Market Size of Middle East and Africa Construction Equipment Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 4.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Middle East and Africa Construction Equipment Market Analysis
Currently, the Middle East and Africa Construction Equipment Market is valued at USD 4.26 billion. It is expected to reach USD 6.4 billion, registering a CAGR of 4% over the next five years.
The COVID-19 pandemic severely affected the construction industry and associated equipment demand across the Middle East and Africa. It 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 last year, the construction industry across the Middle East and Africa has been experiencing significant growth in investment and economic development, witnessing major orders for construction equipment from GCC countries in the region which is likely to drive the market in focus during the forecast period. For instance,
- In August last year, Doosan Infracore Co., a subsidiary of Hyundai Construction Equipment won an order to supply 62 units of construction equipment to major customers in Saudi Arabia and Bahrain.
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, are anticiapted to produce significant growth in the market. One of the major factors driving the growth of the market is the growing construction industry, especially in developing countries, owing to numerous growth opportunities in infrastructure, residential, and non-residential sectors. The rise in the construction of multi-family houses (with the growing trend of nuclear families), and increasing investments in the construction of roads, highways, smart cities, metros, bridges, and expressways due to the growing population and urbanization. The growing trend toward automation is expected to drive the growth of the market. For instance,
- This year, the United Arab Emirates announced plans to spend USD 23 billion on infrastructure developement.
However, factors, such as stringent emission regulations for construction machinery, are expected to hinder the growth of the market For instance,
Thus the confluence of all the aforementioned factors is projected to produce steady growth for construction equipment market in the Middle East and Africa over the next five years.
