Saudi Arabia Construction and Material Handling Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia Construction and Material Handling Market Size

Saudi Arabia Construction and Material Handling Machinery Market Trends & Drivers

Technological Advancement in Construction and Material Handling Machinery Are Significant Trend

• To achieve Vision 2030, construction and material handling machinery manufacturers are constantly working on the advancement of technology.
• The integration of IoT provides the real-time monitoring of construction sites, equipment, and materials, which adds up to better safety and resource management. Additionally, artificial Intelligence and machine learning are used in construction equipment and material handling machinery for the better optimization of construction processes, which leads to the cost-effectiveness and improved efficiency.
• Electric machinery is the biggest trend in the country, as it is replacing equipment powered by diesel. Even though fossil fuels are readily available in the kingdom, their phaseout is vital to achieve sustainability. Hence, electric cranes, compactors, loaders, and other machines are being used at construction sites as they release no emissions and are a lot quieter than their ICE counterparts.

Expansion of Construction Projects Is Biggest Driver for Market

• Over the past few years, the Government of Saudi Arabia has invested in a large number of residential construction projects to better the living standards of the country’s population.
• A constant effort is being made to finance and launch new housing development programs, which corresponds with the changing requirements of the growing populace.
• Norlana, part of NEOM, which is being developed in the northwest of the country, is a new, advanced residential community on the coast of the Gulf of Aqaba and surrounded by natural dunes. It will consist of 711 properties, including mansions, apartments, and beach villas.
• New Murabba, a new project announced by the Saudi crown prince in 2023, is envisioned as the world’s largest modern downtown project. The project is expected to boost the non-oil GDP of the country and create 334,000 employment opportunities by 2030.

Labor Shortage in Construction Industry Challenges Market Growth

• Labor shortage is one of the main factors due to which the market is facing challenges in its growth. This is because the Saudi Arabian construction industry is mostly dependent on laborers from other countries. It is extremely difficult for contractors in the mining and construction sectors to find skilled labor for operating construction equipment.
• This labor shortage can create delays in the completion of construction projects initiated by the Government of Saudi Arabia for the betterment of its population. In turn, this labor shortage can affect the market growth negatively.

Saudi Arabia Construction and Material Handling Machinery Industry Outlook

Equipment Type Insights

• The earthmoving equipment Category holds the largest share of the market in terms of revenue generation, and it is expected to grow at the highest CAGR, of 6.0%, over the forecast period. This is due to the variety of applications of earthmoving equipment in construction projects in both the commercial and residential sector.
• The rise in the level of urbanization and industrialization adds up to the increase in the number of construction projects, which drives the demand for earthmoving equipment at a rapid pace.

On the basis of equipment type, the market has the following categories:

• Earthmoving Equipment (Largest and Fastest-Growing Category)
• Excavators
• Loaders
• Bulldozers
• Tractors
• Trenchers
• Dump trucks
• Wheel loaders
• Wheel tractor–scrapers
• Motor graders
• Skid-steer loaders
• Track loaders
• Compact rollers
• Articulated dump trucks
• Compactors
• Backhoe loaders
• Bobcats
• Material Handling Equipment
• Forklifts
• Tippers
• Order pickers
• Platform trucks
• Aerial equipment
• Walkie stackers
• Road Building Equipment
• Pavers
• Road Rollers
• Asphalt mixers

Propulsion Type Insights

• The ICE category and dominates the market, with 70% revenue in 2024, due to the higher power output of internal combustion engine.
• The electric category is expected to grow at the highest CAGR, of 6.2%, over the forecast period. Electrically powered machinery has zero-emission operation, lower operational cost, and suitability for indoor operations.

On the basis of propulsion type, the market has the following categories:

• ICE (Larger Category)
• Electric (Faster-Growing Category)

End User Analysis

On the basis of end user, the market has the following categories:

• The construction and infrastructure category held the largest share, of 40%, in 2024, and it is expected to grow at the highest CAGR, of 6.4%. This is because the Saudi Arabian government is focusing on infrastructure development under its Vision 2030 plan, which primarily focuses on diversifying the country’s economy and reducing its dependence on the oil and gas sector.
  • Power and Utilities
  • Mining
  • Residential
  • Commercial
  • Construction and Infrastructure (Largest and Fastest-Growing Category)
  • Oil and Gas
  • Others

Geographical Analysis

• Geographically, Al-Riyadh is expected to witness the highest CAGR, of 6.3%, during the forecast period. This is due to the ongoing construction projects in this area, including the King Abdulaziz Project for Riyadh Public Transport, Riyadh Art Project, Sports Boulevard Project, and King Salman Park Project.

The following provinces have been analyzed in this report:

• Al-Riyadh (Fastest-Growing Province)
• Makkah
• Al-Madinah
• Al-Qaseem
• Eastern Province (Largest Province)
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Market Concentration – Consolidated

The Saudi Arabian construction and material handling machinery market is consolidated due to the presence of few international players holding significant shares. Just like in other industries, the rapid construction boom and economic diversification prospects are bringing overseas construction equipment companies to the country.

Saudi Arabia Construction and Material Handling Machinery Industry News

• In August 2023, XCMG Machinery officially launched its Saudi Arabian subsidiary in Riyadh, to encourage the establishment of a comprehensive sales and service network locally and further boost the adoption of its equipment in local infrastructure projects.
• In January 2024, HD Hyundai Construction Equipment Co. reached a deal with Saudi Arabia Construction Company to supply 100 excavators.
• In January 2024, Saudi Arabia's Al Rawaf Contracting signed a sales agreement for 70 units of HD Hyundai Group's 22-ton excavators and 30 units of its 50-ton model.
• In December 2023, an agreement was reached by the National Industrial Development Center (NIDC) and LS Corp. to work together to accomplish shared aims, such as boosting local industrial automation growth and achieving Saudi Vision 2030 goals through industry and sustainable development assistance.