Dublin, July 05, 2023 (GLOBE NEWSWIRE) -- The "Middle East & North Africa Construction Equipment Market By Type (Loader, Forklift, Excavator, Dozers, Others), By Power Output (<100hp, 101-200hp, 201-400hp, >400hp), By Application, By End User, By Country, Competition, Forecast and Opportunities, 2028F" report has been added to ResearchAndMarkets.com's offering.
Middle East & North Africa Construction Equipment Market is anticipated to expand steadily in the forecast period 2024-2028. The market for construction equipment in the Middle East and Africa was valued at USD 11.21 billion in 2022.
Due to the strong economic growth, a growing elite population, increased foreign investment, and other favorable factors, it is anticipated to reach USD 20.04 billion over the next five years, registering a CAGR of 10.38% in the next five years.
In 2021, the Middle East & North Africa area produced about 7,335 thousand barrels of oil per day. When compared to the previous year, when oil output was 7,428 thousand barrels per day, the data demonstrates a drop.
Construction equipment is any piece of equipment that is used in the execution, completion, erection, operation, or maintenance of a construction project or job. Additionally, when building roads, bridges, and dams, construction equipment is used in the earthmoving process. In addition to it being used in construction, mining also uses wheel loaders and excavators.
Rising Infrastructure Development & Growing Urbanization Across the Region
The MENA region is witnessing significant growth in infrastructure development, including the construction of roads, bridges, tunnels, airports, seaports, and other public infrastructure projects. This is due to the growing population, economic development, and the need to improve transportation and connectivity within and between cities. Infrastructure development requires heavy machinery and construction equipment to carry out the construction work, which is driving the demand for such equipment in the MENA region.
Urbanization is a process where people move from rural areas to urban areas, which leads to the development of cities and towns. The MENA region is experiencing rapid urbanization, which is driving the demand for construction equipment, especially in the construction of high-rise buildings, commercial complexes, and residential buildings. With the increasing urbanization, there is a growing need for infrastructure and housing, which in turn is driving the demand for construction equipment.
Technological Advancements
The construction equipment market is witnessing significant technological advancements, such as the use of telematics, GPS, and other digital technologies. These advancements are enabling construction companies to enhance their productivity and reduce their operating costs.
Growing Demand for Rental Equipment
The MENA construction equipment rental market is growing rapidly due to the increasing demand for rental equipment by construction companies. Rental equipment allows construction companies to reduce their capital expenditures and improve their cash flows.
Government Initiatives
The governments in the MENA region are investing heavily in infrastructure development and urbanization, which is driving the demand for construction equipment. For instance, Saudi Arabia's Vision 2030 aims to develop the infrastructure of the country and increase the contribution of the private sector to the economy. Similarly, the UAE is investing in infrastructure development to become a global business hub. These initiatives are creating a favorable environment for the construction equipment market to grow.
Increasing Awareness of Safety
With the increasing awareness of safety, construction companies are focusing more on the safety of their workers and the environment. As a result, there is a growing demand for construction equipment that is equipped with safety features such as sensors, cameras, and alarms. These safety features help to prevent accidents, improve the safety of workers, and reduce the risk of damage to the equipment and the environment.
Increase in Oil, Gas & Mining Projects
The Middle East is well-known for having large oil and gas reserves, and there are still many important oil and gas-related projects taking place there. These initiatives include pipeline construction, refinery construction, petrochemical plant construction, exploration, extraction, and processing activities. These projects require specialized construction tools like heavy-duty cranes, drilling rigs, and machines for laying pipelines.
Due to ongoing investments in the oil and gas sector, the demand for construction equipment in this market is still strong. Natural resources such as metals and minerals like gold, diamonds, copper, and iron ore are abundant in Africa. Many African economies depend heavily on the mining industry to spur economic expansion and generate job opportunities.
Excavators, dump trucks, drilling rigs, and crushers are just a few examples of the heavy machinery and equipment needed for mining projects at various stages of mineral exploration, extraction, and processing. Thus, the region's increasing need for construction equipment is a result of the expansion of the mining industry.
Regulatory Policies in Trade
Different nations have different laws and rules governing the production, import, and export of construction equipment. To prevent unfair competition and give indigenous manufacturers an advantage, nations impose various import duties for international trade.
To lower tariffs and other barriers to a free trade zone or common market, governments typically enter into bilateral trade agreements with other nations. This may be advantageous, but it may also result in more competition from abroad. Trade activities are more significantly impacted by foreign affairs.
In the event of disagreements with other nations, trade agreements may be put on hold, or in the worst-case scenario; restrictions may be placed, limiting trade entirely. Therefore, the impact of international trade policies and regulations creates factors that limit the growth and sale of the construction equipment market in many countries.
Increasing Focus on Affordable Housing and Infrastructure
The focus on smart buildings is constantly increasing globally, especially in developing economies, which is majorly attributed to the rising population, increasing urbanization, and improving lifestyle.
Also, the demand for affordable housing is increasing with rising income levels. In addition, the World Bank is taking favorable initiatives such as the development of sustainable cities, which is likely to increase the demand for construction equipment across Europe, Africa, and Central Asia.
Furthermore, the International Monetary Fund (IMF) provided loans and increased the access limit under emergency financing instruments from 2020 to member countries for housing development. Individual countries' rural and urban development projects are also designed in close cooperation with the IMF and are supported by IMF financing. Such initiatives are further expected to drive the construction equipment market across the world.
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Middle East & North Africa Construction Equipment Market.
- Caterpillar Inc- (Al-Bahar Construction Equipment FZE)
- Komatsu Middle East FZE
- Liebherr Middle East, FZE
- Hitachi Construction Machinery Middle East Corp- FZE
- Volvo Construction Equipment AB (Al Futtaim Auto and Machinery Company LLC)
- Zoomlion Gulf FZE
- Terex Corporation
- CNH Industrial N.V.
- Hyundai Doosan Infracore (Doosan Infracore Co., Ltd.)
- Deere & Company (John Deere)
Report Scope:
Construction Equipment Market, By Type:
- Loader
- Forklift
- Excavator
- Dozers
- Others
Construction Equipment Market, By Technology:
- < 100hp
- 101-200hp
- 201-400hp
- >400hp
Construction Equipment Market, By Application:
- Material Handling
- Excavation & Demolition
- Recycling & Waste Management
- Tunnelling
- Others
Construction Equipment Market, By End User:
- Oil & Gas
- Construction
- Infrastructure
- Manufacturing
- Others
Construction Equipment Market, By Country:
- Saudi Arabia
- Egypt
- UAE
- Turkey
- Qatar
- Morocco
- Iran
- Kuwait
- Oman
- Bahrain
- Rest of Middle East & North Africa
For more information about this report visit https://www.researchandmarkets.com/r/rvqyyb
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