Middle East and Africa Construction Equipment Market | Growth, Trends, and Forecast (2018 - 2023)
Middle East and Africa Construction Equipment Market – Segmented by Machine Type (Cranes, Telescopic Handling, Excavator, Loader & Backhoe, Motor Grader), Drive Type (Electric and Hybrid, and Hydraulic), and Country - Growth, Trends and Forecast (2018 - 2023)

PUBLISHED

OCT 2018

Middle East and Africa Construction Equipment Market – Segmented by Machine Type (Cranes, Telescopic Handling, Excavator, Loader & Backhoe, Motor Grader), Drive Type (Electric and Hybrid, and Hydraulic), and Country - Growth, Trends and Forecast (2018 - 2023)

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Middle East and Africa Construction Equipment Market

The Middle East and Africa construction equipment market was valued at USD 17.38 billion in 2017 and is expected to witness a CAGR of 5.44%, during the forecast period 2018-2023.

Growing Construction Industry in the Middle Eastern Region

The year 2017 witnessed a steep rise in construction activity (building, residential, nonresidential, engineering construction) globally.

The construction industry is the key driver of the UAE economy and is second only to Saudi Arabia, in terms of size within the GCC. However, the sector has been facing significant pressure due to a prolonged slump in oil prices. However, irrespective of the prevailing situation, the construction industry remains resilient and the outlook for the sector remains optimistic. The UAE strategic location, well-developed financial market, big consumer base, and localized drivers continue to make it one of the most attractive markets in the GCC.

The government of UAE has planned the development of a new automotive city in the west of Abu Dhabi. The work on the first phase of the project has already commenced, which will involve an AED 1.6 billion outlay on its infrastructure. This, in turn, is expected to boost the demand for machinery, used in the construction process, enhancing the country’s construction machinery sector.

Government initiatives, such as Dubai Plan 2021 and Abu Dhabi Vision 2030, are the key factors driving the Emirati construction industry. These initiatives are expected to result in the expansion of metros and airports, along with the construction of new hotels and shopping malls, which are likely to boost the demand of machines, such as cranes, over the forecast period.

Apart from the UAE, the construction sector in Oman has been witnessing a robust growth and is expected to witness the same for the coming five years, owing to the following reasons –

  • Favorable regulations that incentivize foreign investment.
  • Robust government support for infrastructure sectors, like renewables, water, and logistics.
  • Some of the major projects driving Oman’s construction sector include the USD 155 million contract awarded by the Oman Power and Water Procurement Company to a consortium, involving ACWA Power and Veolia Middle East, to set up the Salalah independent water project in Dhofar.

All the aforementioned developments are expected to boost the demand for construction machinery in the region.

Cranes – Expected to Dominate the Market

There are very few construction projects that can be carried out without cranes. These machines are able to perform all important duties, such as lifting materials and small equipment.

Over the years, the UAE has been one of the major markets for cranes, as the conveyor belts of hotels, residential buildings, retail and commercial schemes, all require cranes. The region has been witnessing a trend for taller and bigger cranes, machines that are able to handle higher loads.

For instance, Favelle Favco M2480D luffing jib crane, with a maximum lifting capacity of 330 tonnes, is being used at Dubai’s ICD Brookfield Place. Additionally, at Dubai Hills development, Consolidated Contractors Company has been building a residential and hotel development and has seven Liebherr 200 EC-H 12 Litronic models, all with a maximum lifting capacity of 10t, and jib lengths of 55m and 60m.

Apart from the high lifting capacity, the cost-effectiveness and versatility of tower cranes, make them as a popular choice among contractors. As per crane companies, the GCC region has been witnessing strong construction activities, especially in Dubai and Doha, where events, such as the 2020 World Expo and the 2022 FIFA World Cup, are driving major investments in new buildings and facilities, in turn, creating a huge demand for cranes.

Key Industry Players: Some of the major companies includes Hitachi Construction Machinery., Caterpillar, Liebherr, CNH Industrial (Case Construction), and JCB among others.

Key Development

  • March 2018 – Al-Bahar, exclusive CAT dealer in UAE Bahrain, Kuwait and Oman introduced CAT 320 medium excavator and CAT 962L wheel loader to the GCC market during the expo in Dubai.

Report Scope

Attribute

Details

Base Year for Estimation

2017

Forecast Period

2018 – 2023

Market Representation

Revenue in USD million and CAGR from 2018 – 2023

Report Coverage

Revenue forecast, market share analysis, and market dynamics

Reasons to Purchase this Report

  • Analyzing various perspectives of the market with the help of Porter’s Five Forces Analysis
  • Detailed analysis on the segment that is expected to register the highest growth rate
  • Country that is expected to witness fastest growth during the forecast period
  • Identifying the latest developments, market shares and strategies employed by the major market players
  • 3-month analyst support, along with the Market Estimate Sheet (in Excel)

Customization of the Report

This report can be customized to meet your requirements. Please connect with our analyst, who will ensure you get a report that suits your needs.

1. INTRODUCTION

1.1 Scope of the Market

1.2 Executive Summary

2. RESEARCH METHODOLOGY

2.1 Study Deliverables

2.2 Study Assumptions

2.3 Research Methodology

3. MARKET OVERVIEW

3.1 Current Market Scenario

3.2 Technology Trends

3.3 Industry Attractiveness – Porter’s Five Forces Analysis

3.3.1 Bargaining Power of Suppliers

3.3.2 Bargaining Power of Buyers

3.3.3 Threat of New Entrants

3.3.4 Threat of Substitute Products and Services

3.3.5 Competitive Rivalry Within the Industry

4. MARKET DYNAMICS

4.1 Divers

4.2 Restraints

4.3 Opportunities

5. MARKET SEGMENTATION AND ANALYSIS – BY TYPE (MARKET SIZE, GROWTH, AND FORECAST)

5.1 BY MACHINERY TYPE

5.1.1 Crane

5.1.2 Excavator

5.1.3 Loaders and Backhoe

5.1.4 Motor Graders

5.1.5 Telescopic Handling

5.1.6 Others

5.2 By Drive Type

5.2.1 Electric and Hybrid

5.2.2 Hydraulic

6. REGIONAL MARKET ANALYSIS (MARKET SIZE, GROWTH, AND FORECAST)

6.1 Saudi Arabia

6.2 South Africa

6.3 UAE

6.4 Qatar

6.5 Rest of Middle East and Africa

7. COMPETITIVE LANDSCAPE

7.1 Introduction

7.2 Market Share Analysis

8. COMPANY PROFILES (OVERVIEW, FINANCIALS**, PRODUCTS & SERVICES, SWOT ANALYSIS, AND RECENT DEVELOPMENTS)

8.1 Kobelco Construction Machinery

8.2 Hitachi Construction Machinery

8.3 Sumitomo Construction Machinery

8.4 CNH Industrial (Case Construction)

8.5 Caterpillar

8.6 BEML

8.7 Liebherr

8.8 Mitsubishi

8.9 JCB

8.10 Volvo Construction Equipment Corp.

8.11 Doosan Infracore Construction Equipment

8.12 Manitowoc Company Inc.

8.13 Tadano Ltd

8.14 TCM

8.15 Toyota

*List not Exhaustive

9. FUTURE OF THE MARKET

10. DISCLAIMER

** Subject to Availability on Public Domain

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