KSA Paints and Coatings Market Outlook to 2028

KSA Paints and Coatings Market Overview

The KSA Paints and Coatings market is valued at USD 1.7 billion based on a five-year historical analysis. This market is driven primarily by the booming construction industry, spurred by the Vision 2030 initiatives that aim to diversify Saudi Arabia's economy away from oil dependence.

Major cities like Riyadh, Jeddah, and the Eastern Province dominate the market due to their substantial ongoing construction and industrial activities. These cities are home to major real estate projects, government initiatives, and industrial activity, driving higher consumption of paints and coatings.

The Saudi Green Initiative (SGI) aims to reduce carbon emissions by 278 Mtpa by 2030.As part of this, the initiative targets connecting 2.8 GW of renewable energy to the grid, powering over 520,000 homes, with an additional 8.4 GW under construction and 3.3 GW under development.These efforts demonstrate Saudi Arabia's commitment to transitioning to a green economy and supporting sustainable growth in various sectors, including paints and coatings.

KSA Paints and Coatings Market Segmentation

By Product Type: The market is segmented by product type into decorative paints, industrial coatings, protective coatings, powder coatings, and marine coatings. Decorative paints hold a dominant market share due to their high demand in residential and commercial sectors. The increasing number of new housing projects and commercial real estate development.

By Application: The market is segmented by application into residential, commercial, industrial, automotive, and marine. The residential sector currently holds the largest market share due to increased housing projects and real estate developments. With the Saudi government's focus on improving housing infrastructure, the residential segment has seen consistent growth.

KSA Paints and Coatings Competitive Landscape

The market is dominated by a few key players, including local manufacturers like Jotun Saudia and Al-Jazeera Paints, alongside global companies such as Akzo Nobel and PPG Industries. These players have strong distribution networks, established brand presence, and extensive product portfolios, enabling them to maintain a foothold in the market.

Company

Establishment Year

Headquarters

Revenue (2023)

Employees

Product Portfolio

Sustainability Initiatives

R&D Spending

Market Presence

Jotun Saudia Co. Ltd.

1926

Riyadh, Saudi Arabia

Al-Jazeera Paints Company

1979

Abha, Saudi Arabia

PPG Industries Saudi Arabia

1883

Dhahran, Saudi Arabia

Akzo Nobel Saudi Arabia

1792

Dammam, Saudi Arabia

BASF Coatings Services

1865

Jubail, Saudi Arabia

KSA Paints and Coatings Market Analysis

Market Growth Drivers

Oil and Gas Sector Expansion: Saudi Arabia's oil and gas sector is set for robust growth, with110 new projectsplanned by Aramco between2024 and 2026, including67 in oil, gas, and petrochemicals. The government has allocated SAR 250 billionfor infrastructure investments, driving demand for industrial coatings and enhancing operational efficiency in the energy sector.

Growth in Automotive Manufacturing: Saudi Arabia's automotive sector is poised for rapid growth, driven by a young population, increased female drivers, and a substantial influx of expatriates, leading to over 600,000 new car sales annually.The sector is expected to contribute 12% of the country's GDP by 2030, generating millions of jobs and accelerating technological advancement.

Focus on Sustainable and Green Buildings: The Saudi Green Initiative aims to reduce carbon emissions and promote sustainability through green building practices. These buildings require eco-friendly paints with low levels of volatile organic compounds (VOCs). The 2024 investment in sustainable construction practices in Saudi Arabia, enhancing the demand for paints that comply with environmental regulations.

Market Restraints

Lack of Skilled Workforce: A shortage of skilled professionals in the paint application sector hampers the quality of work, particularly in industrial and large-scale commercial projects. In 2024, the Saudi Arabian General Investment Authority (SAGIA) reported a deficit of 40,000 skilled workers across the construction and manufacturing industries. This shortage results in project delays and subpar paint application, negatively impacting market growth.

Volatile Oil Prices Impacting Demand: Fluctuations in oil prices have a direct effect on infrastructure investment in Saudi Arabia, particularly in sectors dependent on government spending. In 2024, oil prices ranged high, causing uncertainty in infrastructure projects and reducing the demand for construction-related materials like paints and coatings during periods of low investment.

KSA Paints and Coatings Market Future Outlook

Over the next five years, the KSA Paints and Coatings industry is expected to experience growth driven by continuous infrastructure projects, increasing demand for eco-friendly paints, and the government's focus on sustainable development. The Vision 2030 initiative will play a pivotal role in transforming the construction sector, creating a positive ripple effect on the demand for paints and coatings.

Future Market Opportunities

Growth in Demand for Smart Coatings: Over the next five years, the demand for smart coatings, such as self-healing and anti-bacterial paints, is expected to rise. By 2029, smart coatings are projected to become a standard in commercial and industrial applications, particularly in high-tech industries such as healthcare and manufacturing. The Saudi governments investment in these sectors will drive innovation and adoption of advanced coatings.

Expansion of Paint Manufacturing in Special Economic Zones: Saudi Arabias special economic zones (SEZs), such as the Jazan Economic City, will become hubs for paint manufacturing due to favorable tax regimes and government incentives. By 2027, these zones will house multiple paint manufacturing units, increasing domestic production capacity and reducing import dependence.
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