The GCC crane market is expected to reach USD 1,112.27 million by 2024
NEW YORK, July 3, 2019 /PRNewswire/ -- Market Overview
The GCC construction machinery market was valued at USD 2,230.53 million in 2018 and is expected to project a CAGR of 3.09%, during the forecast period, 2019-2024.
Read the full report: https://www.reportlinker.com/p05790922/?utm_source=PRN - Some of the factors driving the growth of the market are growing construction industry in the region, increasing demand for cranes, and developing trend towards automation and telematics. However, rising demand for rental services may hinder the sales and growth of new construction equipment sales in the region.- The GCC construction machinery market is expected to grow at a steady pace during the forecast period. The GCC region has an overall strong demand for heavy machinery, with an estimated USD 128 billion worth of projects to be completed annually, between 2016 and 2019.- Cranes are expected to dominate the machinery market, owing to numerous construction projects, such as buildings and water projects that are going on in countries, such as the United Arab Emirates and Oman.- The UAE and Saudi Arabian construction industry are on the rebound after witnessing a significant pressure, due to a prolonged slump in oil prices. However, both the governments' increasing the infrastructure investment and launching development projects for the coming years is expected to boost the construction sector, and may also encourage private sector developers to bring forward their own projects, in turn, increasing the demand for construction machinery
Scope of the Report
The GCC construction machinery market has been segmented by machinery type, application type, and geography.
Key Market TrendsCrane Segment Dominated the Market
The GCC crane market is expected to reach USD 1,112.27 million by 2024.
The crane market has witnessed a short period of decline in the region, however, economies of the Middle East region are picking up, triggering investments in residential, commercial, and infrastructure projects.
Due to the major ongoing projects, the domestic and foreign tower crane manufacturers are showing great interest in construction activities among GCC countries. This is because the local demand for these machines is high, specifically in the United Arab Emirates. UAE-based tower crane supplier and Potain dealer NFT currently have 208 tower cranes on hire between Abu Dhabi, Dubai, and Sharjah.
Highrise towers, which are very popular in the GCC countries, require luffing cranes with a big capacity, such as the Potain MR 418. For instance; Ten MR 418s have been installed at the Royal Atlantis Residences from the past two years. This makes the Royal Atlantis job site the first in the United Arab Emirates to use the new Potain machine.
Apart from tower cranes, the increasing construction activity in the GCC countries has generated significant orders of mobile cranes. For instance, Sarens has deployed a fleet of 17 cranes to help build one of eight stadiums that will host the country's World Cup championship matches. For this project, a total of 17 mobile and crawler cranes were mobilized on-site over a timeline of 18 months.
High capacity cranes are also high in demand in the GCC countries due to the high number of energy-related projects and construction of industrial facilities. For instance, Mammoet, which is a privately held Dutch company, has been involved in the expansion of a polypropylene plant in the Gulf Coast, which will increase the site production capacity by an additional 450,000 ton a year.
The increase in overall crane count indicates that the construction market is rapidly growing in the GCC countries. It is anticipated that this growth may continue through 2019 and 2020, as, many cities in GCC countries continue to add to their roster of proposed developments.
United Arab Emirates - Second Largest Country and Expected to Witness the Fastest Growth Rate
The United Arab Emirates (UAE) construction machinery market is expected to witness the fastest growth rate of 4.12%, during the forecast period, 2019-2024.
The construction market is a key driver for the UAE's economy. However, the sector has come under substantial pressure, due to the prolonged slump in oil prices. Despite the prevailing climate, the construction industry remains resilient and the outlook for the sector remains cautiously optimistic.
A large number of infrastructure works has been started in recent years in the Emirates. Major roadway, airport, and port projects are ongoing in preparation of further expected population influx and of the upcoming Expo 2020 in Dubai.
The ongoing airport expansion project at Dubai International, worth USD 7.8 billion, is expected to increase the demand for construction machinery in the country.
Analyzing the potential increase in the construction machinery demand in the country, manufacturers are expanding their product portfolio, focusing on the need of customers. Among the manufactures, CNH Industrial NV is one such company, which recently launched entry-level backhoe loaders in the country.
With consistent real estate development in cities, such as Dubai and Abu Dhabi, the demand for construction machinery has been continually increasing. As a result, in order to tap this increasing demand, UAE-based Bothani Mechanical and Engineering Equipment Trading, in April 2018, announced that it will be setting up facilities in the country to manufacture tower cranes, with the production starting in July 2018, making the company Middle East's first home-grown producer in the crane sector.
The above trends in the country are anticipated to witness a positive demand for construction machinery during the forecast period.
Competitive LandscapeThe GCC construction machinery market is mostly characterized by the presence of numerous international companies, resulting in a highly competitive market environment. The top-ten players in the market account for around 63% of the market share and the remaining 37% of the market share is dominated by other players, such as Yanmar, JCB, Wirtgen Group, Terex, etc.
The market is a consolidated one with Caterpillar being the leader, followed by Liebherr, Komatsu, Volvo Construction Equipment, and CNH Industrial.
Major players are investing considerably in their R&D department in order to integrate innovation with excellence in performance. The demand for high performance, efficient, and safe handling equipment from the end market is expected to make the market more competitive over the forecast period.
Additionally, construction equipment manufacturers are collaborating with OEMs to come up with new products. For instance, Hyundai Construction Equipment is working with Cummins to develop an electric-powered mini excavator.
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