Report Overview

UAE Construction Equipment Rental Market- Industry Trends & Forecast Report 2027

UAE construction equipment rental market was worth USD 18.0 billion in 2020 and is further projected to reach USD 26.8 billion by the year 2027, growing at the CAGR of 6.0% in the forecast period. Due to the country’s expanding and flourishing oil and gas sector, the market is flourishing substantially. Furthermore, various undergoing and emerging construction and building projects for infrastructural development are also expected to drive the growth of UAE construction equipment rental market in the forecast period. Additionally, the high cost of purchasing new construction equipment compared to the cost of renting construction equipment leads to an increase in demand for rental construction equipment in the country.

Source: BlueWeave Consulting

UAE Construction Equipment Rental Market- Overview

The construction equipment rental market is a service industry that offers construction machinery, equipment, and tools of all sizes, weights, and shapes to end-users for a limited time. Construction companies favor these services because they allow temporary equipment to be rented without purchasing the required equipment. Apart from saving unnecessary business expenses, it also prevents excessive depreciation of equipment over time. Rental equipment providers offer a wide range of machinery and equipment, including mini-excavators, compressors, pumps, and more. UAE builders focus extensively on sustainable construction practices and promote the use of eco-friendly materials in their buildings. The growing investment in transportation, infrastructure, and the oil & gas industry, coupled with convenient machinery access, has fueled UAE construction equipment rental market.

UAE Construction Equipment Rental Market Forecast and Trends

Growth Drivers

Flourishing Oil and Gas Industry

UAE is a major oil and gas importer of the world with around 30% of the country’s gross domestic product directly based on this oil and gas output. With a flourishing oil and gas industry,UAE construction equipment rental market is also projected to gain significant traction. Oil and gas production and extraction require a great deal of heavy machinery and equipment, including elevators, conveyors, mining trucks, heavy vehicles, small tools and dies, and construction tasks such as the setting up of rigs and constructing well foundations.

High Cost of Construction Equipment and Depreciation Involved

Construction equipment involves a high amount of investment. For instance, a new excavator is the most expensive piece in construction, and its cost can range from USD 100,000 to USD 500,000 for a full-size rig and USD 80,000 to USD 150,000 for a mini excavator. Plus, accumulating this equipment also involves depreciation which decreases its value over the years. Therefore, many construction companies chose to rent out the equipment and machinery, reducing their maintenance and technical charges expenses. Due to this, the market is expected to flourish at a high rate.

Restraints

Non-Uniformity in Construction Industry

The construction industry is highly dependent on economic growth and so is the construction equipment rental market. However, in the periods of temporary economic recession or slowdown, the construction activities were halted, resulting in the shortage of consumer demand for construction equipment rental services. Because construction requires large-scale activities and it takes a long time to recover from an economic downturn, this dependency has a significant impact on UAE construction equipment rental industry. This factor acts as a major restraint for UAE construction equipment rental market.

UAE Construction Equipment Rental Market - By Equipment Type

Based on equipment type, UAE construction equipment rental market is segmented into a crane, diesel generator, excavator, wheel loader, bulldozer, motor grader, telescopic handler, forklifts, trucks, man-lifts, and others. Cranes account for the largest share in UAE construction equipment rental market as this type of equipment is very helpful in lifting heavy equipment and machinery. Therefore, cranes are widely used in the construction of buildings, bridges, and overpasses. With increasing investment in building and skyscrapers construction in UAE, the demand for cranes on rent is expected to surge over the forecast period.

UAE Construction Equipment Rental Market - By Operating Weight

Based on operating weight,UAE construction equipment rental market is segmented into less than 100 tons, 100-200 tons, and more than 200 tons. The less than 100-ton segment holds the largest market share. The popular construction equipment that is usually hired on rent such as wheel loaders, tractors, excavators, motor graders, etc., belongs to this operating weight category. The 100 - 200-ton segment also covers a substantial share in the market because of the many heavy-duty construction equipment belonging to this category, such as hydraulics, landscape tiller, etc.

UAE Construction Equipment Rental Market - Regional Insights

Geographically, UAE construction equipment rental market is segmented into Dubai, Abu Dhabi, Sharjah, Umm Al Quwain, Ras Al Khaimah, Fujairah, and Ajman. Dubai accounts for the largest market share because of the increasing development and construction of buildings and skyscrapers. There's no denying that Dubai's architecture is very unique, with towering skyscrapers neighboring futuristic museums and breathtaking buildings made with a special significance. Dubai has the highest number of skyscrapers in the UAE, followed by Abu Dhabi. With the increasing population, especially in these regions, the construction of residential buildings is gaining huge traction. Therefore, these emirates hold great potential for growth in the construction equipment rental market.

Competitive Landscape

The leading players inUAE construction equipment rental market are Al Mutawa Heavy Equipment Trading LLC, Al Shola Rental Solutions, Yellow Cat Heavy Equipment & Machinery Rental, Mohamed Abdulrahman Al-Bahar LLC, Byrne Equipment Rental, Tanzeem Heavy Equipment Rental LLC, Gallagher International, Obaid Kneish& Sons Transport, AL Jaber Leasing Service, Al Faris International Heavy Equipment Rental, and other prominent players.

Multiple construction equipment rental companies are present in the UAE market, which makes it highly competitive. The companies adopt market strategies like partnerships, mergers, and acquisitions, collaborations, etc., to expand their offerings and stay ahead in the competition. Additionally, they establish joint ventures with construction companies to maintain their business operations throughout the year.

Recent Developments

• In July 2021, Sudhir Power Ltd., a construction equipment and power generator rental business company, announced its joint venture with FuelBuddy, an Indian doorstep fuel-delivery service startup, inaugurating its business in UAE and Saudi Arabia.

• In May 2021, World Economic Forum selected Tendered, a digital procurement platform for equipment rentals, to join its Global Innovators Community.

Scope of the Report

By Equipment Type

• Crane

• Diesel Generator

• Excavator

• Wheel Loader

• Bulldozer

• Motor Grader

• Telescopic Handler

• Forklifts

• Trucks

• Manlifts

• Others

By Operating Weight

• Less than 100 Ton

• 100-200 Ton

• More than 200 Ton

By Emirates

• Dubai

• Abu Dhabi

• Sharjah

• Umm Al Quwain

• Ras Al Khaimah

• Fujairah

• Ajman

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Flourishing Oil and Gas Industry
         2. High Cost of Construction Equipment and Depreciation Involved
      2. Market Restraints
         1. Non-Uniformity in Construction Industry
      3. Market Challenges
         1. Negative Influence of the COVID-19 Pandemic
      4. Market Opportunity
         1. Emerging rental business in the UAE
         2. Growing Preference for Rental Equipment
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. UAE Construction Equipment Rental Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Equipment Type
         1. Crane
         2. Diesel Generator
         3. Excavator
         4. Wheel Loader
         5. Bulldozer
         6. Motor Grader
         7. Telescopic Handler
         8. Forklifts
         9. Trucks
         10. Manlifts
         11. Others
      2. By Operating Weight
         1. Less than 100 Ton
         2. 100-200 Ton
         3. More than 200 Ton
      3. By Emirates
         1. Dubai
         2. Abu Dhabi
         3. Sharjah
         4. Umm Al Quwain
         5. Ras Al Khaimah
         6. Fujairah
         7. Ajman
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on UAE Construction Equipment Rental Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Al Mutawa Heavy Equipment Trading LLC
   2. Mohamed Abdulrahman Al-Bahar LLC
   3. Yellow Cat Heavy Equipment & Machinery Rental
   4. Byrne Equipment Rental
   5. Al Shola Rental Solutions
   6. Tanzeem Heavy Equipment Rental LLC
   7. Gallagher International
   8. Al Faris International Heavy Equipment Rental
   9. Obaid Knesih & Sons Transport
   10. AL Jaber Leasing Services
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: UAE Construction Equipment Rental Market Segmentation

Figure 2: UAE Construction Equipment Rental Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: UAE Construction Equipment Rental Market Size, By Value (USD Billion), 2017-2027

Figure 5: UAE Construction Equipment Rental Market Share (%), By Equipment Type, By Value, 2017-2027

Figure 6: UAE Construction Equipment Rental Market Share (%), By Operating Weight, By Value, 2017-2027

Figure 7: UAE Construction Equipment Rental Market Share (%), By Emirates, By Value, 2017-2027

List of Tables

Table 1: UAE Construction Equipment Rental Market Size, By Equipment Type, By Value, 2017-2027

Table 2: UAE Construction Equipment Rental Market Size, By Operating Weight, By Value (USD Billion), 2017-2027

Table 3: UAE Construction Equipment Rental Market Size, By Emirates, By Value (USD Billion), 2017-2027

Table 4: Al Mutawa Heavy Equipment Trading LLC Financial Analysis

Table5: Al Mutawa Heavy Equipment Trading LLC Business Overview

Table 6: Mohamed Abdulrahman Al-Bahar LLC Financial Analysis

Table 7: Mohamed Abdulrahman Al-Bahar LLCBusiness Overview

Table 8: Yellow Cat Heavy Equipment & Machinery Rental Corporation Financial Analysis

Table 9: Yellow Cat Heavy Equipment & Machinery Rental Corporation Business Overview

Table 10: Byrne Equipment RentalFinancial Analysis

Table 11: Byrne Equipment RentalBusiness Overview

Table 12: Al Shola Rental SolutionsFinancial Analysis

Table 13: Al Shola Rental SolutionsBusiness Overview

Table 14: Tanzeem Heavy Equipment Rental LLC Financial Analysis

Table 15: Tanzeem Heavy Equipment Rental LLC Business Overview

Table 16: Gallagher International Financial Analysis

Table 17: Gallagher International Business Overview

Table 18: Al Faris International Heavy Equipment Rental Financial Analysis

Table 19: Al Faris International Heavy Equipment Rental Business Overview

Table 20: Obaid Knesih & Sons TransportFinancial Analysis

Table 21: Obaid Knesih & Sons TransportBusiness Overview

Table 22: AL Jaber Leasing Services Financial Analysis

Table 23: AL Jaber Leasing Services Business Overview