- In 2020, demand for new construction equipment in Oman declined by 7.2% due to the adversely impacted construction industry (declined by ~16% in 2020 when compared to 2019) as major infrastructure projects were halted because of COVID-19 pandemic.
- The construction industry is expected to generate the highest demand in terms of end-users, owing to “Oman’s Tenth-Five Year Development Plan (2021-2025)” and “Oman’s Vision 2040” programs, which are expected to continue to dominate the construction equipment market over the forecast period. Additionally, government initiatives to diversify the economy and favorable policies for foreign investments have resulted in industrial developments in the construction industry, which has increased demand for construction equipment.
- Under “Oman’s Vision 2040” program, the government is focusing to diversify the economy, which is currently dependent on oil & gas sector. In 2021, the government announced 130 projects mainly enabling manufacturing, tourism, logistics, labor market, business environment, fisheries, energy, and mining sectors. These projects are under the Oman’s Vision 2040, which include well developed manufacturing base with advanced technology, boosting tourism with attractive sites, improving logistics by increasing the number of ports, etc. Seven new tourism projects are to be started in 2022 with allocated funding of ~$501 million, compared to ~$137.7 million in 2021, an increase of ~260%.
- By 2040, ~911,940 housing units would be needed to accommodate the population. Hence, the government has started to invest in the housing infrastructure. In 2021, the government distributed 23,066 plots of land in various governorates of the Sultanate. Roads and other public infrastructure such as schools, shopping malls, etc. will also be developed around the housing units. This will not only support the demand for material handling equipment in Oman but will also increase the demand for overall construction equipment.
- Under “Hydrogen-Centric Economy by 2040” program, shift towards hydrogen fuel-based construction equipment triggers the demand for green hydrogen fuel-based construction equipment in Oman. Protecting the environment is one of the key goals of Oman’s tenth five-year plan (from 2021 to 2025). The green hydrogen fuel-based construction equipment are as efficient as gasoline fuel-based construction equipment. This will also promote the use of green hydrogen fuel-based construction equipment (such as Caterpillar’s 100% green hydrogen fuel-based construction equipment) in Oman over the forecast period.
Market SegmentationIn 2021, the earthmoving equipment segment was the largest in the Oman construction industry, followed by material handling and road construction equipment. Excavator was the largest segment by type. The demand for excavators is expected to rise due to various government investments in infrastructure development and growth in renewable energy.Segmentation by Earthmoving Equipment:
- Backhoe Loaders
- Motor Graders
- Other Earthmoving Equipment
Segmentation by Road Construction Equipment
- Road Rollers
- Asphalt Pavers
Segmentation by Material Handling Equipment
- Forklift & Telescopic Handlers
- Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)
Segmentation by End Users
Vendor LandscapeXCMG, Komatsu, Caterpillar, Liebherr, Volvo Construction equipment & Hitachi construction machinery are market leaders who account for 59% of the Oman construction equipment market share.Key Vendors
- Volvo CE
- Hyundai Construction Equipment
- CNH Industrial
Other Prominent Vendors
- House of Equipment LLC (HOE)
- General Engineering Services LLC
- IIE Oman
- IHE Oman
- Saud Bahwan Group
- AL Fairuz
For more information about this report visit https://www.researchandmarkets.com/r/d08ngv
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