Saudi Arabia Construction Equipment Market to Reach USD 1.71 Billion by 2029, Driven by Vision 2030 Projects and Urbanization

Mordor Intelligence has published a new report on the Saudi Arabia Construction Equipment Market, offering a comprehensive analysis of trends, growth drivers, and future projections.    

The Saudi Arabia Construction Equipment Market, valued at USD 1.40 billion in 2024, is projected to reach USD 1.71 billion by 2029, growing at a CAGR of 4.13%. This growth is fueled by large-scale infrastructure projects under the Vision 2030 initiative, expanding urbanization, and increased investment in residential and commercial construction. The government’s ambitious plans to diversify the economy and develop non-oil sectors have created significant demand for advanced construction equipment across the country.

Key Trends

1. Vision 2030 Accelerating Infrastructure Development
The Saudi Vision 2030 initiative, aimed at diversifying the economy, has propelled construction activities in key sectors such as housing, commercial real estate, and tourism.

• The Ministry of Housing’s ESKAN project plans to deliver 500,000 housing units, with an additional 1.5 million units set for construction over the next five years.
• Major infrastructure projects, including NEOM City, Red Sea Development, and Qiddiya, are driving demand for a wide range of construction equipment.
• Significant investments in airport expansions and sports facilities are further boosting the market.

2. Growth in Tourism Infrastructure
The government’s focus on expanding the tourism sector has led to the construction of large hotel projects in cities like Makkah, Madinah, Riyadh, and Jeddah. These developments are driving demand for cranes, loaders, and earthmoving equipment to support rapid urbanization and hospitality infrastructure.

3. Dominance of Cranes in the Equipment Market
Cranes account for a significant share of the construction equipment market, supported by ongoing infrastructure and redevelopment projects.

• Tower cranes are in high demand for city redevelopments, while crawler cranes are critical for energy and infrastructure projects.
• Leading manufacturers such as XCMG and Liebherr are enhancing their local presence with advanced crane solutions tailored to meet the country’s growing needs.

4. Increasing Adoption of Advanced Construction Equipment
The integration of smart and eco-friendly technologies is reshaping the construction equipment market:

• Electric and hybrid propulsion systems are gaining traction, addressing sustainability goals.
• Automation and telematics-enabled equipment are improving efficiency and safety on construction sites.

Get a PDF sample copy of the Saud Arabia Construction Equipment Market Research Report, Visit – https://www.mordorintelligence.com/industry-reports/saudi-arabia-construction-equipment-market

Market Segmentation

The Saudi Arabia Construction Equipment Market is segmented by Machinery Type and Sector Type:

• By Machinery Type:
  • Earthmoving Equipment: Includes motor graders, excavators, and loaders for large-scale projects.
  • Material Handling Equipment: Features telescopic handlers, forklifts, and aerial work platforms for logistics and warehousing.
  • Cranes: Tower cranes, crawler cranes, and rough terrain cranes dominate infrastructure development.
  • Other Machinery Types: Includes bulldozers, dump trucks, and concrete equipment.
• By Sector Type:
  • Building: Encompasses residential, commercial, mixed-use, and airport developments.
  • Infrastructure: Includes roads, bridges, railways, ports, and wastewater management projects.
  • Energy: Focused on the oil and gas sector, as well as power and water infrastructure.

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Key Players

Leading companies in the Saudi Arabia Construction Equipment Market include Caterpillar Inc., Liebherr Group, Komatsu Ltd., XCMG, and Volvo Construction Equipment.

• Caterpillar Inc.: Provides a diverse range of earthmoving and material handling equipment for large-scale infrastructure projects.
• Liebherr Group: Focuses on cranes and concrete technology, with a strong presence in the region.
• Komatsu Ltd.: Offers advanced excavators and loaders equipped with smart technologies.
• XCMG: Known for its heavy-duty cranes and construction equipment tailored to local demands.
• Volvo Construction Equipment: Specializes in sustainable and fuel-efficient machinery.

These companies are investing in local facilities and R&D to address the evolving needs of Saudi Arabia’s construction sector.

Conclusion

The Saudi Arabia Construction Equipment Market is poised for steady growth, driven by ambitious Vision 2030 initiatives, expanding urban infrastructure, and increasing adoption of advanced machinery. Government investments in housing, tourism, and infrastructure projects are creating robust demand across equipment categories. With leading players focusing on innovation and sustainability, the market is well-positioned to support the nation’s transformation into a global economic hub. As construction activities continue to accelerate, the market remains a key contributor to the kingdom’s growth and diversification goals.

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