Future of the Construction Equipment Market in Qatar to 2015
Moreover, the high level of oil and gas revenue is expected to continue, supported by planned investment in infrastructure projects, and contribute to the strong construction industry growth expected throughout the 2010â€“15 forecast period.
Financial review of Qatarâ€™s construction equipment market
During the reportâ€™s 2005â€“09 review period, the consumption value of Qatarâ€™s construction equipment market recorded a combined annual growth rate (CAGR) of 23.30%. This growth occurred during 2005â€“08, primarily due to substantial investment in construction activity in Qatar, a country with a rapidly growing population, increasing per-capita GDP, and revenue from abundant natural gas resources.
The period of growth ended in 2009, however, when the Qatari marketâ€™s consumption value fell by 44.9% from 2008â€™s figure. In 2009, industry growth was affected by the postponement or cancellation of private sector construction projects as a result of the economic downturn. Public sector construction expenditure continued, however, supported by the reduction in construction costs in major project tenders.
Construction equipment consumption is expected to increase throughout the forecast period as a result of continued government investment in a diverse range of education, healthcare, infrastructure, and transport projects. WMI expects the consumption value of the Qatari construction equipment market to register a CAGR of 15.66% during the forecast period.
Qatarâ€™s construction equipment market does not house any domestic equipment manufacturers and consists solely of suppliers and equipment rental companies. The countryâ€™s construction equipment requirements are therefore met through imports.
Categories of Construction Equipment used in Qatar
Qatarâ€™s construction equipment market is, for the purposes of this report, divided into six categories: Earth Moving Equipment, Construction Vehicles, Material Handling Equipment, Concrete Equipment, Road Construction Equipment and Other Construction Equipment.
The material handling equipment category was the marketâ€™s largest category in 2009. With a number of construction projects in the pipeline, this category is expected to record a CAGR of 16.34% over the forecast period.
The consumption value of the Qatari earth moving equipment category demonstrated a CAGR of 18.50% during the review period. WMI expects this category to increase in value at a CAGR of 15.46% over the course of the forecast period. The concrete equipment category valued US$42.3 million in 2009, and WMI expects this categoryâ€™s consumption value to reach US$93.2 million by 2015.
The road construction equipment category grew at a CAGR of 19.36% over the review period. WMI anticipates that the consumption value of this category will increase at a CAGR of 9.71% over the forecast period. The consumption value of the construction vehicles category was US$15.0 million in 2009. WMI expects this figure to reach US$37.9 million by 2015.
The consumption value of other Qatari construction equipment registered a CAGR of 33.70% throughout the review period, and WMI expects this category to record a CAGR of 20.57% over the forecast period.
Overview of Qatarâ€™s Construction Industry
Qatarâ€™s construction equipment market is, obviously, highly dependent on the countryâ€™s overall construction industry. Despite the negative impact of the recession, the Qatari construction industry demonstrated stable performance throughout the review period, largely due to the stability of the countryâ€™s economy.
In 2010, the industry is expected to be involved with substantial international developments, such as the US$5,500 million New Doha International Airport project, the US$5,000 million Al-Khor tourist project, the US$2,500 million Energy City, and the man-made Pearl Island, worth US$2,500 million.
The majority of the ongoing mega-projects in Qatar are dominated by the countryâ€™s infrastructure market. The largest project in the transport sector is the US$3,000 million Qatar-Bahrain causeway, for which construction work is expected to begin in the second quarter of 2010. Other key projects in the transport sector include the New Doha Port, one of the largest Greenfield port developments in the world.
With increasing demand for both water and electricity, energy projects such as Pearl GTL are also expected to stimulate industry growth. All these projects are expected to continue to create demand for construction equipment in the country.
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