPORTUNITY, 2022-2029
Table 6 TOTAL INCREMENTAL OPPORTUNITY, 2022-2029 (END-USER)