Saudi´s CE market to grow at 8.75%: 6Wresearch
Saudi Arabia is one of the largest countries in GCC with oil-based economy. In order to achieve better economic performance, the Government of Saudi Arabia is aiming to diversify its economy by investing in various sectors of business and industry such as hospitality, banking, retail, agriculture, infrastructure and transportation, and education. Metal and mining sector is also expanding in the country, which is one of the key reasons for growing Saudi Arabia construction equipment market.
According to 6Wresearch, Saudi Arabia´s construction equipment market is forecasted to grow at a CAGR of 8.75 per cent during 2015-2021. A highly import driven and consolidated market with few global players accounting for majority of the share, international players are increasingly making their footprints in the market through partnerships or distribution.
Metal and mining is the major application of construction equipment market in the country, contributing the maximum revenue. According to Saudi Commission for Tourism and Antiquities, 214 new hotels would be built in the country over the next two years and over $30 billion would be invested to boost the hospitality sector.
According to Rajat Kharbanda, Senior Consultant, Research and Consulting, 6Wresearch, "With the large number of mega projects coming up in the construction industry and expansion of public and private infrastructures in the country, the market is expected to witness growth during the forecast period.
"Growing tourism sector would further contribute to the country´s revenue growth in the construction equipment market due to the development of more hotels for accommodating rising tourist numbers. Other construction projects includes shopping malls, airports, metro stations, and hospitals where construction equipment would be highly required," Rajat further added.
According to Sathi Paul, Research Associate, Research and Consulting, 6Wresearch," The western region of Saudi Arabia is the main revenue generator of this market as a large number of hotel and retail outlets are in the pipeline to be constructed in Madinah and Makkah.
Loaders accounted for the major share in construction equipment, followed by crane and construction tractors; while crawler loaders generated major share, followed by the tower and mobile crane; and in construction, tractors bulldozer/crawler tractor has captured the marketö, Paul concluded.
International players here include Caterpillar, Komatsu, Hitachi, Mitsubishi, BEML, and Liebherr Group.
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