A busy construction sector and easy access to machinery are expected to drive growth in Saudi Arabia's equipment rental sector through to 2020, according to a new study.
In its paper, Saudi Arabia Construction Equipment Rental Market Forecast & Opportunities 2020, TechSci Research predicts a compound annual growth rate (CAGR) of 12% during the period 2014 to 2020.
The report states that due to high acquisition costs of construction equipment, greater numbers of contractors are choosing to rent.
“The construction equipment rental market in Saudi Arabia projected to surge at a CAGR of over 12% during 2014-20,” said the report.
“Key factors driving the market include consistent growth in public and private infrastructure development projects and rising price of construction equipment translating into growing trend towards renting.”
South-West and North-Central regions account for over 70% of the country's construction equipment rental market, with major demand emanating from the cities of Makkah, Madinah, Riyadh and Ha'il. The Kingdom's construction equipment rental market is broadly segmented into six major categories: cranes, excavators, wheel loaders, bulldozers, motor graders, and telescopic handlers.
Karan Chechi, research director with TechSci Research, said: "Cranes, followed by excavators, dominate Saudi Arabia construction equipment rental market. Crane rental segment is projected to dominate the market in terms of revenues through 2020, owing to their large fleet and essential requirement in construction activities."