Middle-East and Africa Construction Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022-2027)

The Middle-East and Africa Construction Equipment Market is segmented by Machine Type (Cranes, Telescopic Handler, Excavator, Loaders, Motor Grader, and Other Equipment), Drive Type (Electric and Hybrid and Hydraulic), and Country (Saudi Arabia, South Africa, United Arab Emirates, Qatar, Morocco, and Rest of Middle-East and Africa). The report offers market size and forecasts for Middle-East and Africa Construction Equipment in value (USD Billion) for all the above segments.

Market Snapshot

middle east and africa construction equipment market_overview
Study Period: 2018 - 2026
Base Year: 2020
CAGR: >4 %

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Market Overview

The Middle-East and Africa Construction Equipment Market was valued at USD 4.26 billion in 2021. It is anticipated to reach USD 5.4 billion by 2027, registering a CAGR of over 4% during the forecast period (2022 -2027).

The COVID-19 pandemic severely affected the construction industry and associated equipment demand across the Middle East and Africa in 2020. This was primarily attributed to disruptions in the supply chain, reduced investment in new equipment procurement, halt and postponement of construction projects, and unstable economic growth of many countries. However, since 2021, the construction industry across the Middle East and Africa has been witnessing significant growth in investment and economic development, which is likely to drive the market in focus during the forecast period.

Rising government investments in infrastructure development and major infrastructure projects in the Middle East and Africa, such as those in Saudi Arabia, Kuwait, Oman, the United Arab Emirates, and Egypt, propel the market forward.

Scope of the report

The Middle East and Africa Construction Equipment Market is segmented by Machine Type, Drive Type, and Geography. The report also studies the latest technological trends and market share of major players.

The Middle-East and Africa Construction Equipment Market is segmented by Machine Type into Cranes, Telescopic Handler, Excavator, Loaders, Motor Grader, and Other Equipment.

Based on the Drive Type, the market is segmented into Electric and Hybrid, and Hydraulic.

and By Country, the market is observed in Saudi Arabia, South Africa, United Arab Emirates, Qatar, Morocco, and Rest of Middle East and Africa.

Machinery Type
Crane
Telescopic Handling
Excavator
Loaders
Motor Graders
Other Equipment
Drive Type
Electric and Hybrid
Hydraulic
Country
Saudi Arabia
South Africa
United Arab Emirates
Qatar
Morocco
Rest of Middle-East and Africa

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Key Market Trends

Growing Construction Industry

Each country in the Middle East region has grown in the construction sector in its unique way over the years, adhering to its own pace, norms, and ambitions. The United Arab Emirates is responsible for significant projects, owing to Dubai's more robust development and investment than the rest of the Middle East. High economic growth, a growing middle-class population, increased foreign investment, and other factors have contributed to this. Saudi Arabia, the United Arab Emirates (UAE), Oman, and Egypt are launching several infrastructure projects, including new megacities, railway projects, harbor projects, new airport projects, housing projects, and so on, all of which are expected to boost construction demand. The city infrastructure development also contributes to the need for construction equipment.

Saudi Arabia represents the second-largest market for the construction sector in the GCC region after the United Arab Emirates, which occupies more than 34% of the revenue generated. Saudi Arabia holds a revenue share of 29%, followed by Qatar and Oman with 12% and 10%, respectively.

Most global economies have set their sights on the African construction industry. This is due to the addition of benefits and advantages such as the availability of vast natural resources, massive investment opportunities in energy and infrastructure, low-cost labor, and a rapidly rising consumer market. There is also a good business environment, which includes policies that promote economic development.

Thus, various ongoing projects and future projects which are being initiated by the governments in the Middle East and African region to improve the infrastructure are creating a demand for construction equipment which will propel the growth of the market during the forecast period.

middle-east and africa construction equipment_segment2

Saudi Arabia to Experience High Growth Rate

Saudi Arabia's construction industry has experienced rapid expansion in recent years, owing to government assistance through long-term economic diversification programs such as Saudi Vision 2030. Saudi Arabia is diversifying its economic resources to minimize its reliance on crude oil exports by boosting the tourism industry, which involves the construction of new hotels and commercial facilities. The revenue of the construction sector in Saudi Arabia increased over the few years. With the growing urban and rural population, housing needs, and rapid diversification of the region’s business from the in-house giant oil and gas industry to tourism and other sectors, the demand for construction activities in the region for residential, industrial, and Commercial buildings increased in the past.

Saudi Arabia is in the middle of a major transformation agenda that includes many megaprojects, such as the tourist destination of the Neom super-city; the 334 square Kilometer entertainment city of Qiddiya; the development of the Unesco World Heritage site of Al-Ula; and the luxury, sustainable tourism-focused Red Sea Project.

With the above few stated activities, the infrastructure segment will likely drive massive demand for various construction equipment in the country during the forecast period.

middle-east and africa construction equipment market_geography

Competitive Landscape

Some of the prominent players in the Middle-East and Africa Construction Equipment market are Caterpillar Inc., Liebherr Group, Kobelco Construction Machinery Co., Ltd., Hitachi Ltd., Volvo AB, and Komatsu Ltd., amongst others. With the presence of many international players, the market is highly competitive, prompting the companies are innovating new ways to increase their sales.

Major Players

  1. Volvo AB

  2. Caterpillar Inc.

  3. Hitachi Ltd.

  4. JCB

  5. Liebherr Group

Middle-East And Africa Construction Equipment Market Concentration.png

Recent Developments

  • In June 2022, Caterpillar announced that its Saudi dealer Zahid Tractor had been selected as the main contractor to supply power solutions that deliver 32 MW of prime power for one of the kingdom's most ambitious developments.
  • In March 2022, the Volvo Construction Equipment company launched its EC550E crawler excavator in the Middle East. The excavator is designed to work on large infrastructure projects with high production levels.
  • In June 2021, Liebherr launched the 205 EC-B 10 flat-top crane capable of lifting up to 2,100 kg at its head with a jib length of 65 m. The crane can operate with its maximum load capacity of 10,000 kg at full jib length with a radius of up to 18 m.
  • In March 2021, Volvo Construction Equipment launched a 7-tonne compact excavator for the Middle East and African markets. The EC75D features Volvo’s D3 diesel engine, delivering 44.4kW of power and reduced fuel consumption. With a maximum reach of 6.3m and a digging depth of 3.8m, the high-strength tensile steel boom of the EC75D is fixed to the side of the cab for improved stability and visibility of the job site.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness – Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Machinery Type

      1. 5.1.1 Crane

      2. 5.1.2 Telescopic Handling

      3. 5.1.3 Excavator

      4. 5.1.4 Loaders

      5. 5.1.5 Motor Graders

      6. 5.1.6 Other Equipment

    2. 5.2 Drive Type

      1. 5.2.1 Electric and Hybrid

      2. 5.2.2 Hydraulic

    3. 5.3 Country

      1. 5.3.1 Saudi Arabia

      2. 5.3.2 South Africa

      3. 5.3.3 United Arab Emirates

      4. 5.3.4 Qatar

      5. 5.3.5 Morocco

      6. 5.3.6 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Kobelco Construction Machinery Co., Ltd.

      2. 6.2.2 Hitachi Construction Machinery Co.

      3. 6.2.3 Sumitomo Construction Machinery

      4. 6.2.4 CNH Industrial (Case Construction)

      5. 6.2.5 Caterpillar Inc.

      6. 6.2.6 Liebherr Group

      7. 6.2.7 Mitsubishi Corporation

      8. 6.2.8 JCB

      9. 6.2.9 Volvo AB

      10. 6.2.10 Doosan Corp

      11. 6.2.11 Manitowoc Company Inc.

      12. 6.2.12 Komatsu Ltd.

      13. 6.2.13 Tadano Ltd

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Middle-East and Africa Construction Equipment Market market is studied from 2018 - 2026.

The Middle-East and Africa Construction Equipment Market is growing at a CAGR of >4% over the next 5 years.

The Middle-East and Africa Construction Equipment Market is valued at 4 Billion USD in 2018.

The Middle-East and Africa Construction Equipment Market is valued at 5 Billion USD in 2026.

Volvo AB, Caterpillar Inc., Hitachi Ltd., JCB, Liebherr Group are the major companies operating in Middle-East and Africa Construction Equipment Market.

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