UAE construction equipment market is anticipated to witness a CAGR of 6.33% during the forecast period 2025-2032, rising from USD 0.80 billion in 2024 to USD 1.31 billion in 2032. The market has experienced significant growth in recent years and is expected to maintain an expansion in the coming years owing to the rising production of heavy commercial vehicles, growing demand for production and extraction of oil and gas, rapid technological advancements, increasing investment in eco-friendly construction equipment, and surge in infrastructure projects. The UAE construction equipment market demand is rising owing to increased investments in residential buildings, railways, and roads, upgradation in existing infrastructure, growing funding in establishing EV charging infrastructure, and rapid urbanization. Initiatives by the UAE government to expand the economy through large investments in massive projects including the U.A.E. Rail Network, AI Maktoum International Airport, Dubai Metro, Dubai Harbour, and Palm Jumeirah project, are expanding this market. For instance, the UAE Ministry of Energy and Infrastructure has announced that it is carrying out 129 development projects with a total value of nearly USD 3.22 billion. These projects are part of the ministry’s five-year plan for the period between 2018 and 2023.
Companies in the UAE construction equipment market are significantly investing in different research and development programs to advance the performance and compatibility of electric construction equipment. Further companies are launching new products to gain market share in market.
For instance, in March 2024, JCB Co., Ltd. announced the launch of new-generation construction machines including heavy-duty excavators and backhoe loaders in UAE, featuring pivotal upgrades across the range to help customers reduce costs and increase effectiveness coupled with enhanced versatility, comfort, and productivity when loading, unloading, and excavating.
Rapid Establishment of Manufacturing Facilities Drives the UAE Construction Equipment Market Demand
A surge in urbanization, rising investment by the government in improving existing infrastructure, and expansion in the transportation sector generated the requirement for construction equipment, leading to the establishment of manufacturing facilities for construction equipment. In addition, companies in the market are establishing manufacturing facilities for different products in the UAE to expand their product portfolio and market presence, driving the UAE construction equipment market demand. The government is also planning to offer incentives and subsidies for the setup of a manufacturing facility where automobiles would be produced. Furthermore, companies and legal entities are signing agreements to establish manufacturing facilities to produce commercial vehicles to address the demand for heavy commercial vehicles from the manufacturing sector.
For instance, in May 2024, the Abu Dhabi Department of Economic Development signed a Memorandum of Understanding with Alfahim Group for manufacturing and assembly of electric commercial vehicles in the UAE.
Increasing Adoption of Advanced Equipment Pushes the UAE Construction Equipment Market Growth
Consumers in the UAE are focusing on technologically advanced, more fuel-efficient, and affordable equipment for increasing construction activities. Advanced construction equipment decreases the cost of labor, and operational costs coupled with tracking of work done in every state of the process. Companies are functioning on expanding their market presence by giving products, solutions, and services along with new values that take full benefit of the internet of things (IoT) and information and communication technology (ICT). Not only this, but organizations are also engaged in launching advanced and innovative equipment that addresses the customers’ demand and encounter environmental issues. Therefore, the companies are announcing collaborations and partnerships to launch new and innovative construction equipment and revolutionize the construction industry in the UAE.
For instance, in January 2024, Al Shirawi Equipment Company LLC announced a partnership with HD Hyundai Construction Equipment Co., Ltd. for five years to transform the construction industry in the UAE with cutting-edge technology and a shared commitment to customer support and innovation. In another instance, in November 2023, Volvo Group announced the launch of electric construction vehicles, including the ECR25 electric compact excavator, the 23-ton EC230 electric excavator, and the 20-ton L120 electric wheel loader to step towards decarbonizing construction sites across the region.
Heavy Construction Equipment is Expected to Register the Major Market Share in the Market
Heavy construction equipment is projected to register the largest market share owing to an increase in construction activities, technological advancement, and growing investment by the government in developing infrastructure. Heavy construction equipment demand is rising as these are designed to carry out heavy-duty tasks including grading, demolishing, and digging along with enhancing efficiency and productivity on construction sites. Companies in the market are introducing this equipment equipped with advanced safety features to protect workers and reduce the risk of injuries and accidents, surging the demand for heavy construction equipment in the UAE.
For instance, in June 2023, Al-Futtaim Auto & Machinery Company (FAMCO) announced the launch of its first-ever heavy-duty electric truck range across the Middle East to keep the sustainability in focus.
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