The GCC construction equipment/machinery rental market was valued at USD 3. 77 billion in 2020 and is expected to reach USD 5. 48 billion by 2026, growing at a CAGR of 6. 15% over the forecast period (2021 -2026).
New York, Dec. 01, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "GCC Construction Equipment/Machinery Rental Market - Growth, Trends, COVID-19 Impact, and Forecast (2021 - 2026)" - https://www.reportlinker.com/p06187424/?utm_source=GNW
The Covid-19 pandemic hindered the growth of construction machinery/equipment market across GCC region owing to shut down of manufacturing facilities and halt of investments into infrastructure sector. However, post-pandemic, as economic activities resumed, the market expected to gain momentum during the forecast period.
Some of the major factors driving the growth of the market are the growing construction industry in the region, increasing demand for cranes, and developing trends toward automation and telematics. The renting or leasing of construction equipment has been on the rise, owing to an effort to lower the equipment purchase and maintenance expenses.
Apart from the cost, there are also other benefits associated with renting the construction equipment. Rental companies provide the machinery, along with the required professional machine operators and drivers, thereby ensuring a hassle-free operation. Moreover, advancement in the rental method of construction machinery such as digital platforms is providing ease to the consumer, which is further also acting as a big factor for the growth of the construction machinery market in GCC countries.
The construction sector is witnessing growth in the GCC countries such as the United Arab Emirates, the Kingdom of Saudi Arabia, Qatar, and Bahrain, due to the arise in the construction projects related to roads, buildings, hotels, stadiums, and other infrastructure.
Key Market Trends
Earthmoving Equipment Segment Expected to Dominate the Market
In recent years, renting earth moving equipment, such excavators, motor graders, Loaders, are increasing due to growing infrastructural projects related to road and highway networks in countries such as Saudi Arabia, UAE and owing to the penetration of more construction contractors in the country due to Saudi Vision 2030. For instance, in February 2020, the Saudi Crown Prince Mohammed bin Salman ordered the development of main roads in the heart of Riyadh in order to upgrade the city’s transportation system.
The project objective is to transform Riyadh to be a major hub in providing sustainable transportation services as well as logistics services in the Middle East. The program will work on developing junctions between Riyadh’s ring roads and main routes. It will develop 400 kilometers of the road network, by adding new roads and upgrading existing junctions.
Several rental companies are expanding their rental fleet and are designing plans to upgrade their product portfolio to strengthen their position in the market. For instance,
In August 2021, Al Faris Group strengthened its fleet by adding a total of five new 8-axle low loaders by Faymonville to deal with difficult terrain, narrow job construction sites, and winding platforms.
In September 2020, Dubai-based Salim Equipment Rental took delivery of two Liebherr HS 8130.1 duty cycle crawler cranes as part of its fleet expansion to offer services to the specialized foundation industry in the region.
Owing to the aforementioned instances and developments, the trend of renting construction machinery is to rise and is anticipated to witness healthy growth over the forecast period.
United Arab Emirates Likely to Lead the GCC Construction Machinery Rental Market
The construction market is a key driver of the UAE economy, but the sector has come under substantial pressure due to the prolonged slump in oil prices in 2019 and the COVID-19. However, as economic activities resume across the UAE, demand for renting construction machinery is likely to pick up the pace.
This growth in the rental market is mainly due to the growing construction sector as well as government initiatives towards rising infrastructure spending for World Expo 2020. Additionally, increasing construction projects in the commercial and residential verticals would further fuel demand in the UAE. For instance,
In January 2020, the government of Fujairah announced the construction of 44 km road network project that covers 11 main areas in the United Arab Emirates. Earlier, in October 2019, the government announced the construction of 64 km of internal roads that cover the major cities in the country.
In April 2020, Target Engineering, a subsidiary of Arabtec Holding, received two contracts worth USD 57 million in the country, and the projects aimed to be completed by the first quarter of 2022.
Several players in the market are adopting growth strategies such as expansion, partnerships to strengthen their position in the market. For instance, In July 2021, Sudhir Power Ltd, construction equipment and power generator rental business company, announced its joint venture with Fuel Buddy, an Indian doorstep fuel-delivery service startup, inaugurating its business in the UAE and Saudi Arabia.
Such factors are going to create significant demand for construction machinery, which furthermore is going to benefit the construction machinery rental market in the United Arab Emirates.
The GCC Construction equipment/machinery rental market is moderately consolidated owing to presence of several major and local players in the market. The rental companies are investing significantly in the GCC region to have an edge over their competitors. While some of the other key players in the market are focusing on investments, product development, partnerships, etc to gain competitive edge over other players in the market. For instance,
In February 2021, Mohammed Abdulrahman Al-Bahar announced the launch of a wide range of SEM Machines, including wheel loaders, motor graders, and track-type tractors. It has obtained the sole distribution rights for SEM products in the United Arab Emirates as well as Qatar, Bahrain, Kuwait, and Oman.
In June 2021, Al Faris Group executed the complete logistics chain including receiving, storing, transporting, and lifting of 30 overflow tanks, which are part of the ongoing Mohammed Bin Rashid Al Maktoum Solar Park project.
In February 2021, Johnson Arabia, a leading aerial work platforms company in the GCC region that boasts over 250 mobile cranes and 700 ariel work platforms (AWP), has expanded its ariel work platforms fleet with the launch of its second branch in Oman.
Some of the major players in the market are Al Faris, Bin Quraya, Arabian Machinery & Heavy Equipment Co. (AMHEC), Byrne Equipment rental, Mohamed Abdulrahman Al-Bahar LLC and among others.
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