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5 days ago
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UAE Construction Equipment Market Report and Company Analysis 2025-2030, Featuring Caterpillar, Komatsu, Volvo Construction Equipment, Hitachi Construction Machinery, Liebherr, SANY, XCMG, JCB, & More
The UAE construction equipment market is poised for significant growth, with a projected CAGR of 5.78% from 2024 to 2030. Earthmoving equipment leads the market, driven by the nation's infrastructure investments. Notably, the demand for material handling equipment is on the rise due to port expansion and warehouse development. In 2025, the launch of Metal Park's Storage Hub in KEZAD is set to drive forklift demand. The push towards electric construction equipment, modular construction, and increased public infrastructure investment are key trends shaping the market. However, challenges such as skilled labor shortages and rising construction costs remain. Prominent players include Caterpillar, Komatsu, and Volvo CE. UAE Construction Equipment Market Dublin, July 15, 2025 (GLOBE NEWSWIRE) -- The "UAE Construction Equipment Market - Strategic Assessment & Forecast 2025-2030" report has been added to UAE construction equipment market is expected to grow at a CAGR of 5.78% from 2024 to 2030. Caterpillar, Liebherr, Komatsu, Volvo CE, Hitachi Construction Machinery, SANY, and XCMG are the front runners in the UAE construction equipment market. These companies have a strong market share and offer diverse sets of equipment in the market. Terex, Tadano, Manitou, Kato Works, Bomag, and Toyota Material Handling are niche players in the UAE construction equipment market. These companies offer low product diversification and have a strong presence in the country's market. JCB, Kobelco, Develon, HD Hyundai Construction Equipment, LiuGong, CNH Industrial N.V., Bobcat, and Zoomlion are emerging in the UAE construction equipment market. These companies are introducing new technologically advanced products to challenge the share of leaders in the country's market. AUSA, JLG, Manitowoc, Ammann, and Wacker Neuson have low product diversification in the UAE construction equipment market; these companies are lagging in adopting new technologies used in construction equipment. KEY HIGHLIGHTS Earthmoving equipment accounted for the largest market share in the UAE construction equipment market in 2024. Excavators in the earthmoving segment accounted for the largest share in 2024. The country's investment in renovating its public infrastructure drives the growth of the UAE earthmoving market. On the other hand, demand for material handling equipment is also growing due to the rising number of port expansion projects and the development of warehouses and logistics parks across the country. In March 2025, Khalifa Economic Zones Abu Dhabi - KEZAD Group and Metal Park announced the launch of the first phase of Metal Park's Storage Hub in KEZAD. This logistics hub is expected to drive the demand for forklifts over the forecast period. In 2024, the earthmoving segment accounted for a significant share of the UAE construction equipment market and is growing at a CAGR of 6.04% by volume during the forecast period. The road construction equipment segment is estimated to reach USD 135.0 million by value by 2030. Road roller sales are high in the UAE in response to the rising renovation and expansion of public transit and airports. For example, the USD 4.3 billion Main Roads Development Plan (2024-2027) plan includes 22 projects that will expand Dubai's road network and improve infrastructure to benefit over 6 million residents. Notable projects include the development of Latifa bint Hamdan Street and Meydan Road. Construction equipment utilization in the construction industry by end-user (volume) has the largest market share in 2024. The residential sector of the UAE witnessed substantial growth in 2024, driven by government-backed initiatives and robust demand. For example, the Sheikh Zayed Housing program, announced in February 2025, aims to provide housing to citizens in the country; this is fueling industry growth. The hospitality industry is another major factor driving the construction equipment market in the UAE. Therefore, growth in the tourism sector is propelling the construction of several hotels across the country. More than 11,300 new hotel rooms are set to open across Dubai by 2027, with almost 4,620 being launched in 2025. MARKET TRENDS & DRIVERS Increased Demand for the Electric Construction Equipment Construction equipment manufacturers are making continuous investments in launching battery-powered construction equipment in the Middle East. In line with initiatives like the UAE's National Building Regulations and We the UAE 2031, construction contractors are actively seeking alternatives to conventional diesel-powered machinery. In 2024, Volvo CE launched the L120 Electric, which is a fully electric wheel loader in the Middle East. Volvo CE tested the machine thoroughly in partnership with its authorized dealer, Al Futtaim Auto & Machinery Company (Famco). Growth In Modular Construction is Driving the UAE Construction Equipment Market Modular construction generates low waste, reduces energy consumption, and aligns with green building regulations such as the UAE Net Zero by 2050 initiative. Modular construction has played a significant role in several major projects across the UAE, demonstrating its efficiency, flexibility, and sustainability. At Expo 2020 Dubai, modular methods were used to construct pavilions and support facilities, allowing the event to meet strict timelines and environmental targets. Increasing Investment in Public Infrastructure Development In March 2025, the UAE revealed plans to increase its foreign direct investments to USD 65.35 billion a year by 2031. This initiative is a part of the UAE's recently approved National Investment Strategy 2031, which aims to expand the country's total FDI stock from USD 217.8 billion to USD 660 billion over the coming years, with a focus on the country's infrastructure. In the UAE, the demand for quality healthcare and education is expected to accelerate in 2025. In June 2025, the UAE federal government allocated over USD 7.4 billion to upgrade infrastructure, its most ambitious investment to date, driven by 4% annual population growth and rising global investor interest. Increased Investment in the Housing Sector In the first quarter of 2025, approximately 95 new projects were launched, which are expected to bring nearly 28,600 residential units to the market. Dubai's housing supply is expected to experience substantial growth, with nearly 300,000 units projected to enter the market by 2028. Furthermore, the demand for residential properties is on the rise in Abu Dhabi, with an estimated 38,700 new units by 2028. Approximately 10,800 new units are due to be delivered in 2025, with another 6,000 units in 2026. By the end of 2028, Abu Dhabi's total residential inventory will be around 313,700 units. Such growth in the number of projects is projected to support the UAE construction equipment market growth. INDUSTRY RESTRAINTS Skilled Labor Shortage & Increasing Construction Costs The sudden spike in building material prices in 2025, fueled by supply chain disruptions and inflation, has imposed fiscal strain on developers, compelling them to revisit project budgets and timelines, and is projected to hamper the UAE construction equipment market. Additionally, UAE building material suppliers and concrete producers demand payment in full at the beginning of the project's construction, thereby erasing the earlier 120-150-day credit period. This change has pushed developers to make purchases at elevated rates, thereby increasing the total construction cost. Moreover, labor shortages in the UAE's construction industry have been an ongoing issue, particularly due to the limited availability of skilled workers. Regulatory Compliance Challenges The country constantly updates its laws for the construction industry. Therefore, the sustainability standards (Estidama and Dubai Green Building Regulations) as well as labor laws can be quite challenging for the developers and construction companies, keeping up with the new building codes. Another challenge is the complex approval process that leads to project delays. The UAE government is planning on digitalizing compliance procedures; this may further act as a hurdle for developers across the Emirates (Dubai, Abu Dhabi, and Sharjah) as well as hamper the progress of the building industry. UAE CONSTRUCTION EQUIPMENT MARKET VENDOR LANDSCAPE Key Vendors Caterpillar Komatsu Volvo Construction Equipment Hitachi Construction Machinery Liebherr SANY Xuzhou Construction Machinery Group Co., Ltd. (XCMG) JCB Kobelco Zoomlion Heavy Industry Science & Technology Co., Ltd. Other Prominent Vendors Bobcat CNH Industrial HD Hyundai Construction Equipment Liugong Machinery Co., Ltd. DEVELON Tadano Ltd. Terex Corporation Manitou BOMAG GmbH KATO Works Co. Ltd. AUSA Wacker Neuson SE JLG Industries Toyota Material Handling The Manitowoc Company, Inc. AMMANN Distributor Profiles Abdulla Saeedi General Trading LLC Kanoo Machinery Al-Futtaim Auto & Machinery Company (FAMCO) M.H. Al Mahroos Al Marwan Heavy Machinery Galadari Trucks & Heavy Equipments KEY QUESTIONS ANSWERED: How big is the UAE construction equipment market? What is the growth rate of the UAE construction equipment market? Which are the major distributor companies in the UAE construction equipment market? Who are the key players in the UAE construction equipment market? What are the trends in the UAE construction equipment market? Key Attributes: Report Attribute Details No. of Pages 158 Forecast Period 2024 - 2030 Estimated Market Value in 2024 21552 Units Forecasted Market Value by 2030 30193 Units Compound Annual Growth Rate 5.7% Regions Covered United Arab Emirates Key Topics Covered: Market at a Glance Market Overview Market Snapshot Market Landscape PESTEL Analysis Economic Scenario Tariff Impact Key Projects Market Dynamics Geographic Analysis Import & Export Trend Analysis Supply Chain Analysis Segmentation By Equipment Type Equipment Definition (Earthmoving) Earthmoving Equipment (Volume & Value) Excavators Backhoe Loaders Wheeled Loaders Other Earthmoving Equipment (Skid-Steer Loaders, Track Loaders, Bulldozers, & Trenchers) Equipment Definition (Road Construction) Road Construction (Volume & Value) Road Rollers Asphalt Pavers Equipment Definition (Material Handling) Material Handling (Volume & Value) Cranes Forklifts & Telehandlers Aerial Platforms Equipment Definition (Other Equipment) By End-users End-user Definition Construction Manufacturing Mining Others (Waste Management, Agriculture, Oil & Gas Extraction, Utilities & Energy, Power Generation, Disaster Management and Water Management) Technology DevelopmentCompetitive Landscape Prominent Vendors Other Prominent Vendors Distributor Profiles For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment UAE Construction Equipment Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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26-06-2025
- Business
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Volvo CE to sell off ownership in China-based SDLG
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Volvo Construction Equipment is selling its 70% stake in China's Shandong Lingong Construction Machinery Co as part of a strategic revamp to reduce its exposure to the country. The multinational company said Tuesday that its shares, valued at 8 billion Swedish krona (nearly $839 million), will be sold to a fund largely owned by the Lingong Group, a minority owner of SDLG. The deal would allow Volvo CE, a subsidiary of Volvo Group, to refocus its business strategy and to have a more targeted approach to serving China's construction equipment market with premium products. The sale is expected to close later this year if approved by regulators. Since 2006, Volvo CE has held a majority stake in SDLG as a way to gain access to China's domestic construction equipment market. The company said its investment and collaboration with LGG has been successful over the years, but with changing market dynamics, the two have agreed to part ways and pursue business strategies that would be 'mutually beneficial.' '[W]ith increasing competition, and the need to transform to new technologies as well as strengthen interaction with customers, we need to re-focus,' Malker Jernberg, head of Volvo CE, said in a statement. Selling Volvo CE's majority stake would make SDLG, previously a joint venture, a primarily Chinese-owned company. SDLG is one of China's largest construction equipment makers known for producing excavators, wheel loaders and road rollers. The size of the country's market is valued at $223.7 billion as of last year, and has grown at an average rate of 12.5% over the past five years, according to IBISWorld. The decision to sell Volvo CE's ownership comes as many U.S. companies move their supply chains out of China to nearby countries, in part because of rising labor costs and recent tariff pressures. Last year, roughly 20% of U.S. businesses in China said they would cut investments over concerns regarding the country's slowing growth, according to a survey conducted by the American Chamber of Commerce in Shanghai. Meanwhile, 40% of respondents said they were redirecting investments, with Southeast Asia and India as popular choices. 'China remains an important market for us, and we aim to capitalize on our opportunities by focusing on sustainable solutions in targeted segments,' Jernberg added. Volvo CE has operated its excavator factory in Shanghai since 2002, and recently announced plans to upgrade the facility with new production lines. The company is also moving forward with plans to transform a research and development center in Jinan, China, into the Global Technology System of Volvo CE, for expanded innovation and collaboration around the world. As Volvo CE retools its presence in China, the company is also expanding across other countries. It recently agreed to acquire European retail business Swecon from Lantmännen to bolster operations in Germany, Sweden, Estonia, Latvia and Lithuania. Volvo CE also said it will begin producing crawler excavators and large wheel loaders at its Shippensburg, Pennsylvania, facility as part of a $261 million global investment aimed at mitigating supply chain risks related to tariffs. Volvo CE has 16 manufacturing sites across the U.S., Canada and Mexico, according to its website. The subsidiary's North American headquarters is in Shippensburg. Recommended Reading Volvo to expand US construction equipment production Sign in to access your portfolio
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24-06-2025
- Automotive
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Volvo CE to divest SDLG stake to Lingong Group fund
Volvo Construction Equipment (Volvo CE) has agreed to sell its 70% stake in Shandong Lingong Construction Machinery Co (SDLG) to a fund predominantly owned by Lingong Group (LGG) for Skr8bn ($826m). The deal is expected to be completed in the second half (H2) of 2025, pending regulatory approvals and other conditions. It is anticipated to positively impact Volvo CE's operating income by Skr1bn at closing, though this is subject to currency fluctuations. However, it will also result in a negative tax impact of Skr1.6bn, similarly affected by exchange rate changes. The potential positive effect on operating income will be excluded from adjusted operating income. In 2024, SDLG contributed approximately 2% to Volvo Group's turnover, with a negligible effect on the group's operating income. Volvo CE acquired its majority stake in SDLG in 2006, with LGG as a minority shareholder, to gain access to China's domestic construction equipment market. 'The SDLG collaboration has been successful, but for strategic reasons Volvo and LGG now believe it would be mutually beneficial to pursue independent business strategies,' Volvo CE stated. Post-transaction, Volvo CE will focus on offering Volvo-branded products and services to targeted customer segments in China such as mining, quarry and aggregates, and heavy infrastructure. The company aims to provide tailored solutions to meet specific customer needs while developing a sustainable distribution strategy in China's competitive market. China will continue to serve as a key production and development hub for both the domestic and export markets, leveraging Volvo CE's excavator production facility in Shanghai, operational since 2002, and recently announced new production lines. Volvo CE also plans to enhance its utilisation of China's supplier ecosystem, maintaining the country's role as a critical part of its global value chain. "Volvo CE to divest SDLG stake to Lingong Group fund" was originally created and published by World Construction Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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24-06-2025
- Automotive
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Volvo Construction Equipment acquires Swecon
GOTHENBURG, Sweden, June 24, 2025 /PRNewswire/ -- Volvo Construction Equipment (Volvo CE) has come to an agreement with Lantmännen to acquire the Swecon's business operations in Sweden, Germany and the Baltics including Entrack. Volvo CE will pay 7 billion SEK for the acquisition, which is subject to regulatory approval. Closing of the deal is anticipated in second half of 2025. The acquisition includes Swecon's business scope in these markets, i.e. sales of products and services, rental operations, aftermarket services & support to customers as well as offices, workshop facilities and 1,400 employees. Volvo CE sees this as a strategic move to further invest in retail operations in key markets; Germany, which is Europe's largest construction equipment market, Sweden, Volvo CE´s home market as well as Estonia, Latvia and Lithuania. In addition to the currently owned retail operations footprint, this acquisition will mean Volvo CE will own and manage the majority of the company´s business in Europe, making retail core for Volvo CE in Europe. "At this time of transformation of our industry where our competitiveness is put to test, directly collaborating with our customers is even more important to be successful, and through the acquisition of Swecon we believe we can drive an enhanced customer satisfaction", says Melker Jernberg, Head of Volvo CE. Lantmännen is an agricultural cooperative with diverse activities in agriculture, energy, food and machinery. For the full year of 2024 Swecon revenues amounted to 10 billion SEK. Entrack is a provider of aftermarket products, independently and fully owned by Lantmännen. June 24, 2025 Journalists wanting further information, please contact:Claes Eliasson, Head of Media Relations+46 76 553 7229press@ For more information, please visit For frequent updates, follow us on LinkedIn The Volvo Group drives prosperity through transport and infrastructure solutions, offering trucks, buses, construction equipment, power solutions for marine and industrial applications, financing and services that increase our customers' uptime and productivity. Founded in 1927, the Volvo Group is committed to shaping the future landscape of sustainable transport and infrastructure solutions. The Volvo Group is headquartered in Gothenburg, Sweden, employs more than 100,000 people and serves customers in almost 190 markets. In 2024, net sales amounted to SEK 527 billion (EUR 46 billion). Volvo shares are listed on Nasdaq Stockholm. This information was brought to you by Cision The following files are available for download: Press Release - Volvo Construction Equipment acquires Swecon 2025-volvo-flags View original content: SOURCE AB Volvo
Reuters
24-06-2025
- Business
- Reuters
Volvo Construction Equipment to sell stake in China's SDLG for $837 million
COPENHAGEN, June 24 (Reuters) - Volvo's ( opens new tab Construction Equipment (CE) unit said on Tuesday it will sell its 70% stake in China's Shandong Lingong Construction Machinery Co to a fund primarily owned by minority owner Lingong Group for 8 billion Swedish crowns ($837 million). In a separate statement, Volvo CE said it had agreed to buy engineering consultancy company Swecon's business operations in Sweden, Germany and the Baltics for 7 billion Swedish crowns ($731.45 million). "With increasing competition, the need to transform to new technologies as well as strengthening the interaction with customers, we need to re-focus," Melker Jernberg, head of Volvo CE, said in a statement on the Chinese transaction. ($1 = 9.5583 Swedish crowns)
