Middle East & Africa Excavator Market Outlook, 2029

The Middle East & Africa region has experienced a major amount of investment in the infrastructure industry. Even though the region is attracting investments, the maintenance and the spread are quite uneven. Policymakers need to concentrate on identifying the large differences in the conditions across the regions in terms of infrastructure development, living standards, and the participation of the private sector. The gap in infrastructure and the maintenance needs across the region is huge. Along with the developing oil exports, the need for excavators and heavy types of machinery is increasing. This is expected to support the overall region’s excavator market in the forecasted period.

Even though the need for better housing supports the excavator demand, the economic shortage in the underdeveloped countries is acting as a market hindrance. Governments have been making an effort to decrease the gap by building more advanced infrastructure and supporting the construction industry with subsidiaries and financial backup. For instance, in March 2021, Volvo Construction Equipment launched a new 7-tonne compact excavator for the Middle East and African markets. The EC75D features Volvo’s D3 diesel engine, delivering 44.4kW of power and reduced fuel consumption. Growing industrialization across the region and increasing investments in infrastructure development are expected to boost the excavator market in the Middle East region over the coming years.

According to the research report, 'Middle East & Africa Excavator Market Outlook, 2029,', the Middle East & Africa Excavator market is anticipated to add to more than USD 4.30 Billion by 2024-29. The growth regression supports the conclusion that the returns to infrastructure have been lower in the Middle East and Africa region than in developing countries as a whole. The Middle East & Africa market has witnessed fair competition among both the segments of excavators, with just a fluctuating marginal difference in contribution. The Middle East & Africa excavator market has seen the most benefit from the crawler excavator segment.

The dominating segment has been slowly losing its share with the new types of excavators coming onto the market. Individually, a colossal market share is held by the UAE market, followed by South Africa. Both these countries have shown development in their infrastructure and the demand for better housing and more commercial buildings. The Middle East excavators market is expected to grow during the forecast period due to increasing investments in the construction and mining sectors. Large scale projects in mining, oil & gas, road construction, and port construction are the primary reasons behind the increase in the demand for excavators in the Middle East excavators market. The Middle East excavator market is one of the fastest developing markets in the world due to its continued dominance in the residential, industrial, and construction sectors. Extensive infrastructure plans such as Dubai Plan 2021 and Abu Dhabi Vision 2030 are factors that would help the excavator market grow in the region.

Major emerging factors such as renting of excavators are driving the Middle East excavator market to shift from traditional to automated excavators. Based on types, the crawler excavator segment is the dominating segment in the Middle East & Africa market due to its greater suitability for application in muddy conditions and higher capacity to carry weights. The region is a leading market for oil and gas. This offers immense opportunities for the excavator market in the Middle East and Africa. Excavators are employed in the mining of oil. Thus, demand for excavators in the Middle East and Africa is increasing.

Competition is likely to intensify in the global excavator market in the next few years owing to the implementation of new emission norms. This is also estimated to create new market opportunities. Mini excavators, weighing less than 6 tonnes, are gaining popularity in the MEA region due to their compact size, maneuverability, and ability to perform a wide range of tasks in tight spaces. The demand for mini excavators is driven by the expansion of the construction and utility sectors, which rely on these machines for their versatility and cost-effectiveness. The equipment rental market is also experiencing growing demand for mini excavators, particularly in urban areas, where their compact size and portability are advantageous. Technological advancements, such as the development of electric mini excavators and the integration of cameras and spatial sensors, are further enhancing the efficiency and eco-friendliness of these machines.

The excavator market in the Middle East and Africa (MEA) is experiencing significant growth across various applications, including construction, mining, utility, and agriculture, driven by ongoing infrastructure development and technological advancements. In the construction sector, excavators are essential for large-scale projects such as roads, bridges, and buildings, with increasing investments from both governments and private organizations to enhance urban infrastructure. The demand for advanced models, including electric and hybrid excavators, is rising due to a focus on sustainability and compliance with environmental regulations.

In mining, excavators play a crucial role in resource extraction, including coal, oil, and minerals, with the region's rich natural resources fueling the need for robust machinery. Technological innovations, such as automated and remote-controlled excavators, are enhancing operational efficiency and safety in mining operations. The utility sector also utilizes excavators for tasks like sewage disposal and pipeline installation, highlighting their versatility. In agriculture, excavators are increasingly used for land preparation, irrigation, and maintenance, with mini excavators gaining popularity for their compact size and efficiency in smaller projects.

COVID-19 Impacts

The incursion of a novel corona-virus has resulted in a slowdown in economic activity in the Middle East as a result of delays or closures of major road and construction projects, which directly impedes the growth of the excavators market for a short period of time. Considerable market restraints for Middle East excavators are high maintenance costs, the need for technical support, and increased emission norms. However, changes in consumer behavior and increased adoption of advanced lifestyles across the region are expected to drive higher market growth for excavators in the near future.

Considered In the Report

• Geography: Middle East & Africa
• Historical year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecasted year: 2029

Countries covered

• Saudi Arabia
• UAE
• Qatar
• South Africa
• Rest of Middle East & Africa

Aspects Covered In the Report

• Market Size By Value for the historic time period (2018-2023)
• Market Size By Value for the forecast time period (2024-2029)
• Market Share by Application (Construction, Mining, utility & agriculture)
• Market Share by Machine Type (Mini Excavator, Crawler, Wheeled, Others)
• Market Share by Country (2018, 2023 & 2029F)

The approach of the report

We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise.

This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the construction machinery and excavator industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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