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KEY HIGHLIGHTS
- Earthmoving equipment accounted for the largest market share of 47.7% in Saudi Arabia construction equipment market in 2022. Excavators in the earthmoving segment accounted for the largest share; further, the rising investment in infrastructures, development of roadways, & other waste management projects in 2023 is expected to drive the demand for hydraulic excavators.
- The Saudi government is proactively investing in transforming the country into a global logistics hub. Saudi Arabia has made significant budgetary allocations to develop transportation infrastructure such as airports, railroads, highways, and ports. In July 2021, the Saudi Ports Authority invited private sector players to build 8 new terminals (terminals in Jeddah Islamic Port, King Abdulaziz Port in Dammam, Ras Al-Khair Port, Jizan Port, Yanbu Commercial Port, King Fahad Industrial.
- The region is witnessing a surge in investment in the gold mining industry, and the government aims to increase gold and phosphate production. Investment is directed toward the construction of new gold extraction mines. Hence, growth in the mining industry is expected to drive the sale of large excavators in the Saudi Arabia construction equipment market.
- Saudi Arabian government in waste management projects in 2023 is expected to drive demand for loaders, excavators, and dump trucks in the country. The government aims to eliminate 82% of waste generated by 2030. Therefore, government fund is also allocated for constructing new waste management facilities across the country in 2023.
- Investment in renewable energy projects across the country in 2023 is expected to drive demand for mini excavators, cranes, and aerial platforms in the Saudi Arabia construction equipment market.
SEGMENTATION ANALYSIS
Segmentation by Type
- Earthmoving Equipment
- Excavator
- Backhoe Loaders
- Motor Graders
- Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers)
- Road Construction Equipment
- Road Rollers
- Asphalt Pavers
- Material Handling Equipment
- Crane
- Forklift & Telescopic Handlers
- Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)
- Other Construction Equipment
- Dumper
- Tipper
- Concrete Mixer
- Concrete Pump Truck
- End Users
- Construction
- Mining
- Manufacturing
- Others
MARKET TRENDS & DRIVERS
Investment in Infrastructure Projects
Saudi’s goal ‘Vision 2030’ plans to build over 555,000 residential units, over 275,000 hotels, 4.3 million square meters of retail space, and over 6.1 million square meters of office space by 2030. Saudi Arabia is building a new smart city, ‘NEOM,’ valuing USD 500 billion. The mega project will include several cities, resorts, and other projects. NEOM will build around an area of 25,600 sq. km. in north-western Saudi Arabia, and it will consist of ten projects built across four regions - the Line, Oxagon, Trojena, and Sindalah. The Line includes a 170-km linear city, which expects to encompass 9 million people. The city will also entail two parallel 500-meter-high skyscrapers. Similarly, another region, Oxagon, will consist of an octagon-shaped port city, which will be constructed on the Red Sea.A Surge in Renewable Energy Projects
In line with its goal to achieve net zero emissions by 2060, the Saudi government launched several renewable energy projects nationwide under the National Renewable Energy Program (NREP). In 2023, the government announced ten renewable energy projects. The country aimed to enhance the power generated from solar and wind sources and reduce the dependency on fossil fuel & oil for electricity generation. These ten renewable energy projects' total power generation capacity will be 7 GW. In addition, the government launched three wind energy projects and two solar energy projects with 3,300 megawatts of energy capacity in 2022.Extensive Application of Hydraulic Crawler Excavators in Saudi Arabia
In December 2022, Kanoo Machinery received an order of 10 XCMG XE490D excavators in Saudi Arabia. These hydraulic excavators will be delivered in the Tabuk region, which will help the country in its NEOM project. In May 2022, Hyundai Doosan Infracore earned orders for 75 mid to large excavators from Saudi Arabia. These machines would be used at the construction site of Neom City in Saudi Arabia. Further, the government is taking measures to reduce the waste dumped in landfills and seas. It has initiated several waste management projects to reduce solid waste generation and promote recycling.Shift Toward Green Hydrogen Fuel-Based Equipment
The government has taken several initiatives to develop green hydrogen fuel. For instance, in 2021, new projects in the energy sector included renewables and hydrogen fuel (USD 5 billion Helios Green Fuels hydrogen project). The country is also building one of the world’s major green hydrogen projects, a joint venture among NEOM, Air Products, and ACWA Power. The project will combine 4 GW of solar and wind energy to generate 650 tons of hydrogen daily. The project is scheduled to be operational in 2025.INDUSTRY RESTRAINTS
Labor Shortage in the Construction Industry
The Saudi Arabia construction equipment market is presently facing a labor force shortage. To overcome this challenge local construction industry often relies heavily on foreign workers hired on contracts from other countries. It is a major challenge faced by the construction & mining industries in Saudi Arabia. As these industries are highly labor intensive, hiring skilled laborers is one of the contractors’ biggest challenges.Overdependency on the Hydrocarbon Industry
The economy of Saudi Arabia heavily depends on its hydrocarbon industry. Saudi Arabia earns 80% of its export income from oil, making around 40% of Saudi gross domestic products in 2022. Despite government efforts to promote non-hydrocarbon sectors, the country’s economy highly relies on the oil & gas industries. The economic growth of Saudi Arabia depends on the performance of the oil & gas industry, which is entirely influenced by oil prices in the global market. For instance, in 2020, a decline in oil prices in the global market adversely affected the country’s oil & gas industry export. There was a 4% decline in natural gas demand in the Saudi market in 2020.VENDOR LANDSCAPE
- Prominent vendors in the Saudi Arabia construction equipment market are Caterpillar, Volvo Construction Equipment, Liebherr, Komatsu, Hitachi Construction Machinery, Kobelco, CNH Industrials, JCB, XCMG, and SANY.
- Other prominent vendors are Hyundai Doosan Infracore, Yanmar, Manitou, Kubota, & Zoomlion.
Key Vendors
- Caterpillar
- Komatsu
- Xuzhou Construction Machinery Group Co. Ltd. (XCMG)
- Liebherr
- Volvo Construction Equipment
- Hitachi Construction Machinery
- JCB
- SANY
- CNH Industrial
- Kobelco
Other Prominent Vendors
- Yanmar
- Manitou
- Kubota
- Zoomlion Heavy Industry Science & Technology Co., Ltd.
- Hyundai Doosan Infracore
Distributor Profiles
- Kanoo Machinery
- Al-Futtaim Auto & Machinery Company
- Arabian Truck & Construction Equipment Co.
- Arabian Auto Agency
- Al-Qahtani Vehicle & Machinery Company
KEY QUESTIONS ANSWERED
1. How big is the Saudi Arabia construction equipment market?2. What is the growth rate of the Saudi Arabia construction equipment market?
3. Who are the key players in the Saudi Arabia construction equipment market?
4. What are the trends in the Saudi Arabia construction equipment market?
5. Which are the major distributor companies in the Saudi Arabia construction equipment market?
Table of Contents
1. Research Methodology2. Research Objective
3. Research Process
4. Introduction
4.1. Market Coverage
4.2. Report Scope
5. Market at a Glance
5.1. Market Snapshot
6. Executive Summary
7. Market Landscape
7.1. PESTEL Analysis
7.2. Economic Scenario
7.3. Key Projects
7.4. Market Dynamics
7.5. Key Upcoming Cities in Saudi Arabia
7.6. Import & Export Analysis
7.7. Supply Chain Analysis
8. Segmentation
8.1. By Equipment Type
8.1.1. Equipment Definition (Earthmoving)
8.1.1.1. Earthmoving Equipment (Volume & Value)
8.1.1.2. Excavators
8.1.1.3. Backhoe Loaders
8.1.1.4. Motor Graders
8.1.1.5. Other Earthmoving Equipment (Other Loaders, Bulldozers, Trenchers, Etc.)
8.1.2. Equipment Definition (Road Construction)
8.1.2.1. Road Construction (Volume & Value)
8.1.2.2. Road Rollers
8.1.2.3. Asphalt Pavers
8.1.3. Equipment Definition (Material Handling)
8.1.3.1. Material Handling Equipment (Volume & Value)
8.1.3.2. Cranes
8.1.3.3. Forklifts & Telehandlers
8.1.3.4. Aerial Platforms
8.1.4. Equipment Definition (Other Equipment)
8.1.4.1. Other Equipment (Volume & Value)
8.1.4.2. Dumpers
8.1.4.3. Tippers
8.1.4.4. Concrete Mixtures
8.1.4.5. Concrete Pump Trucks
8.2. By End-Users
8.2.1. End-User Definition
8.2.2. Construction
8.2.3. Manufacturing
8.2.4. Mining
8.2.5. Others (Waste Management, Agriculture, Oil & Gas Extraction, Utilities & Energy, Power Generation, Disaster Management and Water Management)
9. Geographical Analysis
10. Technology Development
11. Competitive Landscape
11.1. Competitive Landscape Overview
11.2. List of Construction Companies/ Contractors
11.3. Vendors (Caterpillar | Volvo Construction Equipment| Komatsu | Hitachi Construction Machinery |Liebherr | Jcb | Hyundai Doosan Infracore | Cnh Industrials| Kobelco| Kubota| Manitou |Yanmar |Sany| Xcmg)
11.4. Other Prominent Vendors
11.5. Distributors Companies Profiles
12. Report Summary
12.1. Key Insights
12.2. Abbreviation
12.3. Exhibits
12.4. Related Report
12.5. Database
12.6. Global Reach
12.7. Offerings
Companies Mentioned
- Caterpillar
- Komatsu
- Xuzhou Construction Machinery Group Co. Ltd. (XCMG)
- Liebherr
- Volvo Construction Equipment
- Hitachi Construction Machinery
- JCB
- SANY
- CNH Industrial
- Kobelco
- Yanmar
- Manitou
- Kubota
- Zoomlion Heavy Industry Science & Technology Co., Ltd.
- Hyundai Doosan Infracore
- Kanoo Machinery
- Al-Futtaim Auto & Machinery Company
- Arabian Truck & Construction Equipment Co.
- Arabian Auto Agency
- Al-Qahtani Vehicle & Machinery Company
Methodology
Our research comprises a mix of primary and secondary research. The secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, company pipeline charts, broker reports, investor presentations and SEC filings, journals and conferences, internal proprietary databases, news articles, press releases, and webcasts specific to the companies operating in any given market.
Primary research involves email interactions with the industry participants across major geographies. The participants who typically take part in such a process include, but are not limited to, CEOs, VPs, business development managers, market intelligence managers, and national sales managers. We primarily rely on internal research work and internal databases that we have populated over the years. We cross-verify our secondary research findings with the primary respondents participating in the study.
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 169 |
Published | April 2023 |
Forecast Period | 2022 - 2029 |
Estimated Market Value in 2022 | 33551 Units |
Forecasted Market Value by 2029 | 48717 Units |
Compound Annual Growth Rate | 5.4% |
Regions Covered | Saudi Arabia |
No. of Companies Mentioned | 20 |