Middle East & Africa Construction Equipment Rental Market Outlook, 2028

Rising government investments in infrastructure development and major infrastructure projects in the Middle East and Africa, such as those in Saudi Arabia, Kuwait, Oman, the United Arab Emirates, and Egypt, are anticipated to produce significant growth in the market. One of the major factors driving the growth of the market is the growing construction industry, especially in developing countries, owing to the numerous growth opportunities in the infrastructure, residential, and non-residential sectors. The rise in the construction of multi-family houses (with the growing trend of nuclear families) and increasing investments in the construction of roads, highways, smart cities, metros, bridges, and motorways are due to the growing population and urbanization. The growing trend towards automation is expected to drive the growth of the market. Countries in the Middle East region such as Saudi Arabia and Qatar have an augmented demand for rental equipment such as loaders and excavators owing to surges in major projects such as the FIFA World Cup in 2022, Jazan Economic City, King Abdullah Economic City, Vision 2030, and Jeddah Metro.

According to the research report, Middle East and Africa Construction Equipment Rental Market Outlook, 2028 the market is anticipated to grow at a 5.81% CAGR from 2023 to 2028. The Middle East and Africa region is predicted to exhibit steady growth during the forecast period. The Gulf Cooperation Council (GCC) holds the highest market share in the Middle East and Africa region, owing to the heavy application of automation and modernised techniques in manufacturing in the developed Gulf countries. Each country in the Middle East region has grown in the construction sector in its own unique way over the years, adhering to its own pace, norms, and ambitions. The United Arab Emirates is responsible for significant projects, owing to Dubai's more robust development and investment than the rest of the Middle East. High economic growth, a growing elite population, increased foreign investment, and other factors have contributed to this. Saudi Arabia, the United Arab Emirates, Oman, and Egypt are launching several infrastructure projects, including new megacities, railway projects, harbour projects, new airport projects, housing projects, and so on, all of which are expected to boost construction demand. The city's infrastructure development also contributes to the need for construction equipment.

The building of major rail networks like Etihad Rail in the United Arab Emirates is also projected to propel the market for construction equipment in the UAE. The construction of high-rise buildings like the Jeddah Tower in Saudi Arabia is anticipated to increase the demand for construction equipment in the country. Several infrastructure projects are being implemented in Africa. Some notable projects include the Lagos-Ibadan Railway Line in Nigeria, the Addis Ababa-Djibouti Railway Line between Ethiopia and Djibouti, the Ethiopia-Djibouti Water Pipeline, and the Dukem Manufacturing Hub in Ethiopia. Other notable projects include Egypt's New Administrative Capital, the Mombasa-Nairobi Standard Gauge Railway in Kenya, and the Isimba Hydroelectric Power Station in Uganda. All these factors are contributing to the higher market growth for construction equipment rental across the overall region. A key factor driving revenue generated from construction activities in the Middle East and Africa is residential housing projects. The rise in the construction industry is one of the major factors driving the growth of the global construction equipment rental services market. The growing demand for rental equipment from both residential and non-residential building segments to improve their productivity, safety, quality control, and time and cost savings are some other factors expected to fuel market growth over the forecast period. Moreover, an increase in roadwork projects across various regions would create new opportunities for players operating in this market.

Large construction projects such as the Jeddah Airport construction and development of the NEOM district lead to an increasing demand for other construction equipment like bulldozers, trenchers, etc. The initiative to connect a network of rail and road routes from China to Europe via the Middle East will increase the MEA construction equipment market's demand. The housing policy of the UAE is focused on providing housing benefits to the low-income population through the federal government and various other agencies within the local government. This will drive demand for heavy construction equipment. The construction equipment rental market is increasingly gaining importance in the region owing to the low cost and easy availability of earthmoving equipment for rent. This is driving demand in the GCC construction equipment industry. TENDERD, a heavy equipment rental marketplace based out of the United Arab Emirates, has come in as the first-place winner for BIG 5’s Start-Up City Pitch at the Dubai World Trade Centre. Based on these factors, the residential segment is leading the market with the highest market share in 2022.

According to the report, the Middle East and Africa market is segmented into three major countries, including the UAE, Saudi Arabia, and South Africa. Saudi Arabia's construction industry has experienced rapid expansion in recent years, owing to government assistance through long-term economic diversification programmes such as Saudi Vision 2030. Saudi Arabia is diversifying its economic resources to minimise its reliance on crude oil exports by boosting the tourism industry, which involves the construction of new hotels and commercial facilities. The construction sector's revenue in Saudi Arabia has increased in recent years. With the growing urban population, housing needs, and rapid diversification of the region’s business from the big oil and gas industry to tourism and other sectors, the demand for construction activities in the region for residential, industrial, and commercial buildings increased in the past. Saudi Arabia is in the middle of a major transformation agenda that includes many megaprojects, such as the tourist destination of the Neom super-city, the 334-square-kilometer entertainment city of Qiddiya, the development of the Unesco World Heritage site of Al-Ula, and the luxury, sustainable tourism-focused Red Sea Project. These megaprojects have resulted in numerous large orders for construction equipment, resulting in significant growth in the Saudi construction equipment industry.

On the other hand, the UAE construction equipment rental market is expanding rapidly due to factors such as the country's thriving and expanding oil and gas sector, as well as various on-going and emerging constructions and building projects for infrastructural development. Furthermore, various on-going and emerging construction and building projects for infrastructural development are also expected to drive the growth of the UAE construction equipment rental market in the forecast period. Additionally, the high cost of purchasing new construction equipment compared to the cost of renting construction equipment leads to an increase in demand for rental construction equipment in the country. The construction equipment rental market is a service industry that offers construction machinery, equipment, and tools of all sizes, weights, and shapes to end-users for a limited time. Construction companies favour these services because they allow temporary equipment to be rented without having to purchase the required equipment. Apart from saving unnecessary business expenses, it also prevents excessive depreciation of equipment over time. Rental equipment providers offer a wide range of machinery and equipment, including mini-excavators, compressors, pumps and more. UAE builders focus extensively on sustainable construction practises and promote the use of eco-friendly materials in their buildings. The growing investment in transportation, infrastructure, and the oil and gas industry, coupled with convenient access to machinery, has fuelled the UAE construction equipment rental market.

The South African construction industry is undergoing a period of unfavourable conditions as a result of economic indicators, which continue to disappoint the building industry. There are fewer projects in the construction market with higher interest rates, which is limiting the country's growth in real estate construction schemes. On a more positive note, the South African government has launched a number of initiatives aimed at improving the nation’s transport infrastructure. The market's growth can be attributed to rapid urbanisation and increasing government initiatives. Emerging economies in the region, such as Mozambique and Zambia, have shown sustained economic growth in sectors including manufacturing over the past few years, contributing to the Southern Africa construction equipment rental market. The government of Mozambique is investing in large-scale infrastructure projects. For example, the government announced a new project in 2016, with Japan investing USD 255 million in port and railway capacity renovation to facilitate mineral resource exports to growing economies.

Recent Developments in the Middle East and Africa Construction Equipment Rental Market

• In 2022, the Al Faris Group of Companies, headquartered in Dubai (United Arab Emirates), will receive 24 mobile cranes from Liebherr. The crane and heavy transport company based in the GCC is expanding, with new cranes ranging in lifting capacity from 110 to 700 metric tonnes and an additional 27 cranes already on order.
• October 20, 2022: Doosan is displaying the new DX20ZE two-tonne electric mini-excavator on its Bauma stand. The DX20ZE will be Doosan's first mass-produced electric excavator, with a full launch scheduled for 2023. Due to its small size, the DX20ZE is also an excellent choice for construction and rental companies working in sensitive areas where low noise and/or night-time work are required.
• July, 2022: The Red Sea Development Company (TRSDC), the Saudi developer behind the world's most ambitious regenerative tourism project, is teaming up with Dayim Equipment Rental, the region's full-service plant, machinery, and vehicle provider.

Major Companies present in the market:

Nikken Corporation, Caterpillar Inc., Sumitomo Corp., Hitachi Construction Machinery (Hitachi Group), Hyundai Construction Equipment Ltd., Loxam Group, Byrne Group, Liebherr - International Ag.

Considered in this report

• Geography: Middle East & Africa
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• Middle East & Africa Construction Equipment Rental market with its value and forecast along with its segments
• Country-wise Construction Equipment Rental market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report:

• UAE
• Saudi Arabia
• South Africa

By Equipment Type:

• Earthmoving
• Material Handling
• Concrete & Road Construction
• Others

By Application Type:

• Residential
• Non-Residential
• Others (Infrastructure, industrial, real estate, etc)

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Construction Equipment Rental 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.