Peru Construction Equipment Market Outlook to 2021

Transcription

1 May 2017 Peru Construction Equipment Market Outlook to 2021 Technological Advancements and Well Equipped Machineries to Drive Market Growth PRODUCTS MENTIONED Shovels, Excavators, Lifting, Handling, Loading or Unloading Machinery, Moving, Grading, Scraping or Boarding Machinery, Derricks, Cranes, Straddle Carriers, Fork lift Trucks, Spreading Machines/ Pavers, Front end Shovel Loaders, Concrete or Mortar Mixers, Bulldozers and Angle Dozers, Scrapers, Temping Machines and Road Rollers, Graders, Levelers COMPANIES MENTIONED Caterpillar Inc, Komatsu Mitsui, Maquiperu, Volvo Construction Machinery, Sinomaq

2 Table of Content 1. Executive Summary Country Overview Peru Construction and Mining Industry Supply of Construction Equipment in Peru Market Sales Market for Construction Equipment in Peru Rental Market for Construction Equipment In Peru Export and Import Scenario of Peru Construction Equipment Market Buy or Rent: Question to Ponder Over Issues and Challenges Growth Drivers Future Outlook 2. Peru Construction Equipment Market Overview and Genesis 3. Value Chain Analysis of Peru Construction Equipment Market 3.1. Importer-Distributor Model 4. Peru Construction Equipment Market Size 4.1. Peru Construction Equipment Market Size by Revenue, Peru Construction Equipment Market Segmentation 5.1. By Type of Construction Equipments, By Bulldozers and Angle Dozers 5.3. By Revenues Contribution from Final Machine and Spare Parts, By Rental And Sale Market, By Applications 5.6. By End Users/Sectors 6. Snapshot on Peru Rental Construction Equipment Market 6.1. Peru Rental Construction Equipment Market, Landscape in Rental Construction Equipment Market 6.3. Peru Rental Construction Equipment Market Future Outlook and Projections, Export And Import Scenario of Peru Construction Equipment market, Import Value of Peru Construction Equipment, Import Value of Peru Construction Equipment Market By Major Destination, Export Value of Peru Construction Equipment, Key Customer Segments And Decision Making Process To Buy Or Rent Construction Equipment In Peru 8.1. Decision Making Process To Buy Construction Equipment In Peru 8.2. Decision Making Process To Rent Construction Equipment In Peru 9. Procedure For Doing Construction Equipment Business in Peru With Detailed Analysis On How To Become Dealer For Construction Equipment In Peru 9.1. Introduction to General Regulations 9.2. How To Establish A Branch In Peru? List of Documents Required for US Firms to Establish A Branch In Peru Resolutions specified in Minutes of Board of Directors Meeting 10. After Sales Service Scenario for Peru Construction Equipment Market Major Participants of After Sales Service Maintenance Practice and Supporting Documentation Construction Site Services Operations Support Services Rigging Services

3 Table of Content Warranty of Construction Equipment 11. Trends And Development And Peru Construction Equipment Market Growth In The Construction Industry New Technology Driving Innovation: GPS Technology High Demand For Technologically Advanced Equipment With ECU 12. Government Regulations in Peru Construction Equipment Market Public-Private-Partnerships (PPP s) Works For Taxes Law Machinery Regulations Law for the Promotion of Energy Efficiency 13. Issues and challenges in the Peru construction equipment market Unfavorable Weather Conditions of Peru Presence of High Altitude Mountains Downfall in Peru Mining industry Lack of Skilled Workers 14. Porter s Five Forces Analysis For Peru Construction Equipment Market 15. Market Share of Major Players in Peru Construction Equipment Market, By Major Players (Overall) By Major Players (Bulldozers) By Major Players (Forklifts) 16. Company Profile of Major Players In Peru Construction Equipment Market Caterpillar Inc Komatsu Mitsui Maquiperu Volvo Construction Machinery Sinomaq 17. Peru Construction Equipment Market Future Outlook and Projections Projected Future Outlook of Peru Construction Equipment Market, Projected Future Outlook by Sales and Rental Revenue in USD Million, Analyst Recommendation 19. Macro Economic Factors Affecting Peru Construction Equipment Market GDP From Construction Industry, Mining Infrastructure Investment, Construction Bars, Research Methodology Market Definition and Size List of Construction Equipment Abbreviations Market Size and Modeling Research Methodology Market Sizing Approach Variables Dependent and Independent Multifactor based Sensitivity Model Limitations Conclusion Disclaimer Contact Us

4 LIST OF FIGURES Figure 3-1: Supply Chain for Construction Equipment in Peru Figure 4-1: Peru Construction Equipment Market (New Sales, Parts, and Rental) on the Basis of Revenue in USD Million, Figure 5-1: Peru Construction Equipment Market Segmentation by Bulldozers and Angle Dozers on Basis of Revenue in Percentage, Figure 5-2: Peru Construction Equipment Market Segmentation by Revenue Contribution from New Machine and Spare Parts in Percentage, Figure 5-3: Peru Construction Equipment Market Segmentation by Revenue Contribution from Rental and Sale Market in Percentage, Figure 5-4: Peru Construction Equipment Market Segmentation by Applications on the Basis of Revenues in Percentage (%), 2016 Figure 5-5: Peru Construction Equipment Market Segmentation by End Users/Sectors on Basis of Revenue in USD Million in Percentage, 2016 Figure 6-1: Peru Rental Construction Equipment Market on the Basis of Revenue in USD Million, Figure 6-3: Peru Construction Equipment Market Future Projections on the Basis of Revenue in USD Million, Figure 7-1 : Import of Construction Machinery and Spare Parts in Peru on the Basis of Value in USD Billion, Figure 7-2: Import Value of Peru Construction Equipment on the Basis of Major Destination in Percentage, Figure 7-3: Peru Construction Equipment Market Exports on the Basis of Export Value in USD Thousand, Figure 11-1: Peru GDP from Construction Industry in USD Billion, Figure 14-1 : Porter s Five Forces Analysis for Peru Construction Equipment Market Figure 15-1: Peru Construction Equipment Market Share by Bulldozers on the Basis of Revenue in USD Million, Figure 15-2: Peru Construction Equipment Market Share by Forklift on the Basis of Sales units in Percentage, 2016 Figure 16-1: Revenue of Caterpillar from Sale of Construction Equipment in Peru, Figure 16-2: Market Share of Key Supplier (Ferreyros, Unimaq, and Orvisa) of Caterpillar Construction Equipment in Peru, 2015 Figure 16-3: Revenue of Ferreyros from Sale of Construction Equipment in USD Million, Figure 16-4: Revenue of Unimaq from Sale of Construction Equipment in USD Million, Figure 16-5: Revenue of Orvisa from Sale of Construction Equipment in USD Million, Figure 17-1: Peru Construction Equipment Market Future Outlook on the Basis of Revenue in Terms of USD Million, Figure 17-2: Peru Construction Equipment Market Future Outlook on the Basis of Sales and Rental Revenue in terms of Percentage, Figure 19-1: GDP from Peru Construction Sector in terms of USD Billion, Figure 19-2: Infrastructure Investment in Mining in terms of USD Million, Figure 19-3: Peru Construction Bar Sales in Ten Thousand Tons,

5 LIST OF TABLES Table 2-1: Market Evolution, Overview and Structure and Emerging Market Trends of Peru Construction Equipment Market Table 4-1: Peru Construction Equipment Market Size on the Basis of Revenue in USD Million and Rationale, Table 5-1: Peru Construction Equipment Market Segmentation by type of Construction Equipment on Basis of Revenue in USD Million, Table 6-1: Rationale and Description for Peru Rental Construction Equipment Market on the Basis of Revenues, Table 6-2: Peru Construction Equipment Market Rental Landscape and Description. Table 7-1: Import of Construction Equipment in Peru on the Basis of Value in USD Thousand, Table 10-1: Warranty on Some Key Products from Major Companies. Table 11-1: Major Functions of GPS Enabled Technology Carried Out By Construction Companies in Peru Table 12-1: List of Capital Investment Projects Taken into Account by Peruvian Government Table 12-2: Emission Requirements for Light and Medium-Duty Vehicles Table 14-1: Porter s Five Forces Analysis on Peru Construction Equipment Market Table 15-1: Peru Sales Construction Equipment Market Share by Key Players and Rationale on the Basis of Revenue in USD Million, Table 15-2: Peru Construction Equipment Market Share by Key Players on the Basis of Sales Revenue in Percentage, 2016 Table 15-3: Peru Construction Equipment Market Share by Forklift on the Basis of Sales units, 2016 Table 17-1: Peru Construction Equipment Market Future Outlook and Rationale on the Basis of Total Revenue in USD Million, Table 17-2: Major Projects in Peru Infrastructure and Real Estate Sector, Table 17-3: Peru Construction Equipment Market Segmentation by Sales and Rental on the Basis of Revenue in USD Million, Table 17-4: Peru Construction Equipment Market Projected Future Outlook on the Basis of Sales and Rental Revenue in USD Million, Table 18-1: Recommendation for Peru Construction Equipment Market Table 19-1: GDP from Construction Sector in terms of USD Billion and Rationale, Table 19-2: Infrastructure Investment in Mining in terms of USD Million and Rationale, Table 19-3: Peru Construction Bar Sales in Ten Thousand Tons and Rationale, Table 20-1: Correlation Matrix of Peru Construction Equipment Market Table 20-2: Regression Coefficients Output

6 6 Peru Construction Equipment Market HOW PERU CONSTRUCTION EQUIPMENT MARKET IS POSITIONED? Peru is located in South America with a population of approximately 31.8 million in the year 2016 and is home to a section of Amazon rainforests. Government primarily focused on developing transport infrastructure (roads, rails, airports and ports), energy (gas pipelines), telecommunications (high-speed internet access) and water management. In 2016, Peru construction equipment market was estimated at USD ~ million exhibiting a five year negative CAGR of ~% during 2011 to The market for sales improved in 2016 after registering a decline (~ %) in Rental market continues to show decline after achieving peak (USD ~ million) in New projects like the Lima metro and the Mantaro-Marcona- Socabaya-Montalvo were some of the major factors uplifting the industry. The revenue generated from sales market for construction equipment in Peru was estimated at USD ~ million in 2016, thus capturing revenue share worth ~ %. The major factor responsible behind such sales is the sheer scale of work to be done due to growing demand for construction of many new buildings, leading to a good supply of construction equipment in the upcoming years in Peru. On the other hand, rental market in Peru was estimated at USD ~ million in 2016, thus capturing ~ % of the total Peruvian construction equipment market. The increasing availability of financial schemes especially in tier 2 and tier 3 cities for small building ventures facing financial constraints in Peru owing to high price of machineries are some of the major factors leading to growing demand for rental construction equipment in Peru Figure: Peru Construction Equipment Market Size by Revenues in USD Million, USD Million Publication Price: Single User: USD 1,300 Hard Copy: USD 1,700 Enterprise wide: USD 2,600 Pages: 117 Related Reports Philippines Excavator Market Forecast to Growing Construction Activities and Demand for Real Estate to Shape Future Potential India Power Tools Market Forecast to Rise in Infrastructural Projects and Expansion of Manufacturing Industry to Drive the Market Indonesia Pumps Industry Outlook to Increasing Government Initiatives towards Irrigation and Wastewater Treatment with Expansion of Industrial Sector to Drive Growth

7 7 Peru Construction Equipment Market PERU CONSTRUCTION EQUIPMENT MARKET SEGMENTATION By Type: Peru construction equipment market is segmented by type of major equipments used in construction and mining industry. Excavators and bulldozers are most used equipments. Caterpillar is the leading company in construction equipment machinery. Table: Peru Construction Equipment Market Segmentation by Type on the Basis of Revenue in USD Billion, 2016 Type of Construction Equipment Shovels and Excavators Lifting, Handling, Loading or Unloading equipment Moving, Grading, Scraping or Boarding Derricks, Cranes and Straddle Carriers Fork Lift Trucks Spreading Machines Front End Shovel Concrete or Mortar Mixer Bulldozers and Angle dozers Scrapers, Self Propelled Temping Machines and Road Rollers Graders and Levelers, Self Propelled By Rental and Sales Market: Peru construction equipment market was largely dominated by sales market as it is high value market and all rental companies have to buy before renting the equipment. Demand for rental is on rise as small players enter the market Table: Peru Construction Equipment Market Segmentation by Sale and Rental on the Basis of Revenue in USD Billion, 2016 Segment Sales Rental Revenue in USD Million,2016 By Application: Market for Peru Construction Equipment was segmented based on application of Equipments which majorly comprises of excavation mining and transportation. Mechanization of industry construction and retail and promoted the use of many of these equipment. Demand from other sectors is expected to rise in future as economy diversifies from mining segment. Table: Peru Construction Equipment Market Segmentation by Application on the Basis of Revenue in USD Billion, 2016 Segment Excavation and Mining Transportation Earth Moving Lifting and Material Handling Others By End User: Manufacturing and Industrial Sector remains the major user of construction equipment in the country. Table: Peru Construction Equipment Market Segmentation by End User on the Basis of Revenue in USD Billion, 2016 Segment Manufacturing and Industry Mining Sector Military Sector Others Revenue in USD Million,2016 Revenue in USD Million,2016 Rationale Rationale Revenue Rationale Rationale

8 8 Peru Construction Equipment Market EXPORT AND IMPORT SCENARIO OF PERU CONSTRUCTION EQUIPMENT MARKET Absence of manufacturing/assembly unit in Peru, has forced the country to be considered as a highly import driven market because it imports all types of construction equipment from major countries such as US, China, Brazil, UK, France and rest of the world. The total import value of construction equipment to Peru was USD ~ billion in 2011 which declined to USD ~ billion in 2015 due to fall in the revenues generated by commodities such as metal and minerals, adversely affecting the mining industry. Some of the major construction equipment imported in 2015 were self propelled mechanical shovels, excavators and shovel loaders; spare parts of machinery and others. The total export value of construction equipment to Peru was evaluated at USD ~ million in 2011 to USD ~ million in The domestic demand has been the major growth driver in the estimated period of 5 years. The rise for demand of domestic goods is increasing from 2011 to 2014 and on the verge to export to foreign countries. Some of the major construction equipment exported in 2015 was self propelled front end shovel loaders; spare parts of machinery for working mineral; self propelled boring of sinking machinery and others. DECISION MAKING MATRIX Decision making matrix mainly comprises of two major segments, namely rental and sale market. The parameter for buying and renting overlap in a very small region and are guided by different motives. Due diligence is given before the buy decision is made looking at initial financial condition to resale or salvage value. In case of renting the equipment availability and rent along with period play a very significant role. Table: Decision Making Process to Buy Construction Equipment in Peru Parameters Tenure and Job Usage Vendor Selection Operation and Maintenance Cost Cost of Machinery Warranty Major Clients and Reviews Resale Value Weight age (%) Remark Table: Decision making process to rent construction equipment in Peru Parameters Type and Period of Job Vendor and Machine Availability Rent Negotiable Terms And Condition Weight age (%) Remark

9 9 Peru Construction Equipment Market TRENDS, DEVELOPMENTS, ISSUES AND CHALLENGES OF PERU CONSTRUCTION EQUIPMENT MARKET The Peruvian government has launched various projects to improve the neglected infrastructure sector and to ensure that its economy continues to grow. However, decline in mining activities due to environmental regulation, low commodity prices and protest of residents to open pit mining may affect the sale of heavy construction equipment negatively. Poor weather hampers the development projects as they are constantly damaged by nature s fury in Peruvian regions. Various projects under construction such as in Huancavelica region were destroyed due to constant rainfall. Severe damages to other houses, located in Pueblo Nuevo and Bella Vista were also reported with floods affecting the most families. GOVERNMENT REGULATIONS IN PERU CONSTRUCTION EQUIPMENT MARKET In Peru, the machinery vehicles apart from trucks have to be Euro III certified and the trucks which are sold in Peru must be Euro IV certified. These certifications talk about diagnostic requirements for gasoline, LPG, CNG and diesel. Additionally, the works for taxes law allowed a private company to finance and implement public projects chosen by regional/local government. Lastly, the law for the promotion of energy efficiency supports the efficient utilization of energy. AFTER SALES SERVICE SCENARIO FOR PERU CONSTRUCTION EQUIPMENT MARKET It becomes highly important for any construction equipment company to be aware about the quality and delivery of the equipment, which are being delivered to the respective clients. After-sales service is part of Customer Relationship Management (CRM) which helps to strengthen customer loyalty. Fast delivery of equipment is an essential factor which affects the usage and production requirements of a construction project. Nowadays, companies such as Caterpillar, Komatsu offer online training courses that aids in better understanding of construction machinery. Knowledge is distributed on areas such as walk-around inspections; engine performance, diesel engine service, hydraulic service, transmission service and proper maintenance schedules. In majority, activities that play a vital role surrounding the after-sales services in the construction equipment industry are field technical assistance, spare parts distribution and customer care. Maintenance practice and supporting documentation include service parts operation maintenance manuals and safety related issues Table 11 1: Warranty on Some Key Products from Major Companies. Company Komatsu Hyundai Volvo Caterpillar Warranty Description

10 10 Peru Construction Equipment Market PERU CONSTRUCTION EQUIPMENT MARKET MAJOR PLAYERS Caterpillar Inc. was the major player in Peru construction equipment market with market share of ~% on the basis of revenue (~ million) in Komatsu Mitsui followed Caterpillar to be the second largest player in Peru construction equipment market offering a wide range of products to serve the Peruvian regions. Other players such as Volvo, Unimaq, Samsung heavy equipment, and Ipesa collectively are increasing competitiveness towards the construction industry in Peru by capturing the remaining market share of 26.6% in Table : Company Profile of ~ Including Company Overview, USP, Business Strategies, Sales of Construction Equipment, Revenues, Number of Service Points, Number of Service Technicians, Number of Dealers with Location, Sales Split by Industry, Sales split by Application, Gross Margin on Imports, New Product Launches and Best Selling Products Parameter Company Overview USP Business Strategies Sales of Construction Equipment Revenues Number of Service Points Number of Service Technicians Number of Dealer with Location Sales Split by Industry Sales Split by Application Gross Margin on Imports New Product launches Description FUTURE OUTLOOK Over the forecast period ( ), the Peruvian construction industry will be supported by the government s focus on the development of key areas such as transport infrastructure, energy/utilities facilities, and residential buildings. There are many projects in pipeline across transport, energy, water, residential and social infrastructure. Peru construction equipment market is expected to generate revenue of USD ~ million in the year 2021 collectively from rental and sales market. Figure: Peru Construction Equipment Market Future Outlook on the Basis of Revenue in USD Million, USD Million Table: Future Projects in Construction and Infrastructure Sector, Project Sector Status USD Million Project-1 Project Table: Peru Construction Equipment Market Projected Future Outlook on the Basis of Sales and Rental Revenue in USD Million, Segment Sales Rental Total

11 11 Peru Construction Equipment Market COMPANIES CITED IN THE REPORT Competitive Landscape Companies Covered in the Report Major Players List of Companies Caterpillar Inc. Komatsu Mitsui Maquiperu Volvo Construction Machinery Sinomaq KEY FACTORS CONSIDERED IN THE REPORT Comprehensive analysis of Peru construction equipment market and its segments. Listed major players and their positioning in the market. Identified major industry developments in last few years and assessed the future growth of the industry.

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