Saudi Arabia Construction Chemicals Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the Saudi Arabia Construction Chemicals Market is expected to record a CAGR of 6.2% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 7,733.1 Million. By 2033, the valuation is anticipated to reach USD 13,288.2 Million.

The Saudi Arabia construction chemicals market is a vital sector within the country’s construction industry, driven by robust infrastructure development, urbanization, and government initiatives like Vision 2030. Key players such as Sika AG, BASF SE, and RPM International Inc. dominate the landscape, offering a wide range of innovative products and solutions tailored to meet diverse construction needs.

Advancements in technology, sustainability, and digitalization are shaping the market’s trajectory, with a focus on eco-friendly formulations, smart construction practices, and enhanced safety measures, positioning the industry for sustainable growth and resilience in the future.

Saudi Arabia Construction Chemicals Market – Significant Growth Factors

The Saudi Arabia Construction Chemicals Market presents significant growth opportunities due to several factors:

• Infrastructure Development: The Saudi government’s extensive investment in infrastructure projects, such as transportation networks, utilities, and urban development initiatives, drives the demand for construction chemicals.

• Urbanization and Population Growth: Rapid urbanization and population expansion in Saudi cities increase the need for residential, commercial, and industrial infrastructure, boosting the demand for construction chemicals.

• Regulatory Compliance: Increasingly stringent regulations and building codes mandate the use of high-quality construction chemicals to meet safety, environmental, and performance standards, driving market growth.

• Technological Advancements: Innovations in construction chemical formulations and technologies, such as eco-friendly and high-performance materials, contribute to market growth by improving product efficiency and effectiveness.

• Sustainability Focus: The growing emphasis on sustainability presents an opportunity for manufacturers to develop and market eco-friendly construction chemicals, catering to the increasing demand for green building solutions.

• Infrastructure Investments: Continued investments in infrastructure projects, driven by government initiatives and private sector investments, create opportunities for construction chemical suppliers to expand their market presence and offer specialized solutions for infrastructure development.

Saudi Arabia Construction Chemicals Market – Mergers and Acquisitions

The Saudi Arabia Construction Chemicals Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the Saudi Arabia Construction Chemicals Market include:

• In 2024, Saudi Chemical Company Limited (SCCL) and Dyno Nobel signed an MoU for a new chemical facility in Ras Al Khair. The project, with a secured gas allocation, aims to produce 440,000 tonnes of nitric acid and 300,000 tonnes of ammonium nitrate annually.

• In 2023, Oriental Yuhong and Hebei Aorun Shunda Group entered a strategic cooperation agreement to collaborate on research in waterproofing membranes, thermal insulation coatings, and other solutions. This partnership aims to drive innovation and enhance product offerings in construction chemicals.

• In 2021, Saint-Gobain has agreed to acquire Chryso, a prominent global player in the construction chemicals market, aligning with its vision of sustainable construction leadership. This acquisition expands Saint-Gobain’s presence in the sector, with combined sales exceeding €3 billion across 66 countries.

These mergers and acquisitions have helped companies expand their product offerings, improve their market presence, and capitalize on growth opportunities in the Saudi Arabia Construction Chemicals Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Saudi Arabia Construction Chemicals Market – Significant Threats

The Saudi Arabia Construction Chemicals Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Economic Instability: Fluctuations in oil prices and global economic conditions pose a threat to the Saudi economy, impacting government spending on infrastructure projects and construction activities, thereby affecting the demand for construction chemicals.

• Regulatory Changes: Changes in regulations related to construction standards, environmental compliance, or import/export policies can significantly impact the operations and profitability of construction chemical manufacturers in Saudi Arabia.

• Supply Chain Disruptions: Disruptions in the global supply chain, such as shortages of raw materials or logistical challenges, can hinder the availability of construction chemicals and increase costs for manufacturers and distributors in Saudi Arabia.

• Competition from Alternative Materials: The emergence of alternative construction materials, such as prefabricated components or advanced composite materials, poses a threat to the traditional market dominance of construction chemicals, impacting demand and market share.

• Environmental Concerns: Increasing awareness of environmental issues and regulations aimed at reducing carbon emissions may require construction chemical manufacturers to invest in sustainable practices or develop eco-friendly products, adding regulatory compliance costs and competitive pressures.

Category-Wise Insights:

By Product Type

• Adhesives: Adhesives are bonding agents used to join construction materials. In Saudi Arabia, adhesives are witnessing a trend towards high-performance formulations for various applications, including tile fixing, flooring, and wall installations.

• Sealants: Sealants are used to fill gaps and joints to prevent air, water, and dust infiltration. In Saudi Arabia, there’s a growing demand for sealants with enhanced durability and weather resistance for use in construction and infrastructure projects.

• Concrete Admixtures: Concrete admixtures are additives mixed with concrete to modify their properties. In Saudi Arabia, there’s a trend towards the use of admixtures for improving concrete workability, strength, and durability in high-rise buildings and infrastructure projects.

• Protective Coatings: Protective coatings are applied to surfaces to enhance their resistance to corrosion, abrasion, and weathering. In Saudi Arabia, there’s a demand for protective coatings with advanced formulations for use in harsh environmental conditions, such as marine, industrial, and desert environments.

• Waterproofing Chemicals: Waterproofing chemicals are used to prevent water penetration in structures. In Saudi Arabia, there’s a trend towards the adoption of advanced waterproofing solutions for building foundations, roofs, basements, and infrastructure projects to combat water ingress and moisture-related issues.

• Repair and Rehabilitation Chemicals: Repair and rehabilitation chemicals are used to repair and restore damaged concrete structures. In Saudi Arabia, there’s a growing need for repair and rehabilitation chemicals for infrastructure maintenance and restoration projects to enhance structural integrity and prolong service life.

• Others: This category includes various specialty chemicals used in construction, such as grouts, corrosion inhibitors, floor hardeners, and surface treatments. In Saudi Arabia, there’s a trend towards the development of innovative specialty chemicals to address specific construction challenges and meet evolving market demands.

By Function

• Bonding Agents: Bonding agents enhance the adhesion between old and new concrete surfaces, promoting stronger bonds in construction projects. Trends include the development of eco-friendly formulations and increased demand for bonding agents in repair and rehabilitation projects.

• Water Reducers: Water reducers improve the workability of concrete by reducing water content without affecting its performance, leading to enhanced strength and durability. Trends involve the adoption of high-performance water reducers to optimize concrete mix designs and reduce construction timelines.

• Plasticizers: Plasticizers improve the workability and flow characteristics of concrete, enhancing its durability and reducing the need for water. Trends include the use of advanced plasticizers to achieve higher slump retention and improved rheological properties in concrete mixes.

• Accelerators: Accelerators speed up the setting and curing of concrete, allowing for faster construction schedules and early strength development. Trends include the demand for non-chloride accelerators and specialty formulations tailored to specific project requirements, such as cold weather concreting.

• Retarders: Retarders delay the setting of concrete, providing extended workability and preventing premature stiffening, particularly in hot weather conditions. Trends involve the use of retarders in high-temperature environments and the development of eco-friendly retarder formulations with reduced environmental impact.

• Corrosion Inhibitors: Corrosion inhibitors protect steel reinforcement from corrosion in concrete structures, prolonging their service life and enhancing durability. Trends include the adoption of advanced corrosion inhibitors with improved performance and compatibility with different concrete mixes and environmental conditions.

• Others: This category encompasses various specialty construction chemicals catering to specific functions, such as waterproofing agents, air-entraining admixtures, and surface treatments. Trends involve the development of multifunctional products and innovative solutions to address emerging challenges in construction projects.

By Technology

• Traditional Chemicals: Conventional construction chemicals encompass a range of products such as adhesives, sealants, and coatings, formulated using traditional chemical compositions and manufacturing processes, meeting standard industry requirements.

• Eco-friendly/Green Chemicals: Eco-friendly construction chemicals are formulated using sustainable raw materials and manufacturing processes, minimizing environmental impact and promoting sustainability in construction projects in line with regulatory mandates and market preferences.

• Advanced Nano-materials: Advanced nano-materials involve the use of nanotechnology to enhance the performance, durability, and sustainability of construction chemicals, offering superior strength, corrosion resistance, and self-healing properties for enhanced construction efficiency and longevity.

• Smart Coatings: Smart coatings incorporate innovative technologies such as self-cleaning, self-healing, or color-changing properties, providing added functionalities and performance benefits in construction applications, driven by the growing demand for intelligent and adaptive building materials.

• Others: This category encompasses emerging technologies and innovations in construction chemicals, including biodegradable formulations, 3D printing materials, and additive manufacturing processes, catering to evolving market needs and driving advancements in the Saudi construction chemicals industry.

By End User Industry

• Residential: Construction chemicals used in residential projects encompass a diverse range of products, including adhesives, sealants, waterproofing agents, and protective coatings. In the residential segment, trends reflect a growing demand for eco-friendly and energy-efficient solutions, as well as products that enhance durability, aesthetics, and overall livability.

• Commercial: In commercial construction, construction chemicals play a critical role in ensuring the integrity, safety, and longevity of buildings. Products such as concrete admixtures, flooring coatings, fireproofing materials, and sealants are essential for meeting stringent performance requirements and regulatory standards. Trends in the commercial segment include rising demand for high-performance solutions that offer superior durability, fire resistance, and resistance to wear.

• Industrial: Industrial projects require specialized construction chemicals designed to withstand harsh operating conditions and protect critical infrastructure assets. Products such as corrosion inhibitors, epoxy coatings, grouts, and chemical-resistant linings are essential for maintaining the structural integrity and functionality of industrial facilities. Trends in the industrial segment include the adoption of advanced materials and technologies to enhance asset performance, minimize downtime, and optimize operational efficiency.

• Infrastructure: Infrastructure projects, including transportation networks, utilities, and public works, rely on construction chemicals to enhance durability, longevity, and performance. Products such as waterproofing membranes, concrete repair mortars, anti-corrosion coatings, and sealants are critical for protecting infrastructure assets from environmental degradation and structural deterioration. Trends in the infrastructure segment include the integration of smart technologies for asset management and monitoring, as well as the use of sustainable materials and construction practices to minimize environmental impact and promote long-term sustainability.

Report Scope

Competitive Landscape – Saudi Arabia Construction Chemicals Market

The Saudi Arabia Construction Chemicals Market is highly competitive, with a large number of manufacturers and retailers operating in Saudi Arabia. Some of the key players in the market include:

• Sika AG
• BASF SE
• RPM International Inc.
• Fosroc International Ltd.
• Dow Chemical Company
• Arkema Group
• MAPEI S.p.A.
• Henkel AG & Co. KGaA
• R. Grace & Co.
• Huntsman Corporation
• GCP Applied Technologies Inc.
• MCI Group
• Chryso S.A.S.
• B. Fuller Company
• Berger Paints Saudi Arabia Ltd.
• Others

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.

Several new players in the Saudi Arabia construction chemicals market have embraced innovation and development to establish their presence in the industry. These newcomers often leverage advanced technologies, sustainable practices, and customer-centric solutions to differentiate themselves. Meanwhile, key players like Sika AG, BASF SE, and RPM International Inc. dominate the market.

They maintain their leadership positions through extensive market experience, robust product portfolios, established distribution networks, and strategic partnerships. These key players invest in research, development, and quality assurance to deliver high-performance solutions that meet the diverse needs of construction projects in Saudi Arabia, ensuring market dominance.

The Saudi Arabia Construction Chemicals Market is segmented as follows:

By Product Type

• Adhesives
• Sealants
• Concrete Admixtures
• Protective Coatings
• Waterproofing Chemicals
• Repair and Rehabilitation Chemicals
• Others

By Function

• Bonding Agents
• Water Reducers
• Plasticizers
• Accelerators
• Retarders
• Corrosion Inhibitors
• Others

By Technology

• Traditional Chemicals
• Eco-friendly/Green Chemicals
• Advanced Nano-materials
• Smart Coatings
• Others

By End User Industry

• Residential
• Commercial
• Industrial
• Infrastructure