The Saudi Arabian industrial coatings is estimated to witness a healthy growth, at an estimated CAGR of over 3.5%, over the forecast period. The major factors driving the market studied are the increasing private investment participation in the Saudi Arabian region. The challenges in supply chain and logistics, and strict regulations on imports are expected to hinder the growth of the market studied.
- The growing oil and gas sector activities are expected to drive the demand for the market, during the forecast period.
- Upcoming infrastructure projects are projected to act as an opportunity for the market in the future.
Key Market Trends
Growing Oil and Gas Sector to Increase the Demand for Protective Coatings
- The growing oil & gas sector drives the industrial coatings market, as the sector involves operations, like drilling, wellhead, and sub-sea equipment, and this equipment requires coatings especially for heat & abrasion resistance, and for long component life.
- The Kingdom of Saudi Arabia has the second-largest oil reserves in the world, accounting for almost 266 billion barrels. Government-owned company, the Saudi Arabian Oil Company (Saudi Aramco), continues to identify new fields, expand existing fields, and enhances production, and thereby, is driving the coatings market.
- Saudi Aramco’s long-term plans are expected to drive the industrial coatings market in the forecast period.
- The company has announced its plans to boost the oil production at its Marjan offshore oilfield, by 300,000 bpd, and in Abqaiq (which is the company’s largest oil processing facility). Also, the company has announced its plans to expand production from its Zuluf and Safaniya offshore oilfields.
- In the next decade, the company aims to double its gas production to 23 billion standard cubic feet per day (scf/day). During its early phase, Fadhili gas plant is expected to process 2.5 billion scf/day from onshore.
- Owing to all the aforementioned factors, the market for industrial coatings in the country is projected to grow during the forecast period.
Growing Usage of Polyurethane Resins
- Polyurethane resins are thermosetting resins, which are produced by a reaction between polyalcohol and an organic di-isocyanate, which do not melt when heated.
- Polyurethane coatings are usually applied over primers and intermediate coats to provide a lustrous glossy finish, while maintaining resistivity and providing excellent performance against high levels of UV and other extreme weather conditions, in areas that are prone to high wear and resistivity toward a wide range of solvents.
- The demand for polyurethane-based coatings, during the forecast period, is expected to be augmented by the increasing infrastructural activities in the country. Moreover, they are seen as a potential substitute for epoxy resins.
The Saudi Arabian industrial coatings market is consolidated. Key players in the market include National Paints Factories Co. Ltd, Al-Jazeera Paints., AkzoNobel N.V., PPG Industries, Inc., and Jotun, among others.
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