Saudi Arabia Construction Equipment Rental Market Poised for Growth
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.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.