Market Overview
- Market Size (2029 – Volume): 102.03 Thousand Units
- Market Size (2023 – Volume): 73.28 Thousand Units
- CAGR (2023-2029): 5.67%
- Market Size (2029 – Revenue): $5.27 Billion
- Forecast Period: 2024-2029
Growth Drivers
Expansion of Port Infrastructure Fuels Demand for Overhead Cranes
Saudi Arabia’s King Abdulaziz Port increased its crane capacity by 9.7% in June 2024, following a $1.86 billion investment by Saudi Global Ports Co., adding automated quay and gantry cranes. This upgrade, part of the National Transport and Logistics Strategy, aims to enhance efficiency in handling large vessels and strengthen Saudi Arabia’s position as a global logistics hub. Container handling at Saudi ports has surged by 12.48% annually. Additionally, the Port of Salalah’s expansion will boost cargo throughput, solidifying its role as a regional transshipment hub. In June 2024, Gantrex was awarded the contract for crane rail solutions at Saudi Arabia’s NEOM Oxagon Port. Meanwhile, Abu Dhabi’s $89 million CMA Terminals Khalifa Port project is under construction and is set to launch by 2025. The rapid development of logistics infrastructure is driving demand for overhead cranes across the GCC.
Rising Demand for Material Handling Equipment Driven by Logistics Investments
Material handling equipment accounted for 33.2% of the GCC construction equipment market in 2023, with projected sales reaching 33,832 units by 2029 at a CAGR of 5.65%. Saudi Arabia’s logistics sector is witnessing substantial investments, including Investcorp’s commitment of $1 billion to the GCC real estate market over the next five years, focusing on warehouse expansion. This includes a $100 million investment in a 215,000-square-foot temperature-controlled warehouse in Dammam. These logistics developments are expected to fuel demand for material-handling equipment throughout the forecast period.
Dubai’s new mega project, Burj Jumeirah, a 550-meter skyscraper in Burj Al Arab, will feature residential, office, and hotel spaces, along with a 360-degree panoramic observation deck, further boosting construction equipment demand.
Key Market Players
- Leading Companies: Caterpillar, Komatsu, Liebherr, Volvo CE, XCMG, SANY, Hitachi Construction Machinery
- Niche Players: Tadano, Terex, Manitou Group, SDLG, Merlo Spa, Yanmar, Yongmao, Bomag, ElectroMech
- Emerging Players: Kubota, JCB, Kobelco, HD Hyundai Construction Equipment, CNH Industrial, LiuGong, Zoomlion, DEVELON
Market Trends & Dynamics
Key Drivers:
- Increased investment in public infrastructure and real estate
- Expansion of renewable energy projects
- Growth in port development boosting demand for overhead cranes
Emerging Trends:
- Transition toward a green hydrogen-fueled economy
- Rising demand for cranes due to LNG projects
- Increasing adoption of waste-to-energy initiatives
Major Distributors in the GCC
- Kanoo Machinery, Al-Futtaim Auto & Machinery, Arabian Truck & Construction Equipment Co., Al-Qahtani Vehicle & Machinery, and more
Market Segmentation
- Earthmoving Equipment: Excavators, Backhoe Loaders, Wheeled Loaders, Bulldozers, Motor Graders, Trenchers
- Road Construction Equipment: Road Rollers, Asphalt Pavers
- Material Handling Equipment: Cranes, Forklifts, Telescopic Handlers, Aerial Platforms
- Other Construction Equipment: Dumpers, Tippers, Concrete Mixers, Concrete Pump Trucks
(Source: Arizton Research)
