Saudi Arabia Heavy Machinery Rental Market Analysis

Saudi Arabia Heavy Machinery Rental Industry 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)