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Dublin, Dec. 05, 2022 (GLOBE NEWSWIRE) -- The 'kuwait construction equipment market - strategic assessment & forecast 2022-2028' report has been added to ResearchAndMarkets.com's offering.
The Kuwait construction equipment market share by units is expected to reach 7,383 by 2028
The growth in the construction equipment market is majorly driven by the increase in government investment in infrastructure & renovation projects, the boost given by the demand by the oil sector, and Kuwait's construction plans to expand its power generation capacity in wind and solar parks.
KEY INDUSTRY INSIGHTS
Covid-19 triggered the Kuwait construction equipment market cost due to a surge in construction material prices, labor shortages, and transportation expenses. The material price increased due to the international producers increased exporting prices with the importation crisis of the pandemic.
The earthmoving segment has the largest share in Kuwait Construction equipment. The excavators held the largest share in the earthmoving segment in 2021. The surge in civil engineering & housing projects in 2021 expects to support the demand for excavators in Kuwait.
In 2021, Kuwait's government increased the energy and climate infrastructure project investment. The government has also shifted its focus on renewable & nuclear energy resources and planned to invest $20 billion in upgrading the renewable energy industry by 2030. The surge in renewable energy projects triggers the demand for excavators & cranes in the Kuwait market.
he rise in government investment in warehouse & logistics infrastructure supports the growth of the country's logistics & transport industry in 2021. There is significant demand for forklifts in the Kuwait market during the forecast year due to the growing logistics & warehouse industry.
The economic activity in Kuwait will return to the pre-pandemic level by 2023. The Kuwaiti economy is expected to increase by 5.8% in 2022. And about 3.8% in 2023, supported by the growth of the construction oil and gas sector.
MARKET TRENDS AND DRIVERS
Rising In Infrastructure Stimulates Economic Recovery
Kuwait has approved more than $60 billion for infrastructure, health, environment, and power projects, with 5% of partnerships with the private sector in 2022. The projects include 14 major public projects with a total value of approximately $59 billion and four partnership projects worth nearly $3.2 billion.
The projects comprise mainly the airport expansion, development of Silk City- island development, trans-Kuwait rail network and rail link with nearby Gulf countries, Malta City, and the Clean Fuel Project, which are expected to contribute 2.5% of the country's GDP collectively.
In addition, Kuwait has permitted funding of $6.8 billion for developing a residential project, South Saad Al Abdullah Town, along with renovating the historic marketplace Souq Al Mubarakiya. According to World Bank, Kuwait is the second fastest growing GDP after Saudi Arabia in the Middle Eastern region.
Expansion of Renewable Energy Capacity
According to the Ministry of Electricity and Water, by 2030, the country's energy demand will increase significantly. Oil remained the country's most prominent power source and accounted for 65.5% of its total output in 2020. However, it is expected that Kuwait will boost the use of natural gas in place of oil for power production over the medium-to-long term as the government attempts to free up more of the country's oil reserves for export.
In 2019, Kuwait Renewable Energy Prediction System (KREPS) had a stated national goal of 15% renewable energy generation by 2030. The government planned to build a 5GW solar power complex in the country's north. In addition, solar capacity is planned installed capacity at Shagaya by 2030 with an investment of USD 20 million.
Growth in Housing & Airport Projects Supports the Demand for Flat Top Tower Cranes
Kuwait's Public Authority for Housing Welfare awarded a housing projects contract of $227.2 million to the Chinese firm First Group Company in 2021. The country's real estate sector is expected to have strong growth due to government investment in long-term developments across the region, such as the expansion of South Saad Al Abdullah New City.
The surge in real estate & public infrastructure projects supports the demand for tower cranes in the region. For instance, Zoomlion exports eight large tonnage flat-top tower cranes from China to construct Kuwait International Airport's new terminal. The flat-top tower crane provides a high lifting capacity & long boom length, which makes it suitable for hoisting heavy prefabricated concrete components.
Other major OEMs in the region, such as XCMG, Liebherr, Hyundai construction machinery, & SANY, are expected to upgrade the existing tower crane to capture the growing demand for tower cranes in the region.
KUWAIT GOVERNMENT INITIATIVES
A surge in Investment in Public Infrastructure & Renovation Projects
The government has planned to invest $65 billion in infrastructure projects, including health, power, road, and railways.
The government also increased the funding for housing sectors, and various housing renovation projects are planned in the regions like Souq Al Mubarakiya region of the country. A major railway project is scheduled to link all six Gulf Council member states in Eastern Arabia. The project is estimated to be worth $250 billion and is expected to complete by 2023. I
n addition, redevelopment projects such as Kuwait International Airport Expansion worth $ 4,265 million are under progress in 2022. Such significant support measures by the government have supported the growth of Kuwait construction equipment market. Apart from this government has planned to improve road connectivity across the country for fast transit.
The government's Waste Management Strategy Program is expected to positively impact the Demand for Excavators.
In 2021, the Kuwait government invested $147.9 million in waste management. Developing an effective waste management system is the core of the circular economy to improve waste recycling and resource recovery, reduce solid waste, and encourage efficient use, reuse, and repair.
Similar waste management facilities are expected to be developed in several locations by the government under the waste management strategy program. And this, in turn, is expected to give growth to the Kuwait construction equipment market by the impact the demand for excavators and loaders for handling waste.
Increasing Building material prices & Labour shortage Hamper Infrastructure Projects.
There is a continuous rise in building material prices in the country's market. In 2020, building material prices increased by 5%, but in 2022, the prices surged by more than 25%. Rising building material adversely impacted the country's real estate sector. For instance, in 2022, New residential projects such as Mutlaa and West Abdullah Al- Mubarak are highly affected by the increasing building material prices. The prices of iron, steel, cement & wood increased by 28% in 2022.
Zoomlion, Hyundai Construction Machinery, Liebherr, & Caterpillar are the Kuwait construction equipment market leaders, accounting for 24.7% of the market share in 2021.
Hitachi Construction Machinery focuses on expanding the sales of mining machines in the region where their high availability of hard rocks such as iron ore, copper, & nickel. Also, the company is strengthening its R&D and training its employees to provide customers with excellent service.
Caterpillar acquired Tangent Energy Solution, US-based energy-as-a-Service (EaaS) company, to reduce energy costs, energy efficiency, and emissions & provide resiliency for customer operation.
Kobelco focuses on using automation and digitalization of its product to improve the construction worker's productivity. The company has specialized in producing excavators, cranes, and spare parts construction equipment.
Prominent vendors in the Kuwait construction equipment market include Hitachi Construction Machinery, Liebherr, Caterpillar, Zoomlion, XCMG, SANY, Hyundai Construction Equipment, and Volvo Construction Equipment, JCB, & Kobelco.
Hitachi Construction Machinery Liebherr Caterpillar Zoomlion Xuzhou Construction Machinery Group Co. Ltd. (XCMG) SANY Hyundai Construction Equipment Volvo JCB Kobelco
Other Prominent Vendors
Terex corporation Tadano Liu Gong CASE Construction
Mohamed Abdulrahman Al-Bahar's Machinery Arab Group for Equipment and Construction (AGECO) Alghanim Equipment EMDAD Equipment EQUIP Masaha Heavy Equipment
Key Topics Covered:
1.1. Market Snapshot
1.2. Executive Summary
2. The Market Overview
2.1. Economic Scenario, Foreign Direct Investment
3. Kuwait Construction Equipment (Type & Application)
3.1 Kuwait Construction Equipment Market by Type (Volume & Value)
3.1.1. Earth Moving Equipment
188.8.131.52. Backhoe Loader
184.108.40.206. Motor Grader
220.127.116.11. Other Earth Moving Equipment (Other Loaders, Bulldozer, Trencher, Etc.)
3.1.2. Material Handling Equipment
18.104.22.168 Forklift and Telescopic Handler
22.214.171.124 Aerial Platform (Articulated Boom Lifts, Telescopic Boom Lifts, Scissor Lifts, Etc)
3.1.3. Road Construction Equipment
126.96.36.199. Road Rollers
188.8.131.52. Asphalt Paver
3.2 Kuwait Construction Equipment Market by Application (Volume & Value)
3.1.5. Others (Power Generation, Utilities Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation Plants, Waste Management, Etc)
4. Market Dynamics
4.1. Market Drivers, Restraints, Trends, Advantage Kuwait, Key Economic Regions, Import/Export Trends, Supply Chain Analysis, Covid-19 Impact
5. Technology Development
5.1. Advent of Technology
6. Competitive Landscape
6.1.1. Competitive Landscape Overview
6.1.2. Major Vendors
6.1.3. Other Prominent Vendors
6.1.4. Distributors Profile
7. Quantitative Summary
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Tags construction machinery construction equipment heavy machinery paver