The GCC Construction Equipment / Machinery Rental market was valued at $ 3.77 billion in 2020 and is expected to reach $ 5.48 billion by 2026, growing at a CAGR of 6.15% over the year. forecast period (2021-2026).
New York, December 01, 2021 (GLOBE NEWSWIRE) – Reportlinker.com announces the publication of the report “GCC Construction Equipment / Machinery Rental Market – Growth, Trends, COVID-19 Impact, and Forecast (2021 – 2026)” – https: / /www.reportlinker.com/p06187424/?utm_source=GNW
The Covid-19 pandemic has hampered the growth of the construction machinery / equipment market in the GCC region due to the closure of manufacturing facilities and the halt of investments in the infrastructure sector. However, after the pandemic, with the resumption of economic activities, the market is expected to accelerate during the forecast period.
Some of the major factors driving the market growth are growing construction industry in the region, increasing demand for cranes, and developing trends towards automation and telematics. Rental or leasing of construction equipment is on the rise, due to an effort to reduce expenses for the purchase and maintenance of equipment.
Besides the cost, there are also other benefits associated with renting construction equipment. Rental companies provide the machines, along with the required professional machine operators and operators, ensuring hassle-free operation. Moreover, advancements in the construction machinery rental method such as digital platforms make it easier for the consumer, which is also an important factor for the growth of the construction machinery market in GCC countries.
The construction sector is experiencing growth in GCC countries such as United Arab Emirates, Kingdom of Saudi Arabia, Qatar and Bahrain, due to the emergence of construction projects related to roads, buildings, hotels, stadiums and other infrastructure.
Key market trends
Earth moving equipment segment is expected to dominate the market
In recent years, the rental of earthmoving equipment, such as excavators, graders, loaders, has increased due to the growth of infrastructure projects related to road and highway networks in countries such as Saudi Arabia, UAE Arab Emirates and due to the penetration of more construction contractors in the country. due to Saudi Vision 2030. For example, in February 2020, Saudi Crown Prince Mohammed bin Salman ordered the development of major roads in the heart of Riyadh in order to modernize the city’s transportation system.
The goal of the project is to transform Riyadh into a major hub in the provision of sustainable transport services as well as logistics services in the Middle East. The program will work on the development of junctions between Riyadh’s ring roads and main roads. It will develop 400 kilometers of road network, adding new roads and improving existing junctions.
Several rental companies are expanding their rental fleets and making plans to enhance their product portfolio to strengthen their market position. For example,
In August 2021, the Al Faris Group strengthened its fleet by adding a total of five new 8-axle low loaders from Faymonville to tackle difficult terrain, narrow construction sites and winding platforms.
In September 2020, Dubai-based Salim Equipment Rental took delivery of two Liebherr HS 8130.1 duty cycle crawler cranes as part of its fleet expansion to provide services to the specialist foundation industry in region.
Due to the above cases and developments, the construction machinery rental trend is on the rise and is expected to experience healthy growth during the forecast period.
UAE could become market leader in GCC construction machinery rental
The construction market is a key driver of the UAE economy, but the sector is under considerable pressure due to the prolonged decline in oil prices in 2019 and COVID-19. However, with the resumption of economic activities in the United Arab Emirates, the demand for rental of construction machinery is expected to accelerate.
This growth in the rental market is mainly due to the growth of the construction sector as well as government initiatives to increase infrastructure spending for the 2020 World Expo. In addition, the increase in construction projects in the commercial and residential verticals would further fuel demand in the UAE. For example,
In January 2020, the government of Fujairah announced the construction of a 44 km road network project that covers 11 main areas of the United Arab Emirates. Earlier, in October 2019, the government announced the construction of 64 km of internal roads that cover the country’s main cities.
In April 2020, Target Engineering, a subsidiary of Arabtec Holding, received two contracts worth US $ 57 million in the country, and the projects were to be completed by the first quarter of 2022.
Several market players adopt growth strategies such as expansion, partnerships to strengthen their position in the market. For example, in July 2021, Sudhir Power Ltd, a construction equipment and generator rental company, announced its joint venture with Fuel Buddy, an Indian home fuel delivery service start-up, inaugurating its activities in the United Arab Emirates and Saudi Arabia.
Such factors will create a large demand for construction machinery which will further benefit the construction machinery rental market in United Arab Emirates.
The GCC construction equipment / machinery rental market is moderately consolidated due to the presence of several major and local players in the market. Rental companies invest heavily in the GCC region to gain an edge over their competition. While some of the other key players in the market are focused on investments, product development, partnerships, etc. to gain a competitive advantage over other market players. For example,
In February 2021, Mohammed Abdulrahman Al-Bahar announced the launch of a wide range of SEM machines, including wheel loaders, graders and crawler tractors. It has obtained the exclusive distribution rights for SEM products in the United Arab Emirates as well as Qatar, Bahrain, Kuwait and Oman.
In June 2021, Al Faris Group executed the full supply chain, including receiving, storing, transporting and lifting 30 overflow tanks, which are part of the ongoing Mohammed Bin Rashid Al solar park project. Maktoum.
In February 2021, Johnson Arabia, one of the leading aerial work platform companies in the GCC region with more than 250 mobile cranes and 700 ariel work platforms (AWP), expanded its fleet of aerial work platforms. -Ariel work forms with the launch of its second branch in Oman.
Some of the major market players are Al Faris, Bin Quraya, Arabian Machinery & Heavy Equipment Co. (AMHEC), Byrne Equipment Rental, Mohamed Abdulrahman Al-Bahar LLC and among others.
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