The construction equipment rental market in Saudi Arabia is projected to surge at a compounded annual growth rate (CAGR) of over 12 per cent during 2014-20, according to a new report.
Key factors driving the market include the consistent growth in public and private infrastructure development projects and rising price of construction equipment, translating into a growing trend towards renting, said the report entitled, “Saudi Arabia Construction Equipment Rental Market Forecast & Opportunities, 2020” by TechSci Research, a global market research and consulting company.
Saudi Arabia’s construction sector is witnessing continuing growth, which is translating into rising demand for construction equipment in the country.
The country’s construction equipment rental market is broadly segmented into six major categories including crane, excavator, wheel loader, bulldozer, motor grader and telescopic handler.
Construction equipment rental companies such as Bin Quraya, Zahid Tractor & Heavy Machinery Company and Industrial Supplies Development are few of the leading players in Saudi Arabia with JCB, Tadano, Liebherr, Caterpillar and Grove being the major equipment brands offered by these companies through customised rental agreements in Saudi Arabia, according to the report.
The south-west and north-central regions account for over 70 per cent of the country’s construction equipment rental market.
“Cranes, followed by excavators, dominate Saudi Arabia construction equipment rental market,” said Karan Chechi, research director with TechSci Research.
“The crane rental segment is projected to dominate the market in terms of revenues through 2020, owing to their large fleet and essential requirement in construction activities.
“However, the telescopic handlers segment is expected to emerge as the fastest growing category due to its use in multiple applications,” he added.