Video: Construction Week In Focus | H1 2018 report – Equipment market
S02E11 of Construction Week's exclusive YouTube series reviews how electrification and emissions standards impacted the Middle East's equipment sector in H1 2018
Emissions standards for on- and off-road vehicles, and the electrification of fleets, have been key trends that have emerged in the Middle East's construction equipment sector in H1 2018.
Euro 4, 5, and 6, as well as the equivalent of US EPA-tier standards, have made their way into the region this year.
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Euro 5 trucks were launched in the UAE in 2018, and increased emission benchmarks – in line with US and Europe trends – are likely to take shape for off-road vehicles as well this year.
The sales of electric passenger vehicles have also noted a rise in the region, particularly in the UAE.
Globally, manufacturers are introducing electric trucks, buses, excavators, compactors, and wheel loaders with electric engines.
These machines are being put into operation in European cities such as Paris and Sweden to reduce carbon emissions and noise, and the trend may soon find takers in the Middle East.
An increased focus on road and construction site safety is expected in H2 2018, specifically in the fields of operator training and certification for cranes and aerial work platforms (AWPs).
Vehicle manufacturers are also offering advanced training for drivers. Infrastructure spending is on the rise thanks to Expo 2020 Dubai, raising demand for construction equipment and vehicles as well.
As contractors are uninterested in long-term investments, the rental industry is booming, and much of the fleet expansion news that has emerged this year has come from rental companies in the region.
Manufacturers, meanwhile, are focusing on total cost of ownership with better after-sales services, extended warranties, increased service intervals, and lower fuel consumption.
Public spending on transportation has also noted an increase this year, and will continue to through the rest of 2018.
Some of the major announcements in this segment include Aldar Properties' agreement with Hyperloop Transportation Technologies (HyperloopTT) to start construction on the world's first commercial hyperloop system in the UAE.
DP World and Virgin Hyperloop One have introduced DP World Cargospeed, an international brand for hyperloop-enabled cargo systems.
Additionally, the Roads and Transport Authority (RTA) in Dubai has signed deals with Volvo, MAN, and Optare buses to procure 316 multi-size buses worth $126m (AED465m).
The buses are compliant with the European emission standards featuring Euro 5 and Euro 6 buses for the first time in the MENA region, and will be delivered from the second half of this year.
In the latest episode of Construction Week In Focus, Dennis Daniel, editor of PMV Middle East, discusses these equipment and vehicle fleet developments with Oscar Rousseau, deputy editor of Construction Week.
Construction Week In Focus is a weekly bulletin of the Middle East's top news from the real estate development, contracting, MEP, facilities management, and equipment sectors.
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Construction Week In Focus episodes are published each Tuesday at 9am.