Posted On: 2020-11-25
Earthmoving equipment type accounts for the largest revenue share in the Saudi Arabia Construction Equipment market on account of the rise in infrastructural development projects coupled by favorable government initiatives - 6Wresearch.
The construction equipment market in Saudi Arabia had been witnessing decline over the last few years on account of halting and cancellation of projects in the wake of oil crisis. Further, the coronavirus outbreak poses a significant challenge to the construction equipment market on account of the suspension of infrastructural development activities in the country. Also, expected delays in the development of tourism sites and cities currently under construction by the Saudi government would impede the growth of the Saudi infrastructure development sector, thereby hindering the growth of the aforesaid market for 2020. However, the government is encouraging investment in nearly all economic sectors with priority being given to construction, transportation, education, health, tourism and energy sectors underpinned by initiatives such as Vision 2030 and National Transformation Plan which would play a significant role in driving construction equipment market in the country. Saudi government has announced a set of support packages of almost $61 billion targeting the private sector to boost projects such as modernization of airports, roads and development of office spaces among others, would help in regaining the momentum in the urban transformation projects at the earliest.
According to 6Wresearch, Saudi Arabia Construction Equipment System Market revenue is expected to grow at a CAGR of 2.6% during 2020-26. Saudi Arabia construction equipment market is regaining its momentum after facing the consequences of oil crisis for last few years. Both the government and the private players are investing heavily for infrastructure development which includes the expansion of metros and airports, along with the construction of new hotels and shopping malls, which is expected to create a moderate drag on market revenues over the coming years. Additionally, with initiatives, such as Saudi Vision 2030 and the National Transformation Plan (NTP), the demand for construction equipment in Saudi Arabia would pick up pace over the next decade.
According to Kanika Arora, Senior Research Analyst, Research and Consulting, 6Wresearch, “Earthmoving equipment are used for digging the land and for earthworks and considered as crucial equipment for construction across all the sectors, thus, accounting for the major market revenue share in the overall Saudi Arabia construction equipment market. The earth-moving equipment segment further comprises of loader, excavator and motor graders, where loaders and excavators contribute more than 85% of the overall earth moving equipment revenues.”
“The oil & gas industry is predicted to undergo development with Saudi ARAMCO investing heavily to increase its refining capacity from 5 million barrels per day to 8-10 million barrels per day and continuously developing and expanding the existing oil and gas fields, such as Hawiyah Gas Plant, scheduled for completion by 2021.”- Kanika further added.
According to Swati Acharya, Research Associate, Research and Consulting, 6Wresearch, “Construction application dominates the overall market revenue share in the construction equipment market of Saudi Arabia and is also expected to experience the highest growth rate owing to substantial demand of such equipment in building of large number of upcoming office spaces, road, bridges, hotels and healthcare projects under the proposed economic city projects, such as Jazan Economic City and Prince Abdulaziz Bin Mousaed Economic City.”
Some of the key players in Saudi Arabia construction equipment system market include Caterpillar, Komatsu, Hyundai Construction Equipment, Volvo Construction Equipment, J C Bamford Excavators and several others.
“Saudi Arabia Construction Equipment System Market (2020-26)” report provides an in-depth analysis with 57 figures and 21 tables covered in more than 110 pages. The report estimates and forecast the overall Saudi Arabia construction equipment system market by revenues, volumes, equipment type, applications and regions. 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 devise and align their market strategies according to the current and future market dynamics.