Excavator Market in Malaysia 2015-2019
The excavator market in Malaysia grew by 6.10% in 2014 due to increased investment and government spending on infrastructure development in the construction sector. The ETP program launched in 2010 has triggered investment opportunities in the construction market. According to the Department of Statistics, Malaysia, the number of construction projects as of Q1 of 2015 were 9,982 compared to 9,774 in Q1 of 2014. According to Technavio, the construction market in Malaysia was valued at $34.36 billion and we estimate the market to grow at a CAGR of 8.92% during the period 2014-2019. In addition, the government is also encouraging private participation (private investment increased at an annualized rate of 14% for the period 2011-2014) across industries under the ETP program. This is expected to boost construction activities, thereby driving market growth.
Technavio's analysts forecast the excavator market in malaysia to grow at a CAGR of 7.36% over the period 2014-2019.
Covered in this Report
The report covers the present scenario and the growth prospects of the excavator market in Malaysia for the period 2015-2019. The market size has been calculated based on the total revenue generated from the sale of excavators in Malaysia. It does not consider the sale of used equipment or the revenue generated from contracts and maintenance.
The report also presents a detailed analysis of four key vendors and their share in the market. In addition, it discusses the major drivers that influence the growth of the market. It also outlines the challenges faced by vendors and the market at large, as well as the key trends emerging in the market.
Technavio Announces the Publication of its Research Report – Excavator Market in Malaysia 2015-2019
Technavio recognizes the following companies as the key players in the Excavator Market in Malaysia: Caterpillar, Hitachi Construction Machinery, JCB and Komatsu
Other Prominent Vendors in the market are: EIK Engineering, Volvo Group and Zoomlion Heavy Industry Science and Technology
Commenting on the report, an analyst from Technavio’s team said: “Ownership of construction equipment involves huge initial investment. Construction companies, especially SMEs, face budget constraints in ownership of earthmoving equipment. This has resulted in manufacturers promoting their equipment through rentals. To meet the growing demand for earthmoving equipment in Malaysia, leading vendors such as Caterpillar and Volvo are offering rental services to their customers. Equipment can be rented by customers on a daily or annual basis. In addition, this allows construction companies to reduce construction cost to a large extent. Auxiliary services such as specialist consultation and proactive maintenance are also offered to customers renting the equipment.”
According to the report, rapid growth of the economy of Malaysia has led to increased purchasing power of the growing middle-class population. This has led to rise in demand for housing units in the country. As of 2013, the country reported a housing shortage of 18.8 million units. To combat the housing shortage, the governing body for residential development, NHB, is planning to invest in development of public housing, particularly for the lower income group of the population. With such a large project underway in the residential construction sector, demand for excavators is expected to rise in the next 2-4 years.Further, the report states that stringent emission control regulations is a major challenge hindering this market.
Caterpillar, Hitachi Construction Machinery, JCB, Komatsu, EIK Engineering, Volvo Group and Zoomlion Heavy Industry Science, Technology
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