Qatar Construction Equipment Market Report 2023
May 22, 2023
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25 Jul, 2023, 18:30 ET
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DUBLIN, July 25, 2023 /PRNewswire/ -- The "Qatar Construction Equipment Market - Strategic Assessment & Forecast 2023-2029" report has been added to ResearchAndMarkets.com's offering.
The Qatar construction equipment market is expected to reach 8,596 units by 2029, growing at a CAGR of 4.54%.
Caterpillar, Volvo Construction Equipment, JCB, Komatsu, and HD Hyundai Construction Equipment are market leaders in the Qatar construction equipment market. These companies have a strong industry share and offer diverse sets of equipment. In 2022, Mannai Trading Co. (the official dealer of JCB in Qatar) delivered JCB 3DX PLUS backhoe loaders to Boom Construction Company in Doha.
Material handling equipment accounted for the largest market share in the Qatar construction equipment market in 2022. Cranes in the material handling segment accounted for the largest share. Rising investment in housing, warehouse expansion, and renewable energy projects is expected to drive the demand for cranes in the industry.
In 2022, the country's natural gas industry benefitted due to the ongoing war between Russia and Ukraine. The political tension between Russia and other European countries such as the US, Canada, the UK, Poland, and others expect to boost Qatar's natural gas industry's growth.
Qatar Public Works Authority (Ashghal), in March 2023, awarded the main construction contract 'Roads and Infrastructure' works in Rawdat Egdaim and Ezghawa with a value of USD 67 million. The project is scheduled for completion by the third quarter of 2025.
MARKET TRENDS & DRIVERS
Qatar's National Vision Plan 2030 to Boost the Qatar Construction Equipment MarketA few public infrastructure projects under the QNV 2030 include the Qatar Integrated Rail, a USD 40 billion urban metro, high-speed passenger railway, freight line system, and the New Port Project, a USD 7.4 billion mega port designed for food security facilities and warehouses.
The expansion of the Hamad International Airport is also included, with a budget of USD 15.5 billion. Qatar's 2023 budget outlined the implementation of 22 new projects with a total value of USD 2.6 billion. The budget also aims to develop several new schools and improve school facilities in addition to new and existing hospitals and healthcare centers.
Further, Qatar Public Works Authority (Ashghal) in March 2023 awarded the main construction contract 'Roads and Infrastructure' works in Rawdat Egdaim and Ezghawa with a value of $67 million. The project is scheduled for completion by the third quarter of 2025.Qatar's Energy Sustainability Strategy to Propel the Demand for Material Handling EquipmentIn 2022, Doha's Energy Minister started developing two major solar projects that will more than double its energy output from renewable sources within two years. These new plants will be developed at Mesaieed and Ras Laffan, generating a total output of 1.67 gigawatts by the end of 2024.
The country also announced its 5 GW solar energy capacity target by 2035. Furthermore, Qatar's Energy Sustainability Strategy 2021 had been set to achieve various targets such as a methane intensity of 0.2% by 2025, carbon reduction intensity of 15% from upstream and 25% from the Liquefied Natural Gas (LNG) facilities by 2030, and add 2-4 GW of renewable energy by 2030.
Rising Development of Green Buildings in the Region to Boost the Sales of Hybrid and Electric Construction EquipmentAs of 2021, according to the Ministry of Environment and Climate Change, Qatar had 1,406 sustainability-certified buildings. The country has the highest number of buildings with the Global Sustainability Assessment System (GSAS). Therefore, the nation is significantly focusing on developing more green buildings in the region in line with its emissions target and will contribute to the Qatar construction equipment market.
Green buildings incorporate solar panels, green roofs, and energy-efficient appliances to minimize environmental impact. Moreover, Qatar's solar energy future is steadily developing. With average daily sun rays of around 9.5 hours, low-cloud cover conditions, and plentiful space, there is excellent scope for the country's small, medium, and large-scale solar power projects.Extensive Demand for Luffing Cranes in the Country in Response to Various Infrastructure Projects in the PipelineConstruction is one of the largest sectors in Qatar, and the government is focusing on improving the existing infrastructure and implementing new construction projects. These initiatives expect to spur the demand for the crane market in the Qatar construction equipment market during the forecast period.
Moreover, the demand for tower cranes has increased since 2021 due to the construction of tall building structures and stadiums in Qatar. For instance, Zoomlion's eight luffing jib cranes were used to cap the roof of the Lusail National Stadium in 2021. Similarly, JASO also sold Luffing tower crane in the country in 2021.INDUSTRY RESTRAINTS
Qatar's Over Dependence on Hydrocarbon Industry Can Impact the Country's Growth NegativelyQatar's economy heavily depends on the hydrocarbon industry. The oil & gas sector has consistently contributed 80% to the government's revenue since 2014 and 90% to Qatar's total exports. Despite government efforts to promote non-hydrocarbon sectors, the country's economy relies heavily on oil & gas industries.
Moreover, the nation's economic growth depends on the performance of the oil & gas industry, which is entirely influenced by oil prices in the global market. In 2020, there was a decline in oil prices in the global industry, which adversely affected the country's oil & gas industry export. There was a 4% decline in natural gas demand in Qatar in 2020.
Skilled Labour Shortage in the Country to Hamper the Pace of Construction ProjectsIn a recent survey conducted in 2022 by the government in Qatar, 60% of the respondent's employers mentioned a severe skill shortage in the region. The survey highlighted a massive skill gap in the manufacturing sector. This skill gap can be attributed to labor misallocation, a skewed labor market, and rigid immigration policies. Covid-19 added further pressure to this existing labor crisis in the Gulf nation. Additionally, the country witnessed increasing labor costs due to this looming skill gap.
KEY QUESTIONS ANSWERED:
Other Prominent Vendors
Segmentation by Type
Road Construction Equipment
Material Handling Equipment
Other Construction Equipment
For more information about this report visit https://www.researchandmarkets.com/r/6ezgt5
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