According to a new report from Research and Markets, the GCC (Gulf Cooperation Council) construction equipment market is anticipated to grow at a CAGR (compound annual growth rate) of only 1.6 percent from 2016 to 2022.
During 2015-‘17 in this region, the market for construction equipment is expected to remain stagnant due declining oil revenues. After 2017, the market will improve as a result of an anticipated recovery of oil prices and initiatives taken by various governments to diversify their economies.
The construction equipment market in the GCC region has been sustained by several factors such as a growing construction market, as well as several utility projects in the UAE, Saudi Arabia and Qatar. In recent years, government spending on infrastructure has helped to increase demand for construction equipment in the GCC region.
Going forward, the construction equipment types that will see growth are:
- Earthmoving equipment
- Dump trucks
- Mining and quarrying