According to Arizton’s latest research report, the UAE construction equipment market is growing at a CAGR of 5.70% during 2023-2029.
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Report Scope:
Market Size – Volume (2029): 28.5 Thousand Units
Market Size – Volume (2023): 20.4 Thousand Units
CAGR (2023-2029): 5.70%
Market Size – Revenue (2029): $1.27 Billion
Historic Year: 2020-2022
Base Year: 2023
Forecast Year: 2024-2029
The UAE construction equipment market is experiencing unprecedented growth, driven by the country’s aggressive investments in renewable energy and infrastructure development. With the UAE’s commitment to achieving net-zero emissions by 2050, significant funding flows into renewable energy projects are spurring demand for advanced construction machinery. The surge in projects related to energy storage, solar farms, and wind power installations has created a booming market for construction equipment, including excavators, cranes, and specialized machinery for site preparation and infrastructure.
The UAE Surge in Renewable Energy Funding Fuels Boom in the Construction Equipment Market
The UAE burgeoning renewable energy sector is not only advancing the country’s ambitious net-zero emissions goals by 2050 but is also driving a significant boom in the construction equipment market. Recent developments in the sector highlight the interconnected growth between renewable energy investments and construction equipment demand.
In the first half of 2024 alone, UAE energy startups secured a record $30 million in funding, surpassing the total $24 million raised throughout 2023. This surge in investment is particularly concentrated in energy storage and battery technologies, which received 33.3% of the funding, followed by solar energy firms with 25%. This financial momentum reflects a broader push towards renewable energy projects and infrastructure, which directly impacts the construction equipment sector.
The rapid expansion of renewable energy initiatives is driving a surge in demand for construction equipment. As the UAE undertakes more large-scale projects to build and upgrade energy storage facilities, solar farms, and other renewable energy infrastructure, the need for advanced construction machinery and equipment is escalating. This includes specialized equipment for site preparation, installation, and maintenance of renewable energy systems.
In addition to startup funding, significant moves by established entities are further fueling growth. In July 2024, Masdar, a leading UAE-based clean energy developer, issued a $1 billion green bond to fund new renewable energy projects. The bond’s overwhelming success, being 4.6 times oversubscribed, signals robust financial backing for upcoming projects. This influx of capital is expected to lead to increased construction activities, further boosting the demand for construction equipment.
Moreover, in August 2024, Emirates Water and Electricity Company (EWEC) introduced Clean Energy Certificates (CECs) for wind power, complementing existing solar and nuclear energy certificates. This expansion into wind energy requires new infrastructure, including wind farms and associated facilities, which will necessitate a range of construction equipment.
The combination of increased funding for renewable energy startups, major green bond issuances, and the introduction of new clean energy initiatives is creating a thriving environment for the construction equipment market in the UAE. As the country advances its renewable energy projects, the demand for construction machinery will continue its upward trajectory, driving growth and innovation within the sector.
Market Trends & Drivers
UAE’s National Hydrogen Strategy to Increase the Demand for Green Fuel-Integrated Construction Equipment
The country approved its National Hydrogen Strategy in Nov 2023, targeting the annual production of 15 million tonnes of green hydrogen by 2050. The UAE’s National Hydrogen Strategy aims to position the country as a global leader in hydrogen production and export, aligning with its sustainability goals.
The strategy focuses on developing a hydrogen economy, which could drive demand for hydrogen fuel construction equipment. As the UAE invests in green energy and infrastructure, construction equipment powered by hydrogen fuel may increase demand, particularly in projects supporting the country’s environmental and energy transition goals.
Growing Demand for Cranes in the Country in Response to Various LNG Projects
There is growing demand for LNG gas production projects in the UAE market. The demand for gas in the global market is expected to increase by 14% by 2030. Therefore, in 2024, Abu Dhabi National Oil Company (ADNOC) announced plans to expand the UAE LNG capacity to 126 million tons per year, increasing from 77 million tons by 2027.
Additionally, in July 2024, Shell Overseas Holdings Limited agreed to invest in ADNOC’s Ruwais LNG project, taking a 10% stake. The project includes two LNG liquefaction trains with a combined capacity of 9.6 million metric tonnes per annum (MMtpa).
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Key Vendors
Distributor Profiles
Market Segmentation
Type
End Users
In a nutshell, the Arizton Advisory & Intelligence market research report provides valuable market insights for industry stakeholders, investors, researchers, consultants, and business strategists aiming to gain a thorough understanding of the UAE construction equipment market. Request for Free Sample to get a glance at the report now: https://www.arizton.com/market-reports/uae-construction-equipment-market
What Key Findings Will Our Research Analysis Reveal?
How big is the UAE construction equipment market?
What is the growth rate of the UAE construction equipment market?
Who are the key players in the UAE construction equipment market?
What are the trends in the UAE construction equipment market?
Which are the major distributor companies in the UAE construction equipment market?
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