Market Forecast By Types (Mobile Cranes, Construction Tractors And Bulldozers, Earthmoving Equipment, Aerial Work Equipment, Material Handling Equipment, Dump Trucks, Road Construction Equipment), By Applications (Corporate Enterprise, Oil And Gas, Mining, Others (Municipality And Road Construction)) And Competitive Landscape
Product Code: ETC001923 | Publication Date: Dec 2023 | Updated Date: Sep 2025 | Product Type: Report | |
Publisher: 6Wresearch | No. of Pages: 70 | No. of Figures: 35 | No. of Tables: 5 | |
According to 6Wresearch internal database and industry insights, the UAE Construction Equipment Market is projected to grow at a compound annual growth rate (CAGR) of 5.9% during the forecast period (2025-2031).
Report Name | UAE Construction Equipment Market |
Forecast period | 2025-2031 |
CAGR | 5.9% |
Growing Sector | Infrastructure & Real Estate Development. |
Drivers | Primary Segments Affected | Why it matters |
Mega Infrastructure & Transport Projects | 300–1000 kVA equivalent Road Construction Equipment, Earthmoving Equipment | Large public investments in airports, ports, metro extensions, and road networks create continuous demand for heavy earthmoving and paving equipment. |
Real Estate & Hospitality Expansion | Aerial Work Equipment; Material Handling; Mobile Cranes | Ongoing residential and hotel construction projects increase short- and long-term demand for cranes, lifts, and telehandlers. |
Oil & Gas and Industrial Projects | Heavy Earthmoving, Dump Trucks, Mobile Cranes | Upstream and downstream projects require robust fleets for site preparation and facility construction offshore conditions. |
Fleet Rental & Service Models | All small-to-medium types | Developers and contractors favor rental and managed-fleet models to reduce CAPEX and ensure access to modern equipment. |
Digitization & Telematics | Material Handling, Earthmoving Equipment | Widespread adoption of telematics augments fleet utilization, raising demand for connected machinery. |
UAE Construction Equipment Market size is projected to grow at the CAGR of 5.9% during the forecast period of 2025-2031. This is driven by a combination of public and private investments that keep construction activity robust. The rental market expansion is particularly notable — contractors increasingly lease equipment for project-specific needs, which supports higher equipment turnover and recurring service opportunities for OEMs and dealers.
In addition, the shift toward more fuel-efficient and low-emission machinery, combined with telematics and remote monitoring—supports higher lifecycle revenue from parts and digital services. Overall, steady GDP growth, targeted infrastructure projects, and private sector construction pipelines are expected to underpin UAE Construction Equipment Market Growth and revenue expansion through 2031.
Below mentioned are some major restraints and their influence to the market dynamics:
Restraints | Primary Segments Affected | What this means |
Equipment Price Inflation & Supply Chain Delays | All types | Global supply chain disruptions and commodity price inflation raise equipment acquisition costs and delivery lead times. |
Tight Environmental & Noise Regulations | Mobile Cranes, Earthmoving, Aerial Work Equipment | Emission and noise regulations in urban centers push demand for low-emission or electric-hybrid equipment and can limit older machine use. |
Skilled Operator Shortage | Earthmoving & Specialized Equipment | Shortage of skilled operators intensifies training costs and drops productivity on complex projects. |
Currency & Fuel Price Volatility | Heavy Equipment | Variations in fuel and operating costs influence total cost of ownership. |
On the other hand, the UAE Construction Equipment Market faces several notable challenges. For example, the increasing total cost of ownership driven by equipment pricing, commodity inflation and occasional shipment delays puts pressure on contractor margins and slows fleet renewal. Additionally, firmer urban environmental standards and noise ordinances require investment in low-emission and sound-attenuated equipment; retrofitting older machines is expensive and can limit deployment in core city zones.
Some of the emerging trends shaping the market landscape are:
There are several potential investment opportunities in the UAE Construction Equipment Market which includes:
Some leading players operating in the market include:
Company Name | Caterpillar Inc. |
Establishment Year | 1925 |
Headquarter | Deerfield, Illinois, United States |
Official Website | Click here |
Caterpillar is a global leader in heavy machinery and construction equipment, widely used across UAE’s infrastructure and real estate projects for its durability and cutting-edge technology.
Company Name | Komatsu Ltd. |
Establishment Year | 1921 |
Headquarter | Tokyo, Japan |
Official Website | Click here |
Komatsu provides advanced construction and mining equipment in the UAE, offering efficient solutions that emphasize productivity, fuel efficiency, and digital integration.
Company Name | Volvo Construction Equipment |
Establishment Year | 1832 |
Headquarter | Gothenburg, Sweden |
Official Website | Click here |
Volvo CE is known for sustainable and technologically advanced machinery, supplying wheel loaders, excavators, and compact equipment extensively used in UAE’s urban projects.
Company Name | Hitachi Construction Machinery Co., Ltd. |
Establishment Year | 1970 |
Headquarter | Tokyo, Japan |
Official Website | Click here |
Hitachi offers a wide range of construction and mining equipment with strong emphasis on innovation, safety, and eco-friendly solutions, making it a reliable partner in UAE’s large-scale developments.
Company Name | Liebherr Group |
Establishment Year | 1949 |
Headquarter | Bulle, Switzerland |
Official Website | Click here |
Liebherr is a prominent global player in cranes, earthmoving equipment, and material handling solutions, with strong demand in UAE’s construction and logistics industries.
According to Emirati Government Data, The laws, and initiatives at both the UAE federal and emirate level dictate specifications, procurement, and use of construction equipment. National sustainability policies and specific emission reduction commitments are prompting the use of more low-emission construction equipment and pilot electrification projects throughout urban centers.
Both Dubai and Abu Dhabi have adopted local noise and air quality regulations that impact the types of equipment which can be used on certain projects, as well as hours of allowed operation, impacting higher-density projects. Major infrastructure projects which are aligned with strategic development plans and transport masterplans have procurement policies that direct contractors to prioritize energy efficiency and lifecycle costs, encouraging the use of newer fleets.
UAE Construction Equipment Market is anticipated to continue steady growth throughout the forecast period, as the heavy public and private investments in infrastructure, logistics, and hospitality will keep equipment demand strong, and growing across multiple types of equipment. Electrification and hybridization of construction equipment will gain traction in response to tighter urban emission policies and cost of operations. The rental market will continue to grow, and this should continue to increase as contractors seek to optimize their working capital, and to have access to better technology fleet.
The report offers a comprehensive study of the subsequent market segments and their leading categories.
According to Dhaval, Research Manager, 6Wresearch, Earthmoving Equipment (excavators, loaders, dozers) is the dominating category by volume and revenue in the UAE market. This dominance is driven by high demand across infrastructure projects (roadworks, metro extensions), port expansions and industrial site preparations.
Corporate Enterprise (Commercial & Real Estate) dominates the UAE Construction Equipment Market Share, reflecting sustained growth in hospitality, retail, office, and residential construction. Large developers and property groups are driving volume purchases and long-term rental contracts for cranes, aerial work platforms, and material handling equipment as they scale project pipelines. This segment’s dominance stems from continuous private investment in high-value projects, including hotels, mixed-use developments, and logistic warehouses.
The report offers a comprehensive study of the subsequent market segments:
1 Executive Summary |
2 Introduction |
2.1 Key Highlights of the Report |
2.2 Report Description |
2.3 Market Scope & Segmentation |
2.4 Research Methodology |
2.5 Assumptions |
3 UAE Construction Equipment Market Overview |
3.1 UAE Country Macro Economic Indicators |
3.2 UAE Construction Equipment Market Revenues & Volume, 2021 & 2031F |
3.3 UAE Construction Equipment Market - Industry Life Cycle |
3.4 UAE Construction Equipment Market - Porter's Five Forces |
3.5 UAE Construction Equipment Market Revenues & Volume Share, By Type, 2021 & 2031F |
3.6 UAE Construction Equipment Market Revenues & Volume Share, By Application 2021 & 2031F |
4 UAE Construction Equipment Market Dynamics |
4.1 Impact Analysis |
4.2 Market Drivers |
4.2.1 Growing construction activities and infrastructure development projects in the UAE |
4.2.2 Government initiatives and investments in the construction sector |
4.2.3 Increasing demand for advanced and efficient construction equipment in the region |
4.3 Market Restraints |
4.3.1 Fluctuating oil prices impacting overall economic stability in the UAE |
4.3.2 Regulatory challenges and compliance requirements in the construction industry |
4.3.3 Competition from rental services affecting equipment sales |
5 UAE Construction Equipment Market Trends |
6. UAE Construction Equipment Market , By Type |
6.1 UAE Construction Equipment Market Revenues & Volume, By Mobile Cranes 2021 - 2031F |
6.2 UAE Construction Equipment Market Revenues & Volume, By Construction Tractor and Bulldozer, 2021 - 2031F |
6.3 UAE Construction Equipment Market Revenues & Volume, By Earthmoving Equipment, 2021 - 2031F |
6.3 UAE Construction Equipment Market Revenues & Volume, By Aerial Work Equipment, 2021 - 2031F |
6.3 UAE Construction Equipment Market Revenues & Volume, By Material Handling Equipment, 2021 - 2031F |
6.3 UAE Construction Equipment Market Revenues & Volume, By Dump Trucks, 2021 - 2031F |
6.3 UAE Construction Equipment Market Revenues & Volume, By Road Construction Equipment, 2021 - 2031F |
7 UAE Construction Equipment Market , By Application |
7.1 UAE Construction Equipment Market Revenues & Volume, By Corporate Enterprise, 2021 - 2031F |
7.2 UAE Construction Equipment Market Revenues & Volume, By Oil and Gas , 2021 - 2031F |
7.3 UAE Construction Equipment Market Revenues & Volume, By Mining, 2021 - 2031F |
8 UAE Construction Equipment Market Import-Export Trade Statistics |
8.1 UAE Construction Equipment Market Export to Major Countries |
8.2 UAE Construction Equipment Market Imports from Major Countries |
9 UAE Construction Equipment Market Key Performance Indicators |
9.1 Utilization rate of construction equipment in major projects |
9.2 Average age of construction equipment fleet in the UAE |
9.3 Rate of adoption of technologically advanced construction equipment |
9.4 Percentage of construction projects completed on time and within budget |
9.5 Investment in research and development for innovative construction equipment solutions |
10 UAE Construction Equipment Market - Opportunity Assessment |
10.1 UAE Construction Equipment Market Opportunity Assessment, By Type, 2031 |
10.2 UAE Construction Equipment Market Opportunity Assessment, By Application, 2031 |
11 UAE Construction Equipment Market - Competitive Landscape |
11.1 UAE Construction Equipment Market Revenue Share, By Companies, 2024 |
11.2 UAE Construction Equipment Market Competitive Benchmarking, By Operating and Technical Parameters |
12 Company Profiles |
13 Recommendations |
14 Disclaimer |
Market Forecast By Types (Cranes (Mobile Cranes, Crawler Cranes, Tower Cranes), Earthmoving Equipment(Loaders, Excavators, Motor Grader)), Aerial Work Equipment (Articulated Boom Lifts, Telescopic Boom Lifts, Scissor Lifts), Material Handling Equipment (Telescopic Handlers, Forklifts), Road Construction Equipment (Pavers, Road Rollers), Dump Trucks, Construction Tractor and Bulldozer), By Applications (Construction, Oil & Gas, Mining), By Regions (Abu Dhabi, Dubai & Other Emirates)and competitive landscape
Product Code: ETC001923 | Publication Date: Mar 2023 | Product Type: Report | |
Publisher: 6Wresearch | No. of Pages: 70 | No. of Figures: 35 | No. of Tables: 5 |
UAE Construction Equipment Market is predicted to experience steady growth through government investments in infrastructure development, expansion of the tourism sector, and increasing demand for residential and commercial properties. Moreover, the market has come across several latest developments in recent years. For instance, the iconic Dubai Creek Tower became the tallest in the world. The construction of the tower required the use of advanced construction equipment and modern techniques. Additionally, the Dubai Harbour project involves the construction of a cruise terminal, a new marina, and other facilities which required a range of construction equipment such as cranes, excavators, and loaders.
In addition, the UAE government has announced plans to invest heavily in infrastructure development over the coming years which includes the construction of bridges, new roads, and other infrastructure. The construction equipment market in the UAE is primarily driven by rapid urbanization which has led to the construction of new buildings, bridges, roads, and flyovers. Furthermore, the government has undertaken several infrastructure development projects, such as the expansion of airports, the construction of new highways, and the development of tourist attractions, which has increased the demand for the construction equipment industry in the UAE. The UAE is a popular tourist destination and the growing tourism industry has resulted in the development of resorts, hotels, shopping malls, and entertainment accommodations. This factor has boosted the demand for construction equipment in UAE.
UAE construction equipment market report thoroughly covers the market by equipment types, equipment sub-segment types, applications, and countries including Abu Dhabi, Dubai, and the Other Emirates. The UAE construction equipment market outlook report provides an unbiased and detailed analysis of the ongoing UAE construction equipment market trends, opportunities/high growth areas, and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.
UAE construction equipment market has witnessed substantial growth over the past few years primarily driven by the growing construction industry backed by strengthening commercial, hospitality, and residential sectors as well as government initiatives towards development projects in the country.
According to 6Wresearch, the UAE construction equipment market size is likely to witness growth during 2020-2026. This growth is mainly due to the growing construction sector as well as government initiatives toward rising infrastructure spending for World Expo 2020. Additionally, increasing construction projects in the commercial and residential verticals along with developing the hospitality sector would further fuel the demand for the construction equipment market in UAE during the forecast period.
The UAE construction equipment market is expected to witness potential growth in the upcoming six years on the back of the rising growth of varied industries such as the oil & gas, tourism, public & administration, healthcare, and mining industry. Additionally, rising private sector investment especially in the renewable energy generation process in order to minimize the use of fossil fuels and reduce environmental degradation coupled with modernization in the transportation domain due to technical advancement which is anticipated to augment the demand for construction equipment and would boost the substantial growth of the UAE construction equipment market in the foreseeable future.
UAE construction equipment market is projected to gain traction throughout the forecast period 2020-26F backed by the rising substantial growth of the retail sector in the country. Multiple factors are likely to strengthen the industry growth such as growing tourist influx, growing expatriate population, and upcoming projects like Tilal mall, Reem Mall, and city land village. All these aforementioned projects are estimated to expand retail store set up and are expected to proliferate the demand for construction equipment such as scissor lifts and boom lifts and are expected to benefit the growth of the UAE construction equipment market in the coming timeframe.
In the UAE, Dubai dominates the overall UAE construction equipment market share followed by Abu Dhabi and other Emirates. Additionally, the residential, hospitality, and transportation sectors lead the overall UAE construction equipment market revenues followed by the oil & gas and industrial sectors. Further, based on equipment types, earthmoving equipment is registering substantial growth in UAE primarily due to the rising number of public-private partnerships for construction projects.
The outburst of the coronavirus pandemic has declined the growth of the market owing to various restrictions imposed by the government of the market. The lockdown imposed by the government of the country led to a disruption in the supply chain of construction equipment. Moreover, shutting down production and manufacturing units have declined the growth of the market.
Some of the key players in the market are:
The UAE construction equipment market report provides a detailed analysis of the following market segments: