Earthmoving equipment outlook in Saudi Arabia
As reported by Research and Markets, Saudi Arabia held majority of the market share followed by UAE and Qatar. However, declining global oil prices resulted in slowdown in the infrastructure spending, which halted several projects in the region. Major impact of the declining oil revenues was witnessed in Saudi Arabia. However, utility sector recorded investments due to growing demand for energy, which fueled the growth of the market. Owing to the increasing number of travelers, new airports such as Medina and Abha are being constructed, and existing airports, such as Riyadh's King Khaled International Airport and Jeddah's King Abdulaziz International Airport are being upgraded and expanded. New road constructions and upgrades include infrastructure projects in the industrial cities of Jubail, Yanbu, and Ras Al Khair. The report adds that sustained growth of the economy in Saudi Arabia coupled with the steady development of the construction market will increase the number of construction projects in this region. This increase in the number of construction activities will, in turn, foster the need for earth moving equipment during the next few years. Meanwhile, the excavator market in Saudi Arabia and Turkey is also growing rapidly. This is projected to augment the excavator market in Middle East & Africa. The region is a leading market for oil & gas. This offers immense opportunities to the excavator market in Middle East & Africa. Excavators are employed in the mining of oil. Thus, demand for excavators in Middle East & Africa is increasing.
According to Transparency Market Research, competition is likely to intensify in the global excavator market in the next few years owing to implementation of new emission norms. This is also estimated to create new market opportunities. A report by Technavio states that an important market trend that will impel growth is the rising demand for energy-efficient equipment. Construction companies in Saudi Arabia are focusing extensively on sustainable development practices like green building construction. To construct such buildings, construction companies have to minimize the emissions and pollution throughout the project lifecycle, which in turn will augment the need for energy-efficient equipment. This increase in the demand for energy-efficient equipment will compel manufacturers to develop energy-efficient and technologically advanced earthmoving equipment. The report also found that in Saudi Arabia, this market has a high growth potential and is very competitive due to the presence of many large vendors. Rising investments in infrastructure and the encouragement and participation of the government for the development of the transportation and infrastructure projects are bolstering demand for earthmoving equipment.
Earthmoving equipment outlook in Qatar
According to a report published by Markets and Research, Qatar earthmoving equipment market is expected to grow at a CAGR of over 5 percent during 2016 - 2021. Qatar is considered as one of the most attractive destinations for infrastructure investments in the region on account of quicker return on investment, liberal tax system and favorable government initiatives. In Qatar, earthmoving equipment are being majorly used in mining, construction and industrial sectors. Thus, any minor changes or fluctuations in these sectors influences the growth of Qatar earthmoving equipment market.
According to the Qatar National Vision 2030, the country's urban infrastructural development is one of the major focus areas of the government. With increase in the number of infrastructure projects in the country, demand for earthmoving equipment is expected to increase in the coming years. Moreover, with FIFA World Cup 2022 to be hosted in Qatar, the government is continuously working on improving the country's infrastructure. To accommodate the visitors, new hotels are being built across the country, which is boosting demand for earthmoving equipment in the country.