Saud Arabia Ready Mix Concrete Market is Expected to Grow Due to Government Initiatives

Rising the number of mega projects and accelerating the speed of construction work are driving the market growth of the Saudi Arabia Ready Mix Concrete Market in the forecast period 2024-2028.

According to TechSci Research report, “Saudi Arabia Ready Mix Concrete Market - By Region, Competition, Forecast & Opportunities, 2028”. The Saudi Arabia Ready Mix Concrete Market is expected to rise with the largest market share in the upcoming years and is expected to maintain a high CAGR during the forecast period 2023-2028. The components of ready-mix concrete are cement, additives, aggregates, water, and mixes in predefined proportions. Ready Mix Concrete (RMC) mixes each component to obtain the appropriate strength and durability. Concrete's quality is impacted by the techniques employed for mixing, placing, compacting, finishing, curing, and preserving it. (RMC) is chosen over regular concrete because of its simplicity, ease, and greater quality.

The primary driver anticipated to fuel demand for ready-mix concrete and promote the expansion of the target market is rising government investments in infrastructure projects, such as roads, bridges, and dams, along with swift rehabilitation work in emerging economies. Saudi Arabia’s market is expected to rise throughout the projected period due to supportive government laws, smart city development efforts, and rising public-private collaborations.

The outstanding characteristics of ready-mix concrete are driving the market's growth, includeing the fact that it is mixed at facilities before delivery, offers superior quality than traditional concrete, and cuts construction time and costs. Rising population rates and crude oil prices in global markets are boosting the market's expansion in the upcoming years. Due to the government's reliance on crude oil revenue, which is predicted to remain at USD 97 per barrel in 2023 and USD 88 per barrel in 2024, it is expected to boost government revenue and eventually provide the government with more money for spending, speeding the completion of giga projects and subsequently fueling the growth of the ready-mix concrete market in Saudi Arabia. The market expansion, however, is being constrained by the moderate expenditures needed to set up ready-mix concrete factories and the difficulties businesses encounter in handling concrete from the mixer to various sites of work.

The Saudi Arabia Ready Mix Concrete Market is segmented based on production site, product type, application, region and company. Based on application, the market can be segmented into commercial, residential, industrial, and infrastructure. Based on the application, it is anticipated that the residential segment is expected to be expand at a strong CAGR during the forecast period, which can be attributed to factors such as low mortgage rates, strong economic growth, rising demand for affordable housing, and a fastening rate of urbanisation throughout the kingdom. The Commercial segment, on the other hand, is anticipated to see quicker CAGR growth throughout the projection period. The growth of this market is being driven by government initiatives like the National Transformation Programme (NTP) 2020, which has drawn significant investments into the commercial sector. These initiatives, combined with rising demand for high-quality offices and a booming tourism industry, are also driving the market's expansion during the forcast period.

Key market players in the Saudi Arabia Ready Mix Concrete Market include:

• Saudi Readymix Concrete Company Ltd
• Al- Kifah Holding
• Saudi Building Materials Company Limited
• Bina Ready-Mix Concrete Products
• Qanbar Ready Mix
• Green Concrete Company CJSC
• Al Kathiri Holding Co
• Shoaheq Tiba Ready Mix Concrete
• Unibeton Ready Mix
• AL Sharq Ready Mix

“In Saudi Arabia, the market for ready-mix concrete is anticipated to grow in the coming years as a result of increased infrastructure spending by the governments, as well as affordable pricing and high-quality goods. The government's increasing focus on lowering reliance on the oil industry, rapid urbanisation, and rising demand for cheap housing units are some of the factors propelling the expansion of the Saudi ready mix concrete market during upcoming years. As part of Vision 2030, the Saudi Arabia government established a sovereign wealth fund with a maximum value of USD 2 trillion for the development of large-scale projects, including nine mega-projects including Qiddiya, the Red Sea Project, and NEOM, which are anticipated to lead to significant market growth opportunities. Therefore, the market growth of Ready mix concrete is expected to rise in the upcoming years” said Mr Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.