Saudi Arabia Construction Equipment Market - Strategic Assessment & Forecast 2025-2030

KEY HIGHLIGHTS

• Earthmoving equipment accounted for the largest market share in the Saudi Arabia construction equipment market in 2024. Excavators in the earthmoving segment accounted for the largest share in 2024. The country’s investment in renovating its public infrastructure drives the growth of the Kingdom’s earthmoving market.
• On the other hand, demand for material handling equipment is also growing due to the rising number of port expansion projects and the development of warehouses and logistics parks across the country.
• For instance, in March 2025, The Saudi Ports Authority (Mawani), in partnership with DP World launched a USD 800 million expansion of the South Container Terminal at Jeddah Islamic Port to enhance operational capabilities and increase its capacity from 1.8 million to 4 million TEUs.
• In 2024, the earthmoving segment accounted for a significant share of the Saudi Arabia construction equipment market.
• The road construction equipment segment is growing significantly, growing at a CAGR of 5.46% by volume during the forecast period.
• Road rollers sales are high in Saudi Arabia in response to the rising renovation and expansion of public transit and airports. For instance, the expansion of the Riyadh Metro and the development of airports like King Abdulaziz International.
• Construction equipment utilization in the construction industry by end-user (volume) has the largest market share in 2024.
• The residential sector of Saudi Arabia witnessed substantial growth in 2024, driven by government-backed initiatives and robust demand. Programs like Sakani and the National Housing Program have been vital in advancing the Vision 2030 goal of achieving 70% homeownership.
• Saudi Arabia is attracting foreign direct investment (FDI) in the construction sector, particularly in mega-projects like NEOM and the Red Sea Project. Recent data from the Investment Ministry has revealed that 3,800 construction licenses were issued in 2024, indicating a strong upward trend in industry activity.

SAUDI ARABIA CONSTRUCTION EQUIPMENT MARKET TRENDS & DRIVERS

Focus on Green Hydrogen Fuel-Based Economy

• Saudi Arabia is leading the way for a sustainable, hydrogen-fueled future with its plan to reach net-zero emissions by 2060, strategic partnerships, and initiatives such as NEOM's hydrogen program.
• The country’s transition to a green fuel-based economy is driving the construction of numerous hydrogen-fuel production plants, which are expected to support the integration of hydrogen-powered engines in heavy machinery.

Rising Trend of Waste-To-Energy Projects Drives the Sales of Wheeled Loaders

• In line with Saudi Arabia's Vision 2030 of a circular economy, the Saudi Investment Recycling Company (SIRC) is investing to address the long-standing challenge of waste management in the country.
• In May 2025, the Saudi Investment Recycling Company (SIRC) entered into a memorandum of understanding (MoU) with the US-based EIG Management Company, LLC. The MoU is to develop and run infrastructure projects related to the circular economy and waste treatment in Saudi Arabia.

Increasing Investments Real Estate Sector

• The housing industry in Saudi Arabia has been boosted by Vision 2030, which aims to provide high-quality housing to Saudi citizens while driving the homeownership rate to 70% by 2030.
• The government is increasing housing supply within the low to mid-market segments through initiatives and programs such as Wafi and Sakani, which have been crucial in boosting home ownership among Saudi nationals.
• The government is also aggressively collaborating with private developers to speed up new home construction.

Development of Transport Infrastructure

• Saudi Arabia's transport infrastructure has progressed significantly from its traditional dependence on personal automobiles to a diverse network of metros and railways connecting major urban centers.
• In 2025, Saudi Arabia plans to transform its transportation infrastructure by introducing new train routes that will improve domestic and regional travel. One of the key features of this rail expansion is the “Dream of the Desert” project, which is expected to be the country’s first luxury train service.
• Another important element of Saudi Arabia's transport plan is the Jeddah Metro, which will open in 2025. The metro will link the city's main locations, such as King Abdulaziz International Airport and commercial and residential areas. Such projects are projected to support Saudi Arabia construction equipment market growth.

INDUSTRY RESTRAINTS

Rising Construction Costs

Skilled Labor Shortage and Regulatory Challenge

• By 2030, the construction industry is expected to have a deficit of 663,000 skilled workers, which will lead to project delays, higher expenses, and the use of obsolete traditional equipment.
• Costs are further increased by the need for foreign labor, and the country’s workforce is unable to keep up with the rapid advancements in technology. Project budgets and schedules have been impacted by the shortage of skilled labor, particularly in technical positions.
• The government is enforcing strict environmental standards on major projects to reduce carbon emissions, conserve water, and promote renewable energy use.

SAUDI ARABIA CONSTRUCTION EQUIPMENT MARKET VENDOR LANDSCAPE

• Caterpillar, Liebherr, Komatsu, Volvo CE, Hitachi Construction Machinery, SANY, and XCMG are the front runners in the Saudi Arabia construction equipment market. These companies have a strong market share and offer diverse sets of equipment in the Belgian market.
• Terex, Tadano, Manitou, Kato Works, Bomag, and Toyota Material Handling are niche players in the Saudi Arabia construction equipment market. These companies offer low product diversification and have a strong presence in the country’s market.
• JCB, Kobelco, Develon, HD Hyundai Construction Equipment, LiuGong, CNH Industrial N.V., and Zoomlion are emerging in the Saudi Arabia construction equipment market. These companies are introducing new technologically advanced products to challenge the market share of market leaders in the country’s market.
• AUSA, JLG, and Wacker Neuson have low product diversification in the Saudi Arabia construction equipment market, these companies are lagging in adopting new technologies used in construction equipment.

Prominent Vendors

• Caterpillar
• Komatsu
• Volvo Construction Equipment
• Hitachi Construction Machinery
• Liebherr
• SANY
• Xuzhou Construction Machinery Group Co. Ltd. (XCMG)
• JCB
• Kobelco
• Zoomlion Heavy Industry Science&Technology Co., Ltd.

Other Prominent Vendors

• HD Hyundai Construction Equipment
• Liugong Machinery Co., Ltd.
• DEVELON
• Tadano Ltd.
• Terex Corporation
• Manitou
• BOMAG GmbH
• KATO WORKS CO., LTD.
• AUSA
• Wacker Neuson SE
• JLG Industries
• Toyota Material Handling International
• CNH Industrial N.V.

Distributor Profiles

• Kanoo Machinery
• Al-Futtaim Auto & Machinery Company
• Arabian Truck & Construction Equipment Co.
• Arabian Auto Agency (AAA)
• Al-Qahtani Vehicle & Machinery Company
• Abunayyan Trading Corporation (ATC)

Segmentation by Type

• Earthmoving Equipment
  • Excavator
  • Backhoe Loaders
  • Wheeled Loaders
  • Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers, Motor Graders)
• 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

Segmentation by End Users

• Construction
• Mining
• Manufacturing
• Others (Power Generation, Utilities Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation Plants, Waste Management)

KEY QUESTIONS ANSWERED