OVERVIEW OF TURKISH AWP RENTAL MARKET Effects on growth and the potential in the future Erhan Acar 06.03.2019
AWP RENTAL MARKET SITUTATION Strong development in the last 6 years AWP rental market players The interestof crane rental companies Fragmented market structure
PLATFORM ASSOCIATION OF TURKEY PLATFORMDER Platform Association of Turkey Established in 2016 Founded by Turkey s biggest 10 rental companies Represents 80% of AWP sector in Turkey. Membership Structure: rental companies, manufacturers, distributors and suppliers More than 100 members PLATFORMDER Activities www.platformder.org.tr platformder@platformder.org.tr Contributes to the regulations and legislative works related to AWP sector. Analysis AWP industry in Turkey and provides statistical reports. Organizes sectoral workshops and fairs Publishes monthly AWP magazine
MARKET TRENDS AND DRIVERS New regulations on health and safety at work The government has been putting more importance on Health and safety at work and brings some new regulations. This effects the use of AWPs directly in a positive way. Increasing awareness of AWP With the new players in AWP rental market and broaden geographical reach with additional depots by existing rental companies, awareness of AWPs is improved gradually. Gradually growing stronger construction market The Turkey's AWP rental market improving gradually driven by a stronger construction market especially non residential and growing economy year by year. Turkey s strategic geographic location Turkish investments usually covers the markets of border countries, Turkic Republics and some overseas countries.
EXPECTATIONS FOR TURKISH FLEET SIZE 30,000 FLEET SIZE (UNIT) 45.0% 41.2% 25,000 25,000 40.0% 32.8% 33.3% 21,000 35.0% 20,000 15,000 10,000 28.0% 8,000 31.3% 10,500 23.8% 13,000 13,500 15,000 11.1% 17,500 16.7% 20.0% 19.0% 30.0% 25.0% 20.0% 15.0% 6,000 10.0% 5,000 2,500 3,200 4,250 3.8% 5.0% 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.0% AWP Fleet size Development and Expectations Growth H&S Regulation
EVALUTION OF AWP FLEET SIZE BY POPULATION COUNTRY POPULATION 2018 AWP FLEET SIZE FLEET PER 100.000 INHABITANTS 2017 2018-F 2017 2018-F USA 326.580.000 583.239 606.569 173 179 Germany 82.900.000 54.005 56.165 63 65 Turkey 81.700.000 10.500 13.000 13 16 France 67.400.000 53.657 56.671 79 83 UK 66.000.000 56.684 57.544 85 86 Italy 60.900.000 26.005 27.825 40 43 Spain 49.750.000 22.470 23.369 47 48 Netherlands 17.300.000 19.957 21.155 112 117 Sweden 10.225.000 15.795 16.156 150 155 Denmark 5.800.000 8.937 9.141 151 155 Finland 5.520.000 12.532 12.819 220 228 Norway 5.325.000 9.223 9.434 175 173 Source: Some data referenced from IPAF 2018 report
TURKEY S POTENTIAL FOR AWP MARKET 250 200 220 228 2017 2018-F 2018 AWP Rental Fleet per 100,000 Inhabitants 2017 Europe Avg. Turkey Turkey Potential => 64 => 279.266 units => 13 => 10.500 units => 64 => 52.677 units 175 173 173 179 150 155 155 151 150 117 112 100 85 86 83 79 63 65 64 64 50 47 48 43 40 13 16 0 FI NO DK SE NL UK FR DE ES IT Total Source: Some data referenced from IPAF 2018 report Europe US TR
TURKEY S POTENTIAL FOR AWP MARKET 2017 2018 2017 AWP Fleet Europe 10 countries 279.266 units 2018-F AWP Fleet Europe 10 countries 290.279 units Potential Fleet 52.677 units Potential Fleet 53.564 units 2017 Fleet 10.500 2018 Fleet 13.000 20% of the potential Currently at 24% of the potential
TURKEY S POTENTIAL FOR AWP MARKET 100% UTILISATION RATE 90% 80% 86% 81% 70% 60% 62% 62% 67% 67% 64% 64% 63% 63% 69% 70% 68% 69% 68% 66% 64% 65% 60% 61% 63% 62% 65% 66% 70% 69% 50% 40% 30% 20% 10% 0% FI NO DK SE NL UK FR DE ES IT Total 2017 Europe 2018-F 2018 US Source: Some data referenced from IPAF 2018 report TR
2017 AWP RENTAL FLEET MIX BY EQUIPMENT TYPE Others 16% Diesel Scissors 9% Electric Scissors 41% Others 7% Diesel Scissors 7% Electric Scissors 73% q Electric scissors are still the primary AWP segment for bothconstruction andnonconstruction applications Diesel Booms 22% q Demand for boom lifts has been increasing for 2 years Electric Booms 13% European 10 countries Diesel Booms 7% Electric Booms 6% Turkey Electric Booms Diesel Booms Electric Scissors Diesel Scissors Others Source: Data referenced from IPAF 2018 report and PLATFORMDER
SOME IMPORTANT PROJECTS NEW AIRPORT IN ISTANBUL Total Investment : 12 billion USD Total Area : 76.500.000 m² Begining date : 2016 Location : Istanbul Capacity : 200m passengers per year SOCAR- STAR REFINERY Total Investment : 6.3 billion USD Total Area : 24.000.000 m² Begining Date : 2013 Location : İzmir AKKUYU NUCLEAR POWER PLANT Total Investment : 20 billion USD Total Land Area : 10.230.000 m² Begining Date : 2019 Location : Mersin
SOME IMPORTANT PROJECTS GRAND CITY HOSPITALS 30 hospitals in 22 cities with a total capacity of at least 43,000 beds SEVERAL OTHER NUCLEAR POWER PLANT PROJECTS KANAL ISTANBUL 45 km long channel project
Thank You Erhan Acar erhanacar@rentrise.com.tr