GCC
construction chemicals market is projected to grow at a significant rate in the
upcoming years due to expanding infrastructure sector. Additionally, rapid urbanization
in the region especially in counties like UAE and Saudi Arabia is further
expected to support the growth of the GCC construction chemicals market. Besides, increasing focus on sustainable
construction and, the growing tourism industry in the region is further
expected to create lucrative opportunities for the growth of the GCC
construction chemicals market during the forecast period. The construction
sector earns & contributes almost 6.7% to the overall GDP of the GCC region.
Construction
chemicals, also known as specialty chemicals or building chemicals, are
chemical formulations specifically designed for the construction industry.
These chemicals are used in various stages of construction, from the initial
preparation of the site to the final finishing touches. They provide a range of
beneficial properties and functionalities to enhance the performance,
durability, and aesthetics of construction materials and structures. Concrete
is one of the most widely used construction materials, and construction chemicals
play a crucial role in improving its performance. Concrete admixtures, such as
plasticizers, accelerators, retarders, and waterproofing agents, are added to
concrete mixes to enhance workability, strength, curing time, and resistance to
water penetration.
Construction
chemicals are used to protect structures from environmental factors, such as
moisture, chemicals, and temperature fluctuations. Waterproofing chemicals,
sealants, corrosion inhibitors, and protective coatings are employed to prevent
deterioration, extend the lifespan of structures, and reduce maintenance costs.
Repair and restoration chemicals are used to fix existing structural damage and
reinforce weakened areas. Construction chemicals are also essential for
ensuring the safety and structural integrity of buildings and infrastructure.
Fireproofing materials, intumescent coatings, and flame retardants are used to
enhance fire resistance. Adhesives, grouts, and anchoring systems provide
strong bonds and secure structural connections.
Additionally,
with a focus on sustainable construction practices, construction chemicals are
used to improve energy efficiency in buildings. Thermal insulation materials,
reflective coatings, and cool roof systems help reduce heat transfer, enhance
energy performance, and contribute to environmental sustainability. Construction
chemicals also play a role in enhancing the aesthetics and surface finish of
buildings. Decorative coatings, colorants, texture enhancers, and surface
protection agents are used to achieve desired appearances, textures, and
finishes. These aspects are expected to accelerate the Gulf Cooperation Council
market expansion for construction chemicals for the forecasted period.
Expanding
Infrastructure Sector to Drive the GCC Construction Chemicals Market
The
expanding infrastructure sector is indeed a significant factor that drives the
growth of the GCC (Gulf Cooperation Council) construction chemicals market. The
GCC countries, including Saudi Arabia, the United Arab Emirates, Qatar, Kuwait,
Oman, and Bahrain, have been witnessing rapid development in various
infrastructure segments, such as residential buildings, commercial complexes,
industrial facilities, and transportation networks. In 2022, the total
number of infrastructure projects awarded in the GCC region is estimated to be
around USD 22.8 billion, which is 11.7 percent more than last year. In Oman,
there is a surge of three times in infrastructure projects estimated at around
USD 1.1 billion. Hence, this surge in infrastructure projects creates a
strong demand for construction chemicals, contributing to market growth.
The
GCC countries have been hosting major international events and undertaking
large-scale projects such as the FIFA World Cup 2022 in Qatar, the Expo 2020 in
Dubai, and various mega real estate developments. These projects require
significant construction activities, creating a substantial demand for
construction chemicals to ensure structural integrity, safety, and aesthetic
appeal. Along with events, the region experiences a significant rise in tourists
every year due to business, desert, and religious tourism where the need for
more places to stay is required. Such a growing need for hotels and resorts is
expected to upsurge the demand for construction chemicals and propel the GCC
construction chemical market growth.
There
is a growing emphasis on sustainable construction practices in the GCC region,
including energy-efficient buildings, green infrastructure, and eco-friendly
materials. Construction chemicals also play a critical part in achieving these
sustainability goals by enabling energy conservation, water management, waste
reduction, and improving indoor air quality. As a result, the GCC construction
chemicals market is experiencing substantial growth and is expected to continue
expanding in the foreseeable period.
Rising
Government Investments in Infrastructure Projects Propel the GCC Construction
Chemicals Market Growth
Rising
government investments in infrastructure projects are a key driver of growth in
the GCC construction chemicals market. Governments in the GCC region are
actively allocating significant funds toward infrastructure development as part
of their economic diversification strategies and long-term development plans. According
to the Saudi Arab Government report, there is a significant increase of 77
percent in infrastructure projects compared to the last year 2021 which cost
almost USD 9.3 billion worth of projects.
Apart from these, the KSA government has already invested in mega
projects like NEOM (USD 500 billion), King Salman Energy Park, and King Salman
Park through the Public Investment Fund (PIF) that is backed by the Kingdom of
Saudi Arabia. Thus, these investments have a direct impact on the demand
for construction chemicals in the GCC region.
GCC
countries have formulated comprehensive infrastructural development plans that
involve the construction of roads, bridges, airports, ports, railways, power
plants, water and wastewater treatment facilities, and other critical
infrastructure including Baynouna Solar Park, New Murabba. Government
investments in these projects create a substantial demand for construction
chemicals as they are essential for ensuring the quality, durability, and
sustainability of the infrastructure.
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Many
GCC countries are working towards diversifying their economies and reducing
their reliance on oil revenues. To achieve this, they are investing in non-oil
sectors such as tourism, real estate, manufacturing, and logistics like Neom City,
Saudi Arabia. These sectors require the development of supporting
infrastructure, such as hotels, commercial buildings, industrial parks, and transportation
networks like URB: the loop highway, which in turn drives the demand for
construction chemicals.
The
GCC region hosts major international events and undertakes mega projects that
require significant infrastructure development. These projects include World
Expos, international sports events, and large-scale real estate developments
like Ramhan Island. Governments allocate substantial funds for the successful
completion of these projects, leading to increased construction activities and
the corresponding demand for construction chemicals.
Governments
in the GCC region are increasingly engaging in public-private partnerships to
finance and execute infrastructure projects. In 2021, the Dubai Department
of Finance announced new Public-Private Partnership projects worth USD 6.81
billion that include 30 infrastructure, transportation, and urban development
projects. Besides, The Dubai Health Authority also declared about the
eight healthcare projects, whereas the Abu Dhabi Investment Office (ADIO) has planned
to procure infrastructure schemes worth USD 2.72 billion under the PPP model. These partnerships involve private companies
investing in infrastructure development in collaboration with the government.
Such initiatives result in the expansion of construction activities and create
a higher demand for construction chemicals.
GCC
governments emphasize sustainable construction practices and aim to build
high-quality infrastructure that meets international standards. Construction
chemicals play a vital role in achieving these objectives by enhancing the
strength, durability, and performance of construction materials, as well as by
promoting energy efficiency and environmental sustainability. As a result,
government investments in infrastructure projects drive the demand for
construction chemicals.
The
rising government investments in infrastructure projects in the GCC region have
a significant impact on the growth of the construction chemicals market. These
investments generate a strong demand for construction chemicals as they are
essential for the successful implementation of infrastructure development
plans, economic diversification initiatives, mega projects, and sustainable
construction practices. All the above factors are going to increase the demand
in the GCC construction chemicals market.
Recent
Development
- In 2023, Swiss chemicals company
Sika agreed to buy MBCC Group a leading global supplier of construction
chemicals, the former BASF Construction Chemicals, from an affiliate of
private equity firm Lone Star Funds for USD 6 billion. This acquisition
helps Sika AG to Enhance and increase its product portfolio in the GCC
region.
- In 2021, Sika GCC announced the expansion
of concrete admixture production capacity at its Doha admixture plant. By
expanding its production capacity, Sika will position itself as a supplier
of high-performance product technologies that are now produced locally and
easily available to consumers.
- In 2023, Saudi Arabia's Ministry of
Housing launched a new initiative to promote the use of construction
chemicals in the country. The initiative aims to reduce the cost of
construction, improve the quality of construction, and increase the sustainability
of construction projects. This in turn is expected to drive the growth of the
GCC construction chemicals market.
Market
Segmentation
GCC construction chemicals market has
been segmented into type, end user, and country. Based on type, the GCC construction chemicals market is segmented
into concrete admixtures, waterproofing chemicals, protective coatings,
adhesives and sealants, and others. Based on end users, the GCC construction chemicals market
divides into infrastructure and real estate. Based on country, the market can
be categorized into Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain.
Market
Players
Sika
GCC, Middle East Fosroc, Juffali Chemicals Company (DOW chemicals),Chryso Gulf
LLC, Saudi Basic Industries Corporation (SABIC), GCP Applied Technologies Inc.,
North Group Co. FZCO, Henkel Arabia, Jotun Saudia Co. Ltd., and Corrotech Construction
Chemicals (CCC) are some of the key players operating in the GCC construction
chemicals market.
|
Attribute
|
Details
|
|
Base Year
|
2022
|
|
Historic
Data
|
2018 – 2021
|
|
Estimated
Year
|
2023
|
|
Forecast
Period
|
2024 – 2028
|
|
Quantitative
Units
|
Revenue in USD
Million, and CAGR for 2018-2021 and 2022-2028
|
|
Report
coverage
|
Revenue forecast, company
share, competitive landscape, growth factors, and trends
|
|
Segments
covered
|
Type
End User
|
|
Regional
scope
|
Saudi Arabia, UAE,
Qatar, Kuwait, Oman, and Bahrain.
|
|
Key
companies profiled
|
Sika GCC,
Middle East Fosroc, Juffali Chemicals Company (DOW chemicals),Chryso Gulf
LLC, Saudi Basic Industries Corporation (SABIC), GCP Applied Technologies
Inc., North Group Co. FZCO, Henkel Arabia, Jotun Saudia Co. Ltd., and
Corrotech Construction Chemicals (CCC).
|
|
Customization
scope
|
10% free report
customization with purchase. Addition or alteration to country, regional
& segment scope.
|
|
Pricing and
purchase options
|
Avail
customized purchase options to meet your exact research needs. Explore purchase options
|
|
Delivery
Format
|
PDF and Excel through Email (We can also provide the editable
version of the report in PPT/Word format on special request)
|
Report Scope:
In this report, GCC construction
chemicals market has been segmented into following categories, in addition to
the industry trends which have also been detailed below:
- GCC Construction
Chemicals Market, By Type:
- Concrete Admixtures
- Waterproofing Chemicals
- Protective Coatings
- Adhesives and Sealants
- Others
- GCC Construction
Chemicals Market, By End User:
- Infrastructure
- Real Estate
- GCC Construction
Chemicals Market, By Country:
- Saudi Arabia
- UAE
- Qatar
- Kuwait
- Oman
- Bahrain
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in GCC
construction chemicals market.
Available
Customizations:
With the given market
data, TechSci Research offers customizations according to a company’s specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market
players (up to five).
GCC Construction
Chemicals market is an upcoming report to be released soon. If you wish an
early delivery of this report or want to confirm the date of release, please
contact us at [email protected]