UAE Construction Equipment Rental

UAE Construction Equipment Rental Market Research Report: Forecast (2022-27)

By Type of Equipment (Earth Moving Equipment, Construction Vehicle, Material Handling Equipment, Other Construction and Tunneling Equipment), By Equipment Type (Excavator, Crane, Grader, Loader, Bulld Read more

  • Buildings, Construction, Metals & Mining
  • Jan 2020
  • 105
  • BM10205

Market Definition

With the growing construction activities across the UAE, it is observed that contractors are increasingly inclining toward renting the construction equipment. It is principally due to an extensive range of benefits like avoiding expenses on purchase & maintenance, exposure to technologically advanced & latest equipment, enhancing the construction operations, & bringing automation & telematics in complex procedures, among others. Besides, since many models of construction equipment involve high ownership costs, contractors see renting them as a smart way of attaining all the benefits of equipment in different applications periodically.

Market Insights

The UAE Construction Equipment Rental Market is projected to grow at a CAGR of less than 5% during the forecast period, i.e., 2022-27. The growth of the market is likely to be driven primarily by the rapidly growing number of construction activities in the UAE, owing to the mounting focus on infrastructural developments in line with the UAE Vision 2030.

Additionally, rapid technological advancements with automation & telematics in the equipment to enhance operational efficiency are also playing a prominent role in stimulating the demand for construction equipment across the UAE. However, the high cost of construction equipment is swiftly bringing traction toward their rental supply for different construction applications, which, in turn, is driving the market. 

Report Coverage Details
Study Period Historical Data: 2017-20
Base Year: 2021
Forecast Period: 2022-27
CAGR 5%
Key Companies Profiled Al Mutawa Heavy Equipment, Mohamed Abdulrahman Al-Bahar, Al Faris, Johnson Arabia, Byrne Rental, Al Shola Rental, Yellow Cat Heavy Equipment, Aggreko, Tanzeem Heavy Equipment Rental, Gallagher International
Unit Denominations USD Million/Billion

 

Besides, since the country is a host for the ongoing World Expo 2020, the UAE government has been contributing to the surging number of construction projects for highways, shopping malls, & hotels, among others, and, as a result, positively influencing the demand for construction equipment rentals. Moreover, several initiatives by the government are generating immense growth opportunities for the leading players in the UAE Construction Equipment Rental Market. For instance:

  • In January 2020, Fujairah announced the construction of a 44km road network covering 11 prominent areas in the UAE. Back in 2019, the government announced the construction of 64km internal roads connecting the major cities in the country.

With such projects, the demand for construction equipment is escalating swiftly and generating growth opportunities for the leading market players to provide equipment rental services & augment the market growth over the forecast years. The advent of Covid-19 in 2020 had a decelerating impact on most industries across the UAE, where the Constriction Equipment Rental Market was moderately affected. The imposition of stringent restrictions & lockdowns by the UAE government to curb the spread of this dreadful disease introduced several unprecedented challenges to the market.

 

Since the construction industry is highly prominent in the UAE for economic sustainability, the government allowed construction activities to remain operational amidst the pandemic. As a result, workers involved in projects were permitted to commute to & from sites, provided they had the permit from the Dubai Municipality & the Permanent Committee for Labor Affairs.

Moreover, the government ensured to mitigate the possibility of disease spread by avoiding physical & face to face contact by adopting electronic, automated, and safer means for construction operations. It, in turn, augmented the demand for construction equipment with technologies like automation & telematics to enhance the operations & bring efficiency & speed to the process.

However, hampered transportation & logistics affected the supply & deliveries of equipment across locations and slowed construction operations, thereby witnessing a temporary decline. Nonetheless, with the gradual upliftment of restrictions & frequent lockdowns, along with a reducing number of Covid-19 cases, the government allowed the recommencement of business operations.

As a result, the supply of equipment & rental services were back in the flow. The temporary halt in the industry demonstrated the emergence of new players in the market and increased competition for the market players across the UAE.

Market Segmentation

Based on End-Users:

  • Residential 
  • Commercial
  • Industrial

Of these three, the Residential sector is anticipated to dominate the UAE Construction Equipment Rental Market with the largest share during the forecast period. It owes principally to the increasing number of construction projects for smart buildings & cities entwined with the growing need for residential complexes to habitat the mounting population & growing footfall of migrants. It, in turn, is augmenting the demand for construction equipment on rent and driving the market.

The most prominent factor behind the growing construction activities across the residential sector remains the UAE Vision 2030 to diversify the economy away from oil. As a result, the residential sector is witnessing massive investment in infrastructural developments and positively influencing the growth of the UAE Construction Equipment Rental Market.

On the other hand, the Commercial sector is expected to demonstrate the fastest market growth, whereas the industrial sector is likely to display steady growth over the forecast years. It owes principally to the rapidly increasing establishment of prominent multinational companies & rising job opportunities, i.e., propelling the need for corporate spaces.

In addition, escalating tourism in the country is resulting in the need for developing shopping malls, airports, metro stations, highways, & hotels, among others. It, in turn, is projecting an increasing number of construction activities for commercial applications & mounting demand for construction equipment & machinery on rent during 2022-27.

Based on the Type of Equipment:

  • Earth Moving Equipment
  • Construction Vehicle
  • Material Handling Equipment
  • Other Construction & Tunnelling Equipment

Here, Earth Moving Equipment acquired a significant market share in recent years, owing principally to the country's aim to establish itself as a construction hub across the Middle East, i.e., propelling the demand for excavators, loaders, & cranes, among others, on a rental basis. Since these types of equipment are used extensively in every construction project, the demand for earthmoving equipment is very likely to display significant growth opportunities for the UAE Construction Equipment Rental Market through 2027.

Recent Developments by Leading Companies

Due to the significant growth prospects of the UAE Construction Equipment Rental Market through 2027, several leading players are actively working toward expanding their product portfolio and strengthening their scalability across the UAE. For instance:

  • In August 2021, Al Faris Group extended its machinery fleet from Faymonville and added new 8-axle low loaders to function on different terrains, difficult sites, & platforms.

Market Dynamics:

Key Driver & Opportunity: Advancements in Construction Equipment

The quick advent of technologies in construction equipment is introducing new features in the machinery and enabling efficiency & quicker construction operations. Hence, the demand for advanced equipment is escalating swiftly for rentals & generating growth opportunities for the leading players in the UAE Construction Equipment Rental Market to attract contractors in the competitive industry and drive the market in the coming years.

Moreover, the expanding scalability of equipment rental service providers across remote locations in the UAE is instigating contractors to rent the construction equipment and thus contribute to the overall market growth during 2022-27. 

Possible Restraint: Volatile Rents & Expenses on Pick-ups & Deliveries

The growing number of construction projects, i.e., displaying a soaring need for advanced & robust equipment, is witnessing fluctuations in rents. It, in turn, is anticipated to generate demand & supply gaps, especially across budgeted contracts, and obstruct the growth of the UAE Construction Equipment Rental Market in the coming years.

Moreover, high expenses associated with the pick-up & delivery of construction equipment might also act as a prominent challenge for the overall market growth during 2022-27, especially when the project site is located remotely.

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the UAE Construction Equipment Rental Market?
  2. What are the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the UAE Construction Equipment Rental Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the UAE Construction Equipment Rental Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the UAE Construction Equipment Rental Market study?

Frequently Asked Questions

A. The UAE Construction Equipment Rental Market is projected to grow at a CAGR of less than 5% during 2022-27.

A. The Residential sector is anticipated to emerge as an area of remunerative opportunities for the leading players in the UAE Construction Equipment Rental Market during 2022-27.

A. Technological advancements in construction equipment are introducing new features in the machinery for efficient & quicker construction operations, which would generate growth opportunities for the leading players & drive the UAE Construction Equipment Rental Market through 2027.

A. In the coming years, the UAE Construction Equipment Rental Market is anticipated to witness considerable growth, owing to the expanding fleet & reachability of construction equipment rental service providers in the UAE.

1.     Introduction

1.1.   Research Process

1.2.   Product/Service Overview

1.3.   Market Segmentation

1.4.   Assumptions

2.     Executive Summary

3.     Expert Verbatim- What our Experts Say?

4.     UAE Macroeconomic Outlook

5.     UAE Construction Equipment Rental Market Analysis, 2017-2027

5.1.   Market Size & Analysis

5.1.1. Market Revenues

5.2.   Market Share & Analysis

5.2.1. By Type of Equipment

5.2.1.1.  Earth Moving Equipment

5.2.1.2.  Construction Vehicle

5.2.1.3.  Material Handling Equipment

5.2.1.4.  Other Construction and Tunneling Equipment

5.2.2. By Emirates

5.2.2.1.  Abu Dhabi & Al Ain

5.2.2.2.  Dubai

5.2.2.3.  Sharjah & Northern Emirates

5.2.3. By End Users

5.2.3.1.  Residential

5.2.3.2.  Commercial

5.2.3.3.  Industrial

5.2.4. By Company

5.2.4.1.  Revenue Shares

5.2.4.2.  Strategic Factorial Indexing

5.2.4.3.  Competitor Placement in MarkNtel Quadrant

6.     UAE Excavator Rental Market Analysis, 2017-2027

6.1.   Market Size & Analysis

6.1.1. Market Revenues

6.2.   Market Share & Analysis

6.2.1. By Type

6.2.1.1.  Back hoe

6.2.1.2.  Dragline

6.2.1.3.  Suction excavators

6.2.1.4.  Power shovels

6.2.1.5.  Others

6.2.2. By Weight

6.2.2.1.  Upto 10 tons

6.2.2.2.  10 to 30 tons

6.2.2.3.  More than 30 tons

6.2.3. By Emirates

6.2.4. By Company

6.3.   UAE Excavator Rental Details

7.     UAE Grader Rental Market Analysis, 2017-2027

7.1.   Market Size & Analysis

7.1.1. Market Revenues

7.2.   Market Share & Analysis

7.2.1. By Type

7.2.1.1.  Rigid Frame

7.2.1.2.  Articulated Frame

7.2.2. By Blade Width

7.2.2.1.  Upto 5m

7.2.2.2.  More than 5 m

7.2.3. By Emirates

7.2.4. By Company

7.3.   UAE Grader Rental Details

8.     UAE Loader Rental Market Analysis, 2017-2027

8.1.   Market Size & Analysis

8.1.1. Market Revenues

8.2.   Market Share & Analysis

8.2.1. By Type

8.2.1.1.  Track Loaders

8.2.1.2.  Wheel Loaders

8.2.2. By Weight

8.2.2.1.  Upto 30 ton

8.2.2.2.  30 -60 ton

8.2.2.3.  More than 60 ton

8.2.3. By Emirates

8.2.4. By Company

8.3.   UAE Loader Rental Details

9.     UAE Bulldozer Rental Market Analysis, 2017-2027

9.1.   Market Size & Analysis

9.1.1. Market Revenues

9.2.   Market Share & Analysis

9.2.1. By Type

9.2.1.1.  Crawler bulldozer

9.2.1.2.  Wheeled bulldozer

9.2.1.3.  Mini dozers

9.2.2. By Weight

9.2.2.1.  Upto 10 ton

9.2.2.2.  11 -30 ton

9.2.2.3.  More than 30 ton

9.2.3. By Emirates

9.2.4. By Company

9.3.   UAE Bulldozer Rental Details

10.  UAE Trenchers Rental Market Analysis, 2017-2027

10.1.Market Size & Analysis

10.1.1.   Market Revenues

10.2.Market Share & Analysis

10.2.1.   By Type

10.2.1.1.       Ladder trenchers

10.2.1.2.       Wheel trenchers

10.2.2.   By Emirates

10.2.3.   By Company

10.3. UAE Trenchers Rental Details

11.  UAE Tipper Rental Market Analysis, 2017-2027

11.1.Market Size & Analysis

11.1.1.   Market Revenues

11.2.Market Share & Analysis

11.2.1.   By Type

11.2.1.1.       Standard Tipper

11.2.1.2.       Semi-Trailer End Tipper

11.2.1.3.       Side Dump Trucks

11.2.1.4.       Others

11.2.2.   By Capacity

11.2.2.1.       Upto 10 ton

11.2.2.2.       11 -20 ton

11.2.2.3.       More than 20 ton

11.2.3.   By Emirates

11.2.4.   By Company

11.3.UAE Tipper Rental Details

12.  UAE Crane Rental Market Analysis, 2017-2027

12.1.Market Size & Analysis

12.1.1.   Market Revenues

12.2.Market Share & Analysis

12.2.1.   By Type

12.2.1.1.       Mobile Cranes

12.2.1.2.       Telescopic Crane

12.2.1.3.       Tower Crane

12.2.1.4.       Truck Mounted Crane

12.2.1.5.       Loader Crane

12.2.2.   By Lift Capacity

12.2.2.1.       Upto 20 ton

12.2.2.2.       21 - 40 ton

12.2.2.3.       More than 40 ton

12.2.3.   By Emirates

12.2.4.   By Company

12.3.UAE Crane Rental Details

13.  UAE Forklifts Rental Market Analysis, 2017-2027

13.1.Market Size & Analysis

13.1.1.   Market Revenues

13.2.Market Share & Analysis

13.2.1.   By Type

13.2.1.1.       Cushion Tire Forklifts

13.2.1.2.       Pneumatic Tire Forklifts

13.2.1.3.       3/4 Wheel Electric Forklifts

13.2.1.4.       Rough Terrain Forklifts

13.2.2.   By Lift Capacity

13.2.2.1.       Upto 2 ton

13.2.2.2.       2 - 5 ton

13.2.2.3.       More than 5 ton

13.2.3.   By Emirates

13.2.4.   By Company

13.3.UAE Forklifts Rental Details

14.  UAE Road Rollers Rental Market Analysis, 2017-2027

14.1.  Market Size & Analysis

14.1.1.   Market Revenues

14.2.  Market Share & Analysis

14.2.1.   By Type

14.2.1.1.       Single Drum Rollers

14.2.1.2.       Double Drum Rollers

14.2.1.3.       Others

14.2.2.   By Emirates

14.2.3.   By Company

14.3.UAE Road Rollers Rental Details

15.  UAE DG Set Rental Market Analysis, 2017-2027

15.1.Market Size & Analysis

15.1.1.   Market Revenues

15.2.Market Share & Analysis

15.2.1.   By KVA Ratings

15.2.1.1.       5 KVA to 75 KVA

15.2.1.2.       75.1 to 375 KVA

15.2.1.3.       375.1 to 750KVA

15.2.1.4.       750.1 to 1,000 KVA

15.2.1.5.       Above 1,000 KVA

15.2.2.   By Emirates

15.2.3.   By Company

15.3.UAE DG Set Rental Details

16.  UAE Construction Equipment Rental Market Attractiveness Indexing, 2017-2027

16.1.  By Type of Equipment

16.2.  By Type of Products

16.3.  By Emirates

17.  UAE Construction Equipment Rental Market Trends & Developments

18.  UAE Construction Equipment Rental Market Dynamics

18.1.Impact Analysis

18.2.Drivers

18.3.Challenges

19.  UAE Construction Equipment Rental Market Winning Strategies, 2019

19.1.Investment Scenario

19.2.Hotspots

20.  UAE Construction Equipment Rental Market, Porter’s Fiver Forces Analysis

21.  Competitive Benchmarking

21.1.Competition Matrix

21.1.1. Product Portfolio

21.1.2. Target Markets

21.1.3. Target End Users

21.1.4. Research & Development

21.1.5. Strategic Alliances

21.1.6. Strategic Initiatives

21.2.Company Profiles (Business Description, Product Offering, Strategic Alliances or Partnerships, etc.)

21.2.1.   Al Mutawa Heavy Equipment

21.2.2.   Mohamed Abdulrahman Al-Bahar

21.2.3.   Al Faris

21.2.4.   Johnson Arabia

21.2.5.   Byrne Rental

21.2.6.   Al Shola Rental

21.2.7.   Yellow Cat Heavy Equipment

21.2.8.   Aggreko

21.2.9.   Tanzeem Heavy Equipment Rental

21.2.10. Gallagher International

22.  Disclaimer

UAE Construction Equipment Rental Market Segmentation