Saudi Arabia Construction Equipment Rental Market Poised to Grow at a CAGR of over 10% during 2016-2021
Anticipated
stabilization of crude oil prices along with bullish outlook towards
construction and infrastructure sectors of Saudi Arabia to drive the country’s
construction equipment rental market
In 2015, Saudi
Arabia emerged as the largest exporter of oil, globally. With GDP of around
USD753 billion in 2014, the country’s economy is largely dependent on revenue
earned from oil and gas sector. During 2003-2013, increasing oil production and
growing oil prices translated into large fiscal surpluses, on the back of
which, the country managed to lower its debts. However, slump in global oil
prices, at a CAGR of over 16% during 2011-2015, impacted the economy of Saudi
Arabia, thereby leading to decline in revenue earned by the government in 2015.
The fiscal deficit of Saudi Arabia stood at around USD98 billion in 2015, which
in turn led to downfall in the construction sector of the country. In 2016, the
government trimmed down the country’s infrastructure and transportation budget
by 64% in comparison with 2015, thereby impeding the growth of construction
sector of the country.
According to
TechSci Research report, “Saudi Arabia Construction Equipment Rental Market By Equipment Type Competition Forecast and
Opportunities, 2011 - 2021”, the Saudi Arabia construction equipment rental
market is forecast to grow at a CAGR of 10.24%, during 2016-2021, on the back
of government’s
endeavor to diversify the economy into non-oil sector coupled with increasing
customer inclination towards renting construction equipment, rather than
buying, so as to overcome the burden of associated ownership costs, such as
operating, transportation, regulatory certification fees, maintenance, etc. On account of anticipated
growth in crude oil prices at a CAGR of over 7%, during 2016-2021, the
country’s economy is expected to witness revival, thereby leading to increase
in government spending on construction, infrastructure, mining and other related
sectors. On account of consistent growth in public and private infrastructure
development projects, surge in the country’s construction equipment rental
market is anticipated during the forecast period.
Customers can also request for 10% free
customization on this report.
“Owing to the
non-availability of transmission & distribution lines in various remote
areas in the country along with easy availability of diesel gensets and lower
diesel prices, Saudi Arabia construction equipment rental market was dominated
by diesel genset segment.
However, telescopic handlers segment is expected to emerge as the fastest
growing segment due to their use in multiple applications in the construction
sector. The construction equipment rental market of Saudi Arabia is cluttered
with more than 50% of the market share held by small and medium sized rental
companies, as of 2015. Few of the major construction equipment rental companies
operating in Saudi Arabia are Bin Quraya Rental, Zahid Tractor and Heavy
Machinery, ISDC Rental, Altaaqa Alternative Solutions Co. Ltd. and General
Contracting Company.” said Mr. Karan Chechi, Research Director with TechSci
Research, a research based global management consulting firm.
“Saudi
Arabia Construction Equipment Rental Market By Equipment Type Competition
Forecast and Opportunities, 2011 - 2021” has evaluated the future growth
potential of construction equipment rental market in Saudi Arabia and provides
statistics and information on market structure, rental tariff, competitive
scenario and upcoming trends and developments in Saudi Arabia construction
equipment rental market. The report intends to provide cutting-edge market
intelligence and help decision makers to take sound investment evaluation.
Besides, the report also identifies and analyzes emerging trends along with
essential drivers, challenges and opportunities available in construction
equipment rental market in Saudi Arabia.
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