Saudi Arabia Construction Chemicals Market to Grow at a CAGR of 7.4%, until 2028
Published | 30 June 2022
Saudi Arabia Construction Chemicals Market is flourishing owing to the increasing demand for residential, industrial, and commercial buildings combined with an increasing urban population in the country…
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Saudi Arabia Construction Chemicals Market was worth USD 870.6 million in the year 2021. The market is projected to grow at a CAGR of 7.4%, earning revenues of around USD 1426.8 million by the end of 2028. The Saudi Arabia Construction Chemicals Market is booming because of the expanding construction industry. In addition, the market for construction chemicals is predicted to grow due to its benefits to enhance concrete strength and quality, provide water-tightness as well as protect concrete structures from atmospheric degradation. Moreover, the rapid expansion of the infrastructure industry and the need for older structures to be repaired have increased the usage of cutting-edge technology in construction projects, which is a key element in Saudi Arabia's expanding chemical construction market. Furthermore, government measures to promote more varied investment patterns across industries like infrastructure, retail, industrialization, and others serve as a significant growth driver for the Saudi Arabia Chemical Construction Market. Furthermore, Saudi Arabia Chemical Construction Market Market is one of the most emerging markets that grow continuously owing to the fast integration of new technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), cloud computing, and others. However, the escalating environmental regulatory laws governing emissions of volatile organic compounds (VOCs), may act as a huge restraining factor for the growth of the Saudi Arabia Construction Chemicals Market during the forecast period (2022-2028).
Increasing Government Investment in Infrastructure Development is Driving the Market Growth
Chemicals used in construction and building are very popular in Saudi Arabia. To ensure the nation's long-term development, the government of Saudi Arabia has made infrastructure spending its primary area of focus. Additionally, the Kingdom's vision for an ultra-modern future for a global audience fuels the market growth. Moreover, the government has suggested investing in non-residential infrastructures, such as transportation infrastructure. The nation's highways, railroads, and brand-new airports are also expected to undergo significant growth, according to the administration. For the projected period, high investment by various government entities to fulfill rising industrial and public infrastructure requirements is anticipated to play a significant role in driving the market growth. Additionally, the business presents significant growth prospects for Saudi Arabia's developed regions due to expanding investment opportunities.
As Saudi Arabia undergoes an expansion of its infrastructure base, structural reforms, and technological advancements, the need for construction chemicals is anticipated to rise rapidly. Additionally, the market is expanding as a result of impending infrastructure megaprojects in numerous economic sectors, with a focus on the development of renewable energy sources. To assess the country's need for building chemicals, the Saudi Arabian government is also eager to upgrade the nation's transportation, electrical, and utility infrastructure as well as implement initiatives for affordable housing nationwide. For instance, the government plans to invest USD 71.5 billion in Saudi Arabia's transportation and tourism infrastructure through the National Transformation Program (NTP) 2020. The market for building chemicals is more in demand as a result of these causes. This results in offering lucrative opportunities for the Saudi Arabia Construction Chemicals Market during the forecast period (2022-2028).
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Challenge: Existence of Strict Regulations and Environmental Concerns
However, issues related to negative impacts on the environment serve as the primary barrier to the expansion of the chemical market for construction in Saudi Arabia because of the reaction between chemicals and environmental gases that are hazardous to living things. The primary obstacle to industry expansion is the imposition of stringent government rules governing volatile organic compounds (VOC) emissions. Because some VOC may have short and long-term adverse health effects. Moreover, several regions across the country are enacting environmental protection legislation, which is likely to put pressure on businesses involved in the manufacturing and sale of these items. Additionally, the product's expansion is somewhat constrained by the fluctuation in chemical costs. To cut back on VOC emissions, many key industry players are engaged in extensive rehabilitation projects to solve this problem to achieve its objective of achieving net-zero emissions by 2050. Therefore, Some of these factors like the high cost of chemicals and increased emissions of hazardous substances during manufacturing could limit market expansion during the forecast period (2022-2028).
Segmental Coverage
The Saudi Arabian Construction Chemicals Market is divided into several categories based on type, including Concrete Admixtures, Waterproofing and Roofing Chemicals, Protective Coatings, Adhesives and Sealants, Industrial Flooring, Asphalt Additives, Repair and Rehabilitation, and Others. Among these, Concrete Admixtures hold the biggest market share of these, due to their benefits, which include a low cement water ratio, a quicker setting time, less segregation, and improved permeability. Additionally, it is anticipated that Waterproofing and Roofing Chemicals would hold the largest market share during the forecast period (2022-2028). This is a result of the increasing need for waterproofing chemicals in construction activities for repair and restoration. Water intrusion is prevented by waterproofing materials. Chemicals used in roofing and waterproofing include rust removers, epoxy-based repair mortars, and corrosion inhibitors. All these factors boost the growth of the Saudi Arabia Construction Chemicals Market during the forecast period (2022-2028).
Impact of COVID-19 on Saudi Arabia Construction Chemicals Market
The COVID-19 pandemic has harmed numerous enterprises and countries. Businesses like building and construction, transportation, oil and gas, and energy have experienced slower growth rates as a result of the total lockdown. As a result, the demand for building chemicals has decreased, which is expected to limit market growth in Saudi Arabia's Construction Chemicals Market. Moreover, the COVID-19 pandemic's imbalanced demand-supply situation, disruptions in the purchasing of raw materials, and price volatility also hindered the growth of the building and construction industry. Additionally, towards the conclusion of the lockdown, domestic building supplies were more widely available, which is typical in the vast majority of nations where diseases are spreading. There were also difficulties with the import of raw materials. A surprising variety of price variations have resulted from this. However, the market is anticipated to grow throughout the forecast period (2022-2028) as a result of some developed areas' developed economies recovering more quickly than others and growing government backing.
Competitive Landscape
The leading market players in the Saudi Arabia Construction Chemicals Market are Arkema S.A., Ashland LLC, BASF SE, Construction Material Chemical Industries, Don Construction Products Ltd., Fosroc International Ltd, Meister Co., Polywed Construction Chemicals, Saak Construction Chemicals, SABIC, Sika AG, The Dow Chemical Company, and others. The Saudi Arabia Construction Chemicals Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the Saudi Arabia Construction Chemicals Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the Saudi Arabia Construction Chemicals Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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