Malaysia Crawler Excavator Market - Strategic Assessment & Forecast 2024-2029

INDUSTRY INSIGHTS

The Malaysia crawler excavator market size accounted for 2.56 thousand units in 2023 and is expected to reach 3.44 thousand units by 2029, growing at a CAGR of 5.00% during the forecast period. Malaysia's crawler excavator market is expected to grow robustly during the forecast period due to a surge in infrastructure investment. Also, the government invests in the mining industry and renewable energy projects, which is expected to positively impact the demand for Malaysia Crawler excavators during the forecast period.

The Malaysia crawler excavator market has benefitted from growth in infrastructure investment. Government investment in various infrastructure projects has been growing since 2024. Several transport infrastructure development projects are also planned in 2024. Further, the economic outlook for 2024 is positive, with expectations of a slight recovery in growth. The key concerns include developments in the property market and the construction sector (which has many vulnerable companies), the gradual consolidation of public finances, and changes in external accounts. However, although Malaysia has many attractive features for international investors considering relocating manufacturing plants from China, it faces intense competition from other ASEAN countries such as Vietnam.

KEY HIGHLIGHTS

1. In 2023, medium-size excavators will have the largest market share in the Malaysia crawler excavator market due to their versatile use in the construction and mining industries.
2. The rise in public infrastructure, mining, and renewable energy projects drives crawler excavator sales in the Malaysian crawler excavator market.
3. In 2023, crawler excavator uses in the construction industry accounted for the largest market share by end-user.
4. Chinese construction machinery brands are shifting from only product exports to localized operations by rapidly expanding into Southeast Asia. Prominent vendors like Zoomlion and SANY have recently inaugurated subsidiaries in Malaysia, Vietnam, and the Philippines, emphasizing their commitment to local development.
5. A fleet of 10 EC550EL excavators from Volvo Construction Equipment (Volvo CE) are currently engaged in constructing a significant new dairy farm for Fraser & Neave Holdings (F&N) in Gemas, Negeri Sembilan, Malaysia.
6. Sandvik, a global mining and construction equipment manufacturer, has opened a new load and haul equipment factory in Malaysia. This facility is expected to enhance Sandvik's production capacity for mining machinery and cater to the growing demand in the Southeast Asian region. The inauguration of this factory highlights Sandvik's commitment to expanding its presence in Malaysia and supporting the local mining industry.
7. Komatsu will acquire all of the shares of UMW Corporation Sdn. Bhd. That will thereby make UKHE a wholly owned subsidiary of Komatsu. The company acquired its distributor to strengthen its competitiveness in Malaysia's construction and mining equipment market.

MARKET TRENDS & DRIVERS

Growing Demand for Modern Technology Excavators

1. Technological development has increased the demand for construction equipment, including crawler excavators, in the Malaysia crawler excavator market. Modern equipment offers several features that increase productivity, reduce fuel consumption, & have low environmental impact.
2. There has been a surge in environmental safety concerns in the Malaysian market. The government has emphasized sustainability more and tightened the country's emission laws, leading to the demand for electric and hybrid crawler excavators.
3. The construction sector also witnessed significant transformation due to the rise in automated and semi-automated technologies.

Growing Use of Mini Excavators in Waste Management in the Malaysia Crawler Excavator Market

1. Malaysia generates over 39,000 tons of municipal solid waste each day, with food waste accounting for more than 30% of this total volume.
2. This concerning level of waste is driven by factors such as changing lifestyles, population growth, and rapid urbanization.
3. In Malaysia, 165 landfills are currently operating for waste management. The government aims to reach a 40% recycling rate by 2025.
4. Further, in 2024, the country’s recycling rate will be about 31%. To increase this rate, the Malaysian government plans to construct six Waste-to-Energy plants.

Surge in Infrastructure Investment

1. The government budget for the Malaysian construction industry surged in 2024, and it is projected to support the Malaysia crawler excavator market. In 2024, the government plans several infrastructure projects, including Pan Borneo Sabah Phase 1B, various flood mitigation packages, Penang LRT, Sabah-Sarawak Link Road, and LRT3 reinstatement. The total expenditure for these projects is USD 21.3 billion.
2. The Malaysian construction industry is expected to grow by 7.9% in 2024. Several government initiatives, such as the Special Economic Zone and Special Financial Zone, positively impact the construction industry.

Growing Investment in Public Transport Infrastructure

1. The Malaysian government is focusing on improving transport facilities across the country in 2024. The government's 13th Malaysian plan, which will be introduced in July 2025, focuses primarily on enhancing the transport structure in the country.
2. The government also aims to upgrade bus services and rail networks & address the last-mile transportation issues. The upgradation of bus stations in Kuala Lumpur & construction of new pedestrian walkways are planned in 2024. In addition, investments are directed at improving bus service lanes across the Kuala Lumpur region.
3. In 2024, the government plans several major transportation projects, including constructing mass rapid transit (MRT), light-rail transit (LRT), and bus services in Kuala Lumpur.

INDUSTRY RESTRAINTS

Surge in the Building Material Cost

1. According to the Building Cost Information Service (BCIS) forecast in March 2024, both tender prices and building costs are projected to rise over the next five years. New construction output is expected to contract further by 3.2% in 2024 before rebounding after a 2.1% decrease in 2023.
2. Total new work output from 2024 to 2029 is expected to grow by 21%. Building costs are predicted to increase by 15% over the next five years, while tender prices are expected to rise by 17% during the same period.

Shortage of Construction Labor

1. Malaysia is facing labor shortages in the construction industry. The country is dependent on foreign labor forces. According to the Builders Association Malaysia, mega infrastructure projects in the Johar region of the country can be impacted by the unavailability of construction laborers and the growth of the Malaysian crawler excavator industry.
2. According to the Johar Master Building Association, major projects in the region, such as Johor -Singapore Economic Zone, & two data centers, Nusa Jaya Tech Park & Sedenak Tech Park, can be impacted due to a construction labor shortage in 2024.
3. The country is highly dependent on foreign laborers due to the reluctance of locals to work in the construction sector. Shortage of labor can lead to delays in construction projects.

VENDOR LANDSCAPE

1. Caterpillar, Volvo CE, Komatsu, XCMG, and Hitachi Construction Machinery have a strong market share in the Malaysia crawler excavator market. These manufacturers are leaders in the market.
2. Bobcat, LiuGong, SDLG, Yanmar, and Case Construction are niche market players in Malaysian construction equipment. These manufacturers offer little product diversification and are more concentrated in the local market.
3. SANY, Develon, Kobelco, HD Hyundai Construction Equipment, JCB, & Zoomlion are emerging players in the Malaysia crawler excavator market. These manufacturers are introducing innovative products to the market.
4. Sunward and Mecalac are the stragglers in the Malaysia crawler excavator market. The manufacturers have established a presence over a significant period and diverse product offerings. These companies generally fall short of their rivals in providing innovative and advanced products.