Development of public infrastructure and government initiatives such as Ethiopia Vision 2025, Growth & Transformation Plan - II as well as massive infrastructure projects such as The Great Renaissance Dam are driving the growth of construction equipment in Ethiopia.
According to 6Wresearch, Ethiopia Construction Equipment Market revenues are projected to grow at a CAGR of 6.1% during 2019-25. The government of Ethiopia has introduced a five-year Urban Institutional and Infrastructure Development Program which would cost $860 million, under which the government would develop infrastructure in 117 cities. Rapid expansion of infrastructure has made Ethiopia one of the fastest growing construction equipment markets in Africa. Ethiopia also leads in hotel expansion in East Africa region due to substantial rise in tourism in the country, which is further acting as a catalyst for the growth of construction equipment market in the region.
According to Prithu Chawla, Senior Research Associate, 6Wresearch, "Earthmoving equipment segment registered the highest revenue share in the Ethiopia construction equipment market and is projected to dominate the market during the forecast period on account of growing demand from construction of road network in the country. Other key areas which are expected to grow at a substantial rate include cranes, material handling and road construction equipment."
"Further, Ethiopia construction equipment market is import based as the heavy machinery manufacturing sector of the country is still in the initial stages and not developed enough to support the local demand for construction equipment in the region," Prithu further added.
According to Vanshika Bhageria, Research Associate, Research and Consulting, 6Wresearch, "Construction application segment accounted for majority of the revenue share in Ethiopia construction equipment market. The aforementioned segment would further continue to dominate the market throughout the forecast period primarily due to upcoming road and public infrastructure projects in the country."
"The Southern region of Ethiopia captured the highest revenue share in the Ethiopia construction equipment market. Additionally, rapid urbanization and developing real estate sector, especially in Addis Adda, the capital of Ethiopia, would further fuel the demand for construction equipment in Ethiopia, " Vanshika further added.
Some of the major companies in Ethiopia construction equipment market include- Volvo CE, Caterpillar, Komatsu, Hitachi, J C Bamford Excavators Limited, Doosan and Xuzhou Construction Machinery Group Co., Ltd. (XCMG).
"Ethiopia Construction Equipment Market (2019-2025)" provides an in-depth analysis with 42 figures and 16 tables, covered in more than 90 pages. The report estimates and forecast the overall Ethiopia construction equipment market by application, regions and equipment type such as cranes, earthmoving equipment, material handling and others. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas and market drivers which would help the stakeholders to device and align their market strategies according to the current and future market dynamics.