Revival of crude oil prices and lucrative government initiatives to attract tourism in UAE to drive UAE construction equipment rental market through forecast period
According to TechSci Research report, “UAE Construction Equipment Rental Market By Equipment Type (Crane, Diesel Generator, Excavator, Wheel Loader, Bulldozer, Motor Grader, Telescopic Handler, Forklifts, Trucks, Manlifts, Others), Competition Forecast & Opportunities, 2015-2025”, construction equipment rental market in the UAE was valued USD 17.06 Million in 2019 and is forecast to grow at CAGR of over 6% during the next five years, owing to the surge in development in the country’s infrastructure comprising of residential and commercial sectors. Due to high purchasing cost of construction equipment, construction companies rather than investing huge capital on buying prefer procuring equipment on rent basis. Additionally, various major ongoing and upcoming projects such as The Palm Tower, Jewel of the Creek, Al Manhal development, Sheikh Zayed Bridge, etc., and several tourism attraction events in UAE are expected to propel the hotel construction business which is expected to boost the UAE construction rental market.
Browse 47 market data Figures and Tables spread through 135 Pages and an in-depth TOC on "UAE Construction Equipment Rental Market”.
Increasing consumer preference for renting construction equipment, rather than purchasing new construction equipment, is one of the key drivers fueling growth in the UAE construction equipment rental market in oil & gas industry. Renting has become a more feasible option for contractors/construction companies, as compared to buying an equipment, as many costs are associated with the equipment ownership such as ownership cost, initial asset cost, longer pay off tenure, and repair & maintenance costs, etc. So, it is difficult for the oil & gas companies to utilize the construction equipment at the fullest, especially in challenging business environment. Due to the current economic slowdown globally, the economic recession is expected to further increase preference towards construction equipment rental services and push-away the companies from equipment leasing and ownership. This trend is likely to continue during forecast period as well.
UAE construction rental market can be segregate based on equipment type, company, and region. Based on equipment type, wheel loader dominated the UAE construction equipment rental market in 2019 and the segment is expected to lead the market through 2025 as well, on account of extensive use of wheel loaders across residential / commercial projects, throughout the project till its completion.
UAE construction equipment rental market in oil & gas industry was valued USD 17.06 Million in 2019 and is forecast to grow at CAGR of over 6% during the next five years. The oil and gas companies are taking various initiatives towards sustainable growth and to support the country’s economy. For instance, in February 2020, Dubai and Abu Dhabi announced to jointly develop a gas reservoir Jebel Ali Project, aimed to bring ADNOC and Dubai Supply Authority together. These infrastructural developments are making the UAE oil and gas industry more attractive for the foreign investors. For instance, in 2019, Eni, an Italian oil & gas company and OMV, an Australian oil & gas company, are investing USD 5.8 billion in ADNOC’s refinery unit for 35% share. Moreover, the government of UAE is focusing on developing sour gas resources to fulfill the increasing domestic demand. These developments are driving the infrastructural development in the UAE, hence, driving demand for construction equipment in oil and gas projects.
UAE construction rental market in oil & gas industry can be segregate based on equipment type, company, and region. To avoid maintenance cost and include a major portion of capital into purchasing new equipment for construction, companies involved in construction and infrastructure sector prefer to rent equipment for construction purposes. Based on the equipment type, market can be segregated into crane, diesel generator, excavator, wheel loader, bulldozer, motor grader, telescopic handler, forklifts, trucks, manlifts, and others. Out of these, wheel loader accounted for the dominant share in 2019 and the trend is likely to continue until 2025.
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“Dubai dominates the UAE construction equipment rental market in the oil & gas industry on the back of majority of oil & gas projects situated in and around Dubai. This is pushing demand for construction equipment, which in turn, is driving UAE construction equipment rental market in oil & gas industry in Dubai. The growth in oil & gas projects in Dubai is anticipated to continue boosting the overall requirement of rental construction equipment in the industry in the coming years.” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“UAE Construction Equipment Rental Market By Equipment Type (Crane, Diesel Generator, Excavator, Wheel Loader, Bulldozer, Motor Grader, Telescopic Handler, Forklifts, Trucks, Manlifts, Others), Competition Forecast & Opportunities, 2015-2025” has analyzed the potential of construction equipment rental market across the country, and provides statistics and information on market sizes, shares and trends. The report will suffice in providing the intending clients with cutting-edge market intelligence and help them in taking sound investment decisions. Besides, the report also identifies and analyzes emerging trends along with essential drivers and key challenges faced by the UAE construction equipment rental market.
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