The GCC construction equipment market will grow at a compound annual growth rate (CAGR) of 1.6% from 2016 through to 2022, according to a detailed forecast by 6Wresearch.
In a 330-page report, GCC Construction Equipment Market (2016-2022), 6Wresearch looks at many of the major manufacturers in the region, including Komatsu, Volvo, Caterpillar, Hitachi, Tadano, Manitowoc, CNH, Doosan and Kobelco.
The study notes that earthmoving equipment continues to hold the highest revenue share in the GCC construction equipment market, and that the growth in this segment will fall in line with the topline projection of a 1.6% CAGR.
"Though market for construction equipment was affected by falling oil prices, it is expected to regain momentum post 2017 due to the recovery of oil prices and initiatives taken by the governments to diversify their country's economies," noted 6Wresearch assistant manager Prijo Samuel.
In terms of the key focus areas for the market, public infrastructure development initiatives in Saudi Arabia, UAE, Qatar and Kuwait will continue to present major opportunities.
"Infrastructure projects such as Riyadh Metro, Dubai Metro expansion, Kuwait Metro and Muscat International Airport in Oman, coupled with new residential construction projects, will continue to fuel the demand for new construction equipment," added 6Wresearch analyst Sathi Paul.
"Utility projects such as nuclear power projects, desalination plants across the GCC countries will further drive the growth of the market over the next six years."
The report also notes that compared to other markets the GCC construction equipment market is highly consolidated, with a few international players having acquired the major market share through their tie-ups with local distributors/dealers.
Media Source: Construction Week Online