KSA Fiber-Reinforced Plastic Market Outlook to 2028

KSA Fiber-Reinforced Plastic Market Overview

The KSA Fiber-Reinforced Plastic (FRP) market was valued at USD 5.6 billion in 2023, driven by the increasing demand for lightweight, high-strength materials in construction, automotive, and aerospace industries. The Kingdom's growing infrastructure projects and the push for sustainability, as outlined in Vision 2030, have been pivotal in boosting the adoption of FRP materials.

Major players in the KSA Fiber-Reinforced Plastic Market include Saudi Basic Industries Corporation (SABIC), Advanced Petrochemical Company, and Al-Babtain Group, which lead the market through strategic investments in high-performance composites and partnerships with global manufacturers to enhance their product offerings.

Key regions such as Riyadh, Eastern Province, and Makkah dominate the market, driven by substantial infrastructure investments, industrial expansion, and government-backed projects aimed at reducing the carbon footprint through advanced materials like FRP.

In March 2024, SABIC announced the completion of its FRP production plant expansion in Jubail Industrial City. The new facility, with an annual production capacity of 500,000 tons, is expected to meet the growing demand for advanced composite materials across multiple sectors, especially in construction and transportation.

KSA Fiber-Reinforced Plastic Market Segmentation

The KSA Fiber-Reinforced Plastic Market is segmented by type, application, and region.

By Type: The market is segmented into Glass Fiber-Reinforced Plastics, Carbon Fiber-Reinforced Plastics, and Aramid Fiber-Reinforced Plastics. In 2023, Glass Fiber-Reinforced Plastics held the dominant market share due to their affordability and widespread usage in construction and automotive sectors.

By Application: The market is segmented by application into Construction, Automotive, Aerospace, and Energy. The Construction segment led the market in 2023, driven by the Kingdom's ambitious infrastructure projects, including the NEOM megacity and other Vision 2030 initiatives. FRP materials are favored for their high strength-to-weight ratio and corrosion resistance, making them ideal for applications in construction and energy.

By Region: The market is segmented by region into Central, Eastern, Western, and Northern. The Central region, particularly Riyadh, dominates the market in 2023 due to noteworthy governmental policies supporting industrial growth and infrastructure development. Additionally, the Eastern region, with its strong industrial base in Jubail and Dammam, is a major contributor to the FRP market.

KSA Fiber-Reinforced Plastic Market Competitive Landscape

Company

Establishment Year

Headquarters

SABIC

1976

Riyadh, Saudi Arabia

Advanced Petrochemical Company

2005

Jubail, Saudi Arabia

Al-Babtain Group

1955

Riyadh, Saudi Arabia

National Composites Company

1992

Dammam, Saudi Arabia

Al-Kifah Holding Company

1987

Hofuf, Saudi Arabia

SABIC: Advanced Petrochemical is currently developing a new Greenfield complex in Jubail Industrial City, which includes a Propane Dehydrogenation (PDH) unit and polypropylene (PP) plants.The PDH unit will have a capacity of 843,000 tons per year, while the PP plants will each produce 400,000 tons per year, utilizing advanced technologies from Lyondell Basell.

Al-Babtain Group: In 2023, Al-Babtain Group partnered with a leading global manufacturer of FRP products to establish a joint venture for producing advanced composites in Saudi Arabia.This collaboration is expected to boost local production and reduce reliance on imports of advanced composite materials.

KSA Fiber-Reinforced Plastic Market Analysis

Growth Drivers

Rising Demand from the Construction Industry: The demand for fiber-reinforced plastic (FRP) in Saudi Arabia is heavily driven by the booming construction sector, which accounted for half of total FRP consumption in 2023. Mega projects like NEOM, The Red Sea Project, and Qiddiya, all part of Saudi Vision 2030, require advanced materials like FRP due to their durability, corrosion resistance, and lightweight properties. The Ministry of Housing and Public Works has committed substantial amount towards these projects, making FRP a critical material in achieving sustainability goals for the Kingdoms growing infrastructure.

Growing Demand in Automotive and Aerospace Industries: The push toward reducing vehicle weight to improve fuel efficiency and reduce carbon emissions has led to increased adoption of FRP materials in the automotive industry. As of 2023, the Saudi automotive industry saw a 16 % increase with the total number reaching 29,466 units, this growth has fueled the demand for FRP parts in the automotive, particularly in the production of body panels and underbody shields.

Technological Innovations in FRP Production: Saudi Arabia has seen substantial technological advancements in the production of FRP materials, including the development of automated manufacturing processes that reduce production time and costs. In 2023, the National Industrial Development and Logistics Program (NIDLP) allocated substantial amount for the development of high-performance FRP materials. These innovations have allowed local companies to compete internationally, with SABIC and other local manufacturers now supplying FRP to markets in Europe and Asia.

Challenges

High Production Costs: Despite its numerous advantages, the production of advanced FRP materials such as carbon fiber-reinforced plastics (CFRP) remains costly, especially when compared to traditional materials like steel and aluminum. As of 2023, the cost of producing CFRP in Saudi Arabia was approximately 3-5 times higher than that of steel.

Regulatory and Compliance Barriers: Regulatory inconsistencies and delayed policy implementation remain significant challenges in the KSA FRP market. While initiatives like Vision 2030 have driven growth, businesses still face uncertainties due to fluctuating import regulations and the slow adaptation of international standards.

Government Initiatives

Vision 2030 and NEOM Project: Saudi Arabias Vision 2030 outlines a strong focus on infrastructure development and sustainability, creating a favorable environment for the FRP market. Projects like NEOM, which aims to build a sustainable city using cutting-edge materials, are major drivers for the market.

National Industrial Development and Logistics Program (NIDLP): The National Industrial Development and Logistics Program(NIDLP) is astrategic initiativelaunched in2019 by the Saudigovernment todiversify theeconomy and enhancethe industrialand logisticssectors. This government initiative focuses on boosting the Kingdoms manufacturing capabilities, including the production of advanced materials like FRP.

KSA Fiber-Reinforced Plastic Market Future Outlook

The KSA Fiber-Reinforced Plastic Market is expected to witness strong growth in the forecasted period, driven by the continued expansion of infrastructure projects, the rising adoption of lightweight materials in the automotive and aerospace sectors, and the governments focus on sustainability and industrial diversification.

Future Market Trends

Expansion in Automotive and Aerospace Sectors: By 2028, the demand for FRP materials in Saudi Arabias automotive and aerospace sectors is expected to increase significantly, driven by advancements in lightweight material technology and growing regulations on carbon emissions. The Kingdoms automotive sector, in particular, will see increased use of carbon fiber-reinforced plastics (CFRP) to meet the 2025 fuel efficiency standards set by SASO.

Growth in Smart Infrastructure Projects: Saudi Arabias Vision 2030 will continue to drive the adoption of FRP materials in smart infrastructure projects across the Kingdom. By 2028, FRP will play a crucial role in the development of smart cities such as NEOM, where lightweight, corrosion-resistant materials are essential for building long-lasting, energy-efficient structures.
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