For the past four years, Egypt has been witnessing a strong heavy machinery market. With a population of just under 100 million living in Egypt, the northern African nation is bound to grow even more to meet the economic standards. The major contributors to Egypt’s economic development are the construction and transportation industries. In fact, with cranes towering high in the Egyptian skyline and billboards boasting of new residential projects, universities, and malls, Egypt is experiencing a boom in its construction sector. The impact of all these construction developments has been a significant surge in demand for heavy equipment in Egypt particularly from cities like Cairo, Alexandria, and Port Said.
Factors influencing the growth of the heavy equipment market in Egypt
The Egyptian heavy equipment rental market
The contributions of the heavy equipment rental market towards the overall heavy equipment market in Egypt are not capable of being overlooked. As a result of heavy investment in infrastructure development projects along with huge upcoming construction projects in the country, the heavy equipment rental market seems to be gaining momentum at an unbelievably high rate.
Sectors like transportation, construction, energy and power exhibit tremendous growth rate. For example, a total of around $3 billion is being invested by the Egyptian government towards the refurbishment of its national railway network system within the next five years which includes the addition of 1000 new train cars. This calls for a considerable upfront capital investment which leads contractors to opt for rental equipment to reduce costs of operations. And this is very likely going to fuel the demand for heavy equipment rentals in Egypt.
Furthermore, research conducted by various organizations states that the Egyptian heavy equipment rental market will thrive due to the emergence of new technologies and new construction opportunities. The heavy equipment rental market is expected to grow at a CAGR of 8.4% by the year 2025, with earth-moving equipment acquiring the largest share of this growth.
To summarize, the growing sectors, along with the government's large-scale initiatives, promise a bright future for the heavy equipment market in Egypt.