8
THE BRIEFING
Machinery
Shaping the Future MIDDLE EAST
Innovations in machinery are changing the way construction is done and the industry is projected to see a surge in demand for environment-friendly and economically sustainable equipment, says Jeff Bennett, GM, Middle East & Africa, at Husqvarna Construction
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he world is evolving faster than ever before. Today, 55% of the global population live in urban areas and this figure is projected to reach 68% by 2050, giving rise to the need for affordable housing as well as social, transportation and utility infrastructure. According to the global forecast for the construction industry, over 60% of global construction activity will be undertaken in emerging markets by 2025, up from 35%. The volume of construction output will grow by more than 70% to $15 trillion worldwide by 2025, with an expansion rate of 3.6% every year between 2018 and 2022. Additionally, by 2050, experts suggest that there will be two billion additional city dwellers and hence sustainable urbanisation will pose a major construction challenge and the industry must strive to find innovative new products and solutions, to contribute to building better cities. The construction industry plays a significant role in the Middle East region’s
December 2021 | MEConstructionNews.com
economic development. In 2018, $101.8bn worth of projects were awarded across the GCC, which went up to $102.3bn in 2019. Pre-Covid, an upside was anticipated on growth prospects, primarily driven by significant investment in infrastructure and major capital projects across key sectors, such as hospitality, entertainment, education, and healthcare. The muted growth of the sector is reflective of the economic impact of the pandemiclinked lockdowns. The construction equipment industry, which depends highly on GDP growth and economic activity, faced the same headwinds as other industrials during the pandemic. The global construction equipment market size is projected to reach $205bn by 2025, from an estimated value of $169.3bn in 2020, growing at 3.9% CAGR. The increasing number of infrastructure projects and mega construction projects are anticipated to further fuel the demand for construction equipment during the forecast period.
Sustainable solutions Battery operation machinery can be a viable, economically sustainable, and environmentallyfriendly solution for the industry.
70%
The volume of construction output will grow by more than 70% to $15 trillion worldwide by 2025
