Saudi Arabia Construction Equipment Market Outlook 2025–2030: Key Players Lead Growth
Saudi Arabia Construction Equipment Market Set to Reach 52,621 Units by 2030 Amidst Green Energy Push and Infrastructure Boom A new report titled “Saudi Arabia Construction Equipment Market – Strategic Assessment & Forecast 2025-2030”, now available through ResearchAndMarkets.com, offers a comprehensive analysis of one of the most rapidly evolving construction equipment markets in the Middle East. According to the report, the Saudi Arabian construction equipment market stood at approximately 37,272 units in 2024 and is forecasted to grow to 52,621 units by 2030, registering a compound annual growth rate (CAGR) of 5.92% during the forecast period.
This robust growth trajectory is being driven by ambitious national development projects, rising urbanization, infrastructure modernization, and the government’s aggressive push towards a green and diversified economy under Vision 2030.
Market Leaders and Competitive Landscape
The market is dominated by globally recognized construction equipment manufacturers. Key players such as Caterpillar, Liebherr, Komatsu, Volvo Construction Equipment, Hitachi Construction Machinery, SANY, and XCMG continue to maintain a stronghold due to their broad portfolios, established dealer networks, and strong after-sales services. These companies provide a wide range of construction equipment including excavators, loaders, bulldozers, and cranes, addressing the diverse needs of infrastructure, mining, and industrial development in the Kingdom.
Meanwhile, niche players such as Terex, Tadano, Manitou, Kato Works, BOMAG, and Toyota Material Handling hold solid ground in specific categories like compact equipment, aerial platforms, and road construction machinery. These firms, though offering limited product diversity, enjoy focused market presence and cater to specialized construction requirements.
Emerging manufacturers including JCB, Kobelco, Develon, HD Hyundai Construction Equipment, LiuGong, CNH Industrial NV, and Zoomlion are aggressively entering the Saudi market. These brands are leveraging advanced technologies and competitively priced offerings to challenge the dominance of market leaders. Their increasing presence is spurring competition and innovation, particularly in the segment of electric and hybrid-powered machines.
On the other hand, companies like AUSA, JLG, and Wacker Neuson are yet to make significant strides in technology adoption and product diversification in the Saudi market, placing them in a relatively lagging position compared to their peers.
Key Market Drivers
1. Transition to a Green Hydrogen Economy
Saudi Arabia is at the forefront of the global energy transition. The Kingdom is making strategic investments in green hydrogen as part of its goal to achieve net-zero carbon emissions by 2060. Projects like NEOM’s hydrogen city initiative are setting the stage for wide-scale deployment of hydrogen-fueled infrastructure.
These developments are not only reshaping the energy landscape but are also expected to influence equipment trends. As hydrogen production plants emerge, there will be a growing demand for hydrogen-compatible construction machinery and supporting infrastructure, driving equipment sales and R&D investments in alternative fuel-powered heavy equipment.
2. Rise of Waste-to-Energy Projects
As part of the broader Vision 2030 agenda that emphasizes a circular economy, the government is accelerating its waste management efforts. The Saudi Investment Recycling Company (SIRC), a subsidiary of the Public Investment Fund (PIF), is spearheading these initiatives.
In May 2025, SIRC signed a significant memorandum of understanding with EIG Management Company, LLC, a U.S.-based infrastructure investment firm. The agreement focuses on developing and managing waste treatment and circular economy infrastructure in the Kingdom.
Such developments are increasing the demand for equipment like wheeled loaders, excavators, and compactors used in waste management and recycling operations. This shift is opening up opportunities for OEMs (original equipment manufacturers) that provide machines tailored to environmental applications.
3. Boom in Residential Real Estate Development
The Saudi government is committed to increasing the housing ownership rate among its citizens to 70% by 2030. This has triggered a surge in real estate and residential construction activity. Programs like Wafi and Sakani are mobilizing public-private partnerships to deliver affordable housing across the Kingdom.
These efforts have led to a rise in demand for light construction equipment such as backhoe loaders, compact track loaders, and mini excavators, particularly in urban and suburban housing projects. The push for mid-market housing solutions is expected to be a major contributor to equipment sales in the coming years.
4. Expansion of Transport Infrastructure
Saudi Arabia’s transportation sector is undergoing rapid modernization. The country is investing billions in creating a connected multimodal transportation network that includes metro lines, high-speed railways, and new roadways.
One of the flagship projects is the Jeddah Metro, scheduled to begin operations in 2025, which will link key districts in Jeddah including the King Abdulaziz International Airport and major business hubs. Another iconic project is the “Dream of the Desert”—Saudi Arabia’s first luxury train service, which aims to enhance regional travel and tourism.
These massive infrastructure undertakings will require a wide array of heavy construction equipment, including tower cranes, tunnel boring machines, crawler excavators, and asphalt pavers, providing sustained momentum for market growth.
Market Challenges
1. Escalating Construction Costs
The cost of construction in Saudi Arabia saw an increase of 3.4% to 4.2% in 2024, driven largely by the demand generated by mega-projects like NEOM, Qiddiya, and The Red Sea Project. These projects require cutting-edge technologies, highly skilled labor, and specialized materials, placing upward pressure on prices.
In addition, the ongoing Red Sea shipping crisis has disrupted global supply chains, affecting the timely delivery and cost of building materials such as steel, cement, and machinery parts. These cost pressures are posing financial challenges for contractors and slowing down equipment procurement, thereby potentially limiting market growth in the short term.
2. Shortage of Skilled Labor and Regulatory Bottlenecks
The construction industry in Saudi Arabia is staring at a serious workforce gap. By 2030, it is projected that the sector will face a shortage of over 663,000 skilled workers, particularly in technical and machine-operating roles. This labor deficit is leading to project delays, inflated costs, and increased dependence on traditional, less-efficient machinery.
Compounding the issue is the heavy reliance on foreign labor, which adds complexity in terms of work permits, visa regulations, and training requirements. Moreover, many local workers lack the technical expertise required for operating modern, digitally enabled construction equipment.
Additionally, stricter environmental regulations are being implemented across all major projects. These include mandates to reduce carbon footprints, conserve water, and utilize renewable energy. While these policies are essential for sustainability, they are also adding to compliance costs and making it necessary for equipment manufacturers to innovate quickly to meet new standards.
