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Civil Infrastructure Projects Push U.A.E. Construction Equipment Demand to New Heights

04-11-2025 11:53 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: P&S Intelligence

U.A.E. Construction Equipment Market Share

U.A.E. Construction Equipment Market Share

According to the latest market research study published by P&S Intelligence, the U.A.E. construction equipment market is poised for steady growth, with projected revenues reaching USD 209.2 million in 2024 and anticipated to climb to USD 258.2 million by 2030, reflecting a compound annual growth rate (CAGR) of 3.6%. This upward trajectory is fueled by significant infrastructure investments, a burgeoning population, and rapid urbanization, positioning the U.A.E. as a pivotal financial, entertainment, tourism, and cultural hub.

Government-led initiatives, such as the Dubai Metro expansion, Palm Jumeirah development, Al Maktoum International Airport, U.A.E. Rail Network, and Dubai Harbour project, are instrumental in driving market expansion. Notably, the Abu Dhabi Executive Council has sanctioned a budget of approximately USD 18 billion for 144 infrastructure projects, allocating USD 16 billion specifically for housing and public facilities. These endeavors underscore the nation's commitment to diversifying its economy and enhancing its infrastructural landscape.

Explore the complete report with in-depth analysis: https://www.psmarketresearch.com/market-analysis/uae-construction-equipment-market

Key Insights

Equipment Type Analysis

Earthmoving equipment emerges as both the largest and fastest-growing segment, commanding a 35% market share in 2024 and projected to grow at a CAGR of 4.0% by 2030. This surge is attributed to numerous projects in their initial phases, the construction of new cities, and technological advancements. These machines are integral to tasks such as grading soil, excavating trenches, removing debris, laying foundations, and demolition across various sectors, including engineering, construction, and road maintenance.

Power Source Trends

Diesel-powered equipment is set to dominate with a 45% market share in 2024, favored for its cost-efficiency, availability, and robust performance. Diesel engines are particularly prevalent in heavy machinery like excavators, bulldozers, cranes, and dump trucks, owing to their high torque output and reliability under challenging conditions.

Conversely, electric-powered equipment is anticipated to be the fastest-growing category, with a CAGR of 4.2% by 2030. This growth is driven by cost-efficiency, supportive government policies aiming for net-zero emissions by 2050, and technological advancements. In 2022, the U.A.E. recorded carbon dioxide emissions of 218.8 million metric tons, highlighting the urgency for sustainable alternatives.

Application Dynamics

Civil infrastructure is projected to be both the largest and fastest-growing application segment by 2030. This trend is propelled by a rising population and an increasing demand for transportation and utility infrastructure projects. Mega-projects such as the Etihad Rail project, Dubai Metro expansion, Abu Dhabi Midfield Terminal, and Al Maktoum International Airport are significantly boosting the demand for construction equipment.

Regional Outlook

Dubai is expected to hold the largest market share, approximately 50% in 2024, and is projected to experience the fastest revenue growth with a CAGR of 3.9%. Factors contributing to this dominance include a growing population, a surge in infrastructure projects, and a thriving tourism sector. As the most populous city in the region, with 1,137,347 residents, and the largest industrial area, Dubai hosts numerous mega-projects like the Burj Khalifa, Palm Jumeirah, Dubai Metro, and Dubai Creek Harbour, all of which escalate the demand for construction equipment.

Technological Advancements

The adoption of advanced construction equipment is a significant market trend. The U.A.E. is increasingly integrating autonomous and semi-autonomous machinery equipped with GPS and advanced sensors to enhance operational efficiency and reduce human intervention. For instance, Caterpillar's next-generation 345 GC excavators, introduced in 2021, offer 25% higher fuel efficiency and 30% lower operational costs compared to earlier models.

Request PDF Sample Copy of Report: Including Full TOC, List of Tables & Figures, Chart: https://www.psmarketresearch.com/market-analysis/uae-construction-equipment-market/report-sample

Competitive Landscape

The U.A.E. construction equipment market is highly fragmented, featuring a mix of international and domestic players. Prominent companies include Caterpillar Inc., Komatsu Ltd., Xuzhou Construction Machinery Group Co. Ltd. (XCMG), Liebherr Group, AB Volvo, Hitachi Construction Machinery Co. Ltd., Zoomlion Heavy Industry Science & Technology Co. Ltd., J.C. Bamford Excavators Limited (JCB), Sany Heavy Industry Co. Ltd., Kobelco Construction Machinery, Al Futtaim Auto & Machinery Company (FAMCO), and Zahid Tractor & Equipment LLC.

Emerging Opportunities

The increasing trend of renting construction equipment presents a cost-effective and flexible alternative to purchasing. This approach allows companies to access the latest machinery without the burden of maintenance and storage costs, thereby reducing overall construction expenses and making real estate more affordable for buyers.

Read Related Report:

Construction Equipment Market: https://www.psmarketresearch.com/market-analysis/construction-equipment-market

About P&S Intelligence

P&S Intelligence offers custom and syndicated market research and consulting services to clients across the globe. Our team of young and dynamic researchers, guided by mentors with years of experience, create data-rich reports tailored to the needs of MNCs as well as startups and SMEs. We remain in a perennial quest to offer exhaustive insights into every aspect of the market, allowing businesses of all sizes to seize even the smallest of opportunities and tackle even the biggest of challenges.

Contact:

Chandra Mohan
AVP - Business Development
Phone: +1-347-960-6455
Email: enquiry@psmarketresearch.com
Web: https://www.psmarketresearch.com
Blog: https://psintelligence.blogspot.com

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