The construction equipment market in the GCC region is expected to register a CAGR of 1.6% between 2016 and 2022. The Kingdom of Saudi Arabia is likely to hold the highest revenue share during the period. UAE and Qatar too are expected to see a healthy growth. Segment-wise, the earthmoving equipment segment dominated the market with maximum revenue share. This is because there are many mining and construction projects happening across the region and earthmoving equipment is mandatory here. Mobile crane and dump truck are the other two segments of the construction equipment market that will swell in the GCC region.
Factors responsible for the growth of construction equipment market in GCC:
1. Expanding construction market:
The construction market in the GCC region is significantly large. Under Saudi Arabia’s Vision 2030, many construction projects are being or likely to be carried out. UAE is not behind in the race of having big, advanced complexes either. Many facilities are being built in Qatar as well. From malls to hospitals to hotels, the number of commercial spaces in the region is only going to rise.
2. Increasing number of utility projects:
Rising demand for energy has encouraged Saudi Arabia, UAE and Qatar to work on multiple utility projects. Increasing population, rising commercial and residential complexes, and rising demand for transportation facilities and automobiles call for establishment of more number of utility plants.
3. Government Initiatives:
The governments of all countries in the GCC region, especially Saudi Arabia, UAE, and Qatar, are actively investing for the growth and development of their economies. Many new government schemes focus primarily on construction and mining industries.
“Saudi Arabia’s Vision 2030 has a key role to play in the growth of the construction equipment market in the GCC region.”
4. Recovery of oil prices:
Oil prices are expected to stabilise post 2017. This stability is likely to bolster all markets and market segments in the region, including the construction equipment market.
5. Expansion of non-oil markets:
Countries in this region are focusing on non-oil sectors after the slump in oil prices severely hit their revenues. Non-oil markets include construction, mining and other related segments that are likely bolster the construction equipment market.
6. World Expo and FIFA World Cup:
It is predicted that the upcoming World Expo 2020 in Dubai and FIFA World Cup 2022 to be held in Qatar will have a positive impact on the construction equipment market in the GCC region.