Philippines Construction Equipment Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.22 Billion |
| Market Size (2029) | USD 1.82 Billion |
| CAGR (2024 - 2029) | 6.85 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Philippines Construction Equipment Market Analysis
The Philippines Construction Equipment Market size is estimated at USD 1.22 billion in 2024, and is expected to reach USD 1.82 billion by 2029, at a CAGR of 6.85% during the forecast period (2024-2029).
- The burgeoning focus on infrastructure and the integration of automation in construction and manufacturing processes have significantly influenced the market's growth. Notably, recent years have witnessed substantial growth in road upgrades in the country, attributed to increased road development programs initiated by the government. This surge in infrastructure development activities is expected to drive demand for earthmoving and material handling equipment, consequently fostering growth in the construction equipment market.
- The Philippines aims to sustain high construction investments for the next six years through public-private partnerships, further amplifying the demand for construction equipment and machinery. Several foreign entities have engaged in various development projects—such as port terminals, solar energy ventures, and airport expansions—in the Philippines, signaling increased investment in the country.
- For instance, in June 2023, SP New Energy Corporation announced plans for a massive 3,000 MW solar expansion project in Nueva Ecija, Philippines, further fueling construction activity and subsequently boosting the demand for construction equipment. Additionally, in April 2023, Asian Terminals Incorporated unveiled intentions to invest approximately USD 90.91 million in construction upgrades at the Manila and Batangas ports in the Philippines.
- In this optimistic environment, key market players are expected to make investments across various regions in the Philippines. Moreover, the utilization of machinery is anticipated to surge in both state-sponsored projects and private partnership constructions, factors contributing to the projected market growth during the forecast period.
Philippines Construction Equipment Market Trends
Rising Infrastructure Development and Construction Activities to Drive the Market-
- In recent years, infrastructure and development in the Philippines have significantly increased, driving the demand for construction equipment. Factors such as the growing need for solar-based energy generation, the construction of several mineral mining and processing plants, infrastructure development activities, and the increased modernization and renovation of buildings for enhanced energy efficiency are all contributing to the growth of the construction equipment market in the Philippines.
- The country is making substantial investments in infrastructure development to address major issues such as population growth, high manufacturing costs, and the aging transportation infrastructure. Moreover, the country possesses diverse energy resources and is progressively investing in the construction sector. Leading energy companies have plans to launch the largest solar power plant in the Philippines in the coming years, aiming to provide the capital with a partial source of renewable energy. Due to these investments in construction, the demand for construction equipment in the Philippines is expected to continue growing in the forecast period.
- According to the Philippines Government, there are plans to maintain construction and infrastructure expenditure at 5% to 6% of the gross domestic product each year under the medium-term infrastructure program. This program aims to allocate between USD 20 billion and USD 40 billion annually for construction and infrastructure projects. Infrastructure spending in the first two months of 2023 rose by 22% to USD 2.56 billion.
- The strong performance in construction and infrastructure spending is mainly attributed to the accelerated implementation of nationwide public works and transportation projects in the country. In September 2023, Pentagreen Capital, a debt financing platform in Asia, and Citicore Solar Energy, a Philippines-based renewable energy company, signed a construction deal worth USD 100 million for solar construction projects in the Philippines. Due to the spending initiatives across the country, the demand for construction equipment is likely to continue growing during the forecast period.
Integration of Cutting-Edge Technology in Construction Equipment to Drive Market-
- Construction stands out as one of the most hazardous industries for workers, yet advancements in safety technology directly integrated into equipment offer promising solutions. In-cab monitoring systems can detect signs of distraction or fatigue by tracking operators' head and eye movements, while proximity-detection systems mitigate risks associated with blind spots by alerting operators to nearby individuals. Additionally, collision-avoidance systems aim to reduce accidents and equipment damage.
- Recent innovations in construction equipment not only provide contractors with enhanced capabilities but also prioritize safety and productivity. Industry trends, such as skilled worker shortages, volatile energy prices, and equipment theft, encourage the adoption of new equipment-related technologies. For instance, advanced demolition machinery, like impact crushers equipped with dust suppression systems, minimizes construction and demolition waste while enabling on-site recycling, thereby reducing costs and environmental impact.
- Furthermore, automation is gaining attention among construction firms for its potential to enhance safety by removing people from high-risk positions. Automated equipment diminishes human error, a common cause of job site accidents. Although not yet ubiquitous, the use of drones for site surveys and monitoring, as well as the integration of sensors in automated rollers and soil compactors to detect obstacles and ensure a safer environment, showcases the future potential of automated technologies in construction
Philippines Construction Equipment Industry Overview
The construction machinery market in the Philippines demonstrates a moderate level of consolidation primarily led by major companies like SANY Group, Komatsu Ltd, Caterpillar Inc., XCMG Group, and Hitachi Construction Machinery Co. Ltd. These key players are actively enhancing their product portfolios to broaden their customer base. Additionally, several significant competitors are strategically expanding their market presence through dealership expansions, agreements, mergers, and collaborations with other industry entities.
- For instance, in July 2023, China National Machinery Industry Corporation (SINOMACH), a prominent Chinese construction equipment manufacturer, solidified its commitment to the Philippine market by signing cooperation agreements and securing EPC (Engineering, Procurement, and Construction) contracts for multiple projects valued at approximately USD 1 billion. These contracts underscore SINOMACH's intent to fortify its footing and involvement within the Philippine construction sector.
Philippines Construction Equipment Market Leaders
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SANY Group
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China National Machinery Industry Corporation (SINOMACH)
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Hitachi Construction Machinery Co. Ltd
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XCMG Group
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Komatsu Ltd
*Disclaimer: Major Players sorted in no particular order
Philippines Construction Equipment Market News
- October 2023: Terex Equipment Limited, a Scotland-based construction crane manufacturer, appointed RAE Heavy Equipment as its authorized distributor in the Philippines. RAE, headquartered in Antipolo City, Philippines, specializes in providing service, repairs, and spare parts for various manufacturers nationwide, alongside trading construction equipment.
- September 2023: SANY Group, a China-based industrial and construction equipment manufacturer, inaugurated its subsidiary in Quezon City, Manila, Philippines. The subsidiary boasts a team of 90 employees and collaborates with four local qualified dealers. Presently, the company offers an extensive array of excavators, port machinery, and hoisting machinery and operates 20 service outlets spread across the Philippines.
Philippines Construction Equipment Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Rising Infrastructure Development and Construction Activities to Drive the Market
4.1.2
4.2 Market Challenges
4.2.1 Regulations and Internal Trade Policies May Hinder the Market Growth
4.2.2
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitute Products
5. MARKET SEGMENTATION (Market Size in Value USD)
5.1 By Machinery Type
5.1.1 Cranes
5.1.2 Telescopic Handling
5.1.3 Hydraulic Excavators
5.1.4 Loaders and Backhoes
5.1.5 Motor Graders
5.1.6 Dump Trucks
5.1.7 Other Machinery Types
5.2 By Drive Type
5.2.1 IC Engine
5.2.2 Electric and Hybrid
5.3 By Application Type
5.3.1 Material Handling
5.3.2 Earth Moving
5.3.3 Transportation
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 SANY Group
6.2.2 China National Machinery Industry Corporation (SINOMACH)
6.2.3 Hitachi Construction Machinery Co. Ltd
6.2.4 XCMG Group
6.2.5 Komatsu Ltd
6.2.6 Yanmar Construction Equipment Co. Ltd
6.2.7 Terex Corporation
6.2.8 Doosan Infracore Ltd
6.2.9 JCB Construction Equipment Australia
6.2.10 Kobelco Construction Machinery Co. Ltd
6.2.11 Liebherr International
6.2.12 Manitou BF SA
6.2.13 Volvo Construction Equipment
6.2.14 Wacker Neuson
6.2.15 Sumitomo Corporation
6.2.16 Caterpillar Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Philippines Construction Equipment Industry Segmentation
Construction equipment is used for the execution, completion, erection, operation, or maintenance of any construction project or work. Construction equipment is also used in earthmoving works when constructing roads, bridges, and dams. Some construction equipment, like excavators and wheel loaders, are also used in mining.
The Philippines construction equipment market is segmented by machinery type, drive type, and application type. By machinery type, the market is segmented into cranes, telescopic handling, hydraulic excavators, loaders and backhoes, motor graders, dump trucks, and others. By drive type, the market is segmented into IC engines and electric and hybrid. By application type, the market is segmented into material handling, earth moving, and transportation.
The report offers the market size in value (USD) and forecasts for all the above segments.
| By Machinery Type | |
| Cranes | |
| Telescopic Handling | |
| Hydraulic Excavators | |
| Loaders and Backhoes | |
| Motor Graders | |
| Dump Trucks | |
| Other Machinery Types |
| By Drive Type | |
| IC Engine | |
| Electric and Hybrid |
| By Application Type | |
| Material Handling | |
| Earth Moving | |
| Transportation |
Philippines Construction Equipment Market Research FAQs
How big is the Philippines Construction Equipment Market?
The Philippines Construction Equipment Market size is expected to reach USD 1.22 billion in 2024 and grow at a CAGR of 6.85% to reach USD 1.82 billion by 2029.
What is the current Philippines Construction Equipment Market size?
In 2024, the Philippines Construction Equipment Market size is expected to reach USD 1.22 billion.
Who are the key players in Philippines Construction Equipment Market?
SANY Group, China National Machinery Industry Corporation (SINOMACH), Hitachi Construction Machinery Co. Ltd, XCMG Group and Komatsu Ltd are the major companies operating in the Philippines Construction Equipment Market.
What years does this Philippines Construction Equipment Market cover, and what was the market size in 2023?
In 2023, the Philippines Construction Equipment Market size was estimated at USD 1.14 billion. The report covers the Philippines Construction Equipment Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Philippines Construction Equipment Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Philippines Construction Equipment Industry Report
Statistics for the 2024 Philippines Construction Equipment market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Philippines Construction Equipment analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
