Recent research indicates that the construction machinery market for Gulf countries is worth nearly $2,230 Million. During the next five years until 2023, the market is expected to grow at a steady pace of 3.09%. The rising demand is due to the increasing demands for large cranes used for multi-story structures and automation in the new machinery.
In the three years between 2016 and 2018, USD 128 billion worth of projects were completed. The recent demand for construction machinery is due to large-scale projects that require heavy machinery. Despite a relatively sluggish pace of renal developments in the near future, demand for large cranes and machinery will remain intact due to a number of mega commercial and water projects in UAE and Oman.
While there have been concerns over the growth rate of construction projects in UAE and Saudia Arabia, the industry is seemingly rebounding from the recent slump. To aid in the development of construction projects, respective governments of GCC nations are taking a keen interest in launching new projects. In fact, the private sector is also encouraged to introduce their own projects, which should propel the construction industry in the next five years.
The Growing Importance of Tower Cranes
Gulf Countries, particularly UAE is known for its high-end skyscrapers. To aid in the development of the resurrecting economy, developers are looking for mega-cranes to boost their projects. Accordingly, the GCC crane market is expected to reach nearly USD 1,127 Million by 2024.
Big capacity luffing cranes are deployed in numerous projects around UAE, which shows that developers are still looking towards domestic and foreign companies to provide them the needed capacity to continue mega projects.
Demand for Mobile Cranes
Apart from tower cranes, GCC development projects will also require a large number of mobile cranes for industrial development. For instance, large number of mobile cranes will be needed in Qatar to develop the infrastructure for the upcoming Soccer World Cup.
Besides, mobile cranes are also needed for energy-related and industrial projects across the Gulf region. Experts believe that the demand for mobile cranes is yet another indicator of a growing economy. The growth will continue unabated for the next two years as many cities in the region have a rooster of development projects.
Growing Demand in UAE
The UAE market will lead the demand for construction machinery, which is expected to grow 4.12% in the next five years. In spite of the pressure from low oil prices, the construction projects will continue unabated in various sectors that include airports, roadways, and ports.
The demand for construction equipment is also the result of the mega airport complex in Dubai and the upcoming Expo 2020. It is estimated that the expansion of new Dubai international airport is worth more than $7.8 billion.
The expected rise in the construction machinery has encouraged manufacturers to introduce conceptual machinery such as entry-level backhoe loaders to meet the “customization” demands from the customers. Likewise, some companies are eyeing to manufacture large cranes domestically by opening local manufacturing plants. Such bold undertakings are also a sign of future growth.
The construction industry in GCC is dominated by international companies who seek to remain in control using research and development to aid their growth prospects. The ten largest companies in the region enjoy almost two-thirds of the market share. Since there are no monopolies, the competition is also high enabling local players to chip in.
The market demands a safe construction environment on par with international standards, which is also the reason for companies to strengthen their R&D units. Clients expect efficient, productive, and safe equipment that can help complete the job in time at a lower cost.
To meet such demands, some companies are also working with OEM to develop new parts and machines. Development of an electric-powered mini excavator is an example of such innovation.
Overall, the research report covers all GCC countries with special emphasis on markets in the UAE, Saudi Arabia, Qatar, and Kuwait. Similarly, it covers in-depth details about the type of machinery and its application. There is also an in-depth analysis of the competitive landscape and major industry players. It concludes by explaining market opportunities and future trends.