DUBLIN, Aug. 8, 2022 /PRNewswire/ -- The "Iran Construction Equipment Market - Strategic Assessment and Forecast 2022-2028" report has been added to ResearchAndMarkets.com's offering.
A surge in Investments in Mining, Transport & Urban Development Projects to boost the Demand For Construction Equipment.
Iran accounted for 25% of oil reserves in the Middle East and 12% of the world in 2020. Iran's crude oil production reached a 30-year low in 2020 due to the global COVID-19 pandemic. Iran's economy contracted by 7%, and the construction industry was adversely impacted due to a shortage of labor & raw material.
In 2022, Iran's government announced 48 industrial and infrastructure projects worth about $19 billion to uplift the economy post-pandemic. The Iranian government aims to complete over 3,900kms of new railways and roads by March 2022 to boost the economic activities and increase the investments in the energy, oil and gas, petrochemicals, infrastructure, and industrial sectors. Iran witnessed an investment of 78.9 million in 2021 to improve roads, railways network & construction of welfare service complexes.
In 2022, 390 infrastructure development projects will be inaugurated in the country's industrial parks and zones. Iran's government has also announced 48 industrial and infrastructure projects worth $19 billion. Thirty-one power plants with a capacity of 15,000 MW have started across the country; so far, 3,150 MW has been put into operation. In 2021, the Iran government commenced the Hormoz Gan power plant project to construct a 1,400-MW power plant in Hormoz Gan province.
Iran's government also announced 48 industrial and infrastructure projects worth about $19 billion in 2021 to overcome the negative impact of the pandemic. The inaugurated projects include 30 port development projects in Imam Khomeini, Bushehr, Genaveh, Chabahar, Shahid Rajaei, and Anzali ports, with about $269.4 million.
The government has planned to invest $78.9 million in upgrading the transport infrastructure. Also, $12.2 million was allocated for enhancing the aviation sector, including the development of flight levels and airports of Bandar Abbas, Zahedan, Saravan, and Khorramabad.
In 2021, the Head of Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) announced that 29 projects in mines and mining industries are ready for inauguration across the country. Iran Minerals Production and Supply Company (IMPASCO) has announced that its organization will inaugurate 23 development projects in mines and mining industries of $355 million worth in 2021.
Decline In Oil & Gas Production & Slow Recovery of Manufacturing Industry is the Major Restraints for the Construction Equipment Market
Iran's economy is relatively diversified compared to many other Middle Eastern countries, but it still relies heavily on petroleum and other liquid revenues. In 2019, Iran earned $30 billion in net oil export revenues, down from $66 billion in 2018. Export revenues fell in 2019 after U.S. sanctions were imposed on Iran's oil exports, resulting in a decrease in crude oil production and exports in Iran.
The economic fallout from the COVID-19 pandemic, including lockdowns and mobility restrictions, resulted in Iran's crude oil production dipping below 2.0 million b/d in 2020. Iran's proposed licensing ban and divestment strategy are ending the support for fossil fuel production. This decision of Iran to control fossil fuel exploration could directly impact the demand for construction equipment such as excavators, cranes, tower cranes, mobile cranes, etc., in the oil and gas industry.
Iran's manufacturing industry has underperformed since 2019. The primary reason for low manufacturing productivity is the country's dependency on raw materials from neighboring countries. The outbreak of the COVID-19 pandemic has disrupted the supply chain, and the Iran manufacturing industry witnessed a decline in 2020.
The Market is Witnessing a Surge in Low Maintenance, flexible & Fuel-Efficient Equipment.
The increasing investment in road construction triggers the demand for low-maintenance, flexible equipment. For instance, CASE construction Equipment delivered a fleet of equipment, including road rollers, motor graders, and backhoe loaders, in 2022. The major OEMs in the country are expected to follow the recent trends in demand for construction equipment and focus on delivering fuel-efficient and low maintenance equipment such as backhoe loaders, skid loaders, and mini excavators in the Iran market. With the IoT, the performance of excavators is expected to improve and offer access to more data.
KEY INSIGHTS OF THE IRAN CONSTRUCTION EQUIPMENT MARKET
- The material handling equipment has the largest share in Iran compared to earthmoving & road construction equipment.
- Government investment in road construction, infrastructure development, housing projects, smart cities, and the development of Eastern and Southern Corridors will positively impact the demand for material handling equipment in the Iran market.
- In 2021, the government will allocate $ 109.1 million of funds for 53 projects across railways, aviation, and commercial building up-gradation. The infrastructure investment is more focused on the country's northern & central regions.
- The demand for equipment financing has increased post-pandemic to avoid project delays due to funding challenges. Overwhelmed by the funding challenge, OEMs such as Komatsu, Caterpillar, SANY, and Hitachi construction machinery provided financial assistance to customers.
- In 2021, there was a surge in equipment financing activities by OEMs in Iran. OEMs are focusing on maximizing benefits from the spike in demand for construction equipment in the country caused due to rise in infrastructure projects.
- Other major players, such as XCMG, Zoomlion, Kobelco, and Hyundai Construction Equipment, expect to follow a similar trend.
- Volvo Construction Equipment
- Hyundai Construction Equipment
Other Prominent Vendors
- Terex Corporation
- CASE Construction Equipment
- Arya Heavy Machinery
- VAJEH MACHINE ZAGROS CO
- Geran Mehr Part
- Parsian Pishro Sanat
- Faraz Machine Co
Key Topics Covered:
Section 1 Introduction
- Market Snapshot
- Executive Summary
Section 2 the Market Overview
- Economic Scenario, Infrastructure Construction in the Iran Region
Section 3 Iran Construction Equipment (Type & Application)
- Iran Construction Equipment Market by Type (Volume & Value)
- Backhoe Loader
- Motor Grader
- Other Earth Moving Equipment (Other Loaders, Bulldozer, Trencher, Etc.)
- Asphalt Paver
- Road Roller
- Forklift and Telescopic Handler
- Aerial Platform (Articulated Boom Lifts, Telescopic Boom Lifts, Scissor Lifts, Etc)
- Iran Construction Equipment Market by Application (Volume & Value)
- Others (Power Generation and Utilities, Municipal Corporation Etc)
Section 4 Market Dynamics
- Market Drivers, Restraints, Trends, Key Economic Regions in Iran, Advantage Iran, Import/Export Trend Analysis, Supply Chain, Covid-19 Impact
Section 5 Technology Development
Section 6 Competitive Landscape
- Competitive Landscape Overview
- Major Vendors Caterpillar - Komatsu - Xcmg - Sany - Hyundai Construction Machinery - Volvo Construction Equipment - Hitachi Construction Machinery - Jcb - Liebherr - Kobelco - Kubota - Zoomlion
- Other Prominent Vendors
- Distributors Profile
Section 7 Quantitative Summary
Section 8 Report Summary
Section 9 Report Scope & Definition
For more information about this report visit https://www.researchandmarkets.com/r/mukusc
Research and Markets
Laura Wood, Senior Manager
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SOURCE Research and Markets