Saudi Arabia Construction Equipment Market Size Likely to Surpass at a CAGR of 4.5% By 2033

As per the current market research conducted by the CMI Team, the Saudi Arabia Construction Equipment Market size is expected to record a CAGR of 4.5% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 27,025.9 Million. By 2033, the valuation is anticipated to reach USD 40,163.1 Million.

Saudi Arabia Construction Equipment Market: Growth Factors and Dynamics

• Infrastructure Development: Saudi Arabia’s extensive infrastructure development projects, including transportation networks, utilities, and urban development initiatives, are driving the demand for construction equipment. Mega-projects such as NEOM and the Riyadh Metro contribute significantly to market growth.

• Urbanization and Population Growth: Rapid urbanization and population growth in Saudi cities lead to increased demand for residential, commercial, and industrial construction, fueling the need for construction equipment across various sectors.

• Government Initiatives: The Saudi government’s Vision 2030 initiative emphasizes diversification, economic growth, and infrastructure development, resulting in substantial investments in construction projects and driving the demand for construction equipment.

• Technological Advancements: Advancements in construction equipment technology, including automation, telematics, and IoT integration, enhance efficiency, productivity, and safety on construction sites, further driving market growth.

• Sustainability and Efficiency: There is a growing emphasis on sustainable construction practices and energy-efficient equipment in Saudi Arabia, leading to the adoption of environmentally friendly construction equipment and technologies.

• Private Sector Investments: Besides government-led initiatives, private sector investments in real estate, hospitality, and commercial projects contribute significantly to the demand for construction equipment, creating opportunities for equipment manufacturers and suppliers in the market.

• Mining Sector Growth: Saudi Arabia’s mining sector is experiencing significant growth, driven by the government’s efforts to diversify the economy. This growth translates to increased demand for specialized construction equipment for mining operations, including excavators, loaders, and haul trucks.

• Focus on Industrialization: The Saudi government’s focus on industrialization and localization initiatives is driving investments in industrial construction projects. This includes the development of industrial cities, manufacturing facilities, and petrochemical complexes, leading to a surge in demand for construction equipment tailored to industrial applications.

• Construction Technology Adoption: The adoption of advanced construction technologies such as Building Information Modeling (BIM), 3D printing, and prefabrication methods is influencing the demand for specialized construction equipment designed to work with these technologies, facilitating faster and more efficient construction processes.

Saudi Arabia Construction Equipment Market: Partnership and Acquisitions

• In 2022, Berlin-based construction technology company Flexcavo is increasing its capital by USD 8 million to expand its construction machinery fleet. The capital will be used for procuring a new rental park in Maisach, Munich, with plans for over 150 new construction machinery and equipment from manufacturers JCB and Wacker Neuson.

• In 2022, Hitachi launched the ZW220-7, a Stage V-compliant wheel loader featuring an operating weight of 18,190-19,450kg and a net power of 157kW (210hp). With a heaped bucket capacity (ISO) ranging from 2.8 to 10.0 cubic meters, it offers enhanced efficiency and productivity for various construction applications.

Report Scope

Saudi Arabia Construction Equipment Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Saudi Arabia Construction Equipment Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Disruption in Supply Chains: COVID-19 led to disruptions in global supply chains, impacting the availability of construction equipment components and spare parts in Saudi Arabia, leading to delays in project timelines.

• Project Delays and Cancellations: The pandemic resulted in project delays and cancellations across various sectors of the construction industry in Saudi Arabia, leading to reduced demand for construction equipment as construction activities slowed down.

• Resumption of Construction Activities: With the easing of COVID-19 restrictions and the rollout of vaccination programs, construction activities gradually resumed in Saudi Arabia, boosting the demand for construction equipment.

• Government Stimulus Packages: The Saudi government implemented stimulus packages and infrastructure projects to revive the economy post-pandemic, stimulating the construction sector and driving the demand for construction equipment.

• Adoption of Digital Technologies: The pandemic accelerated the adoption of digital technologies in the construction industry, facilitating remote project management, digital collaboration, and virtual inspections, thereby increasing efficiency in construction equipment usage.

• Focus on Health and Safety Measures: Enhanced health and safety measures on construction sites, such as social distancing protocols and sanitation practices, restored confidence among workers and stakeholders, enabling construction activities to resume at full capacity.

• Investments in Infrastructure: Continued investments in infrastructure projects, driven by government initiatives and private sector investments, created demand for construction equipment and contributed to the market’s recovery.

• Diversification of Market Offerings: Construction equipment manufacturers in Saudi Arabia diversified their product offerings to meet evolving customer needs post-pandemic. This diversification included the introduction of innovative features, enhanced safety measures, and flexible financing options to attract customers and stimulate demand in the market.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Saudi Arabia Construction Equipment Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the Saudi Arabia Construction Equipment Market:

• Caterpillar Inc.
• Komatsu Ltd.
• Volvo Construction Equipment
• Hitachi Construction Machinery Co. Ltd.
• JCB (J.C. Bamford Excavators Ltd.)
• Liebherr Group
• SANY Group
• Doosan Infracore Co. Ltd.
• Hyundai Construction Equipment Co Ltd.
• Bobcat Company (Doosan Bobcat Inc.)
• Terex Corporation
• Zoomlion Heavy Industry Science & Technology Co Ltd.
• XCMG Group
• Atlas Copco Group
• Kobelco Construction Machinery Co. Ltd.
• Others

The Saudi Arabia Construction Equipment Market is segmented as follows:

By Product Type

• Excavators
• Loaders
• Bulldozers
• Cranes
• Dump Trucks
• Compact Equipment
• Others

By Application

• Earthmoving Equipment
• Material Handling Equipment
• Concrete Equipment
• Road Construction Equipment
• Demolition Equipment
• Others

By Power Source

• Diesel-powered Equipment
• Electric-powered Equipment
• Hybrid-powered Equipment
• Manual Equipment
• Others

By End User Industry

• Residential Construction
• Commercial Construction
• Industrial Construction
• Infrastructure Construction
• Mining
• Others