Saudi Arabia Construction Equipment Rental Market By Equipment Type (Wheel Loader, Crane, Excavator, Bulldozer, Dump Truck, Diesel Genset, Motor Grader and Telescopic Handler, Others), By Region, By Province, Competition, Forecast and Opportunities, 2017-2027

The Saudi Arabia Construction Equipment Rental Market stood at USD1486.45 million in 2021 and is anticipated to project robust growth in the forecast period with a CAGR of 7.57% supported by government standards and regulations ensuring construction equipment quality, leading to a rise in the Saudi Arabia Construction Equipment Rental Market.

Heavy-duty vehicles designed specifically for carrying out construction jobs, the most common of which are earthwork operations, are referred to as construction equipment. Heavy machineries, heavy trucks, engineering equipment, heavy vehicles, and heavy hydraulics are all terms used to describe them. Contractors/Engineering Procurement and Contractors use construction equipment rental services provided by construction equipment rental businesses.

Continuous Decline in Rental Cost Driving Market Growth

Although Saudi Arabia has begun to diversify its economy away from oil, oil exports remain the country's primary source of revenue. The revenue of the Kingdom of Saudi Arabia has decreased as a result of a considerable drop in crude oil prices around the world. The government also made a number of financial and economic initiatives to solve the problem. As a result, competition among rental providers has increased, forcing these companies to lower their rental rates even further. Furthermore, most rental companies offer discounted rental rates for most construction equipment, lowering the country's average equipment rent. As a result, the construction equipment rental industry in Saudi Arabia is expected to be driven by customization and flexibility in rental agreements over the next few years.

Increase in Operator-Equipment Bundling Driving the Growth in the Market

A skilled operator with expertise and technical understanding of ARAMCO's (Saudi Arabian Oil Company) safety and security procedures for operators who will be working on ARAMCO's sites is necessary to ensure the smooth operation of the construction equipment. However, a provision for an operator may or may not be included in the construction equipment rental agreement between the companies. As compared to other construction equipment operators in the country, operators with ARAMCO certification earn almost 70% to 80% more money. As a result, the Saudi Arabia Construction Equipment Rental Market is expected to benefit from operator equipment bundling for efficient and effective construction equipment work.

Stringent Government Regulations Boosting the Market Growth

Saudi Arabia's government has established stricter regulations for importing construction equipment into the country. The Saudi Arabian Standards Organization (SASO) has advised producers and responsible authorities on how to deliver the highest quality of service to beneficiaries, focus on improving technical standards, and protect customers' health and safety, among other things. As a result, building organizations, contractors, and dealers are increasingly focused on renting construction equipment including graders, backhoes, trenchers, and other similar machines, which is likely to drive the Saudi Arabia construction equipment rental market forward.

Lease to Own Scheme Propelling the Market Growth

A lease to own is one of the newest innovations in the construction equipment rental business. Rental companies/contractors that are unable to purchase construction equipment use this scheme to lease it from a dealer/distributor for a set amount of time and pay the cost of the equipment in instalments rather than paying the equipment's rent. The rental company/contractor owns the equipment totally after the agreed-upon period has passed. As a result, the lease-to-own strategy assists rental companies/contractors in meeting their needs, which is expected to drive up demand for rental construction equipment in Saudi Arabia.

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Market Segmentation

The Saudi Arabia Construction Equipment Rental Market is segmented based on Equipment Type which is further segmented into Wheel Loader, Crane, Excavator, Bulldozer, Dump Truck, Diesel Genset, Motor Grader and Telescopic Handler, Others. The market analysis also studies the regional segmentation of Saudi Arabia Construction Equipment Market, divided among South & West, North & Central and East Saudi Arabia. Based on province, the market is further split into Mecca, Riyadh, Eastern, Asir, Medina and East.

 Company Profiles

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), Altaaqa Alternative Solutions Company, Al Faris Group, Rezayat Sparrow Arabian Crane Hire Co. Ltd are among the major market players in the Saudi Arabia Construction Equipment Rental Market.

Report Scope:

In this report, Saudi Arabia Construction Equipment Rental Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

·         Saudi Arabia Construction Equipment Rental Market, By Equipment Type:

o   Wheel Loader

o   Crane

o   Excavator

o   Bulldozer

o   Dump Truck

o   Diesel Genset

o   Motor Grader

o   Telescopic Handler

o   Others

·         Saudi Arabia Construction Equipment Rental Market, By Region:

o   South & West

o   North & Central

o   East

·         Saudi Arabia Construction Equipment Rental Market, By Province:

• East
• Mecca
• Riyadh
• Eastern
• Asir
• Medina

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in Saudi Arabia Construction Equipment Rental Market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).