Posted On: 2021-07-16
"Uganda used construction equipment market is witnessing an increase in demand for the used construction equipment owing to the rising population which is further increasing the demand of the new housing units and construction equipment." – 6Wresearch
Uganda is facing an eight-million-unit housing shortage, according to the Uganda National Planning Authority. With an estimated 300,000 housing units needed per year, demand for commercial and residential used construction equipment is required in the country.
According to 6Wresearch, Uganda Used Construction Equipment Market revenue is projected to grow at a CAGR of 3.4% during 2021-2027. However, the ongoing pandemic COVID-19 slowed down the growth of the market during the year 2020 due to a decline in demand in the lockdown period across the country. Moreover, with the gradual opening of the economy and the removal of lockdown measures, the market began to show improvement in the second half of the year. The average price of the whole construction sector has increased by 0.34% in the year ending Feb 2021 compared to the 0.08% decrease for the year ended Jan 2021, which would bolster the usage of used construction equipment in the country.
According to Navneet Agarwal, Senior Research Analyst, 6WResearch, "In the year 2020, earth moving equipment dominates the market revenue share owing to their wide use. Also, the same trend is expected to continue during the forecast period due to the greater demand for technologically efficient and upgraded equipment required to improve the construction project's efficiency."
"The Uganda Government also launched a program named Uganda's National Backbone Infrastructure which aims to connect all major towns within the country to an optical fiber cable-based network and will connect Government entities to the e-Government Network and now it has been extended to districts countrywide which expect to give rise to the used construction equipment in the country." Navneet further added.
According to Kajal Saraswat, Research Associate, 6WResearch, "By earth moving equipment type, excavators dominated the market in 2020. However, due to the extensive road-up-gradation projects in Uganda, motor graders are also likely to increase in the coming years.
Infrastructure funding currently comprises about 32.8% of the Government's total annual expenditure in Uganda. Also, the National Development Plan would envisage the growth of road, energy, and rail sectors which would further fuel the demand for used construction equipment in the years to come. Kajal further added
" Uganda Used Construction Equipment Market (2017-2027)" report provides an in-depth analysis with 7 figures with 5 tables, covered in __ pages. The report estimates and forecasts the overall market by equipment type. The report provides an unbiased and detailed analysis of the ongoing 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.