Saudi Arabia Construction Equipment Rental Market to Grow with a CAGR of 7.22% in Saudi Arabia through to 2028
The surge in construction
activities, coupled with a preference for cost-effective rental solutions over
equipment purchase are the factors driving market in the forecast period
2024-2028
According to
TechSci Research report, “Saudi Arabia Construction Equipment Rental Market
- Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”,
the Saudi Arabia Construction Equipment Rental Market stood at USD 2.51 Billion
in 2022 and is anticipated to grow with a CAGR of 7.22% in the forecast period,
2023-2028. The
Saudi Arabia Construction Equipment Rental Market has experienced significant
growth and transformation in recent years. A key driver of this expansion is
the government's Vision 2030 initiative, which has spurred extensive
infrastructure development projects. These projects, aimed at diversifying the
economy and reducing dependence on oil, have created a substantial demand for
construction equipment, driving the rental market.
A
notable trend in the market is the preference for renting equipment over
purchasing. Construction companies and contractors have increasingly opted for
rental solutions due to the flexibility and cost-effectiveness they offer. This
approach allows businesses to access specialized machinery without the
long-term financial commitment of ownership.
Moreover,
the demand for specialized equipment, such as excavators and cranes, has played
a pivotal role in fuelling the rental market's growth. Construction projects
often require this specialized machinery, making rental services a convenient
choice for contractors.
The
expanding contractor base, both local and international, has also contributed
to the surge in construction equipment rentals. The ability to access the
necessary equipment without the significant capital investment required for
ownership is particularly appealing to these contractors.
Furthermore,
as Saudi Arabia aims to diversify its economy, construction and infrastructure
development have become vital components of job creation and economic growth.
This strategic focus by the government has led to increased investments in
construction projects, further boosting the demand for rental equipment. Competition
among market players, including both domestic and international rental
companies, has resulted in improved services, better equipment availability,
and competitive pricing. This competition has ultimately benefited customers in
the market.
The
regulatory environment, with policies promoting local content and the
employment of Saudi nationals, has also influenced the strategies of rental
companies operating in the country. This reflects the government's commitment
to developing the construction sector as part of its broader economic
diversification goals.
It's
essential to keep in mind that the construction equipment rental market can be
subject to rapid changes, influenced by economic conditions, government
policies, and evolving industry trends. Staying updated with the latest
industry reports and consulting experts familiar with the current market
dynamics in Saudi Arabia is advisable for those interested in this sector.
Browse over 26
market data Figures spread through 91 Pages and an in-depth TOC on
"Saudi Arabia Construction Equipment Rental Market.”
The Central
Region, home to the capital city, Riyadh, is a major hub for construction and
infrastructure development. Riyadh's rapid urbanization and extensive Vision
2030 projects have driven significant demand for construction equipment
rentals. The region hosts many corporate headquarters, which boosts both
commercial and residential construction. The government's focus on the
development of megaprojects, such as NEOM and Qiddiya, has further accelerated
the demand for rental equipment in this region.
The Eastern
Province, with cities like Dammam and Al Khobar, is a significant industrial
and commercial center in Saudi Arabia. The presence of numerous petrochemical
and industrial projects has driven a substantial need for specialized
construction equipment. Additionally, the region's proximity to major ports and
logistics hubs contributes to a thriving construction equipment rental market,
as equipment is frequently required for port-related projects and
infrastructure development.
The Western
Region, which includes Jeddah, is a key economic center and a gateway to the
holy cities of Mecca and Medina. Jeddah is undergoing urban expansion, and its
booming construction industry has led to a high demand for rental equipment.
With a focus on tourism and development, numerous resort and hospitality
projects have driven the need for cranes, loaders, and excavators.
The Northern
Region, encompassing cities like Tabuk and Hail, is witnessing growth in
construction activities due to local infrastructure development initiatives and
urban expansion. While not as densely populated as the Central and Western
regions, the Northern Region still requires construction equipment to support
its development.
The Southern
Region, including cities like Abha and Jizan, is characterized by more
agricultural and rural activities. The demand for construction equipment
rentals in this region may be comparatively lower than in the urbanized areas,
but there is still a need for equipment for various construction and
agricultural projects. The Northern Border Region, bordering Jordan and Iraq,
has seen some infrastructure development, particularly in the context of
cross-border trade and logistics. This region may witness growth in the rental
market as it becomes more integrated into national and regional trade networks.
It's important
to note that regional disparities in the construction equipment rental market
can change over time due to evolving economic and development priorities. The
ongoing Vision 2030 projects, diversification efforts, and fluctuations in oil
prices can impact the construction sector differently in various regions.
Understanding these regional dynamics is essential for both rental companies
and construction businesses to make informed decisions and strategies.
Major companies
operating in Saudi Arabia Construction Equipment Rental Market are:
- Zahid Tractor and Heavy Machinery Co. Ltd
- General Contracting Company (GCC)
- Bin Quraya for Rental and Heavy Equipment
- Industrial Supplies Development Co. Ltd. (ISDC Rental Company)
- Abdulla Nass & Partners Co. Ltd. (ANPC)
- Saad Al Qahtani Contracting Co. (SAQCO)
- Arabian Consolidated Trading (ACT Crane & Heavy Equipment)
- Altaaga Alternative Solutions Company
- Al Faris Group
- Rezayat Sparrow Arabian Crane Hire Co. Ltd.
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“The Saudi
Arabia Construction Equipment Rental Market emphasized its significant growth
potential. Experts pointed to the country's ambitious Vision 2030 agenda as a
driving force, with extensive infrastructure projects fostering a booming
demand for rental equipment. The shift towards cost-effective rental solutions
rather than equipment ownership was seen as a key trend, enabling businesses to
remain agile. Additionally, the importance of staying attuned to the evolving
regional dynamics within Saudi Arabia, as each area presented distinct
opportunities and challenges in this dynamic market” said Mr. Karan Chechi,
Research Director with TechSci Research, a research-based management consulting
firm.
“Saudi Arabia
Construction Equipment Rental Market By Product (Backhoes and Excavators,
Loaders, Crawler Dozers, Cranes, Forklift, Others), By Application (Excavation
and Mining, Material Handling, Earthmoving, Concrete, Others), By Propulsion
Type (ICE, Electric), Regional, Competition, Forecast & Opportunities, 2018-2028”,
has evaluated the future growth potential of Saudi Arabia Construction
Equipment Rental Market and provides statistics & information on market
size, structure and future market growth. The report intends to provide
cutting-edge market intelligence and help decision makers take sound investment
decisions. Besides, the report also identifies and analyzes the emerging trends
along with essential drivers, challenges, and opportunities in Saudi Arabia
Construction Equipment Rental Market.
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