Saudi Arabia Heavy Machinery Rental Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2030)

Saudi Arabia Heavy Machinery Rental Market Size

Saudi Arabia Heavy Machinery Rental Market Trends & Growth Drivers

Electric Machines Are Trending among Rental Firms and Users

• The biggest trend in the Saudi Arabian heavy machinery rental market is electric and other eco-friendly powertrains.
• Under pressure from national and international organizations, as well as propelled by their own consciousness for the environment, rental firms are rapidly adding electric heavy-duty machines to their fleets.
• Users are also becoming aware of their advantages in terms of low emissions and cost-effective maintenance over the long term and specifically asking for electrically driven machines.
• Since the Vision 2030 focusses in sustainability, electric machines are gaining preference of ICE ones.
• Moreover, electric vehicles (EVs) have fewer moving parts, which means less wear and tear.
• This reduces the incidence of breakdowns and the associated need for regular maintenance, thus driving down operational expenses for both rental companies and end users.
• Additionally, as battery process continue to fall and motors become more powerful, the operational duration and haulage capacity of electric machinery is rising.
• Another key advantage of electrically driven heavy machinery is low noise.
• Depending on the number cylinders and the total capacity, conventional engines generate a lot noise, which creates problems in sensitive areas, such as residential colonies, hospitals, and educational institutions.
• Hence, the quietness of electric machines makes them appropriate for these areas, thereby offering users more flexibility and aiding infrastructure and economic development.
• Major companies are also mandated to have concrete corporate social responsibility (CSR) strategies and file environmental, sustainability and governance (ESG) reports.
• Reducing direct and indirect emissions from operations is a key aspect of both these requirements, which impels both equipment rental firms and end users to opt for electrically propelled vehicles.

Infrastructure Development Is Key Market Driver

• The biggest driver for the market is the large scale of infrastructure development being carried out under Vision 2030.
• The projects are being executed with a view to attract foreign investment and migrant workers, showcase the changing face of the Saudi culture, and expand the non-oil sectors of the economy.
• Their massive scale requires a large number of earthmoving, material handling, and other kinds of heavy machines to be engaged around the kingdom.
• Moreover, since real estate projects most often create temporary requirements, buying these machines becomes impractical, as long periods of non-usage can lead to malfunctioning.
• Additionally, renting the equipment over purchasing it allows users to deploy models with the latest advancements.
• To enhance the efficiency of construction, reduce emissions, and lower all over project costs, renting companies in the kingdom offer machines with electric/hybrid powertrains, engines modified to use biofuel blends, connectivity features for remote fleet management and predictive maintenance, as well as highly autonomous features.
• NEOM (USD 500 billion), The Red Sea Project (USD 27–28 billion, Qiddiya Entertainment City (USD 40 billion), and the Riyadh Metro (USD 22.5 billion) are among the many mega construction projects currently underway in the country.
• Moreover, the kingdom is undertaking a USD 10-billion development of the Makkah district to attract more religious tourists and provide them with all modern amenities and a taste of luxury.
• Such high expenses for the companies executing them forces them so rent the equipment over purchasing it, as this approach can make a dent in the operating cost.

High Cost of Advanced Equipment Hampers Market Growth

• The Saudi Arabian heavy machinery rental market growth is hampered to some extent by the high cost of advanced equipment.
• Electrically propelled machines and those with autonomous and connectivity features cost significantly more than conventional machines.
• Despite their advantages in the long run, the high costs force small and mid-sized construction companies to go for older models.
• As these machines are cheaper, their adoption although still drives the market but not as rapidly as the players would want.
• Their lower costs might also encourage users to purchase them over going for rental contracts, which would restrict the growth of businesses that offer these machines on hire.
• Further, since most older models burn diesel and are devoid of autonomous features, they create emissions and can hamper productivity.
• This can lead to delays, which not only raises the project cost but also projects the country in a negative light to the international community.

Saudi Arabia Heavy Machinery Rental Market Analysis

Insights by Type

With a 43.5% share, the earthmoving category dominates the market in 2024. Excavators, bulldozers, loaders, and motor graders are widely used in construction, and they are often the first requirement. They are pressed in excavating the worksite and then levelling it before the actual construction can begin. Apart from their essential role in preparing the land, they are also used to transport earth to and from the project site. Depending on the area on which a project is being executed, hundreds of earthmoving machines can be required. Additionally, the sandy landscape of the kingdom necessitates extensive site preparation for construction to begin, thus driving the usage of these machines.

Material handling is the fastest-growing category in the market, also on account of the increasing construction activity across industries. The megaprojects of the kingdom require millions of tons of material to be moved in and out every month, which makes material handling machinery vital to drive productivity and efficiency. Additionally, the growth of the logistics & warehousing sector in the kingdom in parallel with the manufacturing sector propels the demand for cranes, automated guided vehicles, forklifts, and other kinds of machines. In this regard, the growth of the e-commerce sector is also significant, as it drives warehousing and logistical activities.

We have studied the following types:

• Earthmoving (Largest Category)
• Material Handling (Fastest-Growing Category)
• Heavy Vehicles
• Concrete and Road Construction Machinery
• General Equipment
• Others

Insights by Propulsion

The ICE category is the larger as conventional machines are cheaper and more widely available than their electric counterparts. Essentially, engines offer the reliability and power needed for large-scale construction projects. Moreover, most projects are being undertaken in remote and undeveloped areas, which lack EV charging infrastructure. Hence, the long range of ICE vehicles allow them to be used for construction projects in such areas. Moreover, the easy availability of fuel at low rates makes ICE machinery more preferable over electric models.

The hybrid/electric category will witness the higher CAGR, of 10.5%, during the forecast period. This is attributed to the government efforts to promote sustainable practices, which include offering purchase cost rebates and incentives in electric models and implementing stringent fleet emission norms. Moreover, access to electricity continues to increase in the kingdom, which encourages the installation of slow and fast EV charging stations. Furthers, users and players are becoming aware of the advantages of EVs, including long-term operational cost savings, scope for the integration of advanced technologies, and low noise.

The below-mentioned propulsions have been studied:

• Internal Combustion Engine (Larger Category)
• Hybrid/Electric (Faster-Growing Category)

Regional Analysis

The Saudi Arabia heavy machinery rental market is dominated by the northern and central regions, with a 40.0% share. The central region is the location of Riyadh, the kingdom’s capital and one of the most-rapidly developing urban agglomerations currently. Main and Rig Road Axes, King Abdulaziz Project for Riyadh Public Transport, Sports Boulevard, Riyadh Art, King Salman Park, Riyadh Metro, Historic Addir’iyah, Diplomatic Quarter, and several other construction projects are underway in Riyadh. Moreover, the mineral-rich northern region of Saudi Arabia is a hotbed for mining activities, and this industry is a key user of heavy machinery, such as dump trucks, loaders, and drilling equipment.

The eastern region will have the highest CAGR, of 7.2%, over this decade. This region is home to Dammam Port, one of the largest international trading hubs of the kingdom, as well as the coastal cities of Dhahran and Al-Khobar, which are witnessing large-scale infrastructure development. Additionally, the presence of the Ras Tanura, Abqaiq, Shaybah, and many other oilfields and refineries drives E&P activities. Further, the expansion of the Jubail Industrial City drives the market in the eastern region of Saudi Arabia.

These regions are part of the scope:

• Western
• Northern and Central (Largest Regional Market)
• Eastern (Fastest-Growing Regional Market)
• Southern

Saudi Arabia Heavy Machinery Rental Market Share

The Saudi Arabia heavy machinery rental market is fragmented as several companies possess large fleets of different kinds of machines. Moreover, while some market players have nationwide operations, other offer services in a particular region, province, or city. Another key reason for the market fragmentation is the presence of companies based in Saudi Arabia as well as those with their headquarters in other GCC countries. Moreover, for extensive projects, a single company is not able to provide the numbers required, which is why multiple rental companies need to be contracted. The players also compete strongly on features, applications, fleet sizes, propulsions, contract rates, and value-added services.

Saudi Arabia Heavy Machinery Rental Market News

• In August 2024, Zahid Group began talks to acquire an African distributer of Caterpillar Inc.’s equipment.
• In August 2024, Altaaqa Alternative Solutions Company (Altaaqa) announced a new and strategic partnership with Fast Group (Fast) for designing, engineering, constructing, and maintaining temporary structures across Saudi Arabia.
• In June 2024, EJAR supplied boomlifts to help build the Benchmark permanent theater.
• In April 2024, EJAR supplied many pieces of equipment and BCPs with attachments for the Soudah Development project.