According to a new report published by Allied Market Research, titled,"Ethiopia and Djibouti Heavy Equipment Market: Opportunity Analysis and Industry Forecast, 2019-2026,"the Ethiopia and Djibouti heavy equipment market size was $323.9 million in 2018, and is projected to reach $496.1 million in 2026, growing at a CAGR of 5.6%. The original equipment segment accounted for over fourth-fifths of the Ethiopia and Djibouti heavy equipment market share in 2018 and is expected to witness significant growth during the forecast period.
Heavy equipment are machines used for activities involved in earthwork such as excavation, heavy lifting, tunneling, and material handling. The market is mainly driven by residential & commercial growth, and rise in economy. However, higher carbon emission and increase in oil prices are some factors that limit the growth of the Ethiopia and Djibouti heavy equipment market.
Development in technology, such as the use of telematics and internet of things (IoT) in heavy equipment by key players such as Volvo CE and others, is one of the major factors that drives the market. Currently, prominent players lead the heavy equipment market with their extensive distribution network and advanced product portfolio, which is a major compelling factor for the market growth. Further, key players through their distribution network are focused on introducing innovative, high performance, reliable, and advanced heavy equipment in the market. For example, mini excavator SK55SRX by Kobelco offers high performance and silent operation. Moreover, rise in the public-private partnerships in the region are anticipated to fuel the growth of the Ethiopia and Djibouti heavy equipment industry.
The growth in the demand for infrastructure development largely drives the market. The heavy equipment market is experiencing continuous growth along with the rise in demand for industrial, residential, and commercial infrastructure setup. In the emerging economies such as Ethiopia and Djibouti, infrastructural development has created the need for heavy equipment and positively influenced the market. The development of urban infrastructure such as housing, sanitation & water supply, road transport system, and mass rail-transit systems, has gained significant attention in the region. The Ethiopia-Djibouti water pipeline project was launched in 2017. This project was financed by the Export-Import Bank of China and the construction was done by a construction company in China named CGC Overseas Construction Co Ltd. (CGCOC).
Based on machinery type, the earth moving machinery segment is expected to account for the largest share in the market during the forecast period. This is attributed to increased demand from various industries such as construction, manufacturing, oil & gas, and mining & forestry. Based on the function, the excavating segment is expected to account for the maximum share during the forecast period. Based on business type, the market is divided into original equipment and aftermarket. By end-user industry, the market is categorized into construction, mining, agriculture, energy, transportation, and others. The construction segment is expected to dominate the market throughout the study period owing to improved involvement in the private sector, development in the real estate sector, enhanced economic conditions, and set-up of residential & non-residential infrastructure in Djibouti and Ethiopia.
Key Findings of The Ethiopia And Djibouti Heavy Equipment Market:
- On the basis of machinery type, the earthmoving machinery held the largest market share in 2018.
- Based on function, the excavating segment was the largest revenue-generating segment in 2018.
- By end-user industry, the construction segment generated the highest revenue in 2018, and is projected to grow at a significant CAGR from 2019 to 2026.
- By business type, the aftermarket segment is projected to grow at a significant CAGR during the Ethiopia and Djibouti heavy equipment market forecast period.
- Ethiopia accounted for over four-fifths share of the Ethiopia and Djibouti heavy equipment market in 2018 in terms of revenue.
The major players in the Ethiopia and Djibouti heavy equipment market adopted product launch and product development as their key strategies to meet the change in consumer demand. Furthermore, they launched energy-effective heavy equipment of different types and capacities to strengthen their market position. The key players profiled in this report include AB Volvo, Caterpillar Inc., Deere & Company, Doosan Infracore, Hitachi, Ltd., J C Bamford Excavators Ltd, Kobelco Construction Machinery Co., Ltd., Komatsu Ltd., SANY Group, and Xuzhou Construction Machinery Group Co., Ltd. (XCMG).