The construction equipment rental market in Saudi Arabia is forecast to grow at a compound annual growth rate of greater than 12 percent from 2014 to 2020, according to a report from Research and Markets. The new report, different from a recent report that focused on the earthmoving market, states that growing preference for equipment rentals rather than purchases, increased infrastructure spending and easy availability of construction equipment on rent are the major factors propelling the construction equipment rental market in the Middle Eastern nation.
The crane rental segment dominates the Saudi Arabia construction equipment rental market, the report says, followed by excavator rental and wheel loader rental segments.
Saudi Arabia’s southwest and north-central regions, comprising Riyadh, Mecca and Madinah, accounted for a majority share of the equipment rental market in 2014.
Leading players include Bin Quraya, Zahid Tractor & Heavy Machinery Co. Ltd, Hertz Dayim Equipment Rental Co., and Industrial Supplies Development Co. Increasingly, smaller companies have been entering the market.
The Kingdom of Saudi Arabia is the largest construction market in the GCC region, the report maintains. Growth in construction activities is being underpinned by increasing focus of private and public participants to diversify into non-oil sectors. During the next five years, about 300 major infrastructure projects would be in the planning or execution stage.
Cranes, excavators, wheel loaders, bull dozers, motor graders and telescopic handlers are the prominent revenue-generating segments in the Saudi rental market.
The report also covers key developments such as the rising implementation of fleet management software; customization in construction equipment rental agreements; shrinking dependence of rentals of the age of the equipment; and operator-equipment bundling.
For more information on the report, go to: http://www.researchandmarkets.com/research/x2kq8r/saudi_arabia.