Dublin, Aug. 13, 2024 (GLOBE NEWSWIRE) -- The "Indonesia Crawler Excavator Market - Strategic Assessment & Forecast 2024-2029" report has been added to ResearchAndMarkets.com's offering.
The Indonesia Crawler Excavator Market consisted of 13,625 units in 2023, and is expected to reach 16,495 units by 2029, rising at a CAGR of 3.24%.
The large crawler excavator segment accounted for the largest market share of the Indonesia crawler excavator market in 2023. Growing investment in mining and public infrastructure projects drives demand for these machines in the Indonesian market.
Crawler excavator utilization by the mining industry as an end-user has the largest Indonesia crawler excavator market share in 2023. Also, the market for large and medium excavators in the Indonesia crawler excavator market is strong due to their extensive uses in the mining industry.
The Indonesian crawler excavator market was dominated by large excavators in 2023. However, the sales of crawler excavators are expected to decline in 2024 due to a reduction in investment in public infrastructure projects due to the upcoming presidential election.
The weakening of the Indonesian local currency rupiah is expected to further impact heavy equipment sales, including excavators, in the Indonesia crawler excavator market in 2024. The currency's wakening will also impact the increasing cost of excavators, as Indonesia majorly depends on imports.
MARKET TRENDS & DRIVERS
Application of Mini Excavators in Palm Oil Plantations
- Demand for heavy equipment has increased in agribusiness, particularly palm oil plantations, as Crude Palm Oil (CPO) experiences growing demand in domestic and international markets.
- Indonesia and Malaysia are the world's largest palm oil producers, accounting for more than 85% of total production. Oil palm plantations span 26 provinces.
- Indonesian palm oil is increasingly used within the country, and it is estimated that Indonesia's population will reach 285 million by 2025, further driving domestic demand.
- Henceforth, boosting farmers' competitiveness by exposing them to good machinery and practices is key to increasing agricultural productivity and building Indonesia's sustainable palm oil production system.
Adoption of the Electric & Hydrogen Fuel Technologies
Concerns over environmental issues led the Indonesian government to aim for carbon neutrality by 2060, which triggered the need for electric construction machinery. The increasing government focus on carbon emissions reductions in 2021 further supported the demand for electric construction equipment. Major construction manufacturers in the Indonesia crawler excavator market, such as Volvo Construction Equipment, SDLG, and XCMG, launched electric and compact mini excavators in Indonesia to tackle the growing market demand. In 2021, Volvo Construction Equipment launched the EC55D compact excavators in Indonesia for smart city projects.
Government Investments in Public Infrastructure Projects Through the PPP Model
In 2023, the government invested in 83 PPP projects for infrastructure development, which included 50 projects in the transportation sector, including 13 ports and 15 railways projects. Asian Development Bank provided a loan of USD 100 million to the Indonesian government to support these projects. In 2023, the Indonesian government planned 49 projects, 33 Public Private Partnership Projects (PPP), and 16 non-PPP projects. These 33 PPP projects include 18 in the road sector, 4 in the telecommunication sector, 1 in the electricity sector, 6 in the water supply sector, 3 in the transportation sector, and 1 in the energy conservation sector.
Rise in Mining Projects Will Drive the Indonesia Crawler Excavator Market
- The mining industry was one of the major contributors to the Indonesian GDP in 2022, accounting for a share of nearly 5%. According to a report by the Central Statistics Agency (BPS), the mining industry witnessed a sharp growth in 2022, and the industry's mineral export value reached USD 5.93 billion, up 103% from 2021.
- In 2023, the iron ore industry recorded the highest growth of 25.78% among the mining and quarrying subsectors. The other mining subsectors grew by 4.79%, and the lignite coal subsectors grew by 3.64%.
- In 2023, the mining industry in Indonesia attracted more than USD 16 billion in FDI investments. For 2023, the government expects USD 92 billion in foreign investments and USD 108 billion in domestic investments.
Increased Investment in Public Infrastructure Projects
- According to the Indonesian Association of Heavy Equipment Manufacturers (HINABI), 40% of all production is utilized in the mining industry. After the pandemic in 2023, industrial activity increased, driving up coal, tin, and nickel demand. The increase in industrial activity is projected to support the growth of the Indonesia crawler excavator market.
- Most of the nation's infrastructure development initiatives are in the transportation industry. Road, rail, and port development are the three sectors that comprise 29%, 22%, and 23% of investment projects, respectively.
- This shift is aided by government financing, increasing demand for new solar field projects. The Inflation Reduction Act has had some impact on the private sector's USD 133 billion commitment to renewable energy, as the White House noted.
- The Indonesian government wants to be carbon neutral by 2060. To this end, it emphasizes using renewable energy sources, such as encouraging the use of electric cars in the transportation sector, lowering the usage of fossil fuels, and installing solar panels on buildings.
INDUSTRY RESTRAINTS
Surge in Building Material Prices Hampers Construction Projects
- In 2023, the government of Indonesia increased fuel and oil prices. The increase in fuel prices is expected to affect other commodities, including housing and property sectors. It will also affect building materials such as iron, cement, sand, steel, and bricks.
- According to the Central Statistics Agency (BPS), 2023, diesel prices increased by 37.8%, cement rose by 8.5%, asphalt increased by 15.3%, and steel roof prices fell by 3.85%.
- The cost of construction projects of buildings for roads, bridges, and ports increased by 9.6%; electricity, gas, water, and communication center installations rose by 5.6%.
Skilled Labor Shortage Hampering the Industry's Growth
- In 2023, Indonesia faced a shortage of skilled labor. The country needs ~113 million skilled workers by 2030 to achieve economic growth in the manufacturing, infrastructure, and agribusiness sectors.
- The country depends on foreign labor from Bangladesh, Nepal, and India. The shortage of skilled labor triggered by lockdowns during COVID-19 in 2020 further impacted the Indonesian labor market.
- In 2022, Indonesia had the lowest rate of foreign participation in the labor market among Southeast Asian countries. Indonesia has a 0.7% participation in foreign labor, whereas participation in foreign labor was higher in Malaysia (13%) and Singapore (35%).
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 171 |
| Forecast Period | 2023 - 2029 |
| Estimated Market Value in 2023 | 13625 Units |
| Forecasted Market Value by 2029 | 16495 Units |
| Compound Annual Growth Rate | 3.2% |
| Regions Covered | Indonesia |
VENDOR LANDSCAPE
Major Vendors
- Caterpillar
- Komatsu
- Volvo Construction Equipment
- Hitachi Construction Machinery
- Kubota
- SANY
- JCB
- Xuzhou Construction Machinery Group (XCMG)
- Kobelco
- Zoomlion Heavy Industry Science & Technology Co., Ltd.
- Hyundai Construction Equipment
Other Prominent Vendors
- Liugong
- Yanmar
- SUMITOMO CONSTRUCTION MACHINERY CO., LTD.
- Takeuchi
- Manitou
- Bobcat
- CNH Industrial
- Mecalac
- AIRMAN
- Shandong Lingong Construction Machinery
- Develon
Distributor Profiles
- PT Indotruck Utama
- United Tractors
- PT. Airindo Sakti
- PT. Sumitomo Construction Machinery
- PT. Badak Prima Lestari
- PT. United Equipment Indonesia
- ALTRAK 1978
For more information about this report visit https://www.researchandmarkets.com/r/o5fomo
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