Saudi Arabia Construction Equipment Market, By Region, Competition, Forecast & Opportunities, 2020-2030F

The Saudi Arabia Construction Equipment Market was valued at USD 1.45 Billion in 2024, and is expected to reach USD 1.88 Billion by 2030, rising at a CAGR of 4.38%. The Saudi Arabia construction equipment market is witnessing strong momentum driven by ambitious development plans, rising urbanization, and increasing demand for advanced machinery. For instance, in 2025, Hyundai Motor Manufacturing Middle East (HMMME), a USD 500 million joint venture between Saudi Arabia's Public Investment Fund (70%) and Hyundai Motor Company (30%), began construction on its first Middle East plant within the King Salman Automotive Cluster at KAEC. Set to start production in Q4 2026 with a 50,000-vehicle annual capacity, the facility will manufacture both internal combustion and electric vehicles. This project supports Vision 2030 goals by boosting local automotive production, generating skilled jobs, and promoting technological growth.

Market Drivers

Expansion of Mega Infrastructure Projects

The rapid scale-up of mega infrastructure projects is significantly increasing demand for advanced construction equipment in Saudi Arabia. Massive undertakings in transportation networks, urban expansion, utility corridors, and industrial city development are pushing contractors to seek equipment that can withstand continuous operation under extreme workloads. Earthmoving machinery such as bulldozers, excavators, and loaders are being deployed extensively for land clearance, grading, and foundation work, while cranes and concrete machinery are indispensable in the vertical development of high-rise buildings and large-scale complexes.

The size and scope of these projects necessitate equipment that delivers both power and precision, particularly as developers race to meet tight delivery schedules. Many of these projects are executed in parallel and across various terrains, from coastal zones to deserts, increasing the need for durable, terrain-specific machinery. Contractors are now shifting toward high-capacity and technology-enabled machines that support faster cycles and reduce rework through precision control systems. For instance, the construction sector dominates Saudi Arabia’s contract market, accounting for 61% of total contract values, while transportation comprises 33%. This heavy investment in infrastructure and mobility supports Riyadh’s planned population growth to 10 million by 2030, reflecting the country’s commitment to modernizing urban and transport facilities in line with its Vision 2030 economic diversification strategy.

Key Market Challenges

High Initial Investment and Operating Costs

One of the primary challenges in the construction equipment market is the high capital requirement for acquiring advanced machinery. Modern equipment with features like automation, emission control systems, and telematics come at a premium price. This acts as a barrier, especially for small and medium-sized contractors who operate on limited budgets. Beyond the initial cost, operational expenses such as fuel, maintenance, and skilled labor training further increase the financial burden. Rising input costs for raw materials and parts, especially for imported components, also drive up total cost of ownership. These economic constraints can limit fleet expansion, slow modernization, and compel some businesses to rely on outdated or second-hand machinery, reducing productivity and compliance with environmental standards.

Key Market Trends

Integration of Telematics and Real-Time Monitoring

Construction equipment is increasingly being embedded with telematics systems that enable real-time tracking, usage data collection, and performance diagnostics. These systems help fleet managers monitor fuel consumption, idle time, engine performance, and maintenance schedules from centralized platforms. The ability to access data remotely supports better decision-making, preventive maintenance, and optimized machine utilization. Telematics also contributes to increased equipment lifespan, reduced downtime, and overall cost savings. With rising project complexity and the need for transparency, the trend toward connected equipment is becoming a standard across major fleets and rental service providers. Manufacturers are competing to offer proprietary telematics platforms bundled with service contracts and training modules.

Key Market Players

• Komatsu Ltd
• Volvo Construction Equipment Corporation
• Caterpillar Incorporation
• Hitachi Construction Machinery Co. Ltd
• Sumitomo Corporation
• CNH Industrial NV
• Doosan Intracore Construction Equipment
• Kobelco Construction Machinery Co. Ltd
• XCMG Group
• Arabian Truck & Construction Equipment Co

Report Scope:

In this report, the Saudi Arabia Construction Equipment Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Saudi Arabia Construction Equipment Market, By Application:

• Earth Moving
• Material Handling
• Concrete Mixing
• Road Construction
• Others

Saudi Arabia Construction Equipment Market, By Product:

• Backhoe Loaders
• Excavators
• Cranes
• Transit Mixer
• Forklifts
• Batching Plants
• Concrete Pump
• Wheel Loader
• Road Roller Machine
• Compaction Equipment
• Compressors
• Motor Graders
• Rigid Dump Trucks
• Others

Saudi Arabia Construction Equipment Market, By End-User:

• Oil & Gas
• Construction
• Infrastructure
• Manufacturing
• Others

Saudi Arabia Construction Equipment Market, By Region:

• Northern & Central
• Southern
• Eastern
• Western

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Saudi Arabia Construction Equipment Market.

Available Customizations:

With the given market data, the publisher offers customizations according to the company’s specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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