Middle-East Paint Additives Market - Segmented by Product Type, Application, and Geography - Growth, Trends and Forecasts (2018 - 2023)
Saudi Arabia accounted for the largest share, accounting for around 35% of the Middle East market, while UAE is estimated to register the fastest CAGR through 2018 to 2023 (the forecast period).
Booming Construction Activity in Gulf Cooperation Council (GCC)
The demand for paint additives is increasing in the Middle East, due to the robust growth in the construction industry, in GCC, in all the segments (including residential, commercial, and infrastructural development). Huge number of ongoing and upcoming projects in the construction sector are anticipated to drive the demand for paints and coatings, which in turn, is anticipated to propel the market for paint additives in the region.
The inclusion of rheology modifiers in paints help adjust the flowing pattern of paints, while improving the paint’s viscosity and application characteristics. It helps to reduce the dripping and spattering of paint during roller or brush application. Further, it prevents the sedimentation of pigments within a formulation during transportation or even in normal storage of paints. All these factors have made rheology modifiers an important additive in paint. The growing consumption of paints and coatings will augment the market for rheology modifier in the near future.
Saudi Arabia to Dominate the Market Growth
Saudi Arabia, the oil-rich country, has an emerging economy that has slowed down in 2016, compared to 2015, due to lower crude oil prices and the country’s regulatory policy. The major end-user industries of paints & coatings additives are construction, automotive, marine, manufacturing, etc. The construction industry contributes around 8% to the country’s GDP; it is the largest construction market in the Middle East. The country has planned large-scale projects worth USD 800 billion to boost its infrastructure in the coming years. The government has extensive 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 investment done by the government and increased inflow of FDI.
The other major end-user industry of paint additives in the country is automotive. The country is focusing on establishing itself as the new automotive hub in the Middle East. Although 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, to develop the domestic auto industry.
The development of automotive sector is set as one of the five priorities in the National Industrial Clusters Development Program. With the growing use of all types of additives in paints will drive the market for paint additives over the forecast period. Major Players: AKZO NOBEL NV, ARKEMA, BASF SE, EVONIK INDUSTRIES AG, CYTEC INDUSTRIES INC., EASTMAN CHEMICAL COMPANY amongst others.
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