UAE Construction Equipment Market - Strategic Assessment & Forecast 2025-2030

KEY HIGHLIGHTS

• Earthmoving equipment accounted for the largest market share in the UAE 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 UAE 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.
• In March 2025, Khalifa Economic Zones Abu Dhabi - KEZAD Group and Metal Park announced the launch of the first phase of Metal Park's Storage Hub in KEZAD. This logistics hub is expected to drive the demand for forklifts over the forecast period.
• In 2024, the earthmoving segment accounted for a significant share of the UAE construction equipment market and is growing at a CAGR of 6.04% by volume during the forecast period.
• The road construction equipment segment is estimated to reach USD 135.0 million by value by 2030.
• Road roller sales are high in the UAE in response to the rising renovation and expansion of public transit and airports. For example, the USD 4.3 billion Main Roads Development Plan (2024-2027) plan includes 22 projects that will expand Dubai's road network and improve infrastructure to benefit over 6 million residents. Notable projects include the development of Latifa bint Hamdan Street and Meydan Road.
• Construction equipment utilization in the construction industry by end-user (volume) has the largest market share in 2024.
• The residential sector of the UAE witnessed substantial growth in 2024, driven by government-backed initiatives and robust demand. For example, the Sheikh Zayed Housing program, announced in February 2025, aims to provide housing to citizens in the country; this is fueling industry growth.
• The hospitality industry is another major factor driving the construction equipment market in the UAE. Therefore, growth in the tourism sector is propelling the construction of several hotels across the country. More than 11,300 new hotel rooms are set to open across Dubai by 2027, with almost 4,620 being launched in 2025.

MARKET TRENDS & DRIVERS

Increased Demand for the Electric Construction Equipment

• Construction equipment manufacturers are making continuous investments in launching battery-powered construction equipment in the Middle East. In line with initiatives like the UAE's National Building Regulations and We the UAE 2031, construction contractors are actively seeking alternatives to conventional diesel-powered machinery.
• In 2024, Volvo CE launched the L120 Electric, which is a fully electric wheel loader in the Middle East. Volvo CE tested the machine thoroughly in partnership with its authorized dealer, Al Futtaim Auto & Machinery Company (Famco).

Growth In Modular Construction is Driving the UAE Construction Equipment Market

• Modular construction generates low waste, reduces energy consumption, and aligns with green building regulations such as the UAE Net Zero by 2050 initiative.
• Modular construction has played a significant role in several major projects across the UAE, demonstrating its efficiency, flexibility, and sustainability. At Expo 2020 Dubai, modular methods were used to construct pavilions and support facilities, allowing the event to meet strict timelines and environmental targets.

Increasing Investment in Public Infrastructure Development

• In March 2025, the UAE revealed plans to increase its foreign direct investments to USD 65.35 billion a year by 2031. This initiative is a part of the UAE’s recently approved National Investment Strategy 2031, which aims to expand the country’s total FDI stock from USD 217.8 billion to USD 660 billion over the coming years, with a focus on the country’s infrastructure.
• In the UAE, the demand for quality healthcare and education is expected to accelerate in 2025. In June 2025, the UAE federal government allocated over USD 7.4 billion to upgrade infrastructure, its most ambitious investment to date, driven by 4% annual population growth and rising global investor interest.

Increased Investment in the Housing Sector

INDUSTRY RESTRAINTS

Skilled Labor Shortage & Increasing Construction Costs

• The sudden spike in building material prices in 2025, fueled by supply chain disruptions and inflation, has imposed fiscal strain on developers, compelling them to revisit project budgets and timelines, and is projected to hamper the UAE construction equipment market.
• Additionally, UAE building material suppliers and concrete producers demand payment in full at the beginning of the project’s construction, thereby erasing the earlier 120-150-day credit period. This change has pushed developers to make purchases at elevated rates, thereby increasing the total construction cost. Moreover, labor shortages in the UAE’s construction industry have been an ongoing issue, particularly due to the limited availability of skilled workers.

Regulatory Compliance Challenges

• The country constantly updates its laws for the construction industry. Therefore, the sustainability standards (Estidama and Dubai Green Building Regulations) as well as labor laws can be quite challenging for the developers and construction companies, keeping up with the new building codes. Another challenge is the complex approval process that leads to project delays.
• The UAE government is planning on digitalizing compliance procedures; this may further act as a hurdle for developers across the Emirates (Dubai, Abu Dhabi, and Sharjah) as well as hamper the progress of the building industry.

UAE CONSTRUCTION EQUIPMENT MARKET VENDOR LANDSCAPE

• Caterpillar, Liebherr, Komatsu, Volvo CE, Hitachi Construction Machinery, SANY, and XCMG are the front runners in the UAE construction equipment market. These companies have a strong market share and offer diverse sets of equipment in the market.
• Terex, Tadano, Manitou, Kato Works, Bomag, and Toyota Material Handling are niche players in the UAE 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., Bobcat, and Zoomlion are emerging in the UAE construction equipment market. These companies are introducing new technologically advanced products to challenge the share of leaders in the country’s market.
• AUSA, JLG, Manitowoc, Ammann, and Wacker Neuson have low product diversification in the UAE construction equipment market; these companies are lagging in adopting new technologies used in construction equipment.

Key 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

• Bobcat
• CNH Industrial
• 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
• The Manitowoc Company, Inc.
• AMMANN

Distributor Profiles

• Abdulla Saeedi General Trading LLC
• Kanoo Machinery
• Al-Futtaim Auto & Machinery Company (FAMCO)
• M.H. Al Mahroos
• Al Marwan Heavy Machinery
• Galadari Trucks & Heavy Equipments

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: