DUBLIN, December 17, 2021–(BUSINESS WIRE)–The “GCC Construction Equipment Market – Strategic Assessment & Forecast 2021-2027” report has been added to ResearchAndMarkets.com’s offering.
GCC construction equipment market size will be valued at USD 3722.2 million and to reach a volume of 99,829 units by 2027, growing at a compound annual growth rate (CAGR) of 7.34% by volume during 2021-2027
The GCC construction machinery market is expected to grow significantly during the forecast period owing to the factors such as increased government expenditure on highway, metro, and airport construction projects, etc. The government’s endeavors like Saudi Vision 2030, UAE Vision 2021, and Dubai Expo 2021 are expected to spike product demand in the market.
Saudi Arabia continues to be the biggest market for all sorts of infrastructure projects. The country is planning to spend USD 300 billion on new infrastructure, including massive passenger rail networks and a new airport for Riyadh.
The governments of these countries have realized the volatility of the oil and gas sector after the pandemic. They are now diversifying their economy to different sectors like construction, manufacturing, etc. This will positively impact the construction equipment market in GCC.
The COVID-19 pandemic negatively impacted the construction industry in GCC countries but pending projects will pace up during the forecast period driving the demand of the market. The countries are also focusing on diversifying businesses in all sectors because oil industry cannot be solely relied on given the price fluctuations.
Also, these nations have made significant budgetary allocations for the development of transportation infrastructure, like airports, rail routes, highways, etc.
In Gulf Corporation Council (GCC) countries OEM distributes their products through their own subsidiaries. For instance, Liebherr sells its products through Liebherr Middle East FZE. Komatsu sees a strong opportunity in automation and remote operation and plans to launch a full-fledged telecommuting system.
On the other hand, Liebherr launched several new earthmoving machines and technologies in 2020, including the first telescopic wheel loader, L 509 Tele. With the rise in demand for low carbon emission in the mining process across the globe, Hitachi Construction Machinery collaborated with ABB to apply digital solutions to the mining process and launched battery-powered excavators that could lower carbon emissions in 2020.
KEY HIGHLIGHTS IN THE REPORT
Large construction projects such as Jeddah Airport construction and development of NEOM district leads to the increasing demand for other construction equipment like bulldozers, trenches, etc.
The initiative to connect a network of rail and road routes from China to Europe via the Middle East will increase the MEA construction equipment market demand.
By 2050, UAE plans to have 44% of its energy provided through renewable sources. Dubai Clean Energy strategy will also encourage renewable energy project investments in the region.
The housing policy of UAE is focused on providing housing benefits to the low-income population through the federal government and various others within the local government. This will drive heavy construction equipment market demand.