Dublin, Dec. 23, 2021 (GLOBE NEWSWIRE) — The “GCC Construction Equipment/Machinery Rental Market – Growth, Trends, COVID-19 Impact, and Forecast (2021 – 2026)” report has been added to ResearchAndMarkets.com’s offering.
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).
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.
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 …….