GCC Paints & Coatings Market - Segmented by End-user Industry, Technology, Resin Type and Geography - Growth, Trends and Forecast (2018 - 2023)
The GCC paints & coatings market is estimated to register a growth rate of 4.04% during the forecast period (2018 - 2023). Saudi Arabia is estimated to lead the market, due to the ongoing growth in the industrial and architectural sectors in the country. Water-based coatings are expected to be the fastest-growing type, by technology.
Increased Focus on Tourism and Construction
The GCC countries are known for their high-rise buildings and architecture. The regional market has witnessed rapid growth due to increase in the construction of hotels & restaurants, re-paints of old hotels and maintenance of architectural & decorative infrastructure (to attract tourists). The Saudi government has boosted infrastructure in key areas of transport, telecommunications, water, and agriculture, by allocating investments worth USD 44 billion in 2016. The Dubai Expo 2020, which is set to take place over a six-month period between October 2020 and April 2021, is estimated to attract more than 25 million tourists; this is expected to drive the market for paints & coatings in Dubai. Additionally, FIFA World-Cup in Qatar (2022) is anticipated to provide significant demand for paint and coating products in construction activities. Dubai is also focusing on other mega projects, such as the Al Maktoum International Airport expansion, whose current budget is estimated to be about USD 32 billion, and is planned to accommodate more than 200 million passengers/year. The other projects include, Dubai Holding/Emaar Properties and Dubai Creek Harbor, which is budgeted at USD 17.7 billion with a timeline of 30-year. These factors are expected to increase the construction output, which, in turn, is likely to increase the usage of paints and coatings.
Water-borne Technology - The Fastest Growing Type by Technology
The VOCs released from solvent-borne coatings is the core reason for the manufacturers switching to water-borne coatings. Also, other properties, like low odor, more durability, and more block resistance make water-borne coatings more preferable. There are many regulations from several governments, which support water-based coatings. These are usually used in several applications, which include transportation, building & construction, and industrial applications. In recent times there has been a propensity to seek coatings with high usability, and water clean-up characteristics among the users. Water-borne coatings meet the requirements and facilitate low viscosity as well, without the addition of low-molecular weight monomers.
Saudi Arabia to Lead the Market in the GCC Region
Saudi Arabia, an oil-rich country, has an emerging economy that had slowed down in 2017, over 2016, due to low crude oil prices and the country’s regulatory policy. The country has generated large-scale projects worth USD 800 billion to boost its infrastructure in the coming years. The government has expansive plans for the development of social infrastructure, transportation, and energy & utility construction in the country. The country’s primary growth in construction has been largely powered by the massive investments done by the government and increased inflow of FDI. Some of the major construction projects are: Junail II, Makkah Grand Mosque Redevelopment, Jeddah and Riyadh Metro, King Abdullah Port Expansion, The Kingdom Tower (Jeddah), King Abdullah Economics City of Rabigh, etc. Saudi Arabia is focusing on establishing itself as the automotive hub in the GCC region. Though the country is a large importer of vehicles and auto parts, it is now trying to attract original equipment manufacturers (OEMs) to open their production plants in the country to develop the domestic auto industry. Furthermore, the country is experiencing steady growth in new car sales, with the market expecting to reach one million units by 2020, growing at a rate of 6.7% per annum. According to the General Authority for Statistics, the automotive sector is expected to witness a growth rate of around 4%-5% every year over the next decade. All these factors are expected to rapidly drive the market for paints & coatings in Saudi Arabia during the forecast period.
Notable Developments in the Market
June 2017: The Sherwin-Williams Company completed the acquisition of The Valspar Corporation and created a global leader in paints & coatings industry.
Major Players: AkzoNobel, National Paints Factory, Jotun A/S, Al Jazeera Paints Co., Hempel A/S, and PPG, amongst others.
Reasons to Purchase the Report
To understand the impact of end-user applications on the market
Analyzing various perspectives of the market with the help of Porter’s five forces analysis
To understand the dominating technology in the market
Countries expected to witness the fastest growth during the forecast period
Identify the latest developments, market shares, and strategies employed by the major market players
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