UAE Crawler Excavator Market - Strategic Assessment & Forecast 2024-2029

INDUSTRY OVERVIEW

The UAE crawler excavator market accounted for 3.44 thousand units in 2023 and is expected to reach 5.01 thousand units by 2029, growing at a CAGR of 6.48% during the forecast period. The UAE government planned to invest over USD 52 billion for the period from 2024 to 2026, with a focus on enhancing digital services, health, educational facilities, and transportation sectors. The government is promoting sustainable development and strengthening the country’s economic foundations, with a greater focus on the areas of social development and government affairs, which receive 42% and 39% of the budget respectively.

Recent Developments in the UAE Crawler Excavators Market

1. In 2024, HD Hyundai Construction Equipment signed a partnership agreement with Al Shirawi Machinery. The company aims to enhance innovation and operational excellence in the construction sector of the UAE.
2. HD Hyundai Construction in association with Al Shirawi Machinery aims to sell over 150 pieces of equipment in the UAE market in 2024. The company offers a comprehensive range of equipment such as crawler excavators, wheeled excavators, & mini excavators.
3. Al Marwan is the official distributor of Kobelco excavators and cranes in the United Arab Emirates. Kobelco excavators introduced the Integrated Noise & Dust Reduction Cooling System (iNDr), which was developed to help construction machines coexist with cities. The iNDr system helps to reduce noise and dust levels. The iNDr system also helps Kobelco excavators perform well in challenging weather conditions, which is important in the arid climate of the UAE.
4. The Emirate of Abu Dhabi witnessed the completion of 12,816 buildings during the first half of 2024, including the completion of new construction, modifications, and additions in all areas of the emirate.

KEY HIGHLIGHTS

1. Large-size excavators accounted for the largest market share of the UAE crawler excavator market in 2023.
2. Above 200 HP range crawler excavators accounted for the largest share in 2023. Significant investment in the country’s infrastructure sector is driving the growth of several excavators in the region’s crawler excavator market.
3. Large crawler excavators are also gaining good market share due to their extensive uses in large construction projects across the country. Several large excavators are presently operating Abu Dhabi & Dubai regions of the country.
4. The crawler excavators utilization in the construction industry is nearly XX% in the UAE Market.
5. The crawler excavator is majorly used for construction projects in the UAE due to its sandy terrain. Crawler excavator accounts for XX% of total excavators sold in the country.
6. Komatsu Middle East FZE, based in the UAE, is expanding aggressively in the region, driven by increased demand for construction and mining equipment. The company is focusing on leveraging the UAE's 2031 investment roadmap, which emphasizes infrastructure, tourism, and renewable energy projects.
7. Komatsu is also pursuing smart technologies, such as AI, ICT machines, and autonomous systems, to meet the region's growing needs. The company has a partnership with Galadari Brothers and is committed to achieving carbon neutrality by 2050.

MARKET TRENDS & DRIVERS

Growing Demand for Modern Technology Excavators

1. In 2024, several waste-to-energy projects are under progress in UAE, including the Al Warsan Waste to Energy Plant in Dubai and the Dubai Waste Management Centre.
2. Al Warsan Waste to Energy Plant is a 220 MW biopower project that is expected to operate in 2024. The project aims to generate around 200 MW of electricity from 1.9 million tons of municipal waste accumulated in a year. This electricity will power over 120,000 households. The project is also in line with the UAE's ambitions to reduce its carbon footprint by 70% and increase its clean energy to 75% by 2050.

Waste-to-energy Projects Drive the Demand for Excavators in the UAE Crawler Excavator Market

1. In 2024, several waste-to-energy projects are under progress in UAE, including the Al Warsan Waste to Energy Plant in Dubai and the Dubai Waste Management Centre.
2. Al Warsan Waste to Energy Plant is a 220 MW biopower project that is expected to operate in 2024. The project aims to generate around 200 MW of electricity from 1.9 million tons of municipal waste accumulated in a year. This electricity will power over 120,000 households. The project is also in line with the UAE's ambitions to reduce its carbon footprint by 70% and increase its clean energy to 75% by 2050.

Investment Under Dubai Urban Master Plan 2040

1. The Dubai 2040 Urban Master Plan, focusing on expanding urban areas, infrastructure, and sustainability, is expected to drive the UAE crawler excavator market significantly.
2. The investment is planned for doubling green spaces, increasing land for commercial and residential development, and expanding transportation networks will likely result in higher construction machinery sales.
3. In March 2024, Abu Dhabi approved 144 infrastructure projects with a budget of USD 17.97 billion, covering sectors like housing, education, tourism, and natural resources.

Rising Number of Residential Building Permits

1. There is a rise in building permits across the country in the UAE in 2024. The country’s large Emirates such as Abu Dhabi & Dubai witnessed stronger growth in the demand for new buildings in 2024. This growing number of permits is projected to support the UAE crawler excavator market growth.
2. In Q1 2024, According to data released by the Department of Municipalities & Transport, the Emirate of Abu Dhabi saw the completion of 8,040 buildings, with the distribution as follows: 6,033 buildings in Abu Dhabi, 1,775 in Al Ain City, and 232 in Al Dhafra City.

INDUSTRY RESTRAINTS

High Construction Cost in UAE

1. High construction costs in the UAE, driven by inflation, material shortages, and regulatory changes, are expected to rise by 2-3% in 2024. This increase could hamper the UAE crawler excavator market, as developers and contractors face tighter budgets.
2. The industry may need to adopt new methods like modular construction and digital technologies to manage these costs, which could further impact the demand for traditional construction equipment.
3. Since June 2023, the prices of raw materials, such as steel, cement, and concrete, have been rising in the UAE. The increasing rate of inflation further adds pressure and construction companies are witnessing difficulties with the rising cost of construction.

Labor Shortage and Regulatory Challenges

1. The construction industry in UAE is facing the challenge of project delays. The complicated regulatory processes and the detailed nature of construction projects in the region can lead to extended timelines.
2. Such delays can have a significant effect on contractors in the UAE, compelling them to allocate more resources and face additional expenses for labor and materials. Furthermore, failing to meet project deadlines can lead to penalties and various contractual consequences.
3. In addition, the construction sector in the UAE operates within a complex regulatory framework, which often sees changes, particularly concerning taxation.

VENDOR LANDSCAPE

1. Caterpillar, Komatsu, Volvo CE, HD Hyundai Construction Equipment, XCMG, & SANY are the front runners in the UAE crawler excavator market. These companies have a strong market share and offer diverse sets of excavators in the UAE market. 
2. SDLG, Yanmar, Zoomlion & Case Construction are niche players in the UAE crawler excavator market. These companies offer low product diversification and have a strong presence in the country’s market.
3. JCB, Develon, LiuGong, Kobelco, & Hitachi Construction machinery are emerging in the UAE crawler excavator market. These companies are introducing new technologically advanced products to challenge the market share of market leaders in the country’s market.
4. Wacker Neuson, & Mecalac have low product diversification in the UAE crawler excavator market, these companies are lagging in adopting new technologies used in construction equipment.