PUBLISHER: DataM Intelligence | PRODUCT CODE: 1446861
PUBLISHER: DataM Intelligence | PRODUCT CODE: 1446861
Overview
Middle East and North Africa Surveying Instruments Market reached US$ 674.2 million in 2023 and is expected to reach US$ 1202.4 million by 2031, growing with a CAGR of 7.5% during the forecast period 2024-2031.
Construction projects across major industries in the Middle East are increasingly using sophisticated technologies such as unmanned aerial vehicles (UAVs) and satellite imaging to undertake project surveying. With increasingly outlandish and complex projects being developed, the use of such tools will only increase in the future.
The future growth of the surveying instruments market could be hampered by a slowdown in private sector investment due to challenging economic conditions. The post-pandemic period has increased the dependence of the market on public infrastructure projects for deriving growth. A further slowdown in private sector project demand could hamper market growth over the long term.
Dynamics
Ongoing Development of Big-Ticket Infrastructure Projects
The middle east is currently experiencing a major construction boom, with the gulf countries engaged in several big construction projects. For instance, Saudi Arabia is currently constructing a US$ 500 billion futuristic city called 'The Line' on the red sea coast in northwestern Saudi Arabia. The project reached 20% completion by January 2023 and the first phase of the project is expected to open by early 2025.
In September 2023, Qatar's public works department announced that they were undertaking nearly US$ 19 billion in 2024. Furthermore, in September 2023, Bahrain also commenced work on the development of the 'Bahrain Marina' floating city with projected costs of nearly US$ 530 million. The ongoing development of big-ticket infrastructure projects will generate stable, long-term demand for surveying instruments in the region.
Improving Agricultural Productivity
Although the agricultural sector only accounts for about 13% of middle eastern GDP, middle eastern countries are engaged in boosting agricultural productivity by building new infrastructure and growing more crops domestically, with a careful implemented policy aimed at gradual import substitution.
For instance, in December 2023, Dubai-based SSK enterprises signed an agreement with the FoodTech Valley to build a new 'GigaFarm' that will have the ability to grow 2 billion plants a year and replace nearly 1% of UAE's fresh produce imports. The major development of agricultural infrastructure to boost productivity will continue to generate demand for surveying instruments over the medium and long term.
Uncertain Nature of Government Policies
Most of the major construction projects in the middle east are contingent upon government backing. However, the uncertain nature of government policies presents an impediment to the long term growth potential of the market. Change in government priorities could suddenly lead to delay and discontinuation of projects.
One example of this phenomenon is the Jeddah Tower of Saudi Arabia. Planned as the tallest skyscraper in the world, the project was suddenly halted in 2019 and remained suspended throughout the COVID-19 pandemic and the immediate post-pandemic period. Construction only resumed in late 2023, although the completion date remains uncertain. Such uncertainty in government policies is detrimental to investor confidence and hampers long term market growth.
The Middle East and North Africa Surveying Instruments Market is segmented based on type, application, end-user and country.
Energy & Power Still Commands a Major Market Share
Despite the move away from oil and gas, the energy sector still accounts for the largest share of demand for surveying instruments in the middle east. The changing global energy landscape has made liquified natural gas (LNG) a prized commodity, with Qatar being the world's largest exporter. In November 2023, Qatar announced that it is undertaking a major expansion of its North Field LNG capacity to nearly 126 million Tons per annum.
Middle eastern countries are also investing heavily in developing carbon-free energy production capacities. For instance, in November 2023, UAE commissioned the final fourth reactor of the Barakah nuclear power plant. The growing solar and wind energy generation capacity augmentation will also induce demand for surveying instruments during the forecast period.
A Flurry of New Construction Projects Puts Saudi Arabia in Leading Position
Saudi Arabia is currently witnessing a massive construction boom due to the developmental policies outlined under the Vision 2031 program, which seeks to create a modern high-tech economy. The Saudi government is undertaking massive developmental projects to launch new tourism and service industries. The country has also developed the historical city of Diriyah in a bid to encourage history-centered tourism.
Furthermore, in July 2023, the Saudi government started work on a US$ 347 million entertainment cluster in Almadinah. In order to wrest market share from Gulf-based carriers such as Emirates and Etihad, Saudi Arabia launched Riyadh Air in March 2023. The launch comes on the heels of a planned US$ 7.8 billion expansion of Riyadh's international airport, which is intended to boost the country's aviation and tourism sector. The expansion of big construction projects will make Saudi Arabia among the leading countries in middle east for the demand of surveying instruments.
The COVID-19 pandemic created various challenges for the MENA surveying instruments market. The pandemic lockdown measures created a temporary shortage of labor, thus disrupting many construction projects in the private sector. Critical public-sector infrastructure projects continued unabated during the course of the pandemic.
The post-pandemic period has led to a surge in various public infrastructure investments across the middle east. However, private sector investment in infrastructure projects is yet to pick up, leaving the surveying instruments market more reliant on public investment-led infrastructure projects.
With European nations sanctioning the Russian oil and gas industry due to the Russia-Ukraine war, governments began to look towards alternative energy sources. Throughout 2022 and 2023, many European governments concluded long term deals with Qatar to secure supplies of liquified natural gas (LNG). An upsurge in demand has led Qatar to expand its LNG liquefaction capacity.
The luxury real estate market in the middle east, especially in Abu Dhabi and Dubai has witnessed a spur in growth due to the influx of wealth from Russian citizens. Many wealthy Russian citizens have diverted funds from European real estate to UAE due to western sanctions.
The major global players in the market include Hexagon AB, Topcon Corporation, Pentax Surveying, Trimble Inc., THEIS Feinwerktechnik, Geosolution i Goteborg AB, Suzhou FOIF Co. Ltd, Guangdong Kolida Instrument Co. Ltd, Hi-Target Surveying Instrument Co. Ltd and Shanghai Huace Navigation Technology Ltd.
The Middle East and North Africa surveying instruments market report would provide approximately 41 tables, 41 figures and 157 Pages.
Target Audience 2024
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