2022 revenue in MEA up 116% from 2020; 4% annual growth expected up to and including 2028
HD Hyundai Infracore are targeting the Middle East and Africa (MEA) market with their new brand Develon, formerly known as Doosan Construction Equipment. The company recorded revenue of US$330 million in 2022 in the MEA region, a sharp increase of 116% compared with US$150 million in 2020.
Also, the number of machines sold exceeded 2,400 units, marking a 60% increase over 2020, mainly due to the company’s focus on securing large-scale customers with new advanced technology equipped machine launches and customized services.
The construction equipment market volume in MEA increased from 16,720 units in 2020 to 32,786 units in 2022, showing that the market is experiencing steep growth with a 96% increase over the past three years.
According to global market research agency Research and Markets, the MEA construction equipment market is growing annually by 4% and is expected to grow to US$6.4 billion in 2028 from its current volume (US$4.26 billion).
HD Hyundai Infracore have been strengthening their presence in the Middle East through their office in Dubai and are contesting for first place in Saudi Arabia, whilst claiming to be pulling ahead of other global competitors after winning business on large-scale construction projects in UAE. This year, they aim to sell 1,200 units in UAE, compared with the 1,000 units sold last year.
With Saudi Arabia planning the world’s largest project, Neom City, which is expected to exceed US$500 billion in volume, HD Hyundai Infracore anticipate that this will result in more construction equipment demand in the near future.
HD Hyundai Infracore have also recently established a new African office in Accra, Ghana, to expand their network and secure more customers in Western and Central Africa, where the market is growing.
As a result, HD Hyundai Infracore has signed supply contracts for a total of 29 new machines in the Republic of Angola, including 20 excavators and nine wheel loaders. This is the largest contract for the company since starting business in Angola and takes up around 8% of the country’s total market, given that its average market volume is around 370 units per annum.
With the launch of their new brand, Develon, HD Hyundai Infracore also hosted their ‘2023 MEA Dealer Conference’ in Cairo, Egypt, to discuss sales strategies. The dealer conference was the first regional meeting since launching Develon and more than 90 key stakeholders, including HD Hyundai Infracore president Seunghyun Oh and 26 MEA dealers, attended.
President Oh commented: ‘We have seen unprecedented results in the Middle East and Africa market in the past five years. Along with the new brand launch, we will work on developing different next-generation technologies and strengthen the current line up to maximize our sales capacity in order to reach our goal of becoming a global top five player by 2025.’