Construction equipment market in GCC region was buoyed by several factors such as growing construction market, several utility projects in countries such as UAE, Saudi Arabia and Qatar. Saudi Arabia held majority of the market share followed by UAE and Qatar. However, declining global oil prices resulted in slowdown in the infrastructure spending, which halted several projects in the region. Major impact of the declining oil revenues was witnessed in Saudi Arabia. However, utility sector recorded investments due to growing demand for energy, which fueled the growth of the market.
According to 6Wresearch, GCC construction equipment market is forecast to grow at a CAGR of 1.6% during 2016-22. The GCC construction equipment market is highly consolidated, wherein few international players have acquired majority of the market share. International players have maintained their presence through tie-ups with local distributors/ dealers.
According to Â‘Prijo Samuel Asst. Manager, Research and Consulting, 6Wresearch, Â“though market for construction equipment was affected due to falling oil prices but is expected to regain momentum post 2017 due to recovery of the prices and initiatives taken by the governments to diversify their countryÂ’s economies.
Further, in GCC construction equipment market, earthmoving equipment held highest revenue share in the market and is anticipated to follow similar trend in the forecast period as well. Government initiatives for developing public infrastructures in Kuwait, Qatar, Saudi Arabia and UAE would result in the growth of construction equipment market.
According to Sathi Paul, Research Analyst, Research and Consulting, 6Wresearch, Â“upcoming infrastructure projects such as Kuwait metro, Riyadh metro, Dubai metro, expansion of Muscat International Airport in Oman coupled with new residential construction projects would fuel the demand for new construction equipment.
Also, utility projects such as nuclear power projects, desalination plants across GCC countries would further drive the growth of the market over the next six years,Â” Sathi concluded.
Some of the key players in the GCC construction market includes- Komatsu, Volvo, Caterpillar, Hitachi, Tadano, Manitowoc, CNH, Doosan and Kobelco.
Media Source: Zawya