Middle East & Africa Excavator Market Outlook, 2027

Middle East & Africa Excavator Market Outlook, 2027

The Middle East & Africa region has experienced a major amount of investment in the infrastructure industry. Even though the region is attracting investments, the maintenance and the spread are quite uneven. Policymakers need to concentrate on identifying the large differences in the conditions across the regions in terms of infrastructure development, living standards, and the participation of the private sector. The gap in infrastructure and the maintenance needs across the region is huge. Along with the developing oil exports, the need for excavators and heavy types of machinery is increasing. This is expected to support the overall region’s excavator market in the forecasted period.

The publication of the report titled Middle East & Africa Excavator Market Outlook, 2027 by Bonafide Research shows an in-depth analysis of the market and also provides a clear view of the market changes that are likely to take place in the forecasted period. The report also suggests the challenges and trends that can be expected to be encountered in the market. The excavator market in the region is expected to grow at more than 6.9% CAGR during the forecast period. The growth regression supports the conclusion that the returns to infrastructure have been lower in the Middle East and Africa region than in developing countries as a whole. Governments have been making an effort to decrease the gap by building more advanced infrastructure and supporting the construction industry with subsidiaries and financial backup.

Even though the need for better housing supports the excavator demand, the economic shortage in the underdeveloped countries is acting as a market hindrance. The Middle East & Africa market has witnessed fair competition among both the segments of excavators, with just a fluctuating marginal difference in contribution. The Middle East & Africa excavator market has seen the most benefit from the crawler excavator segment. The dominating segment has been slowly losing its share with the new types of excavators coming onto the market. Individually, a colossal market share is held by the UAE market, followed by South Africa. Both these countries have shown development in their infrastructure and the demand for better housing and more commercial buildings.
The Middle East excavators market is expected to grow during the forecast period due to increasing investments in the construction and mining sectors. Large scale projects in mining, oil & gas, road construction, and port construction are the primary reasons behind the increase in the demand for excavators in the Middle East excavators market. The Middle East excavator market is one of the fastest developing markets in the world due to its continued dominance in the residential, industrial, and construction sectors. Extensive infrastructure plans such as Dubai Plan 2021 and Abu Dhabi Vision 2030 are factors that would help the excavator market grow in the region. Growing industrialization across the region and increasing investments in infrastructure development are expected to boost the excavator market in the Middle East region over the coming years.

Major emerging factors such as renting of excavators are driving the Middle East excavator market to shift from traditional to automated excavators. Based on types, the crawler excavator segment is the dominating segment in the Middle East & Africa market due to its greater suitability for application in muddy conditions and higher capacity to carry weights. The region is a leading market for oil and gas. This offers immense opportunities for the excavator market in the Middle East and Africa. Excavators are employed in the mining of oil. Thus, demand for excavators in the Middle East and Africa is increasing. Competition is likely to intensify in the global excavator market in the next few years owing to the implementation of new emission norms. This is also estimated to create new market opportunities. For instance, in March 2021, Volvo Construction Equipment launched a new 7-tonne compact excavator for the Middle East and African markets. The EC75D features Volvo’s D3 diesel engine, delivering 44.4kW of power and reduced fuel consumption.

COVID-19 Impacts
The incursion of a novel corona-virus has resulted in a slowdown in economic activity in the Middle East as a result of delays or closures of major road and construction projects, which directly impedes the growth of the excavators market for a short period of time. Considerable market restraints for Middle East excavators are high maintenance costs, the need for technical support, and increased emission norms. However, changes in consumer behavior and increased adoption of advanced lifestyles across the region are expected to drive higher market growth for excavators in the near future.

Major Companies Present In the Market
Caterpillar Private Limited, CNH Industrial, Doosan Infracore, Epiroc Construction Machinery Co. Ltd, Hitachi Construction Machinery Co. Ltd, J C Bamford Excavators Ltd, John Deere Ltd, Kobe Steel Ltd, Komatsu Ltd., Kubota Corporation, Liebherr Group, Metso Corporation, Sandvik Mining And Rock Technology, Sany Group, Terex Corporation, Volvo Construction Equipments, XCMG Ltd. , Zoomlion Co. Ltd

Considered In the Report
• Geography: Middle East & Africa
• Historical year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecasted year: 2027

Countries covered:
• Saudi Arabia
• UAE
• Qatar
• South Africa
• Rest of Middle East & Africa

Aspects Covered In the Report
• Market Size By Value for the historic time period (2016-2021)
• Market Size By Value for the forecast time period (2022-2027)
• Market Share by Application (Construction, Mining, utility & agriculture)
• Market Share by Machine Type (Mini Excavator, Crawler, Wheeled, Others)
• Market Share by Country (2016, 2021 & 2027F)

The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the construction machinery and excavator industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.