Report Overview

Saudi Arabia Construction Chemicals Market is flourishing owing to the rising number of residential as well as commercial constructions projects, growing government focus on ultra-modern infrastructure along with the increasing preferences for sustainable construction materials...

Saudi Arabia Construction Chemicals Market - Industry Trends & Forecast Report 2028

Saudi Arabia Construction Chemicals Market was worth USD 870.6 million in 2021 and is further projected to reach USD 1426.8 million by the year 2028, exhibiting a CAGR of 7.4% during the forecast period (2022-2028). The rapid expansion of the market is predominantly due to the rapid expansion of the construction sector across the country. Also, growing demand from the residential sector and rising knowledge of the benefits of construction chemicals, such as improved stability, resilience, and corrosion inhibition, are expected to fuel market expansion in the coming years. Moreover, upcoming infrastructure megaprojects in various sectors of the economy, with a particular focus on renewable energy development projects, are driving market growth. Furthermore, Saudi Arabia's expanding economy and large oil reserves lead to greater public investment in the construction of commercial cities and related infrastructure, creating considerable growth potential for the country's producers of building chemicals.

Construction Chemicals - Overview

Construction chemicals are chemical mixtures used during construction to hold construction materials together, such as cement, concrete, or other building materials. Additionally, the use of these chemicals in construction is intended to speed up the construction process by enhancing workability, efficiency, effectiveness, and protection of the portion of any structure. Construction chemicals have emerged as one of the key elements of the chemical industry, playing a significant part in the construction of major infrastructure projects. Concrete Admixtures, Flooring Compounds, Waterproofing Chemicals, Caulks and Sealants, and Chemicals to Repair and Rehabilitate Structures are a few examples of these construction chemicals.

Saudi Arabia Construction Chemicals Market Forecast and Trends

Growth Drivers

Expanding Construction Industry

Rising urbanization, increasing smart cities, buildings, and other urban construction projects along with the expanding construction sectors act as a major driving factor for the growth of the Saudi Arabia Construction Chemicals Market. The growing awareness of the benefits of using the construction chemicals, which essentially improve the properties of construction such as compressive durability, strength, and resistance to hazardous working conditions, is further expected to propel the construction chemicals market's growth rate. Moreover, it is also anticipated that the market rises faster than average due to the rising rate of middle-class residential housing. Furthermore, in Saudi Arabia, social infrastructure developments and institutional building construction are also increasing rapidly. As a result, this overall growth in the construction sector, which is required to keep up with the ongoing rate of urbanization, results in boosting the growth of the Saudi Arabia Construction Chemicals Market during the forecast period (2022-2028).

Rising Government Spending on Ultra-Modern Infrastructure

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 in the country’s transportation and tourism infrastructure. Additionally, the government is looking to transform the kingdom into a global aviation hub, with the intensions to diversify the economy from just crude oil exportation. The market for building chemicals is more in demand as a result of these causes. In addition, Saudi Arabia's expanding economy and large oil reserves lead to greater public investment in the construction of commercial cities and related infrastructure, creating considerable growth potential for the country's producers of building chemicals. Furthermore, upcoming infrastructure megaprojects in various sectors of the economy, with a particular focus on renewable energy development projects, are driving market growth.

Surging Demand for Sustainable Construction Materials

The main drivers of the adoption of construction chemicals, particularly for building activities, are the rising awareness of the environmental risks posed by conventional buildings and changes in government legislation around the world. Additionally, rising usage of waterproofing, roofing, and protective coatings to repair aging and leaky infrastructures support the market growth. Moreover, major participants in the building sector are concentrating on green and sustainable materials for underground structure protection, polycarboxylate ether-based green admixtures, thermal insulation, overall building protection, cool roof treatments, and other topics that are essential for sustainability. All these factors boost the growth of the Saudi Arabia Construction Chemicals Market during the forecast period (2022-2028).

Restraints

Raw Material Price Fluctuations

The market for construction chemicals suffers from factors including the volatility of energy and raw material prices as well as the fluctuating economy. As a result, this factor slows down the market's rate of expansion for building chemicals. Additionally, it is anticipated that the market growth would be hampered by the uncertainty surrounding the modification of governmental rules and regulations, which extends the allocated time for project execution. Moreover, the challenges associated with negative impacts on the environment hamper the growth of the construction chemicals market. Since the reaction between chemicals and environmental gases might damage the living things. All these factors hinder the growth of the Saudi Arabia Construction Chemicals Market.

Impact of COVID-19 on Saudi Arabia Construction Chemicals Market

Different businesses and nations have suffered as a result of the COVID-19 pandemic. Because of the complete lockdown, businesses like building and construction, transportation, oil and gas, and energy have had slower development rates. Due to this, there is now less of a demand for building chemicals, which is projected to restrain the market's expansion in Saudi Arabia over the coming year. Moreover, the building and construction sector's expansion was hampered by the COVID-19 pandemic's demand-supply imbalance, disruptions in the purchase of raw materials, and price instability. Additionally, the availability of domestic building materials has improved towards the end of the lockdown, which is prevalent in the majority of the countries where viruses are spreading. Additionally, there were issues with the import of raw materials, which significantly impacted the cost of building materials as a whole. This has led to an unpredictably mixed bag of price changes. Furthermore, during the forecast period (2022-2028), the market is expected to rise due to the quickest recovery rates in some developed regions and growing government support.

Saudi Arabia Construction Chemicals Market - By Type

Based on the type, the Saudi Arabia Construction Chemicals Market is segmented into Concrete Admixtures, Waterproofing and Roofing Chemicals, Protective Coatings, Adhesives and Sealants, Industrial Flooring, Asphalt Additives, Repair and Rehabilitation, and others. Among these, Concrete Admixtures account for the largest market share owing to their advantages including a low cement water ratio, accelerated setting time, reduced segregation, and increased permeability. Moreover, Waterproofing and Roofing Chemicals are expected to dominate the market share during the forecast period. This is due to the rising need for waterproofing chemicals in repair and rehabilitation construction activities. Waterproofing materials are designed to stop water infiltration. Waterproofing and roofing chemicals include epoxy-based repair mortars, rust removers, and anti-corrosion products.  All these factors propel the growth of the Saudi Arabia Construction Chemicals Market during a forecast period (2022-2028).

Saudi Arabia Construction Chemicals Market – By Application

Based on application, the Saudi Arabia Construction Chemicals Market is segmented into Residential, Industrial and Commercial, and Infrastructure. Among these, the residential segment holds the largest market share owing to the growth of individual homes, and smart residential buildings with world-class facilities. Thus, demand for construction chemicals is skyrocketing in Saudi Arabia's real estate market. Moreover, a large number of consumers have moved into cities as a result of rising urbanization. This market is anticipated to increase as a result of evolving lifestyles, quick urbanization, rising living standards, and rising desire for attractive residential constructions. All these factors boost the growth of the Saudi Arabia Construction Chemicals Market during the forecast period (2022-2028).

Saudi Arabia Construction Chemicals Market - By Region

Geographically, the Saudi Arabia Construction Chemicals Market is segmented into Central, Western, Eastern, and Southern. The Central region now has the biggest market share and is likely to continue to do so during the forecast period (2022-2028). This is due to the largest population and development in this region. Also, due to the presence of modern and rich cities like Riyadh in the central region of Saudi Arabia. This region has high-rating houses, big malls, buildings, bridges, premium restaurants, and schools, which surge the demand for urban construction thereby fueling the demand for construction chemicals. All these factors boost the growth of the Saudi Arabia Construction Chemicals Market during the forecast period (2022-2028).

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.

Recent Development

• The Kingdom's main giga-projects are NEOM, the Red Sea Project, and Qiddiya. Rolled out as part of Vision 2030, these developments are globally unique in scope and ambition and aim to stimulate broader economic growth.

Scope of the Report

By Type

• Concrete Admixtures
• Waterproofing and Roofing Chemicals
• Protective Coatings
• Adhesives and Sealants
• Industrial Flooring
• Asphalt Additives
• Repair and Rehabilitation
• Others

By Application

• Residential
• Industrial and Commercial
• Infrastructure

By Region

• Central
• Western
• Eastern
• Southern