Saudi Arabia Construction Equipment Market Report and Forecast 2024-2032

Saudi Arabia Construction Equipment Market Outlook

The Saudi Arabia construction equipment market size attained a value of USD 1.46 billion in 2023. The market is further expected to grow at a CAGR of 4.3% between 2024 and 2032 to reach a value of almost USD 2.14 billion by 2032.

Key Takeaways:

• As per the Ministry of Municipal and Rural Affairs analysis, 138,114 construction sector companies operate in the country.

• The Ministry of Industry and Mineral Resources predicted that higher investment in mining, will yield a USD 47 billion GDP and employment by 219,000.

• Currently, 71,500 kilometres of road infrastructure exist in Saudi Arabia.

Construction equipment encompasses machinery, tools, and apparatus intended for utilisation in construction tasks. This category includes excavators, cranes, loaders, and dump trucks, among other devices, which carry out various construction functions such as excavation, digging, levelling, and hauling.

Saudi Arabia's Vision 2030 initiative is geared towards facilitating access to affordable housing for underserved communities. Consequently, the demand for construction equipment in Saudi Arabia is bolstered by a growing emphasis on improving the efficiency, productivity, and cost-effectiveness of residential construction endeavours. According to a sector analysis conducted by the Ministry of Municipal and Rural Affairs (MOMRA), 138,114 companies are operating within the construction sector which is boosting the construction equipment market in Saudi Arabia.

CATEGORY-WISE DISTRIBUTION OF COMPANIES IN CONSTRUCTION SECTOR

Key Trends and Developments

The Saudi Arabia construction equipment market growth is enhanced by infrastructure development, cutting-edge equipment and automated machinery, and rising investment in the mining sector.

December 2023

A Saudi construction firm granted a contract to Korean company HD Hyundai Construction Equipment for the supply of 100 excavators.

December 2023

The National Industrial Development Centre (NIDC) and LS Corp, a Korean firm, signed an MoU to explore machinery investment in Saudi Arabia.

September 2023

HD Hyundai Construction Equipment Co. received orders to supply products for Saudi Arabia's Neom megacity project.

August 2023

XCMG Machinery inaugurated its Saudi subsidiary in Riyadh, enhancing local sales, service networks, and integration into Saudi development.

Infrastructure development

Saudi Arabia's Vision 2030, including the National Transformation Program, aims to enhance infrastructure and foster a conducive environment for all sectors- public, private, and non-profit, elevating demand for construction equipment. In 2023, the nation ranked 34th in the infrastructure field in the Global Competitiveness Report.

Cutting-edge equipment and automated machinery

Advanced equipment and automated machinery, coupled with technologies such as the Internet of Things (IoT), are increasingly being embraced. These innovations enable real-time data collection, minimise downtime, cut operational expenses, and enhance construction efficiency, propelling the Saudi Arabia construction equipment market growth.

Rising investment in the mining sector

Heightened investment in the mining sector aims to excavate metals and minerals, projecting a sector GDP impact of USD 47 billion and the creation of 219,000 jobs. Additionally, it will develop remote regions, generating 40,000 jobs by 2030, according to the Ministry of Industry and Mineral Resource, consequently increasing the utilisation of construction equipment.

Technological advancement

Innovations such as telematics, automation, robotics, and advanced vision systems are poised to augment construction machinery capabilities and enhance operational efficiency, potentially driving demand for construction equipment in the forecast period.

Saudi Arabia Construction Equipment Market Trends

Infrastructure development involves various commercial and residential projects such as constructing complexes, offices, and societies, alongside expanding airports, roads, and ports. This development is fuelled by rapid urbanisation, prompting increased government spending on infrastructure for dams, bridges, metro stations, and more. Such activities are vital for enhancing connectivity and fostering sustainable growth, consequently driving up demand for construction equipment.

Moreover, there has been significant growth in the tourism sector, marked by considerable infrastructure construction in Makkah, Madinah, Riyadh, and Jeddah to cater to the increasing influx of tourists, boosting the construction equipment market in Saudi Arabia.

Market Segmentation

Saudi Arabia Construction Equipment Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Machinery Type

• Earth Moving Machinery
  • Excavators
  • Loaders
  • Dump Trucks
  • Moto Graders
  • Dozer
• Material Handling Machinery
  • Crane
  • Forklifts
  • Telescopic Handlers
• Concrete and Road Construction Machinery
  • Concrete Mixer and Pavers
  • Construction Pumps
• Others

Market Breakup by Propulsion Type

• ICE

• Electric

• CNG/LNG

Market Breakup by End-Use

• Oil and Gas

• Construction and Infrastructure

• Manufacturing

• Mining

• Others

Material handling machinery holds a considerable portion of the Saudi Arabia construction equipment market share, driven by demand for cranes and other equipment for heavy lifting and material transport.

Forklifts facilitate the efficient storage, retrieval, and arrangement of goods, playing a vital role in transporting heavy construction materials and equipment. Telescopic handlers are utilised on construction sites to elevate heavy construction materials to higher floors or areas that are otherwise difficult to reach.

As per the Saudi Arabia construction equipment market analysis, earth-moving machinery, like dump trucks, finds wide application in heavy-duty tasks such as mining, quarrying, excavation, roadwork, and demolition. Excavators, popular in this category, boast components including a bucket, arm, rotating cab, and movable tracks, enabling diverse functions like trenching, hole digging, and waste removal.

Concrete and road construction machinery, like concrete mixers, pavers, and construction pumps, enhance processes traditionally reliant on manual labour.

Internal combustion engines (ICE) are predominant in the Saudi Arabia construction equipment market, primarily due to their high-power output and excellent mobility characteristics.

The integration of electric propulsion in construction equipment contributes to sustainability efforts, offering enhanced manoeuvrability and increased redundancy. Additionally, it delivers environmental advantages by reducing fuel consumption and emissions.

LNG serves as a cost-effective and environmentally sustainable alternative to oil-based systems for businesses prioritizing cost efficiency and sustainability.

Construction and infrastructure sectors lead the developments in the Saudi Arabia construction equipment market, driven by the objectives outlined in the Vision 2023 initiative of the kingdom.

As per the Ministry of Transportation, 71,500 kilometres of roads currently exists in Saudi Arabia, that are designed to meet international standards, linking major cities, and allowing for potential expansion to accommodate anticipated heavy traffic.

DEVELOPING ROADS IN SAUDI ARABIA, 2023, IN KM

Competitive Landscape

The competitiveness in Saudi Arabia construction equipment market arises from growing tourism, technological advancement, infrastructure development, and the growing oil and gas sector.

AB Volvo was established in 1927 and headquartered in Gothenburg, Sweden, and is a multinational producer of construction machinery. Additionally, the company manufactures a variety of vehicles, including buses, trucks, as well as industrial and marine engines, among other products.

Caterpillar Inc. was founded in 1925 and is a construction equipment corporation headquartered in Texas, USA. The company’s range of offerings encompasses engines, excavators, dozers, backhoe loaders, generators, and various other products.

Sumitomo Construction Machinery Co. Ltd. Was established in 1968 and is headquartered in China. The company specializes in the development and production of hydraulic excavators, road paving machines, and road rollers.

Other key players in the Saudi Arabia construction equipment market report include CNH Industrial N.V., Komatsu Middle East, Doosan Corporation, Manitowoc Company Inc., Kobelco Construction Machinery Co, Ltd, and Xuzhou Construction Machinery Group Co., Ltd., among others.

Key Highlights of the Report